Fleet Europe °70

NEXUS COMMUNICATION - FLEET EUROPE #70 - PERIODIC MAGAZINE - JUNE 2014 - DEPOSIT OFFICE LIÈGE X

JUNE 2014 - # 70

MANAGEMENT

Franck-Olivier Bizot, Sanofi “Driver TCO is key”

DOSSIER

2014 Car Leasing in Europe MANAGEMENT

BUSINESS

SCOPE

Safety Corner: Make it safer and savings will come

The fleet view of Armand van Veen, Athlon Car Lease International’s new CEO

Lessons learned from the new Taxation Guide 2014

JOIN THE FLEET EUROPE EVENTS IN HAMBURG

- NOVEMBER 18, 2014: IFMI EXPERT SESSION - NOVEMBER 19, 2014: FLEET EUROPE FORUM & AWARDS 2014

MORE INFORMATION ON WWW.FLEETEUROPE.COM

ON CNG OR PETROL

ENJOYNEERING SEAT FOR BUSINESS IS NOW ONLINE, BE SURE TO VISIT OUR NEW PAGE.

Petrol Mode: Average consumption: 5.3 l/100 km. Average CO2 mass emissions: 124 g/km.

CNG Mode: Average consumption: 5.3 m3/100 km. Average CO2 mass emissions: 94 g/km.

SE AT.COM

Look at the TCO composition of an international car fleet and you’ll naturally find that funding and depreciation are the biggest burdens.

But these costs are fixed from the moment you put your car fleet on the road until the moment you sell the vehicles or your lease contract expires.

“The realm of management where you can excel is driver behaviour” It’s time to map the end to the legend and look at truly optimising driver behaviour – and as you’ll read in this year’s Car Leasing Dossier, many suppliers have developed tools and systems to better monitor, scrutinise and legislate driver behaviour.

So while car fleet managers focus on this area of fleet management, for my money it’s not the key influencer that’s most demanding of our attention. The realm of management where the fleet leader can truly excel – is driver behaviour. More than ever the driver is becoming the essential car fleet cost element that you can actively manage. Fuel consumption, insurance, safety and damage, wear and tear – at the end of the contract, value is intrinsically linked to the way the driver uses the company car.

EDITORIAL

Drive your driver

Fleet Europe will also be engaging in the driver behaviour debate in the second half of this year. The topic is at centre stage during our 11 September IFMI Webinar, our 18 November IFMI Expert Session – and it’s also a key discussion during the Fleet Europe Forum 2014 in Hamburg.

All information on these events can be found on www.fleeteurope.com.

It’s a pity so many international fleet managers are wedded to the short term cost savings and negotiations to do with depreciation and funding supplier. Of course a procurement specialist looks at costs and fleet management differently to the HR or finance executive – but still, when talking to industry experts and fleet managers the urge for up-front cost-cutting seems to hang like the Sword of Damocles above the heads of international fleet managers.

Be your own driver, and drive your fleet strategy with the real costs in focus.

Steven Schoefs, Chief Editor sschoefs@nexuscommunication. beTwitter: @StevenSchoefs

Be part of the Fleet Europe Community!

ATTEND AND FOLLOW OUR EVENTS IFMI Webinar : The Impact of Engaged Driver

Fleet Europe Forum 2014

Behaviour – September 11, 2014

Hamburg (DE) – November 19, 2014

Join the IFMI training session Shaping driver behaviour is a key part – and a key challenge - of today’s fleet & Enhance your fl eet expertise

The Fleet Europe Forum gathers around 600 European and international

management. So how exactly do you engage drivers to modify their behaviour

fleet decision makers around the theme “The new future of car & LCV fleet

to fit various objectives such as cost, safety and the environment? Further

management in Europe”. You will learn from key-note speakers, discuss with

information at ifmi.fleeteurope.com

peers and share best practices with the fleet community. Further information

#IFMI

The International Fleet Management Institute (IFMI) provides international fleet managers with ongoing training opportunities.

Are you the manager of a fleet of cars and/or LCVs – and does your job have an international scope? Then the International Fleet Managers Institute (IFMI) is what you need!

and registration details available at forum.fleeteurope.com. #FleetEuropeForum

With knowledge transfer at its core, the IFMI gives you the opportunity to: > Participate in professional training to decision makers in international fleet management; > Meet other fleet management professionals to exchange experiences and best practices; > Share creative and innovative thinking in all aspects of international fleet management.

2014 PROGRAMME

IFMI training session: Successfully Engaging Dedicated

> Webinar: The Impact of Engaged Driver Behaviour 11 September 2014, 15:00-15:45 (CET)

Driver Behaviour – Hamburg (DE) – November 18, 2014

Shaping driver behaviour is a key part - and a key challenge - of today’s fleet management. So how exactly do you engage drivers to modify their behaviour to fit various objectives such as cost, safety and the environment? Learn more during this interactive webinar.

Join the IFMI training session The motto for this session: Save money, save lives, save the planet. Keynote & Enhance your fleet expertise

> Successfully Engaging Dedicated Driver Behaviour Hamburg, 18 November 2014, 08:30-18:00 (CET)

Motto for this session: Save money, save lives, save the planet. Keynote speakers, industry experts and fleet managers discuss the importance of driver behaviour in today’s fleet management, with special attention for fuel management, CO2 emissions, driver reporting and safety, and insurance and risk management. Special focus on best practice sharing with fleet peers and opportunity to network.

Fleet Europe Awards 2014

Hamburg (DE) – November 19, 2014

speakers, industry experts and fleet managers discuss the importance of

The Fleet Europe Awards are recognizing the achievements of the fleet

driver behaviour in today’s fleet management, with special attention for fuel

industry. With prizes in seven Award categories this is the fleet event of the

management, CO2 emissions, driver reporting and safety, and insurance and

year. Visit forum.fleeteurope.com to apply now for one of the Award categories.

risk management. Further information at ifmi.fleeteurope.com

(see also page 47)

For further information and to register to one of our training sessions, please visit ifmi.fleeteurope.com Organiser

With the support of

Major sponsor

The International Fleet Management Institute (IFMI) provides international fleet managers with ongoing training opportunities.

Are you the manager of a fleet of cars and/or LCVs – and does your job have an international scope? Then the International Fleet Managers Institute (IFMI) is what you need!

#IFMI

With knowledge transfer at its core, the IFMI gives you the opportunity to:

> Participate in professional training to decision makers in international fleet management; > Meet other fleet management professionals to exchange experiences and best practices; > Share creative and innovative thinking in all aspects of international fleet management.

2014 PROGRAMME > Webinar: The Impact of Engaged Driver Behaviour 11 September 2014, 15:00-15:45 (CET)

Follow us on Twitter Follow the latest tweets of @FleetEurope2012 and connect to the Fleet Europe team: @StevenSchoefs, @CarolineThonnon and @LaetitiaFdz

Shaping driver behaviour is a key part - and a key challenge - of today’s fleet management. So how exactly do you engage drivers to modify their behaviour to fit various objectives such as cost, safety and the environment? Learn more during this interactive webinar.

