Fleet Europe 64

JUne 2013 - # 64

DOSSIER

Car Leasing & Fleet Management MaNaGEMENT

Case Study Capgemini The Netherlands Jack Knol (Capgemini)

SCOPE

MaNaGEMENT

BUSINESS

Key-lessons from the Fleet Europe Taxation Guide 2013

The need to engage stakeholders in procurement

The ямВeet ambitions of BCA Europe

SaVE THE DaTE: FLEET EUROPE FORUM & aWaRDS 2013 NOVEMBER 21, 2013 IN PRaGUE VISIT WWW.FLEETEUROPE.COM/EVENTS FOR MORE INFORMaTION

Join the Global Fleet Executive Network

THE NEW SEAT LEON Technology to enjoy

For further details, please visit www.euroncap.com

ENJOYNEERING THE MOST BEAUTIFUL WAY OF DRIVING A FUNCTIONAL CAR Sleek and eye-catching, the new SEAT Leon is beautiful and practical. The Leon is designed for maximum performance with low consumption and great safety, making it a powerful choice for fleet. The latest technology is part and parcel of the Leon. Enjoy maintenance-free SEAT Full LED headlamps that light your way as well as advanced safety features like our Automatic Post-Collision Braking System and the Tiredness Recognition System, for which the Leon received the maximum 5-star Euro NCAP rating. The user-friendly EASYCONNECT system allows you to operate the Leon’s large array of infotainment and navigation options through a single touchscreen. Form and function live together comfortably in the new SEAT Leon.

Test drive it and enjoy the future of driving. / SEAT Full LED lights

/ Driving Assistance

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EDITORIaL

Long may you succeed

Speaking to a group of his peers a few weeks ago, Joe Carreira, EMEA Fleet Manager at MSD, said: “I don’t want to squeeze my car leasing partners. I want them to earn good money, so they will continue to support my fleet management strategy through a sustainable, long-term relationship.”

Not in the least because of the economic and financial crisis, car leasing has become much more of a commodity in recent years, with a clear focus on severe cost reduction efforts. But I think Mr. Carreira is right.

sschoefs@nexuscommunication.be Twitter : @StevenSchoefs

Not only is sustainability implicit in the concept of long-term operational leasing, it is also key in securing the stability of your European fleet management policy, and essential in order to create a business environment that allows fleet suppliers the space to tailor their services to your needs.

Of course, your bosses and your company’s shareholders map out corporate objectives for you to meet - but this should be a two-way street. In that respect, it’s good not to lose sight of the bigger picture: we are headed towards a labour market which is characterised by a growing number of retirees, and an intensifying shortage of motivated and qualified staff.

‘Don’t lose sight of the bigger picture’

To attract and retain valuable new staff members, your company will need to provide them with a secure, stable and rewarding work environment. Only this way will you come out on top in the new War of Talents, one that numerous economists predict will be even fiercer than the previous one - which was fought just before the outbreak of the current economic and financial crisis, five years ago.

To establish a sustainable partnership, fleet clients and suppliers have to be open and listen to each other. The Fleet Europe Forum 2013 in Prague on November 21, is an ideal occasion to do so, as we expect again more than 500 fleet decision makers to share experiences, to learn and to network. So save the date and visit our website www.fleeteurope.com/events for further information.

Steven Schoefs, Chief Editor

Your eyes on Global Fleet Management minipub horizontaal GF cover FEU.indd 1

28/05/13 12:41

FLeet eUroPe # 64

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SIMPLY CLEVER

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CONTENT

management I Fleet Europe Awards 2013

46

Price : 95.00 EUR

Discover the set up of the Fleet Europe Awards 2013 and register as a candidate.

TAXATION GUIDE 2013 The update on Company Car Taxation in Europe NETHERLANDS

SPAIN

GREECE

NORWAY

SWEDEN

CZECH REPUBLIC

HUNGARY

POLAND

SWITZERLAND

DENMARK

IRELAND

PORTUGAL

TURKEY

FINLAND

ITALY

ROMANIA

UNITED KINGDOM

FRANCE

LUXEMBOURG

RUSSIA

AUSTRIA

GERMANY

BELGIUM

COUNTRIES ONLINE: BULGARIA ESTONIA LATVIA LITHUANIA SLOVAKIA SLOVENIA

In collaboration with

DOSSIER I Car Leasing & Fleet

Scope

BUSINESS The Short Term flexible solution

Sponsored by:

53

Fleet Europe Taxation Guide

58

I DOSSIER I

Introduction: The year of stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.09 Exclusive interview with Leaseurope. . . . . . . . . . . . . . . . . . . . . . . . . P.11 Identity cards of the leasing and fleet management companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.16 Geographical presence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.26 Looking into the future. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.30 New: Fleet Manager Expert Corner . . . . . . . . . . . . . . . . . . . . . . . . . . P.31 Trends on CSR, Mobility & Telematics . . . . . . . . . . . . . . . . . . . . . . . P.32 Tendering, a crucial part of fleet management . . . . . . . . . . P.36 A closer look on captive leasing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.38

Management in Europe

The year 2013: organization, presence, service developments, and trends.

9

I MANAGEMENT I

3 Questions to Pim De Weerd, PHILIPS. . . . . . . . . . . . . . . . . . . . . . P.40 From fleet to mobility at Capgemini The Netherlands. . . . . P.42 Discover the Fleet Europe Awards 2013. . . . . . . . . . . . . . . . . . . . . P.46 Procurement: Engaging your stakeholders is a must. . . . . . P.48 The first Global Fleet Management Conference. . . . . . . . . . . . . . P.50

I BUSINESS I

News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.52 The flexibility of Short Term Rental . . . . . . . . . . . . . . . . . . . . . . . . . . . P.53 Interview : Peter Dietrich (BCA Europe). . . . . . . . . . . . . . . . . . . . . P.56 Interview : Oliver Lajara (Hyundai Motor Europe). . . . . . . P.57

I SCOPE I

Lessons from the Fleet Europe Taxation Guide 2013. . . . . . . P.58

COLOPHON

Steven Schoefs - Chief Editor - Fleet Europe (sschoefs@nexuscommunication.be)

Contributors: Tim Harrup, Frank Jacobs, Paul Herremans

Caroline Thonnon - Head of Business Development & Global Fleet Leader (cthonnon@nexuscommunication.be)

Layout: Un pas plus loin - info@unpasplusloin.com

Pierre-Yves Simon - IT & Web Manager (pysimon@nexuscommunication.be) David Baudeweyns - International Sales & Business Development (dbaudeweyns@nexuscommunication.be) Romina De Gregorio - Internal Sales & Operations (rdegregorio@nexuscommunication.be) Vanessa Digneffe - Internal Sales Support vdigneffe@nexuscommunication.be Kathleen Hubert - Head of Marketing & Smart Mobility Management Leader (khubert@nexuscommunication.be) Jonathan Green - Chief Editor Smart Mobility Management jgreen@nexuscommunication.be

Special thanks to: HervĂŠ Legenvre (EIPM), Bart Vanham (RBR PwC)

EDITOR

Thierry Degives, Managing Partner at Nexus Communication SA, Parc Artisanal 11-13, 4671 Barchon (Belgium) T. : +32 4 387 87 94 - Fax : +32 4 387 90 63 - www.nexuscommunication.be

FLEET EUROPE

www.fleeteurope.com - www.fleeteurope.com/shop Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.

FLEET EUROPE # 64

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With distance function, park assistance function and role model function.

The new E-Class. Efficiency in top form.

A Daimler Brand

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Fuel consumption urban/extra-urban/combined: 4.2–4.1/4.2–4.1/4.2–4.1 l/100 km; combined CO emissions: 110–107 g/km.

Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between Provider: Daimler AG, Mercedesstraße 137, 70327 Stuttgart

different types of vehicle. The vehicle shown features optional equipment.

Because you can’t be in two places at the same time, We are everywhere.

ALD Automotive takes care of your company car fleet in 37 countries worldwide, ensuring constant corporate mobility at an optimized cost.

With subsidiaries in Algeria, Austria, Belgium, Brazil, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hungary, India, Italy, Latvia, Lithuania, Luxembourg, Mexico, Morocco, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, and UK. ALD offers the widest direct geographical coverage on the market, with a direct presence in each of the BRIC countries.

www.aldautomotive.com

dossier

i Car Leasing & Fleet Management in europe

2013, the year of stability W

elcome to the annual Fleet Europe Focus on Car Leasing in Europe. In this dossier, we present our ‘traditional’ comparative list of the major leasing companies’ international presence, we analyse today’s leasing landscape in an exclusive interview with Leaseurope, the association that represents the European lease companies, and we delve into the future, in particular looking at new developments within Europe’s car leasing industry.

A comprehensive overview of the leasing and fleet management world

For the first time we have extended the scope of our leasing enquiry by also looking at the services and presence of the most important ‘third party’ Fleet Management companies in Europe. This because we see that fleet managers and their companies are not only working more and more with these third parties but they are also asking for a comprehensive overview of the leasing and fleet management world in one and the same place.

DOSSIER from p.9 to p. 38

We hope that this 2013 Focus gives you the inspiration and knowledge to enable you to manage your international fleet more efficiently in the future, as the funding aspect remains more than ever crucial to developing a successful policy and management outcome. ■ Steven Schoefs

FLeet eUroPe # 64

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dossier I Car Leasing & Fleet Management in Europe

“We are an industry that creates value” The last couple of years have been challenging for the car leasing industry in Europe, not least because of the re-adjustments that had to be made to residual values in the wake of the financial crises. Although the effects of the crisis are still with us there is sunshine on the horizon according to John Lewis and Renate Hemerik of Leaseurope, the association that represents the European lease industry. ond hand car market declined sharply.

It took firms by surprise, but leasing companies take onboard this risk. Today, the second hand car market is performing better.”

John Lewis of Leaseurope: “I can see opportunities for harmonization in the principles of taxation, but I don’t see direct harmonization of taxes.”

John Lewis, Chair of the Leaseurope Automotive Steering Group, is not ignorant of the challenges facing Europe, but sees opportunities for leasing companies and their clients. He told us, “This is a difficult time in Europe. In difficult times we tend to look at situations with fresh eyes. Some organisations are looking at leasing as a solution for the first time and others are seeing the benefits that leasing offers through a new set of glasses” One of the big benefits of leasing is fixed costs. “People don’t like financial surprises, certainly not in these volatile economic times.” says Lewis, adding, “Leasing doesn’t just consider the lease price, but also the Total Cost of Ownership (TCO) and provides control over fleet costs. The car leasing concept starts with defining a structured choice in terms of policy and vehicles,

and then it moves on to fixing the cost of that choice.”

“There is the finance aspect too.” adds Renate Hemerik, Chair of the Leaseurope Car Leasing Strategic Group. She says, “Capital is expensive. Leasing gives organisations access to new capital, makes sure taxation benefits are considered in funding decisions and provides secure funding.”

Do you think that the leasing industry has learnt lessons when it comes to managing residual values?

J. Lewis: “Leasing is a risk business.

At times leasing companies make a loss and at other time profits. We manage risk over long timeframes with the aims of being profitable and satisfying shareholders.” R. Hemerik: “As the crises took hold, smaller cars became more attractive and the sec-

Isn’t it difficult to assure price and risk consistency when technology moves forward with such a speed?

J. Lewis: “Is it changing as rapidly as you suggest? Diesel dominates in most European markets and has moved on rapidly in terms of efficiency. Take hybrid engines, in the beginning the industry was very cautious but we have embraced hybrids and I see evolution of technology, rather than a revolution. The challenge we have at the moment is the residual value of electric vehicles. With electric vehicles it is not easy to understand where the used car market is today and where it will head in the future.”

What is your reaction to claims that leasing companies are lacking transparency in their reporting?

J. Lewis: “Trust in relationships is important – so is transparency. The customer should set the expectation just as it would for other suppliers, say a cleaning company. The customer doesn’t want to know how much the cleaning company pays for a towel or a mop: they are paying for the services of the cleaning company. A company that wishes to know every aspect of expenditure should probably not

FLEET EUROPE # 64

P.11

dossier I Car Leasing & Fleet Management in Europe

like the Netherlands or Denmark, and you have countries that are the opposite. This is a block to openness at a European level.”

“We face exciting and challenging times”, says Renate Hemerik of Leaseurope. “Our business will change more in the next 5 years than it has in the past 20 years.” lease, but prefers to own the vehicles and arrange their own finance. A lease company should be able to focus its resources delivering what it has committed too in the SLA. But the lease client also has responsibilities. One of the reasons that pan-European lease agreements don’t work is the lack of buy-in from local countries, and that leads to demands for detail that are irrelevant when measured against the quality of service.”

R. Hemerik: “My motto for lease companies is ‘be transparent in what you do and what you earn, demonstrating why and how you justify the fees.’”

Are you in favor of a harmonized car taxation programme?

J. Lewis: “I can see opportunities for harmonization in the principles of taxation whether it is based on CO2 or air quality, but I don’t see direct harmonization of taxes. Certification is currently a huge problem and harmonization would enable the leasing sector to market vehicles across Europe. This would support residual values and the customer. “ R. Hemerik: “Today, we have countries with extremely high car taxation

P.12

FLEET EUROPE # 64

How is the lease situation today?

J. Lewis: “The industry is in a better position than it was in 2008. There is greater access to funding, technology and systems are improving all the time. In my home country, the UK, we have started to look how the leasing industry plays a role in the wider economy. We are exploring how our industry facilitates access to vehicles for all types of companies, how we promote the introduction of CO2 efficient vehicles, how we control the running cost of employee mobility.”

What about the maturity of the European car lease market?

J. Lewis: “The western European markets have moved from managing the metal asset to managing the human asset. In the Eastern countries we need to convince customers about the advantages of leasing, and build up and develop service networks. That’s fine and these markets will move on quite rapidly.”

R. Hemerik: “The fact that we have more mature and less mature markets makes leasing exciting. Leaseurope is about the collective and we are supporting local lease associations to become more professional.”

What are the challenges to be successful lease company in the future?

R. Hemerik: “We face exciting and challenging times. Our business will change more in the next 5 years than it has in the past 20 years. Technology, telematics and mobility are changing the landscape and then there’s new regulation and taxation schemes, and next generation labour forces to take account of. We need to keep abreast of change and be ahead of the curve.” ■ Steven Schoefs

What’s up with the new Lease Accounting Rules?

After several years of re-considering proposals to change the international accounting standard for leases and rental transactions, the IASB (International Accounting Standards Board, based in London) and FASB (Financial Accounting Standards Board, based in USA) have released a revised draft standard for public comment. The next step is to publish a final standard, only is not sure when.

Both Boards have modified the proposals since they were last exposed for comment in 2010.

Amongst the most important changes is a revised definition of a lease.

The discussion has been going on for many years – should all leased assets be on the balance sheet of the leasing customer, giving a more complete picture of a business’ financial position, and if so, how is this to be reported?

In Europe the current standard does not require operating leases to be reported in company accounts. Should this change in the future, a lessee (leasing customer) would identify the leased asset on its balance sheet and incur a corresponding liability for future rental payments.

John Lewis: “Will it happen?

Yes. When? In 2013 - unlikely.

A decision in 2014 – maybe.

Implementation in 2017 at the earliest. Will it make a big difference to car leasing? No. It is another accounting change and we will adapt.”

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dossier I Car Leasing & Fleet Management in Europe

Who’s who in the year 2013 ALD International Mike Masterson

CEO

Dr. Rudolf Rizzolli

Total number of staff

4,286

Total number of staff

250

Shareholders

Société Générale Group

Shareholders

Sixt AG

Active in the market since

1947

Active in the market since

1967

Size total Car Fleet in Europe

919,486

Size total Car Fleet in Europe

122,585

Organisation ALD Automotive did not open any new subsidiaries in 2012. The 4% growth has been achieved entirely through organic growth within its network of 37 direct affiliates. As of January 1, 2013, ALD Automotive’s fleet included 955,000 passenger vehicles and light commercial vehicles, an increase of 4.2% over the previous year. For 2013, the same priorities will remain, with a strong focus on emerging fleet markets where ALD Automotive has an established presence. ALD has more than 200 active International Framework Agreements. This milestone was reached in January 2013. ALD’s core strategy is primarily to to work from the existing network and increase penetration within the markets where it is present, with a focus on streamlining processes, improving quality of service and building synergies from its vast coverage and numerous customer relationships.

Outlook ALD expects the European car leasing business to increase marginally in terms of fleet size. Within an extremely depressed automotive market, the performance of corporate sales, although receding, remains relatively strong with the notable exceptions of Southern Europe (Italy, Spain, Portugal, Greece). The main driver for this ‘counter-cyclical’ growth of the leasing business is small and medium businesses which previously used to buy their cars outright – in a context where cash is a scarce resource, priority is given to core business investments rather than buying cars. And the full service leasing solution is totally in line with social and business trends (use rather than own, focus on core business).

However the picture is not all bullish: ALD sees a trend to de-fleeting amongst large corporates. It believes, however, that some major uncertainties remain, primarily related to the overall health of the economy of mature markets in Western Europe (Eurozone & UK). This context tends to accelerate fleet downsizing and put a lot of decisions on stand-by especially amongst large customers, which is not a sustainable situation. Fortunately, the company says, SME’s are proving to be a growth driver in Europe, and ALD is well positioned with a long-established strategy of white label partnerships with OEM’s (85 country agreements in place).

Market differentiator For ALD leasing is a financing method of the vehicle fleet, but not the only one.

ALD also considers fleet management as a core strategic product, and looking at developing it further. Also coverage is a strong USP, as is its white label partnership strategy.