> Successfully Engaging Dedicated Driver Behaviour Hamburg, 18 November 2014, 08:30-18:00 (CET)

Motto for this session: Save money, save lives, save the planet. Keynote speakers, industry experts and fleet managers discuss the importance of driver behaviour in today’s fleet management, with special attention for fuel management, CO2 emissions, driver reporting and safety, and insurance and risk management. Special focus on best practice sharing with fleet peers and opportunity to network.

For further information and to register to one of our training sessions, please visit ifmi.fleeteurope.com Organiser

With the support of

Major sponsor

FLEET EUROPE # 70

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CONTENT

I DOSSIER I

The company car mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.8 From recession crutch to the smarter option

. . . . . . . . . . . . .

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

P.16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

P.28

Who’s who in the year 2014 Greener than you

Looking into the crystal ball

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Global strategies focus on BRICS

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

P.32 P.34

Car rental: Standing out from the crowd . . . . . . . . . . . . . . . . . . . P.36

DOSSIER I 2014 Car Leasing Strategy

The overview of the car leasing presence inside and outside Europe, new service developments, strategies, and trends.

7

I MANAGEMENT I

News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.41 3 questions to Ben Varey (SGS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.41 Interview with Franck-Olivier Bizot (Sanofi) . . . . . . . . . . . . . . P.42 This Award is yours to win! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.47 Fleet Safety Corner: Make it safer and the saving will come . . . . . . . . . . . . . . . . . . . . . P.50

I BUSINESS I MANAGEMENT I Fleet Europe Awards 2014

47

Participate in the eight edition of the Fleet Europe Awards.

The French-Japanese connection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.52 Interview: Armand van Veen (Athlon Car Lease International) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.54 Interview: Maurice Benisty (GE Capital International) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.56 Interview: Jose Luis Criado (LeasePlan International) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.58 Industry News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.60

I SCOPE I BUSINESS

Interview Maurice Benisty (GE Capital)

SCOPE

56

Fleet Europe Taxation Guide 2014

64

News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.63 Lessons learned from the Fleet Europe Taxation Guide 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.64 Residual Values: the considered view . . . . . . . . . . . . . . . . . . . . . . . P.66

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

Contributors: Tim Harrup, Frank Jacobs, Ally Millar, Tony Elliott and Jonathan Green

Laetitia Fernandez - Content & Community Editor - Fleet Europe lfernandez@nexuscommunication.be

Layout: Hungry minds - info@hungryminds.com

Frédéric Van Vlodorp - Managing Editor fvandvlodorp@nexuscommunication.be Caroline Thonnon - Head of Business Development & Global Fleet Leader cthonnon@nexuscommunication.be David Baudeweyns - International Sales & Business Development dbaudeweyns@nexuscommunication.be

Special thanks to: Dean Bowkett (EurotaxGlass’s), Maarten Baljet (BF forecasts)

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

Romina De Gregorio - Internal Sales & Operations rdegregorio@nexuscommunication.be

www.fleeteurope.com - www.fleeteurope.com/shop

Vanessa Digneffe - Internal Sales Support vdigneffe@nexuscommunication.be

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

Jonathan Green - Chief Editor Smart Mobility Management jgreen@nexuscommunication.be

FLEET EUROPE # 70

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DOSSIER I Car Leasing in Europe in 2014

2014, the year of optimized services around CSR

A

year passes fast, so you have to seize the moment.

Listening to the car fleet leasing companies in Europe it becomes clear that they see growth opportunities in terms of international business. The other good news is that they seem prepared to invest in the further development of appropriate fleet tools and services that facilitate the fleet-owners’ work, often linked to the field of CSR. Finally they concentrate more and more on the direct contact with and the follow-up of the driver, which means that the Business to Business scope of the main European car leasing companies is expanding to Business to Employees. A logic evolution as it supports an optimized fleet management control for the client company as well as increases business opportunities on the longer term.

DOSSIER Car Leasing Strategy from p.7 to p. 39

In this annual car leasing dossier, we present our ‘traditional’ comparative list of the major leasing companies’ international presence, we analyse today’s leasing landscape and we delve into the future, in particular looking at new developments within Europe’s car leasing industry.

We hope that this 2014 Car Leasing Dossier gives you the inspiration, the ambition, and knowledge to manage your international company car fleet even more efficiently in the future. ■

Steven Schoefs

FLEET EUROPE # 70

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DOSSIER I Car Leasing in Europe in 2014

The leasing mix Leasing now seems an immovable force in the automotive game – but to say “leasing is leasing”, misses the mixture of products, programmes and schemes that play define the industry

A

ccording to Leaseurope, passenger car leasing grew by 5.7% across the continent in 2012, slightly down on 2011’s 7% growth.

The top 20 leasing companies made over €124 billion in volume in 2012, a year when global leasing grew 9% – making three consecutive years of growth.

The figures don’t lie – and we’re staring at a buoyant industry. Here we break down the types of leasing

there are – and where the differences lie.

Full-service Leasing Most familiar to Western Europeans is full-service or operational leasing. The definition given on BusinessDirectory.com is: “a leasing arrangement under which the lessor provides periodic maintenance and breakdown repairs services.”

For the fleet user, operational leasing removes the operating risks associated with the running of a vehicle fleet: the residual value, service, maintenance, and repair risks.

Although the exact scope of a full service leasing contract may differ on the incidentals and the value-added services, generally speaking there’s a high degree of fleet management offered. Customers choosing OpWestern Europe really is dominated by fullerating Leases service leasing. To give that concept some air, ALD can also either International’s 2013 fleet hit a million cars for the first reduce their FTE time – but 950,000 of those were in Western Europe. numbers con-

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FLEET EUROPE # 70

cerned with the often cumbersome and always emotional aspects involved with running a vehicle fleet.

Western Europe really is dominated by full-service leasing. But what do Europe’s other markets do?

Outright Purchase Predominantly, outright purchase remains the acquisition policy of choice in the less mature business communities outside of Western Europe. Organisations and markets that have been structured to provide for outright purchase customers are very difficult to dismantle.

Vehicle manufacturers, vehicle sales dealers, used car dealers as well company fleet managers have every reason to try and prevent the growth of operating leasing. Why? Because operating lease companies bring cost cutting efficiencies to the market. As we saw in Western Europe during the 1970s decade, it takes a while to get customers to move away from ownership of vehicles, to an understanding that it is financially efficient to only pay for the use of the vehicle.

Discounted Cash Flow calculations show that operating lease is a viable alternative acquisition option and then, when risk removal, fleet management efficiencies, FTE reductions and budgeting benefits are taken into account, operating lease becomes very attractive.

Operating leasing releases credit lines for the customer, allowing them to funnel the funding into assets that will produce a Return on Investment.

Financial Leasing The Balkans, Eurasia, Belorussia, the Southern Med and other ‘developing’ economies are – for reasons of history and heritage – more likely to have a leasing landscape that’s dominated by banks and locals.

Let’s deal with the first – or financial leasing as it’s called.

Again we turn to an easy definition procured on the Internet: Financial leasing: “when a car fleet is a funded risk provided by a bank or third party”. If we think about the reach, influence, legacy and network of financial institutions in emerging economies then it’s easy to see why financial leasing has a tight grip.

Locals Where banks don’t dominate, “local heroes” do. They rely on knowledge, friends and affiliates to forge deals and offer customer value on the ground.

Locals can, depending on their size, fall into different leasing categories. While it’s likely they’ll exhibit traits of full-service leasers (offering perks and value added services) it’s not uncommon for them to finance fleets; especially in developing economies.

Often, as we have experienced in Turkey, Russia, Bulgaria, Brazil and China, the large local suppliers, not associated with the Western European operating lease superstars, are actually more in tune with the local needs: especially within the small and medium enterprises

(SMEs). Therefore the incoming superstars often struggle to gain a significant foothold.

Having written this, it should be made clear that internal fleet user corporations, as well as international operating lease companies often introduce new concepts, environmental product service advancements and stability to these immature fleet markets. But, fleet evolution must be allowed to develop locally, and this is often misunderstood by the incoming internationals.

Captive Leasing The potential in leasing has never been overlooked by car manufacturers – but it has seen a resurgence and renewed vigour post-recession.

Using their existing networks brands quietly started leasing activity in markets where companies couldn’t necessarily afford the price tag – but wanted to furnish drivers with known brands as status, perks, and business-in-kind benefits.

Captive leasing, or manufacturer-owned contract hire, as it’s very simply defined, is still a huge part of the leasing conundrum. The nature of captive leasing means that cars are leased – and thus managed, maintained and serviced – by the brand and therefore the experts.

With dealerships, service centres – and what’s often quite consistent international policies – captive

leasers often service clients in several of their markets of operation via large corporate link ups and partnerships.

If one is pragmatic, these manufacturers are undertaking the exercise to push more of their own manufactured product, and this may well produce some odd and illogical rental variations. Longevity of the vehicle manufacturers’ intent to provide multi-marque financing is also something for potential fleet customers to consider.

A two-speed market The operating lease market is now operating at (at least) two speeds: the current mature Western European fleet market and the emerging economies market.

The Western European fleet users are beginning to realise that it is not only the front end tough price reduction sales process that matter but, also, the actual management of the fleet is essential.

Up until now, there has been a token ‘lip service’ paid to this aspect of managing the fleet. The operating lease companies can recognise saving opportunities for their customers, but they cannot effect the necessary internal changes within the customers’ organisations.

Only the customer can drive these changes through internally. Until now, this has been the road block. ■

Ally Millar

FLEET EUROPE # 70

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Efficiency class: A+.

DOSSIER I Car Leasing in Europe in 2014

From recession crutch to the smarter option It’s 2008, recession hits and vehicle sales in Europe slow dramatically. By year’s end, Europe’s leasing industry had turned over around €330 billion. It was boom-time.

T

he leasing industry, which had been quietly gaining turf and winning over Europe’s SMEs for some time, shot into fleet managers’ line of vision during the recession years. Leasing allowed budget-conscious companies to keep up appearances, plug gaps, offer perks and grant businessin-kind benefits – at a time when upgrading the motor pool was unjustifiable.

In the years since 2008, leasers have worked hard to capitalise on gains made. In a sense they’ve had to shed their image as a recession crutch and offer a show of strength and how they benefit a buoyant market that, arguably, got on fine before them.

It was a delicate process for them, but leasing rose in esteem and now have an influential seat at the industry’s top table. They’re an influential, client-facing force; burdened with the same concerns as fleet managers and automotive manufacturers alike. Not only do they need to react to legislation changes, green politics and the opportunities in emerging economies, they too need to lead, innovate and stick out from the crowd.

Let’s set the scene and chart the growth of an industry which is flowing fast into Europe’s – and the world’s – commercial consciousness. ■ This article is based on the information from Fleet Europe’s annual car leasing questionnaires since 2010.

Ally Millar

2010 &

Boom Time

Recognising the growing nous of the leasing industry, in 2010 we at Fleet Europe started a ‘census’ of Europe’s medium and large leasing companies; asking them to summarise the previous 12 months – and assert plans for the next.

Remarking on 2010 for most leasing companies reported a year of growth and development. On January 1, 2011, ALD Automotive’s fleet included 841,220 – a record increase of 6.5% - including passenger cars and light commercial vehicles.

LCVs was a blooming market at this stage, growing 9% in 2010. In response, major leasers – including Athlon International, ALD Automotive, and PSA – were establishing LCV departments to address customer requirements and add take advantage of a new revenue stream, even if it was once rather unfashionable.

Speaking of PSA, they enjoyed the boom time of 2010 with growth of 2.5% (versus 2008). Athlon grew in Europe by 2.26% on 2009, Alphabet 17%, and GE Capital’s fleet increased to 1,500,000 vehicles worldwide. While Arval’s leased fleet was 10% up, purchases rose an impressive 27% on 2009.

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Our first questionnaire in 2010 shone a light on a leasing industry that was mostly rejoicing – but it wasn’t all champagne and caviar. LeasePlan was hard-hit by the downturn as previous years’ expansion into BRIC and Eurasian markets started to pinch and long-standing clients pulled back on the purse-strings. LeasePlan used the boom year of 2010 to get back on an even keel, returning to “almost” pre-crisis levels of fleet and finance. Leasing isn’t a high-margin game at the best of times, especially during a scramble when clients have leverage to push down the price and up the service.

Although 2010 saw gains and the resurgence of their Euro bases, the economic slowdown and emphasis on getting it right at home, meant expansion plans were neglected.

Arval didn’t open any new subsidiaries in 2010, neither did Athlon, ING, Daimler, or ALD. Some of the aforementioned were signing co-operation agreements – but only Sixt Leasing seem to be expanding, tentatively and unambitiously into mature Western European markets.

No, 2010 was a period of domestic leasing reflection – the boom years of recession had raised the profile and the punch of leasing – but with more visibility would come more scrutiny and more competition.

The next focus would be keeping momentum and staying ahead of the legislation curve, leading (not following) market demands and legislative change. In short, the efficiency drive was on – time to get houses in order.

While expansion was off-limits, 2011 was a time for leasers to focus on new tools, software solutions, innovation and smart-mobility options so as to provide more choice for customers. In the same way, some leasers consolidated the car brands in their portfolio so as to offer more perks, expertise and exclusivity.