What does ALD International think about: • Leasing prices: overall stable, with a possible downward trend due to low interest rates and the pressure on (net) car prices. In absolute terms, leasing prices are close to where they were 5 years ago, and sometimes lower.

• Residual values: overall stable. Used car prices are very low in absolute terms but RVs were drastically revised after the 2008-2009 crisis, and the shortage in 3-4 yrs old used cars in some markets could help sustain prices. The subject is obviously closely minored but no major shock is expected.

• Demand for Global Lease Offer and Approach: increasing, the question being what share of these initially global processes will turn into truly global decisions.

P.16

Sixt Leasing

CEO

FLEET EUROPE # 64

Organisation Alongside conventional finance leasing, Sixt Leasing also offers a wide range of other fleet management services. Sixt Leasing pushed its sales activities in 2012, which led to an expanded contract portfolio across all segments, including full-service leasing, fleet management and private leasing. Sixt says that the leasing market continues to be characterised by intensive competition that adversely affects the margins to be generated in new business. At the end of 2012 the business unit had a total of 62,200 leases, some 10.5% more than the previous year. When leases with Sixt’s worldwide franchise partners are included, the total number of contracts for 2012 stood at 123,500 as against the 118,500 leasing contracts recorded at the end of 2011 (+4.2%).

In 2012 Sixt Leasing implemented numerous measures to increase efficiency, including optimization in the procurement of vehicle and workshop services, and additional internal processes. In its operative business Sixt continued to enhance its profile as a full-service provider with strong consulting services and as an innovation leader. The profile of Sixt Leasing as a bank and manufacturer-independent full-service provider addressing all questions of mobility coverage for companies and private persons alike is also being highlighted.

As part of its internationalisation in 2012 the company focused in particular on strengthening and expanding its operations in existing markets. Particular attention was paid to extending market share and brand awareness in the countries in question.

Outlook Sixt Leasing states that it continuously examines further national markets and potential cooperation with franchisees. There is an increasing demand from corporate customers for standardised fleet solutions, above all abroad.

At the end of the year the company offered its customers leasing services in more than 50 different countries worldwide. A stronger weighting of services in the fleet management offering for companies will also remain a central issue for Sixt Leasing in 2013. Sixt Mobility Consulting, which also assists customers who do not work with Sixt for finance leasing and which provides advise in all questions of fleet management, is planning to extend its services still further in 2013.

Sixt Leasing assesses that full-service leasing continues to have positive market potential in the medium term. Thus, companies expect to reduce their fleet costs sustainably by outsourcing the handling of their fleet to a professional partner. All-round supplementary services, Sixt says, are playing an increasingly important role here, especially the full-service solutions ‘from one single-source’.

Market differentiator Sixt Leasing states that differentiators are: Mobility Services, Flexibility & Independency. Sixt provides complete mobility solutions – from fleet consulting & management over full service leasing, to long term or short term rental instead of just single car policies.

What does SIXT Leasing think about: • Demand for Global Lease Offer and Approach: increasing

Welcome to Fleet Europe’s annual questionnaire of European leasing companies which explores the strategies and tactics of the industry’s biggest players. This year we have not only focused on the multi-brand and captive car leasing companies, but have extended the scope of the questionnaire to include some of the largest third party fleet management companies.

So what does the European landscape look like? A sense of optimism and realism sums up the general feelings of all parties.

Athlon Car Lease International

Arval

CEO

Richard Sikkel

CEO

Philippe Bismut

Total number of staff

1,100

Total number of staff

4,839

Shareholders

Part of De Lage Landen’s Business Line «Mobility Solutions»

Shareholders

BNP Paribas Group

Active in the market since

1989

Size total Car Fleet in Europe

667,542

Active in the market since

1916

Size total Car Fleet in Europe

235,652

Organisation Despite the economic situation, Athlon Car Lease has been able to grow its fleet at a constant pace, resulting in a fleet of over 235.000 contracts at the moment. This figure doesn’t take into account the Partner network where there is also a constant pace of growth. Last year Athlon entered the Russian market in cooperation with Auto-Partners. It believes Russia has potential for growth and this move forms part of the strategy of following customers into new markets. Athlon is constantly exploring and striving to optimize its footprint within Europe and beyond, and says ‘More to come in 2013...’ Athlon Car Lease focuses on consulting customers which also means providing advice regarding their car policies. Additionally, Athlon Car Lease has developed a CO2 capped car policy that helps customers implement a policy which reduces their overall CO2 footprint. As part of the policy, drivers themselves are also encouraged and rewarded to go for a lower CO2 emission vehicle.

Outlook The Athlon philosophy is to offer a good and stable set of products to clients by own subsidiaries or via the partner network. It is also paying attention to the rise in mobility products rather than just car leasing products. Athlon intends to expand its own network as far as possible where clients want it to be.

Athlon is therefore not focusing only on car leasing, but also expanding its view and offering in the domain of mobility. It sees a trend from ‘ownership’ towards ‘usage’. This trend is not yet the same in all the countries, but particularly in countries with a high density of population it expects to see this kind of development. And in those countries in particular, it is working in close relationship with its customers on mobility products. The future of the market, Athlon believes, depends on economic development in Europe. Currently it is quite conservative and expects a stable business climate.

Market differentiator Athlon Car Lease is not focussing only on car leasing, but is expanding its view as well as its offers towards mobility. Athlon sees a trend from “ownership” towards “usage”.

What does Athlon Car Lease International think about: • Leasing prices: will stay stable or tend to raise, depending on the residuals • Residual values: are currently stable, but depend highly on the economic situation. If there is no economic improvement, residual values might even drop.

• Demand for Global Lease Offer and Approach: companies which are already international organised will demand for global lease. However companies which are currently not yet at that stage, will wait until the economic situation improves.

Organisation Despite an unprecedented crisis in the global economy and automotive industry since 2008, Arval managed to steer what it refers to as a steady course.

With a total financed fleet of 602,378 vehicles at the end of 2008, Arval has managed substantial increases over the years, to achieve a leased fleet of 688,734 vehicles at the end of 2012.

Looking back, Arval describes 2012 as a year of challenges, to which it was able to stand up thanks to a determination to develop and to improve the quality of customer service. Arval has opened 3 new country subsidiaries in 2012: Denmark, Finland and China, expanding its borders and country coverage.

Arval will continue to support its International Business Office. This department is fully dedicated to the implementation and management of large multi country international fleets through a single contact point service.

Outlook Arval expects the globalisation of fleet strategies to continue as major corporates pursue their efforts to seek greater efficiency within company car policies, while refining the number of service providers they use. Reducing their overall fleet costs also remains an objective for companies. The market in Europe will remain stable if not decline slightly. In the next three years, Arval expects further consolidation in the operational leasing industry. Arval expects also the return and full contribution and active participation of the HR departments to support changes in driver behaviour. In spring 2013, Arval Smart Experience was launched. Aimed at creating a different relationship with customers and drivers, Arval Smart Experience is offering ergonomic online tools and social networks. Arval Smart Experience has four applications, Arval Connect, Arval Fleet View, Arval Mobile+, Arval Drive Challenge, dedicated to fleet managers and drivers.

Market differentiator Arval focuses on quality of service and customer satisfaction. The Account Management Organisation, where the Client is at the heart of all activities, differentiates Arval from the competition. The Arval Account Teams were launched through One Arval, a strategic transformation programme within the company, where one of the pillars of this programme is to deliver unequalled service quality to its customers and drivers.

What does Arval think about: • Leasing prices: stable • Residual values: stable • Demand for Global Lease Offer and Approach: increasing

FLEET EUROPE # 64

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dossier I Car Leasing & Fleet Management in Europe

LeasePlan International CEO

CEO’s

Total number of staff

6,296

Total number of staff

Over 2,000

Shareholders

Global Mobility Holding B.V., owned by VW AG (50%) and Fleet Investments B.V. (50%).

Shareholder

BMW Group

Active in the market since

1997

Active in the market since

1963

Size total Car Fleet in Europe

532,550

Size total Car Fleet in Europe

991,051

Organisation LeasePlan’s current fleet is 1.34 million vehicles. The financial crisis saw some de-fleeting as companies looked to reduce staffing overheads in 2008.

2010 focused on recovery and in 2011 performance stabilised. Then in 2012 the fleet increased, along with average book value per vehicle. LeasePlan ended 2012 with a net growth of 33,943 vehicles over 2011. LeasePlan Russia was incorporated in October 2012, and is the 31st country of the LeasePlan group. Furthermore the acquisition of the Italian fleet and leasing arm of BBVA’s business was finalised in February 2013 and will help LeasePlan to expand its service capabilities in Italy. In the coming 12 months LeasePlan will make further steps in the global harmonisation of their products and services in order to offer the international clients a well-balanced and consistent service experience from Finland to Brazil. LeasePlan currently has over 600 clients with international agreements.

Outlook For the coming years LeasePlan International expects to see large global fleets continue to move towards centralisation of internal expertise and local best practises. More companies are seeking to optimise internal processes and achieve quality and economies of scale where possible, it says. It also expects a concentration of external partners and expertise. The need to optimise management processes and the increased focus on the business value of a fleet, will also further the trend of supplier concentration and outsourcing. Due to the perceived risk that outsourcing brings, global fleet operators will be looking for experienced, global partners with proven track records.

But also partners that keep on developing as the market context becomes increasingly complex. For example with fleet data, new combinations (with HR data, or with risk related data) bring new and potentially valuable insights and possibilities. This also brings new demands of expertise in terms of data mining, data protection, related legislation etc. This is why LeasePlan will continue to aggressively invest in innovation and expertise to make sure managing global fleets will remain easier for global clients.

Market differentiator LeasePlan states that its key and overriding strategic focus is on delivering the best and most relevant service value to clients. What this value is, much depends on the clients and their specific fleet objectives. This is where the LeasePlan International account team comes in. Together with the client it defines the specific objectives and results that the two partners deliver together through a combination of global fleet experience and local on-theground support.

What does LeasePlan International think about: • Leasing prices: Lease costs (including funding and SMR) don’t show significant changes. There are slightly different trend lines across each European market, dependent on factors such as economic (in)stability, fiscal regulations, inflation rates and pricing strategy of car manufacturers.

• Residual values: LeasePlan cost and market trend data shows a stable picture for list prices (overall modest increase) and RVs. With consumer confidence and demand is still relatively low, it is the lack of supply of used vehicles in some markets that continues to support residual values.

• Demand for Global Lease Offer and Approach: this trend will continue to develop as global companies are seeking to: o Reduce cost o Optimise global fleet sourcing and management processes o Ensure a common experience for all employees

P.18

Alphabet International Ed Frederiks & Nobert van den Eijnden

Vahid Daemi

FLEET EUROPE # 64

Organisation The acquisition of ING Car Lease in September 2011 boosted the company’s growth sharply and Alphabet now ranks among the top four in the segment with over 500,000 financed cars under management. It is represented in 19 countries and intends to use this stronger position to design and implement more innovative leasing and business mobility solutions to respond to its customers’ needs. Alphabet has cooperation agreements with UniCredit Fleet Management, a subsidiary of UniCredit Leasing, and with Business Lease, covering the Czech Republic, Slovakia, Hungary and Romania. Alphabet states that its current priority for the moment, however, is to enhance the portfolio of services at existing European subsidiaries. The long-term goal is to continue adding countries to the network. The number of Alphabet International Framework Agreements is constantly increasing and the company is continuing to develop relationships with established European customers.

These developments have delivered more than 20% growth within the European portfolio in 2012.

European customers are a strong pillar of Alphabet’s growth strategy and it has established a much larger sales team fully dedicated to managing them directly. Customers who have a fleet potential in excess of 1,000 units are managed centrally and locally by special teams. One of the main objectives is to become the preferred European supplier of every single European customer that has chosen to include Alphabet in its list of European mobility providers.

Outlook In terms of absolute volume Alphabet expects Europe, and in particular the top-7 markets, to remain the dominant fleet management region globally for the next few years. However, the BRIC-countries and Turkey are displaying impressive growth rates and will show greater volume relevance over the next few years. But drivers for fleet management in these countries, Alphabet believes, are a little different to those in Europe. Within the segment, Alphabet is seeing stability or slight growth in full-service leasing in core markets and strong growth in new markets. Products themselves will be more harmonised and with European tax regulations, specifically regarding VAT, changing, Alphabet believes that customers will be organising their purchases differently. This will have a positive impact on the segment. In international fleets, Alphabet sees a sustained push towards centralisation and streamlining. This year the focus at Alphabet is on sustainability and it is implementing a product offering for electric vehicles – AlphaElectric – in all markets. It is also developing a product for customers to compensate for the unavoidable CO2 emissions of their fleets.

Market differentiator Alphabet believes in individual fleet and mobility solutions, as each customer has specific needs. To meet these needs Alphabet provides flexible, innovative Business Mobility solutions, such as Corporate CarSharing and eMobility.

What does Alphabet International think about: • Leasing prices: Alphabet expects leasing prices to increase slightly in the coming 12 months. This will be caused by the expected interest rate increase and inflation.

• Residual values: On average, across Europe, no significant changes in residual values expected.

• Demand for Global Lease Offer and Approach: There will be a continuing globalisation and harmonisation of solutions. Also, by adding mobility topics to the “traditional” full service fleet management, employees’ mobility can be enhanced.

GE Capital

Business Lease

CCO

Maurice Benisty

CEO

Harm Nijlunsing

Total number of staff

+15,000 in Europe & +50,000 Globally

Total number of staff

285

Shareholders

Part of General Electric

Shareholder

AutoBinck Holding

Active in the market since

1992 (in Europe)

Active in the market since

1989

Size total Car Fleet in Europe

Over 220,000

Size total Car Fleet in Europe

44,300

Organisation GE Capital Fleet Services offers fleet management solutions, complimented by a comprehensive range of services – including consulting and innovative online solutions. GE Capital Fleet Services has an established, broad footprint, but it still remains responsive to new and emerging markets. The most recently opened subsidiary is in India. The company has over 100 international agreements in place, of which over 10 are global in nature. GE Capital Fleet Services believes that emerging markets such as Turkey and economies in Eastern Europe could be interesting to monitor from a growth perspective over the near future.

The company states that there are three pillars to its strategy to service international customers. The first of these is the provision of a highly skilled international team operating across Europe which has extensive expertise in planning and co-ordinating international fleet programmes. GE Capital thus has a dedicated pan-European team that supports customers who have fleets in more than one country and dedicated in-country teams which serve customers on a local basis and which are fully in tune with local requirements. Secondly, the delivery of innovative and easy-to-use online tools to provide fleet managers with the control and transparency they need to operate their fleets in the most efficient way. And finally, for over a decade, GE Capital has offered international customers a comprehensive fleet consultancy service called Key Solutions, where a dedicated team of consultants, independent from the sales team, can transform the way customers operate their fleets.

Outlook Overall, GE Capital believes the market will probably remain relatively flat but will provide opportunities for lessors who can demonstrate value added services to customers to support them to optimise their fleets.

Looking forwards, GE sees a trend for organisations to look to further harmonise and centralise fleet offerings with a more global approach to drive additional reductions in Total Cost of Ownership.

Market differentiator GE Capital has global scale – with considerable fleet operations across North America and Asia Pacific.

Additionally, through the Access GE programme, customers are able to benefit from the broader experience of GE and over 130 years of first-hand experience and be connected to GE experts in areas such as Operational Effectiveness, Leadership Development and Growth & Innovation.

What does GE Capital think about: • Leasing prices: stable • Residual values: stable • Demand for Global Lease Offer and Approach: growing

Organisation Throughout recent years Business Lease Group has consistently grown its fleet through acquisitions and organic growth. The fleet has evolved from 29,900 vehicles in 2009 to a total managed fleet of 43,300 at the beginning of 2013. With five fully owned entities in the Czech Republic, Hungary, the Netherlands, Poland and Slovakia, Business Lease is seeking opportunities in neighbouring and existing markets. Following the acquisition of Masterlease in the Netherlands in 2009, it completed the merger of KBC Autolease in Poland in 2012.

Business Lease assists its customers by providing consultancy focussed on reducing not only the Total Cost of Ownership but also CO2 emissions.

Apart from its online Blue Care Monitor, which enables customers to monitor driver behaviour, it has also set up a whole series of supportive activities to minimize the number of accidents, fines, CO2 emissions, over-mileage, replacement vehicles and fuel consumption.

Outlook Business Lease anticipates that the market will continue to be uncertain. However companies require mobility to carry out their business and make choices for downsizing and CO2 friendly engines. During the past few years there has been an increasing number of independent leasing companies being sold or simply retreating from the market. Due to volatile economical circumstances are companies forced to return to their core competences, Business Lease therefore believes consolidation will continue for the coming years.

Business Lease believes the market will remain volatile during 2013 and as a result (international) companies will remain cautious when investing in their fleet. Simply providing lease cars will not be sufficient, full service providers need to show their added value to keep their customers satisfied, it believes.

Market differentiator Business Lease differs itself from the competition by providing partnership and attention. After all, it points out, each leasing company provides the same car. Therefore, it is not so much the car but the attention and quality of the services. The slogan of Business Lease is thus: ‘same cars, better care’.

Citroën Finance CEO

Philippe Alexandre

Total number of staff

3,000

Shareholders

PSA Peugeot Citroën

Active in the market since

1919

Size total Car Fleet in Europe

208,863

Organisation During the period 2008-2013 the Citroën operational leasing portfolio increased by 9%. The main reasons for this include a successful range of vehicles with the launch of new C3, new C4, new C5 and the DS Line. Added to these are Citroën C4 Elysée and C4 L dedicated to the new markets.