Alphabet (BMW) and Volkswagen actually moved out of exclusivity so as to appeal to more clients – sliding more brands into their lease offering. Daimler too started pushing cars other than Mercedes-Benz to customers.

In the spirit of getting one’s house in order, this was around the time legislation came in Europe regarding CO2 – and a light shone bright on electrification.

Leasers, as with manufacturers, were more than happy to push and publish falling CO2 levels within the fleet, but they’ve yet to sing so enthusiastically when mapping plans for EVs and hybrids.

Evolution of the main financing method (Consolidated results)

39%

36%

23%

38%

39%

36%

25%

2%

2%

2008

2009

37%

39%

36% 32% 26%

34%

36%

Operating leasing

36%

Self purchase*

25%

Finance Leasing

24%

24%

3%

3%

3%

3%

2010

2011

2012

2013

Car Credit

*Self-purchase = outright purchase + credit (other than car credit)

Data have been consolidated: - 3 years average for France, Germany, Italy, Portugal, Switzerland, Poland, Belgium, Czech Republic, Spain, UK - 2 years only for The Nederlands - 1 year only for Luxembourg Base: compagnies with corporate vehicles = 100%

2011 &

Electrification

That brings us to 2011 and the green agenda. Leasers are big companies with decent PR machines so they know the note-perfect response when asked about electrification – but the appetite for green cars was (and is) still a slow burner – and few leasers were committing to next steps. Although bigger players talked in numbers and objectives, the middlers appeared vague and sceptical.

Source: CVO 2013.

In 2011, the CVO Barometer – which asks the opinions of over 3,000 European fleets – showed that the estimated percentage of hybrid and electric vehicles within large companies over the following three years would be 6% for hybrid petrol, 9% for hybrid diesel and only 5% for electric. Writing in 2014, it seems they were just about right.

With the business-case for electric uncertain, Athlon Car Lease International and Business Lease gave politically correct answers regarding EVs but wouldn’t commit to numbers. Alphabet vaguely stated: “We are also developing a product for our customers to compensate for the unavoidable CO2 emissions of their fleet.”

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DOSSIER I Car Leasing in Europe in 2014 Predictably, Citroen and Daimler plugged new EVs and hybrids and offered little else. And when asked the question: What is your position towards hybrid and electric vehicles and what business model do you believe in for these type of vehicles? GE Capital gave the one-line response - “This market is still developing and one that GE Capital is monitoring.”

Once again, the big boys were happier to put their heads above the parapet and flex their green muscles.

ALD International spoke in optimistic terms and cold

2012/2013 &

hard numbers about their battery leasing scheme and fleet of over 2,200 EVs and 5,300 hybrids.

LeasePlan International noted that clients moving into electric were (and are) doing so for legislative reasons, not financial ones – so they too stressed the importance of the business case. They didn’t stop there though, and asserted their desire to liaise and help steer construction of the EV supply chain and infrastructure, consulting on the process at home in Europe – and in their developing markets of interest.

expansion

And markets of interest is where we go next. We all knew the power of the BRICS before recession: ALD Russia was launched in 2004, ALD India and ALD Brazil were launched in 2005, and ALD China came in 2006. LeasePlan started even earlier, hitting Brazil in 1998 and India in 1999. But to give it some context, LeasePlan International’s world fleet is 1.3m cars – and one million of those are in Europe. Leasers had to concentrate on servicing their Euro strongholds until the fun and games of austerity were over.

Yes, it was important to sort out their Euro base – but Western Europe is virtually bone dry for new business compared to emerging world powerhouse economies.

So, in 2012 and 2013 it was time to build back up.

Leasers arguably have it tougher than most. In new markets, they must simultaneously service international clients on the ground whilst trying to gain local business by introducing a product that’s almost alien – bypassing and rewiring the presiding socio-cultural mentality of vehicle ownership – but

looking past complex local tax, laws and business culture that resembles the West not a bit, the potential says expansion is most certainly worth it.

ALD said in their 2012 Census that full service leasing would show only moderate growth in Western Europe so they were counting on BRIC countries (plus Mexico, Turkey and Romania) to make up the shortfall. By year’s end 2011, ALD had 10,000 cars in Russia (it’s now over 17,000 cars – meaning they’re more than double the size of second place Arval.

Arval opened new subsidiaries in Denmark, Finland, and China in 2012, and noted growth of around 20% in BRIT markets (Brazil 19%, India 20% and Turkey 18%) – alongside impressive growth in Russia – by 2012 year’s end . It would be 2013 before LeasePlan joined its competitors in Russia, making it 32 countries of operation; including three of the four BRIC nations (not China).

The road ahead?

That’s the international plan – which is another article in itself – but back at base camp in Europe there’s still electrification to talk about; even if no-one wants to commit. There’s also the increasing influence of smart mobility – and the gargantuan issue of telematics and big data lying in wait for leasing giants.

And that’s alongside the day-to-day grind of innovation, technology and service and coaxing bigger fleets away from in-house management; into the comfortable bosom of the full-service leasers.

As we said at the top, leasers are part of the fleet conundrum now – they’re leaders and trendsetters as much as followers and responders. As an industry, it has come on leaps and bounds. One gets the sense the recession was pivotal – but the party soon finished, and now it’s a crowded space with more compliance, more expertise, and more players trying to tap the potential.

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DOSSIER I Car Leasing in Europe in 2014

Who’s who in the year 2014 Banque PSA Finance - Citroën

Daimler Fleet Management

Phililppe Alexandre

CEO

Carl A. Ortell

CEO

Total number of staff

3,000

Total number of staff

2,800 (globally); 256 (Europe)

Total number of staff

/

Shareholders

Daimler Financial Services is a 100% subsidiary of Daimler AG

In activitiy since

Since 1960’s

Shareholders

PSA Peugeot Citroën

Shareholders

In activitiy since

1919

In activitiy since

Organisation

Citroën Fleet is present in 24 countries worldwide, in 15 of which it manages operational leasing products. As for Banque PSA’s performance over the past 4 years, the company will only volunteer that results have been ‘stable’ from 2010 until now. And that the better than expected uptake of new Citroën models launched in 2013 (specifically the new C4 Picasso and the Grand C4 Picasso) promises better results still.

In lockstep with its brand Citroën, Banque PSA Finance – Citroën is analysing the operational leasing market in China, Brazil and Russia very closely, offering standard credit and/or leasing products.

Strategy & Products

The strategy of Banque PSA Finance – Citroën is pretty straightforward: help Brand Citroën regain its market share in Europe, where 99% of its fleet is located. A strategy which will be helped by the arrival of new models with improved TCO performance over previous ones.

One of the concrete ways in which Banque PSA Finance – Citroën will be pursuing this strategy is by offering, from May 2014 onwards, its own fleet management software solution. INTERPARC will allow customers to effectively monitor their fleets, and all aspects related to it. Reaching out to their international fleet customers, Banque PSA Finance – Citroën has an office dedicated solely to international tenders. It operates in synergy with the different sales departments of Brand Citroën, which enables it to formulate the right answer to any question, however specific, from their key international clients.

Evolution

The emerging markets are strategically important for brand Citroën, which has seen its 2013 sales increase in China (+18.7%) and Latin America (+2.8%). Sales in Russia fell, in parallel to a shrinkage of the overall market. Global sales grew 14%. Last year, China became the brand’s number one market in terms of invoices. In spite of a certain lack of maturity in these markets, and the fact that the more mature markets of Europe are still the mainstay for both brand and Banque, It is no secret that growth will be actively pursued most vigorously in the emerging markets.

P.16

ARI

CEO

FLEET EUROPE # 70

privately held

1948

Organisation

ARI has been expanding its European footprint since it established ARI Fleet UK in 2011. In the second half of 2013, it acquired the Fleetlevel+ management portfolio and HPI Fleet & Mobility (and related business entities across Europe). Both now operate as ARI. From its HQ in Germany, and through multiple European offices, the company now delivers services to customers across the continent of Europe, from Finland to Portugal, including Benelux and the Big Five.

The Fleetlevel+ acquisition alone added 13,000 managed units to ARI’s expanding European operations, which it intends to grow further. But European growth is just one part of a larger global strategy designed to meet the needs of the company’s customers which are also growing globally. ARI works to maximise the benefits of an organization with global reach to drive efficiencies and impact the bottom line.

The company seeks to reduce each client’s total cost of ownership (TCO) by understanding each company’s individual needs and customising a solution.

Strategy & Products

Whether customers require fleet solutions on a global scale or in-country, ARI is committed to serving their needs, leveraging strategies that capitalise on worldwide synergies but also exceed regional needs, thanks to experienced local staff.

ARI works with each client to tailor its services to their needs, using technology, transparency and flexibility to deliver meaningful reporting and lower costs.Information is a crucial factor in reducing TCO, and the company’s global reporting package, ARI insights ®, benefits not only from the company’s significant investments in technology and its team of experienced fleet professionals, but also from a global alliance of leading fleet management companies – and more specifically their information networks.

Together, they provide deep-level, compatible info on vehicles across the world.

Gero Goetzenberger

Organisation

Daimler Fleet Management does not publish figures for special segments, but some data on its parent company Daimler Financial Services may serve as an indication of its relative weight, and general tendency. The worth of DFS’s worldwide portfolio was around €63.3 billion at the end of 2010, and around €86.3 billion at the end of 2013. Even though Daimler Fleet Management focuses on its core markets (UK, Italy, Benelux, among others), the company is active across Europe – and aims to intensify its continent-wide presence by entering new European markets. Daimler Fleet Management is therefore, in spite of the challenges of the market, working to acquire new clients, and new markets in the foreseeable future.

Strategy & Products

Being part of the Daimler group gives DFM an undeniable strategic advantage. The ability to deliver the group’s services and products to to customers worldwide is an advantage when those customers are looking for global fleet solutions. Products on offer include not only customable financing and leasing solutions, but also fleet-related services (including repairs and replacements, fuel card management and cross-border fleets). Major fleet customers often operate mixed-brand fleets and issue Europe-wide calls for tenders. Which is why DFM is expanding its portfolio of services to include non-Daimler vehicles.

Evolution

The car leasing business will experience ‘stable growth’, according to Daimler Fleet Management. The company sees itself, thanks to its firm backing and broad product range by the Daimler group, as the reliable partner that customers in these challenging times need for top-quality fleet services, solutions and advice.

As for fleet management services: the Daimler daughter estimates that these can only get more and more important for their corporate customers, hence expects the market for these services to grow.

Alphabet International

Arval CEO

Philippe Bismut

CEO

Norbert van den Eijnden & Ed Frederiks

Total number of staff

4,374

Total number of staff

over 2,200

Shareholders

BNP Paribas Group

Shareholders

BMW Group

In activitiy since

1989

In activitiy since

1997

Organisation

Arval has managed to grow, in spite of the economic crisis of the past 6 years. At the end of 2008, Arval had a total financed fleet of 602,378 vehicles. Compare that to a total leased fleet of 685,302 vehicles at the end of 2013. Arval expanded into Denmark, Finland and China in 2012, but hasn’t opened any new subsidiaries last year. Nevertheless, 2013 was a pivotal year for Arval, achieving stability despite the continuing economic turbulence and in the face of fierce competition. At present, Arval has nearly 100 Agreements with International Clients, each covering full-service leasing in a minimum of 10 countries each.

Over the next year, the company expects that globalisation of fleet strategies will be a continuing trend. After the expansion into new markets of 2012, Arval is currently concentrating on developing its existing markets, especially in what it calls the BRIT countries. These hold the promise of growth around 20% (Brazil 11%, Russia 15%, Turkey 28%).

This should compensate more sluggish growth in some mature markets – although most did withstand the crisis remarkably well, with admirable growth figures in Slovakia (+2%), the UK (+3%), Switzerland (+4%), Luxemburg (+6%), Hungary (+7%), the Czech Republic (+8%) and Belgium (+10%).

Strategy & Products

Arval’s teams are specifically structured to handle international accounts. The company’s International Business Office acquires, promotes and coordinates multi-country business for global fleet management, acting as the central point of contact for Global Procurement teams. The International Business Office is the interface for international clients and prospects to familiarise themselves with Arval’s strong points, i.e. advice on and solutions for cost optimisation, service consistency, full outsourcing, CSR and international reporting, among others. Arval’s award-winning tool for online reporting, Arval Analytics, provides a consolidated overview of an international fleet, in response to the growing need for international reporting, as more and more companies pull together their global purchasing power to drive down costs and centralise car company policies to manager their fleets more efficiently. Arval Analytics provides quantitative to qualitative reporting covering topics from TCO, safety and CO2 emissions to actual vs. expected consumption, gap analysis and improvement action plan monitoring.

The tool also supports key fleet decisions and allows simulation to answer ‘what if’ questions.In recognition of the need for worldwide solutions, Arval is developing partnerships on all continents in the PHH Arval Global Alliance, which currently accounts for over 2 million vehicles. As partner vehicles are being consolidated into Arval’s online reporting tool, the visibility and reporting for international clients will be extended even further.

Evolution

Arval’s car leasing activities this year will concentrate on the SME market in Europe, and on emerging markets with strong economic growth beyond Europe. For the next few years, the company foresees further consolidation in the operational leasing industry in Europe, diminishing the number of players. As for Fleet Management, Arval thinks companies will increasingly demand integrated solutions and full outsourcing offers, asking suppliers to take on risk on their behalf so they can concentrate on their core business. Managing unbundled services through a multitude of suppliers will only attract a minor part of the market.