Citroën also points to its residual values remaining at a stable level and to the launch of innovative services, with the creation, in close collaboration between Brand and Citroën Finance, of packages offering full services. The leasing company also refers to the Citroën network which is very close to the customers. In terms of international coverage, Citroën leasing products are currently offered in 24 countries of which 15 also provide the operational leasing product. Citroën Finance has a dedicated central structure in charge of synchronising the responses of the various countries concerned by international tenders.

Outlook Looking forward, Citroën brand says that its objective is to consolidate its offer and to improve it by implementing new solutions and services everywhere it already manages operational leasing with Citroën Finance support.

Car policies are never far from the expectations of both clients and leasing companies, and Citroën advises its own customers to build their car policy based on an efficient and green fleet, promoting the new ‘rules’ with regard to mobility. The purpose is to help the fleet manager to fit the best car to the professional needs of their drivers. The manufacturer says, “thanks to the Citroën PC & LCV range (especially to its HYbrid4 and electric cars), it is simple to implement car policies while lowering CO² emission rates and fuel consumption, enabling fleet managers to decrease their costs”.

Market differentiator Citroën Finance offers its international fleet clients a dedicated service close to their location.

Thanks to the Citroën network, Citroën Finance is able to propose a one stop shopping service which accompanies the car’s user in his daily life.

What does Business Lease think about: • Leasing prices: stable • Residual values: stable/slight increase • Demand for Global Lease Offer and Approach: stable/slight increase

FLEET EUROPE # 64

P.19

MAKiNg lEASiNg 2013 EASiER fOR 50 YEARS LeasePlan celebrates 50 years.

1971 Fleet management made easier with Open Calculation.

1963 Founded in Amsterdam.

2007 1992 International fleet management becomes easier with LeasePlan International.

WHERE CAN WE TAKE YOU? It’s surprising how fifty years can fly by when you’re working hard to make leasing easier! So we’re taking this opportunity to say thank you to our 1.3 million drivers, 100,000 customers and 6,300 employees in 31 countries. You’ve helped us on our journey – and we’re looking forward to the next fifty together.

If you’d like to join us, and make the most of our 50 years of innovation, expertise and experience, we’d love to talk.

Contact us at www.leaseplan.com.

It’s easier to track and report CO2 with GreenPlan.

dossier i Car Leasing & Fleet Management in europe

Volkswagen Financial Services CEO

Frank Witter

Total number of staff

10,133 worldwide

Shareholders

100% Volkswagen AG

Active in the market since

1949 with Volkswagen Bank

Size total Car Fleet in Europe

1,306,653

Organisation Between 2008 and 2013 Volkswagen Financial Services has grown from 1,505,000 to 1,808,000 contracts worldwide. In terms of geographical coverage, both directly and through equity participations and service contracts, Volkswagen Financial Services offers financial services for the Volkswagen Group brands in 40 countries worldwide. In addition to this, the company is continuously examining and analysing the attractiveness of new markets and expanding its offerings. For example in 2011 (looking beyond Europe for a moment) it founded a subsidiary of Volkswagen Financial Services AG in South Korea. It also opened a branch of the Volkswagen Bank GmbH in Portugal in 2012. Volkswagen Financial Services’ strategy was to exploit further growth potential in mature European markets based upon its solid market position and good customer relations in all the steps of the value chain. In particular, it is planning for expansion in the insurance business, expansion in the segment of nearly new used cars and expansion in worldwide fleet management.

Geographically, growth in developing markets in Eastern Europe, especially Russia is also on the cards. And in terms of the decreasing retail markets in many countries, Volkswagen expresses the hope that this will be compensated by the fleet business and that it can repeat last year’s performance level.

In particular, Volkswagen Financial Services hopes to increase fleet business in its home market of Germany, where it now has its own fleet management company ‘CarMobility’.

Outlook Looking at fleet management services, Volkswagen Financial Services sees these still growing in Europe. Fleet management, it points out, is often negotiated at an international level, but the execution is always local. Consequently, it is vital that local market specificities, idiosyncrasies and standards are taken into account. This means harmonised products and processes that meet all international standards while taking local specificities into account.

Volkswagen Financial Services is currently working on matrix pricing and has launched international reporting, which works in 22 countries – even on smartphones and tablets. So fleet managers can check their fleet, wherever they are. The best way of working is for the customer to formulate his expectations very clearly and give detailed information regarding each requested vehicle and service. Not only prices, but also the processes need to be analyzed and compared, says Volkswagen Financial Services , as often the difference is in the details. Country specifics must be considered.

Market differentiator The so called captive triangle: an extremely close working relationship with brands and dealers. On top of the Volkswagen brands, Volkswagen Financial Services can serve other brands. Their service network has over 9,000 dealer partners of the Volkswagen group across Europe.

Daimler Fleet Management CEO

Gero Goetzenberger

Shareholders

Daimler Financial Services is a 100 % subsidiary of Daimler AG

Active in the market since

First leasing activities at Daimler Financial Services date back to 1960

Organisation Daimler Fleet Management’s figures have developed steadily according to the company’s strategic milestones. The company does not publish numbers for particular segments but its parent company Daimler Financial Services (DFS) managed a worldwide portfolio (leasing and financing) of 81.7 billion Euros at the end of Q1 2013. At the end of 2008 the managed portfolio of DFS was 63 billion Euros.

Daimler Fleet Management is one of the largest providers of fleet management services in Germany, and is now set to broaden its business model and become stronger at an international level. Daimler Fleet Management will thus expand its activities in the UK, Italy and the Benelux in a first step, with other European markets including France, Austria and Switzerland to follow in 2014.

Daimler Fleet Management is also widening its business scope, expanding regionally and expanding the business model to multi-brand fleet solutions.

In 2011 parent company Daimler Financial Services (DFS) started operations in India, and last year in Malaysia. DFS is constantly evaluating market opportunities in growth markets. It will continue with this expansion adding innovative financial services products that keep customers mobile in all DFS markets.

Outlook When considering the choice of leasing supplier, Daimler’s advice to customers is that they should look at the overall package. A long term relationship with adjusted processes, international contact persons and a fair treatment of damages at lease-end generally has, the company says, a higher impact than a small monthly instalment.

Looking forward, Daimler expects stable growth in the car leasing business.

As times are challenging fleet clients need a reliable partner that offers top-quality services, and personal advice. These are competitive advantages the company says it can offer with the firm backing and the broad product range of Daimler Group. It also believes that fleet management services will become more and more important for corporate customers and therefore DFS expects to see this side of the business expanding too.

Market differentiator Daimler Fleet Management is the multi-brand fleet management company with the greatest automotive expertise. Using the large Mercedes-Benz and other vendors’ sales and service network it is able to deliver its services and products to customers worldwide.

What does Daimler Fleet Management think about: • Leasing prices and residual values: Offering its customers a stable competitive price supported by excellent service and support levels.

What does Volkswagen Financial Services think about: • Leasing prices: hard competition • Demand for Global Lease Offer and Approach: increasing

FLeet eUroPe # 64

P.21

dossier I Car Leasing & Fleet Management in Europe

Peugeot Finance

HPI Fleet & Mobility

Philippe Alexandre

CEO

Steffen Giebler

CEO

Carl Ortell

Total number of staff

2,608

Total number of staff

93

Total number of staff

150 in Europe & 2,400 Globally

Shareholders

PSA Peugeot Citroën

Active in the market since

1948

Shareholders

Privately-held

Active in the market since

1919

Size total Car Fleet in Europe

41,440

Active in the market since

1948

Size total Car Fleet in Europe

216,522

Organisation During the period 2008-2013 the Peugeot operational leasing portfolio, in its own words ‘slowed down’ by 5%. But the production level remains high and profitable thanks to a comprehensive range of vehicles, which has been complemented with the launch of Peugeot 3008, 5008, 508, 208 and 301 for emerging markets. Peugeot also points to the stability its vehicles enjoy in terms of residual values as helping its success. Residual values are certainly a major consideration for fleets when using leasing products. On top of these items, Peugeot has launched innovative services, with the creation, in close collaboration with Peugeot Finance marketing teams, of packages offering full services. Peugeot considers that the Peugeot network, very close to customers, is a major advantage.

Outlook Peugeot advises its own customers to build their car policy based on an efficient and green fleet, promoting the new ‘rules’ with regard to mobility.

The purpose is to help the fleet manager to fit the best car to the professional needs of their drivers.

The manufacturer says thanks to the Peugeot PC & LCV product it is simple to implement car policies while lowering the CO² emission rate and fuel consumption, enabling fleet managers to decrease their costs. When asked how Peugeot is looking to extend the car leasing and fleet management business from a pure B2B perspective to a B2E (Business to Employee) perspective, Peugeot once again uses the notion of proximity, saying that the proximity of the Peugeot network to the driver is the key point of the Business to Employee relationship. It allows the company to give a dedicated service, personalised to the need of the user, even when the operational lease agreement is concluded at an international level. Peugeot clearly sees its responsibility as accompanying the world challenge of sustainable development.

With its HYbrid4 and electric offering it helps companies in their will to participate to this challenge.

This also generates savings in the operation of the fleet.

Market differentiator Peugeot Finance offers its international fleet clients a dedicated service close to their premises.

Thanks to the Peugeot network Peugeot Finance is able to propose a one stop shopping service which accompanies the car’s user in his daily life.

Organisation HPI Fleet & Mobility currently manages around 45,000 vehicles and maintains business relations with all major manufacturers and leasing companies. HPI Fleet & Mobility is expanding rapidly: in 2009 HPI Fleet & Mobility took over Aral Fleet Management and in June 2010 the Masterlease subsidiaries in Belgium and France followed. Additionally, the operational business of Masterlease Germany was outsourced to HPI Fleet at the end of 2010. Since 2010 HPI Fleet & Mobility has been present all over Europe with operational subsidiaries. Geographical expansion in more countries of the EMEA region will be a priority in the near future.

Outlook HPI Fleet & Mobility expects to see lot of interest by a large number of companies but due to financial constraints this does not, it says, always lead to a consulting assignment, despite the fact that the right analyses are crucial to a reduction in TCO. There is, therefore, interest for an external independent examination but not always a budget available. HPI also foresees that there may be a lack of will to commit to a new model despite increasing interest. Due to pressure on savings, a clear view on data and a standardised fleet management model where possible, the trend to outsourced fleet management is further increasing, HPI believes. A further element to be taken into account is now the changes in accounting policies, which will lead to an increase in opportunities.

HPI sees a lot of companies looking into alternative funding solutions which will lead to alternative fleet management solutions. Offering a solution to the customers, it states, is more than just a car.

There is a clear demand for centralization of information not just for Western Europe but also an increasing demand to include CEE. Market differentiator HPI states that it is the only Fleet Management Company with a single IT system that is operated in every country location, offering the highest levels of transparency, data quality, consistency, standardisation and availability. This, HPI says, involves not just its own operations but enables its partners to work within its system. The product 1Invoice enables clients to let HPI do the full consolidation and payment of supplier invoices on the client‘s behalf. And at the end of the live cycle HPI offers solutions to remarket the car.

What does HPI Fleet & Mobility think about: • Leasing prices: increasing • Residual values: decreasing • Demand for Global Lease Offer and Approach: increasing demand looking for lower prices

P.22

ARI

CEO

FLEET EUROPE # 64

Organisation ARI has grown rapidly in the 2008-2012 timeframe, specifically, from around 600,000 vehicles in the US, Canada and Mexico in 2008 to 950,000 in these markets plus the UK now. ARI opened ARI Fleet UK in 2012 to serve the needs of its growing number of multi-national companies with fleet needs in the UK and to bring the company’s fleet management solutions to the UK fleet market.

Further expansion plans, ARI says, will be driven by customer need and as market opportunities arise. As one of the only fleet management companies whose business is 100% fleet, ARI states that it continuously invests in technology designed to lead the fleet industry in the handling of exponentially-growing fleet data as well as web-based and mobile tools necessary for aggregation, analysis and reporting of vehicle and driver data.

Outlook ARI anticipates a growing need for fleet consultative support related to global fleets, sustainability, technology, supply chain management and driver management. Because procurement-driven “unbundling” have proven to substantially reduce costs, ARI anticipates growing interest in pay-asyou-go and multi-bid services. The company also anticipates a growing demand for fleet management services that demonstrate quantitative value. This value will be client-dependent, based on different needs and fleet profiles. ARI says that it expects to see a continuation of a balanced approach based on a cooperative strategy. However, technology will continue to improve tools for better fleet transparency improving global fleet knowledge and extending global fleet reach and influence. Within this context it has developed ‘ARI Analytics’ which has been recognized for its ability to aggregate, analyze and report on ‘Big Data’ from multiple fleet data points.

Market differentiator ARI bases its approach on strategic partnerships with clients for complete integration of the fleet within the corporate operation to ensure the utmost transparency and productivity, along with the lowest TCO, for the best return on investment.

FleetVision

Fleet Logistics

CEO

Hans Damen, Global Managing Partner

CEO

Rainer Laber

Total number of staff (03/2013)

360

Total number of staff

Central team: Europe 6/Global 3+ local associated network partners

Shareholders

TÜV SÜD Group AG

Active in the market since

1996

Active in the market since

2008

Size total Car Fleet in Europe

More than 110,000

Organisation FleetVision describes its business model as providing strategic fleet management services, measuring its impact on the number of mandates and thus project related vehicles receiving its strategic support. Within this perspective, the number of vehicles ‘under management’ has developed significantly, rising to over 100,000 during the last 12 months. From a European perspective, the central team has been extended with Tobias Kern, in order to manage the increasing demand for independent fleet consulting. FleetVision has a track record of over 100 mandates from top Fortune 500 companies. As an independent external partner for strategic fleet and supplier network development, FleetVision supports its clients in development and implementation of international fleet strategies customized to the individual fleet needs. However, the company does not offer any operational day-to-day services, as it sees its strength in its neutrality: separating operational fleet services provided by ‘classical’ fleet management and leasing suppliers and its own strategic support services.

Outlook From a European perspective, Turkey and some of the smaller Eastern countries, are subject of becoming part of the international fleet program due to their market developments over recent years. FleetVision states that while TCO management is a very broad field, step one is always to generate transparency by a global reporting tool. Based on such aggregated information, a client specific TCO management approach will be developed by the company.

This will concentrate on the benefit versus the cost aspects of fleet vehicles.

Very importantly, believes FleetVision, TCO needs to be considered as a real Cost of Ownership by also taking ‘indirect’ indicators such as taxation into account, which requires very deep knowledge of tax regimes in a country or region.

FleetVision’s business represents a fleet management consulting business with ‘strategic’ fleet management provided by an external partner. Based on this background, it sees a clear trend towards increasing demand, whilst the context of these mandates in Europe narrows towards very individual ‘niche’ topics or is driven by ‘time-constraints’ of the in-house teams. Additionally, FleetVision sees the market splitting into providers focusing on operational excellence by withdrawing from the strategic field and those companies such as itself, focusing on strategic fleet support only and thus remaining independent from operational fleet service providers as a key part of their business model.

Market differentiator FleetVision states that it is the only true independent company for strategic fleet services with a global network.

What does FleetVision think about: • Leasing prices: increase • Residual values: decrease • Demand for Global Lease Offer and Approach: increase

Organisation In the period 2008 to 2013, Fleet Logistics more than doubled its fleet under management, thanks to a positive foothold in the market, recognition by the industry of the fleet management model it stands for, and the merger with FleetCompany in Germany.

Following its acquisition by a solid new shareholder end of 2012, professional services organization TÜV SÜD Group, the company wishes to double the current volume again over the next three years,while keeping quality and value creation for its clients as cornerstones. It has opened offices in Poland and the Czech Republic, is currently preparing the opening of offices in Turkey and Brazil, and continues to invest in its global reporting solutions.

The objectives of Fleet Logistics for the next 12 months, are to develop and rollout various projects related to investments made by the new shareholder. These are made in further evolution and scaling of infrastructure, IT and quality assurance programs. Next to this, the company is creating a dedicated Supply Chain Management team, in order to provide more in-depth advisory and ongoing management of vendors.

In what it describes as an ever more dynamic world, with many internal challenges for fleet operators (e.g. intra-company savings targets), and external challenges (e.g. mobility perspective). Fleet Logistics believes there will be a strong increase of interest in fleet consulting. It is therefore working together with TÜV SÜD Auto Plus, which offers expert consulting services both to fleet operators and fleet suppliers. Both companies do remain fully independent from each other, to ensure neutrality of advice and to focus solely of value delivery to the client.

Outlook The trend for fleet consulting is set to accelerate in the next three years, as changes occur more frequently and faster than ever before, and they need to be responded to even more promptly than in the past. Fleet decision-makers will have an even more strategic role in the company, as they have to continue taking care of the balance between HR, Procurement and Finance dimensions.

Furthermore, the area of responsibility for many fleet managers has (or is) evolving into a broader role. Typically this combines travel, mobility and facilities, which leads to a more holistic approach within the company. This, in turn, does generate many questions that can be expertly answered by industry experts such as Fleet Logistics and TÜV SÜD Auto Plus.

Next to this, Fleet Logistics expects significant growth in Eastern Europe, especially in full service leasing and fleet management services. Outside of Europe Fleet Logistics notices very strong interest in Brazil and Turkey. On the longer run, they see also movement in South Africa, Israel and the Middle East.

Market differentiator Fleet Logistics differentiates itself by remaining completely independent and neutral, enabling it, in its own words, to operate for the sole benefit of clients, and not for a bank, manufacturer or leasing company. Fleet Logistics is also the only organization which has the capability to deliver end-to-end fleet management services across Europe: from fleet strategy to outsourced fleet administration.

What does Fleet Logistics think about: • Leasing prices: Increasing discrepancies between countries, and continued differences between lease suppliers driven by their individual strategy, access to funds, and remarketing capabilities.