How does Arval see the future of: • Leasing prices: stable • Residual values: stable • Demand for Global Lease Offer and Approach: increasing

Organisation

Alphabet has grown strongly since 2010. The company now manages 536,000 financed vehicles, an increase of 56% in just three years, and its customer base has more than tripled to 47,500 clients. Alphabet now operates in Europe and Australia in a total of 19 markets. In 2013, the number of new International Framework Agreements signed by Alphabet increased by 9%.

This development and a boost in business with existing clients led to 8% growth for the year, up from 6% in 2012. In the coming years, Alphabet’s centre of gravity will continue to be Europe. The company is excited at the prospect of European economies recovering from the recession. However, with fleet sales trending up in ASEAN countries and approaching maturity in the BRICs, Alphabet will increasingly turn its attention to the world outside Europe.

Strategy & Products

Alphabet’s goal is to become the preferred mobility solutions’ provider for both existing and potential customers. It is achieving this aim by taking a holistic, consultative approach that encompasses both innovative Business Mobility solutions and a strong international sales programme.

As well as classic fleet leasing services, Alphabet also offers advanced Business Mobility solutions that take a comprehensive view of a company’s fleet. AlphaCity, AlphaElectric and Mobility Budget are solutions that aim for enhanced efficiency thereby optimising the Total Cost of Mobility. Alphabet creates streamlined international solutions for companies with fleets in excess of 1,000 vehicles. A customer-specific International Key Account Manager is appointed to optimise a customer’s fleet processes by coordinating the activities of local Alphabet experts and customer subsidiaries.

A high-tech central data system supports fleet management efforts.

This information can be accessed by customers at any time via user-friendly web-based tools. Alphabet’s personal and transparent management approach delivers a highly efficient international fleet and enables customers to implement AlphaCity, AlphaElectric and other innovative Business Mobility solutions at an international level.

Evolution

Alphabet is projecting a 2-3% annual increase in the European operational leasing business. The company expects that the harmonisation of EU taxation will promote growth by facilitating internationalisation, centralisation and the streamlining of fleet decision-making processes. For its own full-service leasing business, Alphabet forecasts growth in all of its core markets and strong growth in its new markets.

Alphabet now ranks 4th place in the industry and aims to increase its business by developing its efforts in its newer markets and by expanding the availability of its Business Mobility solutions. In a later phase, the company is looking to enter other high-potential markets.

How does Alphabet International see the future of: • Leasing prices: expects a slight increase in the coming 12 months due to interest rate increases and inflation.

• Residual values: foresees no significant changes across Europe.

• Demand for global lease offer and approach: anticipates growth in the demand for harmonised, globalised solutions, as a result of beneficial legislation and better technology.

FLEET EUROPE # 70

P.17

DOSSIER I Car Leasing in Europe in 2014 Business Lease Group

Banque PSA Finance – Peugeot

Harm Nijlunsing

CEO

Dr. Rudolf Rizzolli

CEO

Philippe Alexandre

Total number of staff

291

Total number of staff

/

Total number of staff

3,000

Shareholders

AutoBinck Holding

Shareholders

Sixt SE (100%)

Shareholders

PSA Peugeot Citroën

In activitiy since

1989

In activitiy since

1967

In activitiy since

1919

Organisation

Both acquisitions and organic growth have pushed Business Lease Group from a total managed fleet of 32,000 vehicles to over 46,000 vehicles at the beginning of 2014. Most recently, the acquisition of KBC Autolease in Poland in 2012 enhanced the group’s standing in Central and Eastern Europe. Apart from the Netherlands and Poland, Business Lease Group also has fully owned entities in the Czech Republic, Slovakia and Hungary. The group is looking to continue down the chosen path, and foresees substantial growth in the CEE region: as companies in the area are starting discover the advantages of full service leasing, many more have yet to follow. Without wanting to disclose too much details, the group will continue to pursue new markets through a combination of growth and acquisitions – especially in Central and Eastern Europe, and closer to home in the Benelux. This in spite of the market volatility that the company expects throughout 2014.

Strategy & Products

Providing customers with the best care possible, via a comprehensive TCO approach and a range of sustainable solutions – that, in a nutshell, is Business Lease Group’s philosophy. This total care extends beyond today’s issues, far into the future: green legislation increasingly affects residual values, and fuel price volatility has a great impact on monthly fuel expenses. Business Lease Group helps its customers anticipate on these changes.

Business Lease has an edge by using a uniform fleet management system across its different markets, enabling them to create tailored reporting, both default and bespoke, and both for local and international purposes. This gives the full-service leasing provider an edge in a region where the concept is still breaking through.

Evolution

Due to past economic volatility, consolidation in the car leasing business is still an ongoing phenomenon and will continue to be so for years to come, Business Lease Group thinks.

As for fleet management, its future will be determined by market maturity: the more mature a market, the more likely companies will shift from outright vehicle ownership to outsourcing fleet management, the company thinks.

How does Business Lease Group see the future of: • Leasing prices: remaining stable • Residual values: remaining stable • Bundling versus unbundling: as mentalities shift from ownership via fleet management to full-service leasing, especially in Eastern Europe, the trend is definitely towards bundling.

• Demand for global lease offer and approach: in practice, managing a fleet on a global scale is extremely complicated – so no big trend towards global fleet management solutions.

P.18

Sixt Leasing

CEO

FLEET EUROPE # 70

Organisation

Sixt Leasing is one of Germany’s leading vendor-neutral, bank-independent full-service leasing providers, but is also active in other markets. At the end of last year, the company had a total of 76,200 leases, a year-on-year increase of 22.5%. Including the Sixt Leasing’s global franchise partners, the total was 139,400 – an increase of 12.9%, year-on-year.

The company’s focus is on strengthening its national markets, with notable market share expansion and brand awareness campaigns in France and Switzerland in 2013.

Additionally, Sixt Leasing last year also extended its network of international partnerships with a franchise partner in Sweden, as well as streamlining procedures and widening service in the franchise countries.

Strategy & Products

Sixt Leasing positions itself as a highly specialised external service provider, offering seamless processes to its customers, via its online reporting and management tool ‘Fleet Intelligence’, among others.Internationally, Sixt Leasing works with strong and experienced franchise partners, giving its globally harmonised strategy the local expertise to complement it.

Sixt’s combined offer of on- and offline solutions, with a service portfolio including individualised leasing and fleet consultancy services, is aimed specifically at increasing its number of SME customers.

The company sees great potential in expanding its popular ‘Sixt Neuwagen’ offer to lease customers, and is expecting increased demand for leasing and financing solutions – also from private customers. One such solution is Vario-Financing, providing customers with a vehicle on favourable leasing instalments during the contract term, and thereafter the option of acquiring the vehicle with a previously guaranteed final instalment.