• Residual values: Increasingly challenging remarketing in Europe, requiring closer cooperation in the industry across the supply chain and stronger connection with the demand side of the market.

• Demand for Global Lease Offer and Approach: Strongly increasing interest to create global transparency on the fleet spend, to identify sourcing opportunities, and to increase levels of control.

FLEET EUROPE # 64

P.23

Think you can have too

Think Again.

Hyundai understands everyone is unique and that different people need different solutions. That’s why we’re proud to announce the arrival of our newest model, the all new Hyundai i30 3 door. More options for you to choose from, the same quality for you to enjoy. For more information, please proceed to Hyundai.com/eu Fuel consumption in MPG (l/100km) for New Generation i30: Urban 29.7-68.9 (9.5-4.1), Extra Urban 51.4-80.7 (5.5 - 3.5), Combined 40.9 -76.3 (6.9-3.7), CO 2 Emissions 162-97g/km.

much of a good thing?

dossier i Car Leasing & Fleet Management in europe

Czech Republic

Croatia

Denmark

Estonia

aLD International

ALD Automotive Subsidiary FSL+FL: 3,753 FM: 706 T. fleet: 4,459

austria

ALD Automotive Subsidiary FSL+FL: 46,227 FM: 18,487 T. fleet: 64,714

Belgium

Bulgaria

ALD Automotive Subsidiary FSL+FL: 12,678 FM: 85 T. fleet: 12,763

ALD Automotive Subsidiary FSL+FL: 2,733 FM: / T. fleet: 2,733

ALD Automotive Subsidiary FSL+FL: 17,398 FM: 2,288 T. fleet: 19,686

ALD Automotive Subsidiary FSL+FL: 992 FM: 6 T. fleet: 998

ALD Automotive Subsidiary FSL+FL: 17,277 FM: 1,326 T. fleet: 18,603

ALD Automotive Subsidiary FSL+FL: 183,927 FM: 118,801 T. fleet: 302,728

alphabet International

FSL+FL: 4,090 FM: 349 T. fleet: 4,439

FSL+FL: 34,662 FM: 187 T. fleet: 34,849

UniCredit Leasing FSL+FL: N.N. FM: / T. fleet: /

-

FSL+FL: 1,056 FM: 0 T. fleet: 1,056

-

-

FSL+FL: 71,603 FSL+FL: 11,622 FM: 0 FM: 17,443 T. fleet: 71,603 T. fleet: 129,065

aRI

-

-

-

-

-

-

-

-

-

-

-

arval

Subsidiary LF: 2,929

Subsidiary LF: 32,797

-

Subsidiary LF: 9,887

-

Subsidiary LF: 49

-

Subsidiary LF: 3

Subsidiary LF: 209,036

Subsidiary LF: 28,229

Subsidiary LF: 2,233

athlon Car Lease International

Auto-InterAthlon Car leasing Lease Belgium Network Partner Subsidiary T. fleet: 43,032

-

Business Lease Network Partner

-

-

-

Athlon Car Lease France Subsidiary T. fleet: 32,136

Athlon Car Lease Germany Subsidiary T. fleet: 29,334

Business Lease

-

-

-

Business Lease Czech Republic Subsidiary T. fleet: 7,500

-

-

-

-

-

Citroën Finance

Citroën Bank T. fleet: 6,735

Citroën Lease T. fleet: 5,838

-

PSA Finance T. fleet: 83

-

-

-

Citroën BusiCitroën Bank ness Finance T. fleet: 42,277 T. fleet: 106,723

-

Daimler Fleet Management

Mercedes-Benz Mercedes-Benz Financial Ser- Financial vices Austria Services BeLux NV Mercedes-Benz Financial Services Nederland NV

Mercedes-Benz Finans Danmark AS

-

Mercedes-Benz Daimler Fleet Financial Management Serivces France GmbH S.A.

-

Fleet Logistics

Subsidiary

Subsidiary

Managed from Subsidiary Rumania Network Partner

Managed from Subsidiary Czech Republic Network Partner

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Network Partner

Fleet Vision

yes

yes

yes

yes

yes

yes

yes

yes

yes

yes

yes

GE Capital

GE Capital Fleet Services Subsidiary

GE Capital Fleet Services Subsidiary

-

-

-

-

-

-

GE Capital Fleet Services Subsidiary

GE Capital Fleet Services Subsidiary

-

HPI Fleet & Mobility

Subsidiary T. Fleet: 600

Subsidiary T. Fleet: 2,600

-

Subsidiary T. Fleet: 450

-

Network Partner T. Fleet: 300

Subsidiary T. Fleet: 400

Subsidiary T. Fleet: 1,900

Head Office T. Fleet: 18,000

LeasePlan International

LeasePlan Österreich Subsidiary T. fleet: 25,248

LeasePlan Fleet Management N.V Subsidiary T. fleet: 51,870

-

LeasePlan Ceská Republika s.r.o.

Subsidiary T. fleet: 19,956

-

LeasePlan Danmark A/S Subsidiary T. fleet: 24,867

Swedbank LeasePlan Network Partner Finland Oy Subsidiary T. fleet: 20,017

LeasePlan France S.A.S. Subsidiary T. fleet: 92,973

LeasePlan Deutschland GmbH Subsidiary T. fleet: 81,412

LeasePlan Hellas SA Subsidiary T. fleet: 9,633

Peugeot Finance

Peugeot Bank T. fleet: 8,454

Peugeot Lease T. fleet: 4,875

PSA Finance T. fleet: 76

-

-

-

Peugeot Business Finance T. fleet: 99,211

Peugeot Bank T. fleet: 59,692

-

Sixt Leasing aG

Sixt Austria Headquarters Sixt Leasing Austria Subsidiary T. Fleet: 820

Sixt BelgiumHeadquarters Sixt Leasing Belgium Subsidiary T. Fleet: 820

Sixt Bulgaria Headquarters Tourist Service RAC Franchise Partner T. Fleet: 50

Sixt Czech Republic Headquarters Speed Lease a.s.

Franchise Partner T. Fleet: 2,900

Sixt Croatia Headquarters A-Anticus d.o.o.

Franchise Partner T. Fleet: 250

Sixt Denmark Headquarters Mobility Service Danmark A/S Franchise Partner T. Fleet: 50

Sixt Estonia Headquarters Transporent OÜ Franchise Partner T. Fleet: 65

Sixt France Headquarters Sixt Location Longue Durée Subsidiary T. Fleet: 2,800

Sixt International Headquarters Sixt Leasing AG Subsidiary T. Fleet: 40,000 (plus 14,500 FPM)

Sixt Greece Headquarters Lion Rental S.A. Franchise Partner T. Fleet: 2,400

Volkswagen Financial Services

Partnership with Porsche Bank Austria Network Partner FSL+FL: 126,100 FM: 8,400 T. fleet: 134,500

s.a. Volkswagen D’Ieteren Finance n.v.

Subsidiary

Partnership with ŠkoFIN s.r.o.

Porsche Bank Subsidiary Austria Network Partner FSL+FL: 514 FM: 0 T. fleet: 514

Partnership Partnership with DNB with the Network Partner importer

Volkswagen Group Fleet Solutions Subsidiary FSL+FL: 34,500 FM: 800 T. fleet: 35,300

Volkswagen Volkswagen Leasing GmbH Bank GmbH Subsidiary Subsidiary FSL+FL: 456,773 FM: 85,296 T. fleet: 542,069

Figures from 01/02/2013, Alphabet figures from 31/12/2012

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FLeet eUroPe # 64

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Mercedes-Benz Financial Services Ceská republika s.r.o.

Partnership with Porsche Bank Austria Network Partner FSL+FL: 19,966 FM: 0 T. fleet: 19,966

Finland

-

France

Germany ALD Automotive Subsidiary FSL+FL: 60,437 FM: 59,684 T. fleet: 120,121

T. fleet Total fleet / FSL Full Service Leasing / FL Financial Leasing / FM Fleet Management / LF Leased Fleet

Greece ALD Automotive Subsidiary FSL+FL: 3,498 FM: / T. fleet: 3,498

-

Hungary

Ireland

Italy

Latvia

ALD Automotive Subsidiary FSL+FL: 3,919 FM: 300 T. fleet: 4,219

Johnson & Perrott Network Partner FSL+FL: 1,600 FM: 400 T. fleet: 2,000

ALD Automotive Subsidiary FSL+FL:102,018 FM: 1,646 T. fleet: 103,664

ALD Automotive Subsidiary FSL+FL: 1,132 FM: 4 T. fleet: 1,136

Lithuania

Luxemburg

Netherlands

ALD Automotive Subsidiary FSL+FL: 783 FM: 2 T. fleet: 785

ALD Automotive Subsidiary FSL+FL: 9,210 FM: 169 T. fleet: 9,379

ALD Automotive Subsidiary FSL+FL: 21,613 FM: 2,104 T. fleet: 23,717

Norway ALD Automotive Subsidiary FSL+FL: 6,543 FM: 1,563 T. fleet: 8,106

Poland ALD Automotive Subsidiary FSL+FL: 7,050 FM: 176 T. fleet: 7,226

Portugal ALD Automotive Subsidiary FSL+FL: 11,818 FM: 2,301 T. fleet: 14,119

Rumania ALD Automotive Subsidiary FSL+FL: 6,012 FM: 1,116 T. fleet: 7,128

aLD International

alphabet International

UniCredit Leasing FSL+FL: N.N. FM: / T. fleet: /

FSL+FL: 24,405 FM: 927 T. fleet: 25,332

-

FSL+FL: 1,670 FM: 0 T. fleet: 1,670

FSL+FL: 86,935 FSL+FL: 43 FM: 447 FM: 0 T. fleet: 87,382 T. fleet: 43

FSL+FL: 10,567 FM: 274 T. fleet: 10,841

UniCredit Leasing FSL+FL: N.N. FM: / T. fleet: /

-

-

-

-

-

-

-

-

-

-

-

Subsidiary LF: 2,984

-

Subsidiary LF: 135,520

-

-

Subsidiary LF: 3,563

Subsidiary LF: 29,693

-

Subsidiary LF: 15,509

Subsidiary LF: 6,379

Subsidiary LF: 5,015

Business Lease Merrion Fleet Athlon Car Network Partner Network Partner Lease Italy Subsidiary T. fleet: 7,832

-

-

Athlon Car Lease Luxembourg Subsidiary T. fleet: 1,955

Athlon Car Lease Netherlands Subsidiary T. fleet: 98,083

-

Athlon Car Lease Poland Subsidiary T. fleet: 4,942

Athlon Car Lease Portugal Subsidiary T. fleet: 1,116

Business Lease Hungary Subsidiary T. fleet: 1,750

-

-

-

-

Business Lease The Netherlands Subsidiary T. fleet: 26,000

Business Lease Poland Subsidiary T. fleet: 6,100

-

-

Citroën Renting T. fleet: 2,347

-

-

Citroën Lease T. fleet: 1,875

Citroën Business Lease T. fleet: 113

-

-

Mercedes-Benz Financial Services Italia, Mercedes-Benz CharterWay S.p.A.

-

Subsidiary

Network Partner Subsidiary

-

yes

yes

yes

yes

-

-

Subsidiary T. Fleet: 400

aRI arval athlon Car Lease International

-

Business Lease

Citroën Renting T. fleet: 419

Citroën Finance

Mercedes-Benz Daimler Fleet Financial Ser- Management vices BeLux NV Netherlands, Mercedes-Benz Financial Services Nederland B.V.

Mercedes-Bens Mercedes-Benz Leasing Polska Financial SerSp. Z.o.o. vices Portugal – Instituicao Financeira des Crédito S.A.

Daimler Fleet Management

-

Managed from Belgium Subsidiary

-

Managed from Sweden Subsidiary

Subsidiary

Subsidiary

Globexpert Network Partner

yes

yes

yes

yes

yes

yes

-

Fleet Vision

GE Capital Fleet Services Subsidiary

-

GE Capital Fleet GE Capital Fleet Services Services Subsidiary Subsidiary

-

GE Capital Fleet Services Subsidiary

GE Capital

Subsidiary T. Fleet: 600

Subsidiary T. Fleet: 1,800

-

Subsidiary T. Fleet: 90

Subsidiary T. Fleet: 1,950

-

T. Fleet: 1,400

Network Partner T. Fleet: 300

LeasePlan Hungária Zrt. Subsidiary T. fleet: 8,791

LeasePlan Ireland Subsidiary T. fleet: 10,941

LeasePlan Italia Swedbank Swedbank S.p.A. Network partner Network partner Subsidiary T. fleet: 88,270

LeasePlan Luxembourg S.A. Subsidiary T. fleet: 8,576

LeasePlan Nederland N.V. Subsidiary T. fleet: 122,201

LeasePlan Norge AS Subsidiary T. fleet: 36,030

LeasePlan Fleet Management Polska SP. z.o.o.

Subsidiary T. fleet: 20,332

LeasePlan Portugal Subsidiary T. fleet: 91,645

-

-

Peugeot Renting T. fleet: 3,038

-

-

Peugeot Lease T. fleet: 2,936

-

Peugeot Business Lease T. fleet: 97

Peugeot Renting T. fleet: 1,079

Sixt Hungary Headquarters Franchise Partner T. Fleet: 800

Sixt IrelandHeadquarters Franchise Partner T. Fleet: 250

Sixt Leasing Italy Partner Leasys s.p.A. Network Partner

Sixt Latvia Headquarters Transporent SIA Franchise Partner T. Fleet: 1,500

Sixt Lithuania Franchise Partner Headquarters Transporent UAB Franchise Partner T. Fleet: 250

Sixt Benelux Headquarters Sixt Leasing BV Subsidiary T. fleet: 310

Sixt Poland Headquarters Eurorent Sp. z. o o.

Franchise Partner T. fleet: 150

Sixt Romania Sixt Leasing aG Headquarters Sixt New Kopel Romania SRL Franchise Partner T. Fleet: 2,500

Partnership with Porsche Bank Austria Network Partner FSL+FL: 9,025 FM: 19 T. fleet: 9,044

Volkswagen Bank GmbH Subsidiary

Volkswagen Leasing GmbH Subsidiary FSL+FL: 20,258 FM: 34 T. fleet: 20,292

Partnership with DNB Network Partner

Partnership with DNB Network Partner

Volkswagen Pon Financial Services Subsidiary FSL+FL: 35,000 FM: 7,000 T. fleet: 42,000

Volkswagen Bank Polska S.A. Subsidiary FSL+FL: 5,934 FM: 353 T. fleet: 6,287

Partnership with Porsche Bank Austria Network Partner FSL+FL: 38,421 FM: 2,689 T. fleet: 41,110

-

Figures from 01/02/2013, Alphabet figures from 31/12/2012

Partnership with importer Aautodisfusion Losch s.e.c.s.

Network Partner

-

Volkswagen Møller BILFinans AS Subsidiary

VW Financial Services Subsidiary

Fleet Logistics

HPI Fleet & Mobility LeasePlan Romania Subsidiary T. fleet: 7,507

LeasePlan International

Peugeot Finance

Volkswagen Financial Services

T. fleet Total fleet / FSL Full Service Leasing / FL Financial Leasing / FM Fleet Management / LF Leased Fleet

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dossier I Car Leasing & Fleet Questionnaire 2013

Russia

Serbia

Slovakia

Slovenia

ALD International

ALD Automotive Subsidiary FSL+FL: 13,394 FM: 1,603 T. fleet: 14,997

ALD Automotive Subsidiary FSL+FL: 1,945 FM: 1 T. fleet: 1,946

ALD Automotive Subsidiary FSL+FL: 1,977 FM: 32 T. fleet: 2,009

ALD Automotive Subsidiary FSL+FL: 1,295 FM: / T. fleet: 1,295

ALD Automotive Subsidiary FSL+FL: 45,644 FM: 4,412 T. fleet: 50,056

Alphabet International

-

-

UniCredit Leasing

-

Ari

-

-

-

Arval

Subsidiary LF: 6,027

-

Subsidiary LF: 4,322

Athlon Car Lease International

Auto Partners Network Partner

Business Lease

-

-

Citroën Finance

-

Daimler Fleet Management

Mercedes-Benz Financial Services Rus OOO

-

Spain

Sweden ALD Automotive Subsidiary FSL+FL: 17,147 FM: 2,943 T. fleet: 20,090

Switzerland

Turkey

UK

Others

ALD Automotive Subsidiary FSL+FL: 3,972 FM: 18 T. fleet: 3,990

ALD Automotive Subsidiary FSL+FL: 8,276 FM: / T. fleet: 8,276

ALD Automotive Subsidiary FSL+FL: 75,992 FM: 6,522 T. fleet: 82,514

FSL+FL: 34,009 FSL+FL: 3,607 FM: 36 FM: 2,418 T. fleet: 34,045 T. fleet: 6,025

FSL+FL: 3,842 FM: 0 T. fleet: 3,842

-

FSL+FL: 113,963 FM: 8,395 T. fleet: 122,358

-

-

-

-

-

ARI 40,000 managed cars

-

-

Subsidiary LF: 72,379

-

Subsidiary LF: 5,746

TEB Arval Subsidiary LF: 8,104

Subsidiary LF: 87,138

-

Business Lease Network Partner

Athlon Car Lease Spain Subsidiary T. Fleet: 6,525

Athlon Car Lease Sweden Subsidiary Start up

Interleasing FleetCorp Lex Autolease Network Partner Network Partner Network Partner

Business Lease Slovakia Subsidiary T. fleet: 2,950

-

-

-

PSA Finance T. fleet: 26

PSA Finance T. fleet: 25

Citroën Renting T. fleet: 2,943

-

-

Mercedes-Benz Mercedes-Benz Mercedes-Benz Financial Ser- Finans Sverige Financial Services Espana, AB vices Schweiz E.F.C., S.A. AG

-

-

UKRAINE Subsidiary FSL+FL: 3,896 FM: 635 T. fleet: 4,531

Total Europe

919,486

532,550 40,000 667,542

235,652

-

44,300 Citroën Finans T. fleet: 14,294

Citroën Finans T. fleet: 56

Citroën Contact Monitoring T. fleet: 25,109

Mercedes-Benz Finansal Kiralama Türk A.S., Daimler Fleet Services A.S.