Evolution

Sixt Leasing clearly detects a trend towards more innovative and international solutions – as customers seek to reduce the complexity that is inherent in transnational fleets, but also has a large cost footprint. Hence the growing demand for fleet management and fleet consulting solutions. Crucially, for Sixt, is the good outlook for the German economy in 2014, with companies expected to increase investment in plants and equipment by 7% this year – an increase that lease companies can hope to share in equally. The automobile industry itself is also showing increased signs of vigour. As Sixt Leasing continues to optimise its fleet leasing throughout the current year, it further expects positive developments in fleet markets in Europe, especially the Nordics and Turkey.

Organisation

As the dedicated fleet arm of its brand, the fate of Banque PSA Finance – Peugeot is strongly linked to developments within Peugeot itself.

And since 2010, the manufacturer has launched two cars with particular resonance in the B2B market: the 208 and the 508.

In 2013, Peugeot launched the 2008, the new 308 and recently it restyled the 3008 and 5008.

All of which helped the company to limit fleet reduction to 4.9%. The company is present in 24 countries, in 15 of which it manages operational leasing products.

Banque PSA Finance - Peugeot is analysing the operational leasing market of China, Brazil and Russia very closely and is currently offering standard credit and/or leasing products in order to support the Brands in developing the business.

Strategy & Products

In synergy with Brand Peugeot, Banque PSA Finance – Peugeot aims to consolidate gains in terms of Fleet organisation.

With 2014 being the year of models like the new 308 SW, the new city car 108, the 508 Midlife, the new LCV Boxer and the new Partner Electric, the ambition is clearly for both market share and fleet sales to increase significantly.

One of the concrete ways in which Banque PSA Finance – Peugeot will be pursuing this strategy is by offering, from May 2014 onwards, its own fleet management software solution. INTERPARC will allow customers to effectively monitor their fleets, and all aspects related to it.

Reaching out to their international fleet customers, Banque PSA Finance – Peugeot has an office dedicated solely to international tenders. It operates in synergy with the different sales departments of Brand Peugeot, which enables it to formulate the right answer to any question, however specific, from their key international clients.

Evolution

Of strategic value to Peugeot are the emerging markets, where the brand has managed to generate excellent growth figures. Overall unit sales growth outside Europe was 10.9% in 2013, with +5.8% in Latin America, +15% in Turkey and +25.8% in China.

Only in Russia did sales fall, which Peugeot attributes to the slowing economy. The brand aims to build on these promising results.

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*1700 km range based on the NEDC (New European Driving Cycle) consumption (3,5l/100km) x tank capacity (60 litres). Distances that are suggested are theoretical and so indicative to show the vehicule’s performances mentioned in its technical instruction. **Consumptions and authorized emissions to be determined regarding applicable regulations. Fuel consumption and CO2 emission of a vehicule are linked to its energy performance, to the driving behaviour and to other non-technical factors.

DOSSIER I Car Leasing in Europe in 2014 ALD International Mike Masterson

CEO

Frank Witter

Total number of staff

3,900 (Europe), 4,500 (worldwide)

Total number of staff

10,945

Shareholders

Société Générale

Shareholders

Volkswagen AG (100%)

In activitiy since

/

In activitiy since

1949 (with Volkswagen Bank)

Organisation

The fleet of ALD Automotive has grown significantly (+27%) and steadily (CAGR of 7%) since the beginning of 2010. In fact, the combined fleet managed by ALD and its 37 affiliates increased by 5.6% last year to reach 1,008,840 passenger cars and LCVs on 1 January 2014. The company is justifiably proud of reaching the one-million milestone in economically uncertain times. Its network reaches far and wide. This year, Bulgaria and Kazakhstan are to follow. In its own words, ALD International seeks out geographies with a rather “empty supplier landscape”, where its quality solutions will be sure to strengthen its relationships to international key accounts. From a global perspective, ALD International’s alliance with US-based Wheels, Inc. is hugely important to ramp up its global credentials. And with tangible results: ALD and Wheels have partnered up with FleetPartners, leaders in fleet management in Australia and New Zealand, and are looking to sign similar partnerships in other mature markets. For bigger growth, ALD International is looking towards the BRICs, Mexico, Turkey, Romania and Poland. Progress in those countries is double: corporate fleets are still growing apace, and outsourcing solutions have yet to penetrate the market. That being said, growth in these emerging markets is still largely driven by large international customers.

Strategy & Products

With over 215 International Framework Agreements and even more active relationships with large corporates, international fleet customers represent 40% of ALD’s total fleet worldwide. This huge, strategically important chunk of the business is managed through a dedicated international team, in combination with designated interlocutors within each of the 37 affiliates. This setup allows ALD International to stay close to its customers, and deliver value where they most want it: advising on building their fleet in emerging markets, ensuring compliance across different regulatory areas, providing useful and timely reports, delivering (and quantifying) quality along the procurement chain down to driver level, simplifying by innovating and ultimately generating cost reductions at local and global level.

Evolution

The leasing market will continue to grow moderately, in mature markets because of the ‘counter-cyclical’ uptake of leasing by SMEs, and further afield in the BRICs and Central and Eastern Europe, where leasing per se is not yet popular. ALD, thanks to its diversified product portfolio and large geographical coverage, intends to exceed the market’s average growth. This will not be easy, as uncertainties remain about the health of some of the major economies in the eurozone. And uncertainty tends to accelerate fleet downsizing and put a lot of decisions on stand-by. Fortunately for ALD, it has long-standing white label partnerships with OEMs (85+ country agreements in place). As for fleet management – a core product for ALD International, with 25% of its fleet operating under this system – the company foresees growing demand, especially from Latin America.

How does ALD International see the future of: • Leasing prices: stable, possibly even heading down (due to low interest rates and pressure on car prices) • Residual values: stable overall • Bundling vs. unbundling: unbundling is back on the agenda, but as a full-service leasing company, ALD International defends the bundled approach against the perceived advantage of ‘cherry picking’.

• Demand for global lease offer and approach: ALD International notices a lot of global requests for quotes turning into regional processes. Truly global setups will remain the exception, but ALD International encourages global procurement taking a task-force approach to specific markets.

P.20

Volkswagen Financial Services

CEO

FLEET EUROPE # 70

Organisation

Volkswagen Financial Services has grown considerably over the past 4 years, from 561,000 new leasing contracts worldwide in 2010 to 865,000 in 2014. Those big figures befit a company in lockstep with its parent company: VW Financial Services offers its services to VW Group brands in 49 countries worldwide. But the company is also independently examining and analysing the attractiveness of new markets.

As a result of this, it recently expanded its offerings by opening a subsidiary in South Korea in 2011, a branch of VW Bank in Portugal in 2102, and a joint venture in South Africa in March 2014. The South African business is 51% owned by Volkswagen Financial Services, the rest by FirstRand Ltd. via its subsidiary WesBank. Volkswagen Financial Services South Africa offers sale finance, dealer funding, car insurance and leasing, and in future also fleet management. In all, the company has a substantial number of strong relationships with international clients, 22 of which have been formalised in International Framework Agreements.