Mercedes-Benz Financial Services UK Limited

208,863

-

Fleet Logistics

Fifth Wheel Managed from Managed from Managed from Subsidiary Management Czech Republic Czech Republic Czech Republic Network Partner Subsidiary Subsidiary Subsidiary

Subsidiary

Subsidiary

(Office opening Subsidiary Q1 2014) Subsidiary

-

Approx.

110,000

Fleet Vision

yes

-

-

-

yes

yes

yes

yes

yes

-

-

GE Capital

-

-

-

-

GE Capital Fleet Services Subsidiary

GE Capital Fleet Services Subsidiary

GE Capital Fleet Services Subsidiary

-

GE Capital Fleet Services Subsidiary

-

HPI Fleet & Mobility

-

-

Network Partner T. fleet: 250

Subsidiary T. fleet: 1,450

T. Fleet: 500

Network Partner T. fleet: 950

Subsidiary T. Fleet: 7,500

-

LeasePlan International

LeasePlan Russia Subsidiary Start up

-

LeasePlan Slovakia B.V. Subsidiary T. fleet: 6,271

-

LeasePlan Servicios, S.A. Subsidiary T. fleet: 77,090

LeasePlan Sverige AB Subsidiary T. fleet: 26,467

LeasePlan (Schweiz) AG Subsidiary T. fleet: 14,221

LeasePlan UK LeasePlan Ltd. Emirates Subsidiary T. fleet: 2,227 T. fleet: 146,086

Peugeot Finance

-

-

PSAFinance T. fleet: 90

PSAFinance T. fleet: 38

Sixt Leasing AG

Sixt Russia Headquarters Limited Liability Company RentaLine Franchise Partner T. Fleet: 150

Sixt Serbia Headquarters AAA-1 RENT d.o.o.

Franchise Partner T. Fleet: 100

Sixt Slovakia Headquarters GentleCar, s.r.o.

Franchise Partner T. Fleet: 120

Sixt Slovenia Headquarters ANTICUS d.o.o.

Franchise Partner T. Fleet: 270

-

Volkswagen Group Finanz OOO Subsidiary FSL+FL: 5,674 FM: 0 T. fleet: 5,674

Partnership with Porsche Bank Austria Network Partner FSL+FL: 3,835 FM: 728 T. fleet: 4,563

Volkswagen Finanncne Sluzby s.r.o.

Subsidiary FSL+FL: 25,647 FM: 0 T. fleet: 25,647

Partnership with Porsche Bank Austria Subsidiary FSL+FL: 24,197 FM: 1,466 T. fleet: 25,663

Volkswagen Finans Sverige AB (publ) Subsidiary FSL+FL: 15,899 FM: 0 T. fleet: 19,699

Volkswagen Financial Services

Figures from 01/02/2013, Alphabet figures from 31/12/2012

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FLEET EUROPE # 64

Peugeot Renting T. fleet: 7,825

VOLKSWAGEN LEASING Subsidiary FSL+FL: 298,576 FM: 35,864 T. fleet: 334,440

LeasePlan Otomotiv Servis ve Ticaret A.Ş Subsidiary T. fleet: 9,420

Peugeot Finans Peugeot Finans Peugeot ConT. fleet: 13,281 T. fleet: 126 tract Motoring T. fleet: 15,704

-

Sixt Swiss Headquarters Sixt Leasing (Schweiz) AG Subsidiary T. Fleet: 3,750

Sixt Turkey Headquarters Articar A.S Franchise Partner T. Fleet: 100

Sixt Leasing UK Partner Ogilvie Fleet Ltd Network Partner T. Fleet: 10,000 contracts

Sixt Leasing European Partners: Belarus Cyprus Israel Macedonia Malta Moldova Ukraine T. Fleet: 48,500

Partnership with importer AMAG Network Partner FSL+FL: 7,159 FM: 1,437 T. fleet: 8,596

Volkswagen Doğuş Tüketici Finansmanı A.Ş.

Network Partner

VOLKSWAGEN Subsidiary Group Leasing Subsidiary FSL+FL: 59,936 FM: 41,642 T. fleet: 59,936

T. fleet Total fleet / FSL Full Service Leasing / FL Financial Leasing / FM Fleet Management / LF Leased Fleet

+200,000 41,440

999,051

216,522

122,585

1,303,653

North america aLD International

USA, Canada, Puerto Rico Partner: Wheels, Inc. T. fleet: 310,045

South america

asia Pacific

Brazil, Mexico ALD Automotive FSL: BR: 9,231 - MX: 6,474 FM: BR: 1,517 - MX: 2,229

China, India, Australia, New Zealand ALD Automotive in China & India FleetPartners in Australia & NZ FSL: CN: 906 - IN: 7,999 - Aus/ NZ: 40,000 FM: CN: 478

alphabet International

ROW EU + ROW

africa Morocco, Algeria, Egypt ALD Automotive FSL: MA: 5,569 - DZ: 2,185 - EGY: 640 FM: MA: 8 - DZ: 39 - EGY: 316

387,636 1,269,122 -

Australia

502,074 aRI

arval

US, Canada, Mexico ARI T. Fleet: 910,000 Managed / Leased PHH Arval

By partner Total Fleet/Localiza/ Renting Colombia T. fleet: 140,586 Managed

By partner ORIX T. Fleet: 1,150,000 Managed/ Leased

By partner EQSTRA T. fleet: 78,328 Managed

Brazil LF: 12,340

India, China LF: 3,544

Morocco LF: 5,308

2,278,914 2,318,914 21,192 688,734

athlon Car Lease International

-

USA Donien

235,652 -

Business Lease

44,300 Citroën Finance

Daimler Fleet Management

Fleet Logistics

1,000

Argentina Peugeot & Citroën Financiacion T; Fleet: 1,000

209,683

United States Mercedes-Benz Financial Services USA LLC

Mexico, Brazil, Argentina, Puerto Rico

Covered by the FL Global Reporting solution

Covered by the FL Global Reporting Covered by the FL Global Reportsolution ing solution + Brazil office opening Q1 2014

Fleet Vision

yes

GE Capital

USA, Canada, Mexico GE Capital Fleet Services T. Fleet: 700,000+

yes

-

Australia, China, Japan, Hong South Africa Kong, Israel, New Zealand, Mercedes-Benz Financial Services South Africa (Pty) Singapore, South Korea, Thailand, Ltd Taiwan, Dubai, Indien, Malaysia

328,000 -

Covered by the FL Global Reporting solution + South African office opening in 2014

-

yes

980,000+

Australia, India, Japan, New Zealand, South Korea GE Capital Fleet Services T. Fleet: 280,000+

HPI Fleet & Mobility

1,200,000+ 1,994

Served from German Hub T. Fleet: 1,994

43,434 LeasePlan International

United States, Canada LeasePlan US Canada viaPartner T. fleet: 226,740 (not incl. partner in Canada)

LeasePlan Brazil LeasePlan Mexico T. fleet: 11,453

LeasePlan Australia LeasePlan India LeasePlan New Zealand T. fleet: 122,806

1,360,000

Peugeot Finance

Argentina Peugeot & Citroën Financiacion T. Fleet: 1,000

Sixt Leasing aG

Argentina, Brazil, Costa Rica, Dom. Rep., Mexico, Panama, Peru, Uruguay T. Fleet: 400

Volkswagen Financial Services

USA, Canada Volkswagen Credit Inc.

360,999

1,000 217,522 Singapore, Bahrain, Lebanon Mongolia, Qatar, Saudi Arabia Syria, UAE Franchise Partner T. Fleet: 600

Algeria, Morocco, Tunisia Franchise Partner T. Fleet: 200

123,785 -

Brazil, Mexico, Argentina Australia; China, Japan, India Argentina: Volkswagen Credit Compania Volkswagen Financial Services Financiera S.A. Pty Limited Brazil: Volkswagen Financial Services Brazil Mexico: Volkswagen Leasing S.A. de C.V.

Figures from 01/02/2013, Alphabet figures from 31/12/2012

1,200

-

T. fleet Total fleet / FSL Full Service Leasing / FL Financial Leasing / FM Fleet Management / LF Leased Fleet

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dossier i Car Leasing & Fleet Management in europe

Going forward

Next to technological and mobility issues, the car leasing and fleet management companies expect also a trend to more global fleet demands and the integration of emerging markets in international fleet management. Good news for you, as we have just launched our new Global Fleet Network on www.globalfleet.com.

The car leasing and fleet management market has changed radically over the past decade. and with the way in which companies’ are reconsidering the whole aspect of providing mobility to their employees, it certainly hasn’t stopped changing yet. So the major leasing companies give us an insight into how they see ‘the next big thing’.

I

t is perhaps not surprising that the growing international scope of fleet management is seen as an area for further development.

ALD International sees this in terms of more international policies, with emerging fleet markets getting on the map, while Arval expresses this as more demand for global solutions/ full outsourcing offers. Business Lease does not underestimate the amount of work to be done, saying that there is still a lot of ground to be covered before the market is able to offer an integrated solution in all regions. Daimler Fleet Management expects more and more customers to look for international and comprehensive fleet solutions that include services for the whole lifecycle of a

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FLeet eUroPe # 64

It is important to improve employee motivation.

fleet vehicle. It is not just about expanding, but also about added value: Fleet Logistics refers to optimal value from global transparency, regional fleet strategy and procurement, and local execution.

Technology No discussion about leasing/fleet management and its future goes on for long before technology makes an appearance. GE Capital talks of digitisation of the fleet industry assisting towards optimisation on Total Cost of Ownership, and says this will be a key focus area going forwards. LeasePlan International is in agreement stating that telematics and the wider availability of data will continue to become a topic that gains momentum, particularly with large international fleets.

It will eventually combine with reporting systems enabling clients a greater degree of visibility on their fleets. ARI refers simply to technology to improve fleet management and control.

dossier I Car Leasing & Fleet Management in Europe Drivers It seems to have been relatively recently that fleet managers and leasing companies remembered that whatever plans and strategies they may come up with, at the end of the day it is real human beings who drive the cars. Arval is sure that this issue will gain in importance and expects to see enhanced driver management and simple applications for drivers. ALD International, in a statement which refers to the shifting of the boundaries in this area, talks of acting on driver behaviour and areas that are not historically seen as car fleet issues.

And while the focus on drivers has largely been based on the impact they have on fuel and maintenance costs, reducing CO2 emissions… Daimler Fleet Management reminds us that it is also important to improve employee motivation by offering attractive and flexible car schemes to the user choosers and including corporate car-sharing.

Mobility Car-sharing brings us on to another growing concept, and yet one which is so basic it appears to be hardly worth mentioning. Companies provide cars to their employees for one of two reasons: to enable them to get around and do their jobs, come to work, and as part of benefits/satisfaction package. But even in the second case, the car provides mobility to the employee in his or her private/business life. So mobility gets to the top of the list one way or another. Athlon Car Lease International expects to see an increase in demand for mobility products, resulting in more flexibility with respect to customers and drivers. In this way mobility costs can be managed more accurately than in the past, it says, delivering cost advantages for companies. Alphabet International sees the industry analysing customers’ actual mobility needs and what they cost. This may result in individualised business mobility solutions, such as corporate car sharing and e-mobility – keeping companies mobile and their costs down. ■ Tim Harrup

FMCs are here to stay In this first Fleet Expert Corner Paul Herremans, former Senior Manager Global Sourcing PHILIPS Group reviews the possible interest of working with Fleet Management companies.

Sooner or later all corporate fleet operators will have to find an answer for the question which is the most effective way to manage their corporate fleet?

Outright purchasing of fleet cars with own funding is bringing full freedom of fleet service supplier choices and even more important full flexibility of term and mileage. However the fleet operator is bearing the full residual value risk and will have to cope with all the burden of operational fleet management activities.

Full service operational leasing is a convenience solution as the leasing company not only takes care of funding, but offers an extended portfolio of fleet services in a bundled package deal. Depreciation, the biggest single fleet cost element, is well under control as the residual value is fixed and guaranteed by the leasing company within predefined term and mileage bandwidths. Operational fleet management activities are dealt with by the leasing company.

But the pricing of the individual cost and service elements offered as the bundled lease rate for a specified car tend to differ significantly amongst leasing companies. From a purchasing point of view it makes sense to preselect multiple preferred car lease vendors in order to take advantage of these lease rate differences on a case by case basis. If the fleet operator does not want to cope with the additional burden of on-going competitive bidding and managing several leasing companies, outsourcing these fleet operations to a professional third party fleet management company sounds like the right way to go.

We would recommend building a business case in order to find out if outsourcing of operational fleet management activities does make business sense. In most cases the answer will be YES. Then the next question to answer is whether or not a multi vendor approach for car leasing would pay off. Fleet management companies are well placed to make this work in day to day fleet operations. Of course their services do come with a service fee which needs to be paid back by cost savings from a competitive multi vendor approach. A dedicated and detailed cost benefit analysis is mandatory. ■ Paul Herremans, International Corporate Fleet Expert

FLEET EUROPE # 64

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dossier i Car Leasing & Fleet Management in europe

Getting ready for the new leasing reality Corporate Social Responsibility. Mobility. Telematics. These three words are shaping the discussion about the future of car leasing and the types of services that will be offered by suppliers. The evolution of these agenda items, driven by political, societal and market forces, will inevitably lead to changes in the leasing landscape.

A

car leasing company does what it says on the tin. It is in the business of leasing cars.

Times are changing however, and whilst the core business remains in leasing what is being leased and the portfolio of services being offered is evolving.

The transition from leasing cars with conventional power trains to hybrid and electric cars is part of a wider shift in the industry and society at large, as European and other developed nations attempt to wean themselves of the black gold and invest in renewable, cleaner and more efficient energy sources. The move by leasing companies to offer scooters and, to an extent bikes, is a deviation but not a departure from the core offer of leasing assets.

The movement taking place elsewhere though is where the real action is.

More than the motor vehicle The trend towards providing mobility solutions is perhaps the most radical element of the shift in focus. Providers are offering a more flexibility in leases than ever before and exploring total transportation solutions. The trend amongst the larger international leasing companies to provide a ‘flexible vehicles’ evidences this shift. Having observed that most drivers only need big cars from time to time, for example for their holidays, offering a smaller

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A strong business model for leasing of electric cars is a pre-requisite of success as is the taxation environment. leased car provides an attractive proposition for corporate clients and drivers. It reduces fuel bills and CO2 emissions, and providing an electric bike or scooter alongside a leased car solution, also achieves the same result.

The scope of the shift goes wider and deeper. Leasing companies are providing rail passes so that ‘drivers’ can conveniently use another mode of transport. Promoting the train as a solution seems to be counter-productive, but corporates are seeking total mobility solutions rather than a one size must service all approach. At least

one leading supplier is developing a mobility card that can be used for multiple transport modes, thus encouraging the use of the best mode of travel rather than forcing corporates and employees to choose the car and only the car.

These new and flexible solutions present an administrative change, with fleet manager and driver scepticism that they cannot be effectively implemented and managed on a larger or international scale. As a result initiatives are being deployed on a local level. These are pilot schemes in mobility

www.kia.com

EvEry FlEEt nEEds a Flagship.

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international Car Of The Year 2013 7-year warranty* fuel consumption from 4.9 l/100 km Up to 177 pS with only 119 g CO2/km**

The Kia OpTima: BOrn TO lead The Kia fleeT. With its bold looks, the Kia Optima has received several design awards. Its convincing high-quality materials and state-ofthe-art technology make the interior of the Kia Optima a real comfort zone for its passengers. Besides diesel and petrol engine options, the Kia Optima offers a hybrid powertrain with surprisingly low CO2 emissions of only 119 g/km, which makes it the first D-segment petrol hybrid launched in Europe. But ultimate peace of mind for fleet customers derives from its 7-year warranty – just like any other Kia fleet member. Simply put, it runs in the family.

Meet a different kind of fleet: www.kia.com/eu/fleet

* The Kia 7-year/150,000 km new car warranty. Valid in all EU member states (plus Norway, Switzerland, Iceland and Gibraltar), subject to local terms and conditions.

Fuel consumption (l/100 km)/CO2 (g/km): urban from 5.7/138 to 10.3/239, extra-urban from 4.4/116 to 6.1/142, combined from 4.9/119 to 7.6/177. ** For Kia Optima Hybrid.

dossier I Car Leasing & Fleet Management in Europe

Some leasing companies are providing rail passes so that ‘drivers’ can conveniently use another mode of transport. management offering an opportunity to explore what wider scale adoption could look like.

become the agent charged with improving safety and fuel efficiency for the fleet manager.

Drivers for change In the past few years eco-driving and safe driving courses have become commonplace, with leasing companies supporting their delivery. Smarter and safer driving helps to address two priorities of clients: Corporate Social Responsibility and improving fuel efficiency.

The driver is the lynchpin for improving fuel efficiency, reducing emissions, improving safety, lowering insurance premiums and ensuring vehicle maintenance. How can positive behaviours be proactively encouraged? One way is to incentivise drivers with rewards, and once again leasing companies are being requested to devise and manage incentive schemes.

To engage stakeholders a leading American fleet executive poses the question of the corporate consequences of a driver having an accident whilst using a mobile phone whilst on company business. The consequences, legally and to a corporates reputation, means that action of safer, smarter driving rises up the agenda.

Telematics Telematics have become a part of everyday life for many fleets and drivers, though one of the latest trends is communicating the use and deployment of telematic solutions. Fleet managers are outsourcing more than before and are looking for leasing companies to communicate directly with drivers, providing advice based on ‘driving styles’ obtained from telematics solutions. The leasing provider has

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Alternative propulsion All leasing companies have either developed or are developing strategies towards mobility provision, though alternatively powered cars. The most widely deployed is hybrids, whilst the most discussed is electric cars. The desire to reduce carbon emissions is driving the discussion and action.

Carbon reduction targets are now being embedded in corporate KPI’s. Transport, as a consequence, is a source of emissions under scrutiny. Leasing companies understand that for a electric car to be green the electricity source needs to be clean too. Alongside this, leasing companies are formulating models for ‘battery leasing’ as the complicated issue of ‘who owns what’ is not going to disappear any time soon.

A strong business model for leasing of EV’s is a pre-requisite of success as is the taxation environment and improved technology. These are blocks to a clearer outlook on residual values, warranty schemes, and possible demand.

Another area of increasing relevance to leasing companies is recharging infrastructure. The infrastructure is needed to ensure consumer confidence that EV can service business needs. At least one major provider talks of being engaged in delivering infrastructure, alongside providing smartphone apps to locate recharging solutions and training drivers to use EV’s.

Today’s leasing companies have to get engaged in new areas of operations in the move towards mobility management. The company car is no longer a means to an end and there are other avenues that clients expect leasing companies to explore.

The days when a lease company simply handed over the keys to a new car are gone. Clients expect more and a market that is focused on full service mobility presents opportunities for buyers and suppliers alike. The move today is towards that business model. ■ Tim Harrup & Steven Schoefs

The

Zafira Tourer

SaveS fuel, not performance.

Convinces with new 1.6 Turbodiesel engine and only 109 g/km emissions. impresses with 136 horsepower.

www.opel.com Fuel consumption 4.1 l/100 km; CO2 emissions 109 g/km (according to R/EC No. 715/2007).

dossier I Car Leasing & Fleet Management in Europe

Tendering for Success: A practitioner’s view On May 14, 2013, Fleet Europe hosted its very first webinar. With the support of vehicle leasing and fleet management company GE Capital, Fleet Europe tackled the subject of tendering - an essential aspect of today’s fleet management, and key to running a successful fleet programme.

H

ow to find the right partner(s) to support the delivery of your organisation’s fleet objectives? As we all know, this is one of the most crucial - and most difficult - questions facing any fleet manager. At the heart of this process is the tender document.

In the webinar, Jerome Van Lancker, LTCR Procurement Manager at Air Liquide, explained how he ran his tendering process last year. He was followed by Majk Strika, Business Development Director at GE Capital EMEA. OEM & car lease tender Air Liquide is a world leader in industrial and medical gases.

The multinational has a European fleet of about 8,000 vehicles under 3.5 tonnes. Last year, Jerome conducted a dual tendering process: one with OEMs, and one with leasing companies.

The whole process took 7 months in total, which is reasonable.

Most tenders will take between 6 and 10 months to conclude.

In February 2012, when the tendering process started, Air Liquide was working with 1 OEM and 3 lease companies. The service agreements with those companies were slated to expire that August.

Jerome Van Lancker kicked off the tendering process by creating a six-member team of ‘internal stakeholders’, who would decide on the objectives and the timing of the tendering process, and coordinate and run it efficiently. The team would also clarify the scope of the tenders (i.e. how many countries would be covered), the services to be included and excluded, the contract structure, and the requirements for reporting.

The main goal of the new tenders was to guarantee driver safety and satisfaction, but also to reduce TCO of the entire European fleet, to better master the cost of ownership over the long term, and to enhance service level agreements with suppliers.

“It’s important to get the right stakeholders involved from the beginning, as there is likely to be resistance within your organisation to change, especially on a topic as sensitive as cars”, says Jerome.

Majk Strika agrees: “Don’t look at tendering as an isolated process. It is a far-reaching process, that requires a clear mandate. Also, don’t underestimate the resistance your local fleet managers will put up, even if you arrive with ready-made solutions. I have dealt with over 500 tenders, and probably

Key lessons Jerome Van Lancker (Air Liquide): • “Be accurate: a lot of parameters from different suppliers need to be compared in the most useful and simplest way as possible.”

• “Be transparent: this will secure a long-term relationship between yourself, your company and your suppliers.”

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Majk Strika (GE Capital): • “Be precise, but avoid being too high-level : this will help you to compare the correct information that is related to your fleet and tender strategy more easily.”

• “Less is more: focus on a number of relevant cars and a number of durations rather than lots of imprecise data requirements.”

• “Ask the suppliers for evidence: what have they done for other clients, and can they prove their commitment?”

more than half have not been implemented. Often, a lack of internal involvement condemns the process to fail at the very first hurdle”.

Ideally, the internal coordination team includes not just the fleet manager and some of his team, but also representatives from Purchasing, HR, Finance, Legal, CSR and Social Partners. It is crucial to engage with all the stakeholders involved, and to agree and communicate efficiently about the agreed deadlines.

Be precise Another crucial element of the tendering process, says Jerome, is to meet the tender suppliers - in his case, OEMs and leasing companies - at the very start of the process, to explain to them the exact objectives and the content of the tender.

When preparing the Request for Information (RFI) and Request for Quotations (RFQ), asking precise questions is the essential prerequisite to getting correct answers.

“Don’t overcomplicate things, because that increases the risk of miscommunication and errors”, says Jerome, who presided over the writing of the RFI and RFQ at Air Liquide in March 2012. Both were sent out to the OEMs in April and to the leasing companies in May. “As our main objective was driver safety, we asked for vehicles with a five-star NCAP rating only. We also included a complete TCO approach in our tender parameters, so that all cost elements were embedded, eliminating the risk of nasty price and cost surprises further down the line. Equally relevant were certain CO2 emission criteria (to be managed operationally by local fleet managers), compulsory vehicle equipment, and additional fuel and tyre management services.”

“Last but not least, you have to be strict on mileage parameters. It’s always a good idea to put in different mileage/duration requests, as this can have a big influence on leasing prices. In the end, what mattered to me was to get a clear figure for the overall rent amount, rather than know the separate price for each of the different services attached.”

Adding to this, Majk Strika says: “Before you go out to tender, it is advisable to get a clear picture of the cost and service situation as it is now, and how it should be in the future. The focus should be on both total contract cost, and the additional value that a supplier can deliver to you. Should you have specific requirements for your prospective suppliers, mention these from the outset. As for leasing prices submitted to the tender, remember that implementation will be months down the line, and prices can become outdated.”

“Don’t forget that there will be a cost attached to changing from current fleet suppliers to new ones for some time, as there is no business case to be made for early contract termination in full-service leasing. Be as open as possible on the anticipated framework, on the duration and mileage, on the additional services you require, and on the potential volume you can grant to a supplier. All this will help you develop a sus-

tainable relationship with your new business partners.”

About the trend towards standardises RFI and RFQ documents, Majk Strika says: “This may give the supplier the opportunity to learn about the tendering activities, I’m not so sure whether a tender document with 100 standard questions is better than one with 30 or 40 very specific ones, related to that particular company. Instead of checking and discussing elements that every supplier can provide in more or less the same way - maintenance and tyre services, for example - the client should concentrate on which specific challenges need to be overcome. So ask for the supplier’s unique selling propositions (USPs).” ■ Steven Schoefs

Listen to the recorderd version of the webinar The webinar on “Tendering for success: A practitioner’s view” has been recorded and is now available on www.fleeteurope.com

With the support of

GE Capital

GE Capital is proud to have sponsored Fleet Europe’s first webinar on the topic of tendering and hopes that the webinar series will serve as a useful, on-going platform for fleet managers across Europe to discuss and share best practices with peers on a range of important topics.

As one of the largest suppliers of vehicle leasing and fleet management in the world, GE Capital delivers tailored fleet funding and fleet management solutions. This year marks the 10 year anniversary of Key Solutions, the comprehensive fleet consultancy service offered by GE Capital.

For over a decade, Key Solutions’ consultants have been at the heart of solving customers’ toughest fleet challenges.

By considering each aspect of a customer’s fleet, the team of experienced Key Solutions’ consultants create solutions tailored to customer needs with the objective of enhancing quality of service, reducing fleet costs and continuing to push and challenge strategic fleet policies.

Applying an innovative methodology, together with sophisticated tools and a strategic mind-set, Key Solutions’ consultants provide implementable solutions to save time, money and energy. As a result of Key Solutions’ recommendations, customers have implemented and realised over €80 million worth of cost savings in the past 5 years alone.

To see how Key Solutions could save you money, try the online cost savings calculator today and get an instant cost savings illustration based on your current fleet at www.gecapital.eu/keysolutions.

FLEET EUROPE # 64

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dossier i Car Leasing & Fleet Management in europe

Captive leasing companies are looking for new solutions When we talk about car leasing we almost automatically think about multi-brand car leasing companies, but forget that also car brand related captive leasing companies play a role in the development of international fleet management.

W

hile closeness to the brand is an obvious example, there are many other issues and the situation is not quite as clear-cut as it might have been in the past.

It is clear that captive leasing companies have an advantage in terms of their own brands. Where Citroën and Peugeot are concerned, both part of PSA, they talk of the ability to offer to international fleet clients a dedicated service close to their premises. They go on to speak of their respective networks whose effect is to be able to offer a one stop shopping service which accompanies the car’s user in his daily life, with maintenance, tyres, windscreens, repairs, etc.

As for Daimler Fleet Management, it also emphasises the fact of being part of Daimler. It says this means it is able to deliver the superior services and product of the Daimler Group to customers worldwide, and sees this as a major competitive advantage when dealing with international fleet customers who look for high-quality worldwide fleet solutions. And Daimler also refers to the ‘service aspect’, saying that it not only creates appropriate financing and leasing solutions, but also takes care of all fleet-related services such as repairs, tire replacement, fuel card management or cross-boarder fleets.

Not so captive Volkswagen Financial Services is particularly bullish about the characteristic of being a captive leasing company, stating that it makes a USP out of this fact. It also refers to the closeness it has to the brand, saying that one of its unique elements is a ‘captive triangle’ – an extremely close working relationship with Volkswagen Group brands and dealers. Despite the label ‘captive’, is this a totally accurate description of the way in which these companies operate? Not entirely, as these quotes show: ‘Because major fleet customers are often interested in operating mixed-brand fleets and issue Europe-wide calls for tenders, Daimler Fleet Management is expanding its portfolio by offering services for the complete fleet of all European customers including non-group brand vehicles – to maximize customer satisfaction’. And from Volkswagen: ‘We are better linked to our brands but can also

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The closeness to the brand stays on top of competitive advantages for captive leasing companies, even though more and more captive leasing entities are looking beyond their home brands. serve other brands’. Alphabet, part of BMW Group, has always made a point of stressing that it is a multi-brand leasing company. So perhaps the demarcation lines are becoming a little more blurred than they were in the past.

The non-captive major leasing companies nevertheless point to the advantages they can offer. One of these is that they have no ‘brand loyalty’ but believe they can offer impartial advice when it comes to selecting the right brand/model for the right job. And on top of this, they can offer cars from all of those brands which also have their own captive leasing operations.

There are quite clearly factors to be taken into account on both sides of the ‘captive or not’ discussion. It cannot be denied that captive leasing companies will always have more of an ‘inside track’ where their own brands are concerned. But it is also probably true that even where they are prepared to offer other manufacturers’ products, there may be a perception in customers’ minds that this is ‘not quite right’. Another trend which is likely to have an impact on all leasing companies is the evolution towards total mobility solutions. Some of the major players have already launched their own mobility services, and again on both sides of the divide and including both leasing companies and manufacturers. If the core business is spreading outside of just cars, this could mean that the notion of ‘one brand only’ is less in touch with the reality of company needs. But even in these new circumstances, captive leasing companies will have their cards to play and will be seen as offering certain advantages. ■ Tim Harrup

01 > Tout justifier

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Get recognised by your international fleet peers!

Apply now:

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www.fleeteurope.com/awards

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Management I 3 Questions to…

3 Questions to…

1.What are the key-objectives of your international fleet management role?

“At Philips my first objective in terms of fleet management, is to implement and roll out a Total Cost of Ownership driven Global Fleet Policy. This policy has to respond to 4 key-elements:

Pim De Weerd,

• The policy should be outlining the rights and obligations of both the local fleet responsible (fleet manager and/or local policy owner) and employees eligible for a company car that are set on an international level.

Sourcing Specialist at Philips

• The policy should enhance further harmonization and standardization supporting leverage of scale and more efficient fleet management processes leading to cost savings and cost avoidance.

• The new policy should embrace the sustainability ambitions of Philips and set guidelines and advise measures to

further reduce CO2 emissions.

• Safety both for the driver and the related environment are a key for Philips and should be covered through this policy.”

2.Talking about lease partners, what advice would you give them in order to optimize the relationship with the fleet customer?

“Within Philips we apply the behaviors: ‘Eager to win, Team up to excel and Take ownership.’

For leasing partners this means we expect them to be competitive, to establish a good connection between local and international level and take a proactive and a solution driven approach to their clients.”

3.How do you look at the possible integration of alternative powertrains and new mobility schemes in your fleet management?

“Such new mobility schemes need a tailor made approach.

The infrastructure, solutions and fiscal benefits are very different per country. We see some local initiatives but no international plans yet.” ■ Steven Schoefs

it’s not the c a r it’s our c a re

All leasing companies supply the same cars.

Therefore it’s all about care and the quality of service. Please visit our website at www.businesslease.com.

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peugeot.com

CARES ABOUT THE

IMPRESSION

HE GIVES

PEUGEOT 3008 HYbrid

PEUGEOT 508 HYbrid

PEUGEOT 508 RXH

CO2 EMISSIONS 88 G/KM

CO2 EMISSIONS 88 G/KM

CO2 EMISSIONS 107 G/KM

Combined consumption (l/100 km): from 3.4 to 4.1. CO2 emissions (g/km): from 88 to 107.

PEUGEOT BUSINESS LINE HYBRID-ECO RANGE

ManageMent i Case study

From fleet to mobility Jack Knol is responsible for Capgemini’s facilities and accommodation in the Netherlands, along with mobility management, smart working. In his own words, “the square meters and the kilometres”. The ambitious mobility plan he has put in place in the Netherlands encourages employees to be more ecologically-friendly without needing to mandate this.

C

apgemini is a global company with around 120,000 employees and a substantial presence in the BRIC countries, some 40,000 employees in India for example. The work embraces boardroom consultancy right down to workspaces and total infrastructure advice.

What sort of size is the car fleet here in the Netherlands and how ecological is it?

Jack Knol: “We have been reducing it and it is now down to about 4,000 cars. We have been reducing the size both because of the downsizing of the number of staff and because of the New Way of Working. We certainly have one of the greenest car fleets in the Netherlands and we have achieved this without having to make greener cars compulsory, simply through the new mobility budget.”

How does the mobility budget work?

Jack Knol: “This is what I refer to as a pocket of money which you can use for instance for a lease car, and we calculate the lease rate including fuel. So any car which is economic on fuel will give you a lower lease price. The remainder of the mobility budget is then for the employee. So as an example if

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your lease allowance including fuel is 800 Euros per month and you choose a car which comes out at 700 Euros, the remainder is paid to you as cash – subject to normal taxation. Then there is the bonus malus lease budget.”

The average CO2 emissions per vehicle come about 116 grams per kilometre.

Bonus malus is the system which ‘grades’ your insurance premiums.

Tell us how it works in a lease budget.

Jack Knol: “This is a system which is related to the use of the car. One of the main issues today, and the press is often talking about this, is that even if you select an eco-friendly car, it is not always as eco-friendly as it should be…

So we have calculated the actual fuel consumption of all the cars we have, and there are quite often wide varia-

tions with the manufacturers’ figures.

We have a spreadsheet which shows all of this – the number of kilometres driven with the car, the CO2 emissions from the fuel actually used. So in last year in the Netherlands our fleet covered 137 million kilometres and this produced two million tonnes of CO2.

If you look at a year earlier, this represents a decrease of 20%. But taking one particular model, the manufacturer’s claimed fuel consumption is 3.6 litres per km, but the actual figure we have achieved is 6.3 – 75% more. There are models where we do achieve the manufacturer’s figures, I should add.

This is one of the reasons we introduced the bonus malus lease budget.

The employee has a particular budget, he chooses a particular car including fuel costs within this, and he is scheduled to drive for example 36,000 km per year of which 10,000 km are private and 26,000 are for business. We also have a default 15% divergence figure for fuel consumption, which is used to set the budget. If the employee goes over this budget he will have to pay the difference, if he goes under it he gets the money back. Going back to our theoretical budget of 800 Euros where the employee chooses a car/fuel package of 700 Euros and gets the other 100 Euros back, he can now get back a bit

When fleet becomes mobility Jack Knol has developed a truly mobility strategy at Capgemini in the Netherlands that focuses on efficiency and employee satisfaction : “If your lease allowance including fuel is 800 Euros per month and you choose a car which comes out at 700 Euros, the remainder is paid to the employee as cash.”

of the 700 Euros too by driving carefully and within the parameters. This also encourages the purchase of fuel from cheaper urban stations rather than more expensive motorway outlets. This is advantageous to the employee because we use the motorway fuel prices for our baseline. Using the car less for private travel will also be financially beneficial to the employee.

A black box in the car distinguishes private from business mileage. So employees are encouraged to choose efficient cars and to drive them efficiently! The calculations and the monetary adjustment are made every four months.”

You mentioned green fleet, but what does this mean in CO2 terms?

Jack Knol: “I can use the example of

all the cars we ordered during 2012.

The average CO2 emissions per vehicle across the whole range came to about 116 grams per kilometre. Prior to that we were closer to the 130-140 gram mark.”

Have any of your employees given up their company cars altogether?

Jack Knol: “Yes, around 1,000 of the 4,000 and I’m one of them! I did this a long time ago. When I look at my own case as an example, I have quite a lot of choices to make. I use a motorbike in the summer sometimes, but as I live around thirty minutes away by ordinary bike, this is my preferred method when the weather permits. When I’m here at work I can use one of the two pool cars available to all employees if I need to go somewhere in a car. And giving up a car

means that the employee who is entitled to a car still gets the use of company-paid train travel (for own expense, and if it is business related they can deduct it from their mobility budget).”

Do any of these policies apply outside of the Netherlands as yet?

Jack Knol: “Not yet, but the group is very interested in what we have been doing in the Netherlands. The Head of my Department has been made responsible for facilities and accommodation for a large part of Europe with the intention that what we are doing here – reducing office space and introducing flexible working – will be done in other countries too.” ■ Tim Harrup & Steven Schoefs

Mobility, also at the Fleet Europe Awards 2013 Due to a combination of elements, like congestion problems, company car taxation issues, the growing need to balance private and professional life, the trend for Health & Safety in international corporations, and the new way of work more and more fleet managers and fleet suppliers are looking at mobil-

ity management concepts. Also at the Fleet Europe Awards we look at mobility management initiatives with the International Fleet Mobility Award. On page 46 of this magazine, you can find all details about this election and the Fleet Europe Awards 2013.

FLEET EUROPE # 64

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Management I Fleet Europe Awards 2013

It’s time to win your Fleet Europe Award This year’s categories Following the success of the previous editions, we are retaining our 7 different Award categories.All Award categories open to international fleet managers (fleet clients) will be evaluated by a heterogeneous jury of international fleet managers, lessors, car manufacturers, fleet specialists and people from Fleet Europe.

This jury will take into account the evolution of the candidate’s fleet policy, the implementation of key issues like sustainability, safety and driver behaviour and the view on cost control.

For the seventh time in a row, Fleet Europe will reward excellence in fleet management with the organization of the Fleet Europe Awards. This year you can be the winner on November 21, 2013 in Prague.

Yes, ladies and gentlemen of the Fleet Europe community!

We’re back. This year’s edition of the Fleet Europe Awards will be organized on November 21 in Prague, Czech Republic. For the 7th year in a row the European fleet community will gather to reward the finest fleet management achievements.

The Fleet Europe Awards represent the highest opportunity for international fleet professionals to get the recognition they deserve for bringing new solutions and management improvement to the market and to their company. The Award ceremony in Prague will once again close the annual Fleet Europe Forum.

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FLEET EUROPE # 64

This award rewards the person or the team having most successfully developed an international fleet management strategy leading to an optimised TCO. o Previous winners: Raphaëlle Jeanneret, Novartis (2007) Claus-Peter Krüger, Shell (2008) - Werner Berger, Nestlé (2009) – Bruce MacLaren, Microsoft (2010) – Ivor Johnson, Pfizer (2011) - Joe Carreira & Robert Patrick, MSD (2012)

This award is given to a company that has successfully implemented a green project for its fleet to optimize sustainability. o Previous winners: Akzo Nobel (2007) - Hewlett-Packard (2008) - Bayer (2009) – Nokia Siemens Network (2010) – 3M Europe (2011) – Bayer (2012)

This award is given to a company that has successfully implemented a fleet driven safety project, within the framework of the CSR strategy. o Previous winners: Shell (2008) – BP (2009) – Coca-Cola Hellenic (2010) – Nalco Europe (2011) – Almirall (2012)

6 reasons to participate

This award celebrates the company that has successfully implemented a mobility project for its fleet. o Previous winners: Barilla (2009) – Accenture (2010) – 3M Europe (2011) – BNP Paribas Fortis (2012)

This award rewards an innovative project in a specific field of fleet management (car policy, implementation, green, mobility or safety approach, driver satisfaction…). o Previous winners: Vodafone (2010) – IBM (2011) - BNP Paribas Fortis (2012)

For the International Fleet Europe Industry Award, an award designated to reward the innovative efforts of the fleet suppliers, a second jury of only international fleet managers will evaluate the degree of innovation and the cost-efficiency of the new tools and/or services proposed by the fleet suppliers. o Previous winners: Arval Analytics (2010) – Mobileye Safety Device C2-270 (2011) - TCOplus Greencube & Fleetcube (2012)

1

Personal Recognition The Fleet Europe Awards gives you the recognition and the reward you deserve, from your peers and from international suppliers.

2

Team recognition Winning an award is a way of showing your fleet team that all the hard work they have put into improving fleet management has been worthwhile, and has been recognized at an international level.

3

Professional development Feedback from the jury provides guidance and support from experts.

4

Benchmarking Through third-party recognition, you will be able to benchmark your fleet management against others, and share your best practices with peers.

5

Meet other industry achievers All nominees will be invited to attend the Awards ceremony in Prague on November 21, 2013. This is a great opportunity to network, share ideas and knowledge.

6

Internal communication And winning an award, of course, is excellent news for internal communication throughout the company.

Join the Fleet Europe awards 2013 as a candidate This award recognizes fleet industry leaders and pioneers who have significantly contributed to the international fleet management profession. Eligible nominees must have at least 5 years of international fleet management experiences and have contributed significantly to the industry. Unique about this award is that you can nominate your favorite fleet leaders by sending an e-mail to Steven Schoefs (sschoefs@ nexuscommunication.be). Once the list of nominees has been put together the complete Fleet Europe community has the chance to vote for the new inductee to the International Fleet Hall of Fame. o Previous winner: Tony Elliott (2010) – Gianluca Soma (2011) – Bruce MacLaren (2012) ■

One that doesn’t participate can never win! So if you are a fleet manager with an international scope and you and your company have achieved an optimization of the fleet management process and fleet management policy, or if you are a fleet supplier that has developed a new tool that helps the optimization of car fleets, you are the ideal candidate for this year’s Fleet Europe Awards. apply now!

Please find all participation details at www.fleeteurope.com/events, and register, or send an e-mail with your contact details to Steven Schoefs (sschoefs@nexuscommunication.be)

Steven Schoefs

FLeet eUroPe # 64

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Management I Procurement Strategy

Why do we need to engage stakeholders?

Stakeholders are people, institutions, groups that have an interest in or could be affected by your decisions and activities. Some might be within your company other might be outside (Suppliers, Governmental bodies, NonGovernmental Organisations). The focus here will be on internal stakeholders but the frameworks proposed can be extended to external ones.

The first set of stakeholders you need to look after is your buying centre which consists of your internal clients and anyone else that could impact decisions. Stakeholder Engagement is not an end in itself, but a means to build better relationships and to develop negotiated agreements between yourself and them where appropriate. It is a dialogue which aims at generating understanding of issues, problems and solutions for the benefit of all parties. It is about communication, persuasion, negotiation and responsibility.

Key steps for stakeholder engagement Engaging stakeholders can be achieved by going through the following steps:

Identification of stakeholders The following list can be a useful starting point when trying to identify stakeholders: • Who are the users of what the company buys?

• Who decides on what the company buys?

• Who holds the money?

• Who influences the decision?

• Anyone else who can be impacted or exert power?

Don’t hesitate to scan your environment horizontally, vertically and externally to make sure you have identified all of them. The list needs to be updated on a regular basis as people and the environment change on an ongoing basis.

Stakeholder Engagement

Step 1: Identify stakeholders • Identify stakeholder Groups • Identify Individual stakeholders

• Identify the different stakeholder groups that have an influence on your activities and goals achievement.

• Identify all the major individual stakeholders influencing

Step 2: Stakeholder Mapping • Plot stakeholders on Map

• Assess each of the stakeholders in terms of needs, power, influence, interest, attitudes, level of support etc.

• Assess the context etc.

the initiative.

Step 3: Stakeholder Engagement Plan • Determine Communications Strategy and Plan

• Develop a stakeholder engagement plan

Step 4: Communication • Develop stakeholder Communications Plan

• Agree the individual stakeholder engagement and communications schedule and actions.

• Follow through with the stakeholder engagement through active communication.

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Mapping stakeholders For each stakeholder, you then need to identify: • What is in it for them?

• What drives their satisfaction?

• How will they measure satisfaction?

• What is their current level of satisfaction?

• What is their attitude?

• What is their level of influence: High / Medium / Low • What is their level of support: High / Medium / Low

Key players: Engage closely Influence actively

Keep satisfied

Low

Power

High

To go further, the last two points can be mapped using the diagram underneath.

Monitor: Minimal effort

Low

Keep informed

Interest

High

Developing stakeholder engagement plans The diagram above can then be used to identify specific stakeholder engagement plan.

You will for instance need to pay special attention to stake-

holders with high power and low level of support. They are detractors. You will need to find ways to make them more satisfied and keep them satisfied. At the same time you can build on stakeholders with high power who support you. As you progress you will need to build on these basic strategies and question regularly the situation.

If we implemented this approach: • What would each stakeholder response be?

• Can they exercise their power?

• Would they exercise their power?

This requires a good political instinct, keeping an eye on your network reactions and to perform objective evaluation of the situation.

Communicating with stakeholders When communicating with stakeholders, you can benefit from the following advice: • Understand the context and revisit your assumptions about the stakeholder • Focus on what is important to the target: their interests, fears, perceptions, prejudices, likes, dislikes • Focus on both Reason and Emotion • Focus on their interests rather than their Positions • Keep an eye on the big picture: what would the other stakeholders think. ■

By Hervé Legenvre, PhD - MBA Director, EIPM

Management I Global Fleet

A giant leap for fleet management

L

ast April Fleet Europe and Automotive Fleet celebrated the launch of their strategic global partnership in Atlantic City, New Jersey. Joining the media companies’ staffs in marking the intercontinental partnership were more than 50 members of the fleet industry, including a number of global and international fleet managers, and the fleet executives from various fleet suppliers.

First Global Fleet Conference The centerpiece of the Bobit-Nexus partnership is the first Global Fleet Management Conference, which will be held at the Hyatt Regency Hotel Sept. 30-Oct. 1 in Phoenix, Arizona. This conference will be collocated Automotive Fleet’s Green Fleet Conference. The registration price has been announced at $595, and, as a special bonus attendees will receive free admission to the third day of the Green Fleet Conference with content geared toward multinational fleets.

Fleet Europe will support this conference with expertise about fleet management topics that are valuable for

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©: Lauren Fletcher

Fleet Europe, edited by Nexus Communication, and Automotive Fleet, the leading US fleet management magazine of Bobit Business Media, are partnering on the Inaugural Global Fleet Management Conference that will take place on September 30 & October 1, and announce U.S. and European global fleet advisory board members to start the true development of a Global Fleet community.

Attendees of the reception marking the official launch of a strategic partnership between Bobit Business Media and Nexus Communication take a moment to mark the occasion for posterity. the European market, and with suggestions from European based Global Fleet Managers and Executives. In 2014, this conference will be organized in Europe, probably in Brussels, with the active support of Bobit Business Media from the US. “A Global Fleet Conference fits perfectly into our new platform Global Fleet Network, where we not only want to inform fleet executives about global fleet issues, but also want to give them the opportunity to meet and to learn from each other”, says Caroline Thonnon, Business Development & Global Fleet Leader at Nexus Communication.

The Global Fleet Network is the first networking and cross-media platform for fleet leaders willing to optimize their fleet management through globalization. It provides fleet managers and the industry with in-depth knowledge, up-to-date information, blogs, and dis-

cussion opportunities, on global and regional fleet management as well as on upcoming economies and BRICs. More information on www.globalfleet.com.

“This Global Fleet Management Conference in Phoenix is a significant first step in the partnership, and we have some exciting and unique ideas to make it an important part of the global fleet community’s knowledge tool box,” says Mike Antich, editor of Automotive Fleet and conference co-chair. To assist in developing the content for the conference, Automotive Fleet and Fleet Europe have developed U.S. and European Global Fleet Advisory Boards consisting of fleet managers who manage the fleet operations for major international corporations (see the facing page for the complete listings for each board). ■ Steven Schoefs & Mike Antich

■ European Global Fleet advisory Board Members ■

anya Kiss Senior Category Manager, Corporate Procurement, Novo Nordisk A/S

Poul Brødsgaard Group Category Manager – Fleet – Business Carveout & Group, Procurement ISS

Wim Buzzi Senior Manager Fleet – Europe, Coca-Cola Enterprises

Luc Dendievel Director Fleet & Travel Services Europe, Johnson & Johnson

alain Duez Global Fleet & Mobility Commodity Lead, Accenture

John Guarneri Commodity Cluster Leader Travel & Leased Vehicles, Philips International B.V.

Janos Kis European Fleet Management Director, Diversey Europe

Robert Patrick Regional Sourcing Manager EMEA Fleet, MSD

Ralph Ruckgaber IBM Global Lead Car Leasing/ Fleets/Travel, IBM

andrzej Sacha Global Car Fleet Solutions Manager, Nestlé

Richard Tiffany Fleet Director Europe, Rentokil

Chris Tinajero Global Category Manager, Ericsson

Giovanni Tortorici Purchasing Manager Global Supply Chain, Barilla

Holger Wiegand Sourcing Operations Manager Europe, 3M Europe

■ U.S. Global Fleet advisory Board Members ■

Christy Coyte Meyer Global Fleet Director, Johnson Controls

Rachel Johnson Fleet Specialist Region Americas, Konecranes

Sue Miller Director, Fleet Program Services, McDonald’s

Louise DavisLopez Supply Manager, Fleet Services Johnson & Johnson

Elsie Lucia Director, Fleet Services, Estée Lauder

Greg asadoorian Director, Global Fleet, Invensys

Mike Butsch Director of Global Fleet Operations, Joy Global

Jeffrey Hurrell Global Fleet Program Manager, Hewlett-Packard

Jonathan Kamanns Fleet Manager – NA Fleet Services, Ingersoll Rand

Rick Odell Global Senior Category Leader Fleet & Indirect Services, Thermo Fisher Scientific

Steve Saltzgiver VP, Fleet Operations, Coca-Cola Refreshments

Keith Scolan Manager, Global Fleet, Illinois Tool Works

Phil Schreiber Fleet Manager, North America, Otis Service Center

Mike Sims Global Fleet Planning, Acquisition and Resale Manager, Church of LatterDay Saints

attend the First-Ever Global Fleet Management Conference September 30 & October 1, 2013 among the benefits: • Network and learn from managers of the world’s largest multinational fleets, who have global and/or regional fleet responsibilities.

• Network with key representatives from major global fleet suppliers.

• Learn from peers about best practices in managing a global or multinational fleet.

• Learn how to position yourself to expand your fleet responsibilities beyond the European market.

• Learn the right way to structure a global RFP and global fleet supplier agreement.

• Learn about best practices in car policy harmonization.

• Receive expert advice in supplier management to achieve global fleet objectives.

• Special presentations on emerging fleet markets, such as China, Brazil, and India.

Bonus: All attendees to the Global Fleet Management Conference will receive free attendance to the last day of the Green Fleet Conference, with special focus on fleet sustainability initiatives from a regional and global perspective.

Practical Details & Registration information: For all details about the conference, please visit http://www.globalfleetconference.com/ where you will find all updated information.

FLeet eUroPe # 64

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BUSINESS I News

Nurse Plus opts for SEAT Mii

The new Nurse Plus Mii fleet ready to make a celebratory lap of Thruxton race-course during the handover ceremony.

The SEAT Mii has been selected by British healthcare recruitment agency Nurse Plus. The agency has taken delivery of thirty of the cars, in its own blue and white livery, for use in each of its nationwide branches. The model selected is the five-door 60 bhp 1-litre model in ‘S’ specification. Fuel consumption is quoted as 62.8 mpg (4.5 litres per 100 km) on the mixed cycle. The car was selected by Nurse Plus for this fuel economy and other advantages, as outlined by the company’s MD Heath Blake: “We were massively impressed by the all-round qualities if the Mii and the SEAT brand in general.

I’m sure our branch network will enjoy the Mii becoming an essential part of their everyday life. The car has rock-solid build quality and offers everyday fuel economy.”

British Gas orders 520 Ford Transits Ford has registered a substantial success for its Transit van model. British Gas has ordered 520 Ford Transit vans, which will be used The drivers of British Gas love the by the company, which is the UK’s Ford Transit van. largest central heating installer. British Gas selected the Transit for its economy and low emissions, provided by its Dagenham-built 125PS 2.2-litre TDCi diesel engine. Another advantage is the security offered by the Transit’s large load capacity, which enables awkward loads to be accommodated inside the van, rather than on external racking.

Partnership between Stanley Black & Decker and PSA PSA Peugeot Citroën has announced that it will provide to tools specialist Stanley Black & Decker a fleet of 1,300 commercial vehicles by 2014. The new fleet vehicles will be distributed to 14 different countries in Europe.

The most important are: Sweden, Germany, France, UK, and Spain.

The majority of vehicles distributed will be Peugeot Partner and Citroën Berlingo.

Stanley Black & Decker has chosen to equip their technicians with PSA Peugeot Citroën products to ensure a quality performance on the job.

La Carterie goes 100% Toyota hybrid Gift card manufacturer ‘La Carterie’ has become the first known fleet to be composed entirely of hybrid cars.

The cars are all from the Toyota range, and are Prius, Auris and Yaris models.

This 100% hybrid composition is all the more exceptional in that the fleet of La Carterie is not just a handful of vehicles, but numbers 104 in total. La Carterie expects to avoid the emissions of more than 250 tonnes of CO2 during the next two years, thanks to this initiative. The company is also undertaking awareness campaigns in eco-driving for its personnel.

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A complete fleet of hybrids. At ‘La Carterie’ it is no fiction anymore.

business I Short Term Rental

A flexible solution for your international fleet needs The world of short term car rental may not command centre stage, but in the quest for savings international fleet managers can realise returns from reviewing their rental spend and supplier’s mobility solutions.

Competition in the car rental market is fierce. Price, service levels and the reliability of providers are the criteria against which performance is appraised. According to research from Carlson Wagonlit Travel the global rental market is worth approximately $38 billion (€29.5 billion) a year. This is shared between three markets: leisure (45%), corporate (35%) and insurance rentals (20%).

The European market is worth approximately €10 – 11 billion a year, of which a third is corporate spend.

The 3 major rental companies that responded Fleet Europe’s questionnaire, Europcar, Hertz and Sixt, told us that corporate market accounts for around approximately half of their business.

The market outlook for 2013 Car rental is a market particularly vulnerable to fluctuations in the economy. Sixt told us, the economic uncertainty in Europe notwithstanding, it expects that rental will remain a growth market in the long term with large growth potential in Western Europe and growing demand in East Europe. Europcar is cautious,

The future of car rental is about personalised solutions, on the go booking and instant accessibility. Features that can enhance the accessibility for corporate fleet customers. commenting that with the economic outlook remaining gloomy, especially in the Eurozone, that the leisure segment should be more dynamic than the corporate one, as companies watch closely their expenses.

The global travel agency, BCD Travel, which saw small fall in car rental amongst its customers in 2012, believes that car rentals loss of market share could be due to increased popularity of rail travel, which it says “is often proving a more attractive way to

travel not only for environmental but also cost reasons, owing to high prices at the petrol pump.”

Elyes Mrad Vice President, Sales & Marketing, Hertz International, understands the importance of managing fuel costs. He said, “Hertz has one of the most fuel-efficient fleets in the rental industry, with 72% of the vehicles averaging 28 MPG on the motorway or better and nearly 60% averaging over 32 MPG”. Europcar, which has a fleet of 186,000 vehicles

FLEET EUROPE # 64

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business I Short Term Rental

in Europe, told us that its, “unique purchasing model (buy back agreements with car manufacturers) enables us to offer our customers the youngest and most qualitative fleet (5.7 months / 19,000 km)”, thereby supporting fuel efficiency.

Market Development Not unexpectedly, quality of service and serving existing markets is a priority for all 3 players. Sixt plans to increase its market share in key markets in Europe, citing positive performance, especially in France and Spain, in 2012. In 2013 it will open 20 new stations in France alone and is strengthen its presence at airports.

Active in the US since 2011, Sixt will continue to expand operations through a franchise network stateside.

Europcar told us that, “We will work more and more closely with our franchisees, who make the Europcar brand live in over 130 countries.” Europcar will expand its network in 2013

with openings in countries including Puerto Rico, Singapore, Paraguay, Bolivia, South Korea and Vietnam.

Meanwhile Hertz is planning organic and greenfield growth, as well as expansion via acquisitions. Mrad said, “On a company wide level emerging markets are a big priority and we are continuing to make inroads to underserved markets such as Brazil, India and China.” Hertz recently announced expansion in China through a minority stake (nearly 20%) in China Auto Rental.

Differentiation the key to adding value Technology and mobility are enabling rental players to differentiate themselves. Mrad said, “Hertz has made a major investment […..] to differentiate the brand on more than just price.

This includes harnessing technology such as telematics, smartphone confirmations, video-based rental kiosks, e-returns, e-receipts, responsive web design and mobile apps to improve the

customer’s rental experiences and to operate more efficiently.”

Hertz On Demand car sharing will also be more widely integrated this year.

Hertz has already won a prestigious contract with Lufthansa to provide more than 1000 On Demand vehicles, and partners with PwC, Marriott International and London Heathrow Airport to provide tailored mobility solutions.

Hertz expects that over time, the entire rental experience will occur online and inside the car. Mrad said, “Brick-andmortar locations will not be necessary for most rentals.”

Glocal approach from Europcar Europcar told us that it offers a unique “glocal” approach (global drive, local implementation), extensive network coverage and proven fleet sector knowhow from top international fleet organizations to country fleet clients. The rise in mobility is an equally important area too. Europcar added,, “We are closely watching our clients’ mobility needs and adapt our services and solutions to

Creating a successful rental strategy “The very first step is to make a full inventory of the corporation’s needs together with the teams locally. In our view, supplier selection should involve participating countries to ensure smooth implementation with one main contact per country. Finally, measure compliance to the program to ensure savings are 100% reached.” (Europcar) “Ensure that the quality of service is consistent across the globe. Set up account management with one point of contact to ensure that you have one person to talk to for all your car rental needs.” (Hertz) “Companies should focus on TCO, not only on rental rates.

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Much more important are the cumulative costs during the rental process including all relevant services. One significant point is the possibility of e-billing that enables companies to make substantial savings in process costs.” (Sixt) A final piece of advice for buyers comes from research body Advito. In its industry forecast for 2013 it noted that car rental companies are focusing in on charging customers for vehicle damage and says that, “Sometimes the notification of extra charges arrives from the supplier weeks after the rental has finished, making it hard to dispute the damage claims.” The advice is to be extra vigilant and warn those renting about this practice.

address them.” Europcar’s partnership car2go is one example of innovation within the brands portfolio of mobility solutions.

Unlimited from Sixt Meanwhile Sixt explained that “Customers are offered not only individually tailored rental offerings, but increasingly combined solutions that cover individual mobility requirements.” With half its fleet being BMW, Mercedes-Benz and Audi, Sixt highlights the attraction of its premium brands. Sixt explained that it offers comprehensive services for carpools and company fleets, highlighting the product Sixt unlimited. With this service frequent travellers can select a vehicle from the category of their choice at any time and at service stations in 9 European countries, at an advantageous pre paid rate. Sixt will continue to analyse “costs across the entire rental process in partnership with the customer” to identify savings.

Making the future happen The future is about personalised solutions, on the go booking and instant accessibility. Mrad said, “We’ve already seen a few companies blazing the trail, but can expect car sharing networks to become increasingly popular. With advances in telematics and big data, fleet managers can employ car sharing networks like Hertz On Demand to significantly cut down on fleet size, whilst also reducing overhead costs and the company’s carbon footprint.” Europcar says that its mission is to give its customers customized, easy and convenient access, and will use the latest technologies to create an environment for mobility. Similarly Sixt, who will be the first mobility provider worldwide to offer bookings via Apple’s passbook, also offers car sharing with BMW’s DriveNow. ■ Jonathan Green

Name of the company:

Europcar

Website for B2B clients

www.europcar.com

CEO

Roland Keppler

Total number of staff (globally 02/2011):

6,373

Shareholders:

Eurazeo

Active in the market since:

1949

Present in # countries in Europe:

All Europe

Present in # countries Worldwide:

140 countries worldwide

Contact person for new international clients

Bernard Nassiri, Group Sales Director

Name of the company:

Hertz

Website for B2B clients

https://www.hertz.co.uk/ rentacar/b2b/

CEO

Mark P. Frissora

Total number of staff:

41,000 full and part time

Shareholders:

Goldman, Sachs & Co

Active in the market since:

1918

Present in # countries in Europe:

40

Present in # countries Worldwide:

150

Contact person for new international clients

Elyes Mrad, Sales & Marketing Hertz International

Name of the company:

Sixt AG

Website for B2B clients

https://business.sixt.com

CEO

Erich Sixt

Total number of staff (glogally 02/2011):

Ca. 3,100 (without franchises, by the end of 2012)

Shareholders:

Public listed company, majority shareholder Erich Sixt Vermögensverwaltung GmbH

Active in the market since:

1912

Present in # countries in Europe:

All European countries, comprehensive presence

Present in # countries Worldwide:

More than 100 countries

Contact person for new international clients

Michael Kieppe, Director Sales International

FLeet eUroPe # 64

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BUSINESS I BCA Europe

Remarketing, a key link in the fleet business chain As one of the market leaders in remarketing activities, BCA is continuing to register strategic growth in multi-channel remarketing in Europe. We asked Peter Dietrich, recently named as European Sales Director, to explain the role of remarketing in the international fleet business.

“We have to consider the leasing companies and the rental companies as fleet-owners, and fleet-owners have several priorities: best residual values when selling the cars, a short time from de-fleet until the cash is in the bank, audit proof end-to end processes and detailed reporting and analyses on every single car. In many cases they are also looking for a European harmonised solution. BCA offers all of this.”

Does the remarketing market follow the new car market in terms of cycles/prices…?

Peter Dietrich: “The new car market definitely influences the used car market in terms of mix and volumes when it comes to rental (0 to 12 months vehicles) and leased (12 month to 60 months) vehicles. And on top of this the older car market (more than 5 years) will be influenced by new car sales as the ‘trade-in’ business of part exchanges at dealers will be in line with new car sales volumes. As the market size in most countries exceeds the new car sales volumes, used car sales prices will be more or less influenced by the volume availability and vehicle mix.”

Do your activities have an impact on residual values?

Peter Dietrich: “Yes, as in case of high remarketing volumes BCA will use different sales channels to maximise sales prices. The BCA multiple sales channels (physical and electronic), geographical coverage in 13 European countries with 47 sites and a Pan European buyer base of 110,000 buyers allow BCA to permanently balance supply and demand, keeping the residuals high.”

How do you work with car manufacturers?

Peter Dietrich: “There are currently several trends – one

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Peter Dietrich, European Sales Director at BCA: “We are seeing more and more European HQ approaches for European remarketing solutions.” is clearly outsourcing of most if not all aspects of remarketing. On top of this is a ‘joined forces approach’ from the OEMs and their banks. And additionally, many OEMs and Importers want an ‘end to end’ solution for their rental buybacks, their company cars, ex-employee leasing, dealer insolvencies etc. Last but not least, we are seeing more and more European HQ approaches for European remarketing solutions. Full transparency and lean, standardized processes and are the current keywords.”

Which types of cars retain their value the best?

Peter Dietrich: “Basically, the older the vehicle, the better the retained value, at least up to an age of 8-10 years.

Leasing cars (3-4 years old) are better than rental cars (6 months-2 years), trade-ins (5-7 years) better than leasing cars. Vehicles older than 10 years generally do not retain high value.” ■ Tim Harrup

BUSINESS I Hyundai Motor Europe

Targeting fleet market share The suffering European car market affects all car manufacturers. Hyundai has started to carve out a share of the European fleet market, and so it is interesting to see how this relative newcomer views both the market and its own prospects. Oliver Lajara, General Manager Fleet & Remarketing, tells us.

“Let me start by explaining how we see the European economy”, says Oliver Lajara. “Industry analysts anticipate a small decrease in the European new-car market compared to 2012.

If we look at forecasts for the global car market, there is expected to be a further decline this year. We think the only segment not to decline in 2013 will be the C-segment. This situation also applies to the fleet market, because all channels are expected to decline in the short term. Our plans, though, are to at least grow in ‘true fleet’. We believe there will be an overall market upturn in 2014 though.”

If you are going to grow ‘true fleet’ in a declining market, which client segments do you see as being the most important for you?

Oliver Lajara: “I think it will be seen in different areas. Among SMEs, of course, because we now have established over 400 Fleet Business Centres over the past few years. These are dedicated to fleets and are able to better serve the needs of fleet customers. These handle most of the volume, but we are also trying to acquire a major European corporate customer, which will create a ‘halo effect’ and give a clear signal to the industry. It is clear that the SME business is key to our expansion plans.”

You are targeting an increased market share even if, in the current situation, this means a slightly lower volume. What does Hyundai have to enable it to gain an increased market share in this depressed context?

Oliver Lajara: “Well our target is first of all to maintain our market share of around 3.5% in Europe, following several years of continuous increases. Our other priority for this year is to grow the quality of our operations, strengthening our dealer network and improving brand awareness. We are enhancing our European infrastructure with an extension to our European headquarters building in Frankfurt. The total size is increasing from 22,000 m² to 33,000 m². We are also investing €5.5 million in an R&D test centre at Germany’s premier racing circuit, the Nürburgring, which will help us to produce cars that are even better to drive.”

Oliver Lajara, General Manager Fleet & Remarketing at Hyundai Motor Europe: “We are enhancing our European infrastructure with an extension to our European headquarters.”

You are in the process of establishing fleet directors in each of the ‘big 5’ countries in Europe. Oliver Lajara: “These directors are in addition to the 36 fleet managers we already have in place. We want to give the fleet infrastructure a greater push by creating these roles. The structure will work by having each fleet director report directly to the Managing Director, rather than to the Sales Director. They will have the authority and empowerment to build up their own teams within the ‘G5’ markets, which are key to us. I am head of Fleet Sales and Used Car Sales in Europe and my mission along with my headquarters team is to support the fleet directors in terms of budgets, and to provide strategic guidance. We will set the strategy and the fleet directors will put it in place.”

You have talked about the structure, let’s talk about the cars. Which do you expect to be the fleet winners?

Oliver Lajara: “There are basically three winners at the moment. The recently-refreshed compact SUV, New ix35, is still a top seller after being on the market for two years. The New Generation i30 in both 5 door and station wagon versions is a key model, and the All New i40, which competes in the D-segment, is an important model. These are certainly the major fleet volume models for us. Our target is quite clear – we want to be the number one Asian manufacturer.” ■ Tim Harrup

FLEET EUROPE # 64

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SCOPE I Car Taxation

Lessons learned from the Fleet Europe Taxation Guide 2013 ployees and to correctly estimate the savings potential when starting or continuing CO2-emission improvement projects.

Overall speaking, the tax savings represent some 30% of the savings potential and are actual savings since they are not depending on the driver behavior. Saving fuel when lowering CO2-emissions is obvious but drivers need to adapt to correct driving behavior.

2012 has been another difficult year with lots’ of economic instability, especially in Southern Europe. In most countries, car sales have dropped (significantly in some). Fleet sales were a stabilization factor for the souring car sales explaining the continuing focus of car manufacturers on this fleet segment. In terms of car related taxes, 2013 seems to become a rather stable year after the many changes we had in 2012.

Car manufacturers push trend Car manufacturers, pushed by the European Commission, are continuously offering more CO2 efficient cars and engines while still focusing on comfort, safety and fun driving. The number of cars below 100 gr CO2/km is already significant. To secure income, most countries, having based their car taxation to the CO2-emissions of the car, are increasing the taxes by lowering the CO2-emission bands. Examples are France with increased TVS (taxe sur les véhicules de sociétés), Ireland, UK (VED), the Netherlands, …. where existing taxes increase. Finding a trend line in lowering these bands can be based on countries like the UK and the Netherlands where future bands are being published.

Due to the crisis and spend reductions by governments some countries have decreased incentives for hybrid or electric vehicles. Overall the effect of incentives is still quite significant and needed hard for the introduction of new power trains into the fleet world. The direct effects of tax and other incentives and the success of the introduction of electric vehicles are painfully clear in Belgium where due to the decrease in incentives an immediate decrease of sales resulted. ■

Price : 95.00 EUR

With the assistance of the PwC Automotive Network, we updated the car taxation regulations in 28 countries, being almost all the EU + Switzerland, Russia and Turkey. The new Fleet Europe Taxation Guide is available since mid April, individual country chapters are available via the e-Shop of Fleet Europe (www.fleeteurope.com/shop).

TAXATION GUIDE 2013 The update on Company Car Taxation in Europe AUSTRIA

GERMANY

BELGIUM

GREECE

NETHERLANDS

SPAIN

NORWAY

SWEDEN

POLAND

SWITZERLAND

CZECH REPUBLIC

HUNGARY

DENMARK

IRELAND

PORTUGAL

TURKEY

FINLAND

ITALY

ROMANIA

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FRANCE

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RUSSIA

COUNTRIES ONLINE: BULGARIA ESTONIA LATVIA LITHUANIA SLOVAKIA SLOVENIA

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The Fleet Europe Taxation Guide 2013 gives a detailed but comprehensive overview of company car taxation in all important European countries.

The race towards less CO2-emissions continues The number of countries that link car taxes to CO2-emissions is now at 20 and expected to increase. The impact of CO2-emissions on the TCO varies from country to country.

Furthermore, for some taxes the impact is factored in the lease price, for other taxes not. Unfortunately, the number of different taxation mechanisms is still high. Usually CO2-related registration taxes and annual circulation taxes are factored into the lease price. Additional taxes (France with the TVS, Belgium with the social security contribution, etc…) or tax effects (UK and Belgium with limitations on cost deductions, etc…) in principle not.

Although the effect of CO2-emisions may be included when comparing lease prices, understanding the effect thereof in this price and even more important including the effect of taxes not factored into the lease price is detrimental for taking the right decisions. This is necessary to properly benchmark cars, to position cars in the right car policy category, to ensure that savings due to CO2-emission improvements are kept with the company and not (all) provided to the em-

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FLEET EUROPE # 64

Bart Vanham, Car taxation specialist

Impact in figures The difference in TCO in general for a car emitting 130 gr CO2/km and a car with CO2-emissions of 110gr/km, in the same category, all other elements being equal, including direct and indirect taxes and fuel, approximates 2173 EUR in The Netherlands, 1181 in Ireland, 880 EUR in Belgium, 584 EUR in France, 484 EUR in the UK and 343 EUR in Germany.

All amounts in these countries above 343 EUR do represent savings in indirect or direct taxes linked to CO2-emissions.

These figures are generated by www.tcoplus.com.

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