For the near future, Volkswagen Financial Services will concentrate on those markets in Europe where it still can improve its offer to full service leasing, i.e. Russia, Turkey, Portugal. Outside Europe, the focus is on growing those markets it has recently entered: China, Mexico, India, South Africa and Brazil among the most important. Which means Volkswagen Financial Services is well placed to profit from the global economy’s expansion that it expects to continue over this year, especially in Asia and Latin America – compensated by near-static growth in mature markets, especially Germany.

Strategy & Products

The company is fully aware of the circle that needs to be squared: harmonised products and processes that meet international standards and have global coverage, but also need to take into account local specificities. Which is why VWFS is currently working on matrix pricing and has launched International FleetCARS, a reporting tool that works (even on smartphones and tablets) across 31 countries. VWFS’s reporting focuses on selected standard reports, but will evolve these in concert with their clients.

Apart from international reporting, the company also delivers local reporting in each country, enabling fleet managers to follow their local fleets even more closely.

Evolution

Volkswagen Financial Services hopes the trend towards decreasing sales in the retail sector across several markets will be offset by an increase in fleet business, and is confident it will be able to build on its positive results of 2013. Even in mature European markets, the company aims to foster growth potential in all links of the value chain by exploiting its solid market position and good customers relations.

Volkswagen Financial Services will be zooming in on three areas specifically: insurance, nearly new cars, global fleet management.

The experience in mature markets will be a guide for expanding business in Russia, Asia and Latin America. As for fleet management, Volkswagen Financial Services has great expectations for CarMobility, the fleet management company it set up in Germany, specifically to drive up fleet business. Beyond Europe, where the company still sees room for fleet management growth, the most promising markets it sees are, again, Russia, Asia and Latin America.

How does Volkswagen Financial Services see the future of: • Leasing prices: a lot of hard competition.

• Bundling versus unbundling: bundling is winning.

• Demand for global lease offer and approach: the only way is up.

Athlon Car Lease International

LeasePlan International

GE Capital International

CEO

Armand van Veen

CEO

Vahid Daemi

CEO

Maurice Benisty

Total number of staff

1,250

Total number of staff

6,571

Total number of staff

/

Athlon is part of De Lage Landen’s ‘Mobility Solutions’ business line

Shareholders

Global Mobility Holding (owned 50/50 by Volkswagen AG and Fleet Investments B.V.)

Shareholders

General Electric (100%)

Shareholders

In activitiy since

1916

In activitiy since

40 years in the fleet market, 20 of those in Europe

In activitiy since

Organisation

Athlon Car Lease International has managed to grow its fleet at a steady pace. At present, the company has a fleet of over 244,000 vehicles under contract. This figure does not take into account Athlon’s partner network. The company is constantly optimising its footprint in Europe and beyond, either via its own subsidiaries or via local partnerships.

The options are evaluated in light of whether parent company De Lage Landen is present in potential markets, and whether existing customers are asking Athlon to follow them there. Which is why Athlon recently opened up shop in Sweden. Athlon believes the Swedish market has the growth potential it is looking for in new markets. Athlon detects that same growth potential in the BRICs, but also observes the continued existence of hurdles – in legislation and market mentality - in those countries. Only if these are overcome will the BRICs be mature full operations car leasing markets. That does not prevent Athlon from foreseeing helping clients in those countries with simpler financial leasing solutions.

Strategy & Products

“Follow the customer” doesn’t just apply to geography. Athlon also wants to ensure it stays on top of the latest market requirements, by broadening its scope from car lease provider to mobility provider.

From an international fleet management perspective, Athlon is in the position to deliver several kinds of fleet reporting, fulfilling the most important demands that global scope brings to fleet issues.

Athlon offers an automated reporting tool for fleet managers, and on request international reports, all tailored to the specific needs of customers.

Evolution

Athlon Car lease International is convinced that both the car leasing business in Europe as well as the demand for fleet management services will continue to be stationary for the time being, mirroring the general economic climate. But when the economic situation will improve again, Athlon fully expects repercussions for the industry, and foresees growth in the full service leasing business – noting a main difference with the past: the demand for flexible solutions, which will only increase. As for the future of fleet management, Athlon is convinced that increasing complexity will drive developments: as companies invest in a wider array of options (from leasing to public transport), the need for support is bound to grow. According to Athlon, these two trends – towards flexibility and complexity – help explain why the fleet industry continues to evolve in the direction of centralisation and globalisation.

How does Athlon Car Lease International see the future of: • Leasing prices: depending on the residuals, either staying stable or tending towards an increase.

• Residual values: despite their current stability, residual prices are highly dependent on the economic situation.

• Demand for global lease offer and approach: companies with a global structure will voice increasing demand, others will wait until the economic situation improves.

1963

Organisation

At the end of last year, LeasePlan had 1.37 million vehicles under management (1.35 million a year earlier). Geographically, the company continues to expand: in January, it inaugurated LeasePlan Canada, its 32nd subsidiary. In total, LeasePlan now manages 650 clients under an international framework agreement. LeasePlan also looks towards the BRIC region for further growth – influenced by several factors including: basic economic growth, and the maturing fleet market becoming increasingly receptive to fleet management approaches to control TCO more efficiently. But the promising forecasts don’t stop at the BRICs. LeasePlan is also present in Mexico, where it is fully focused on further structural growth.

Strategy & Products

LeasePlan’s promise to its clients is to deliver the best, most relevant service value. The company has a dedicated international account team that supports each international client, to define fleet objectives that the company then delivers together with its local teams. Responding to the economy-driven trend in international companies towards further centralisation of their fleet sourcing and fleet management, LeasePlan offers tailored support to their clients, delivering value in terms of cost control and reduction, process and policy optimisation, and corporate responsibility. LeasePlan provides its clients with all relevant fleet insights via its ‘FleetReporting’ which is available in each LeasePlan market.

It also provides an internationally consolidated version called ‘International FleetReporting’. This tool allows clients to receive standard reports on fleet, cost, OEM, environmental, risk etc., but develops custom reports based on specific client needs. LeasePlan also provides a stand-alone reporting solution (hosted outside of LeasePlan’s server environment) for those clients that wish to consolidate fleet data from multiple sources, such as internal client systems, purchased vehicles, and fleets in markets where LeasePlan is not present.

Evolution

LeasePlan sees a number of key changes on the horizon that will continue to shape the sector: new data centered technologies, increased urbanisation, and government regulation. Also, the focus to deliver services will shift more from vehicle to driver – also beyond the vehicle, to other modes of transport.

How does LeasePlan International see the future of: • Leasing prices: stable overall, but with minor local fluctuations • Residual values: again, variations possible per country, but no significant outliers • Bundling vs. unbundling of fleet services: the increased complexity and process inefficiency that come with splitting up different aspects of a service typically outweigh the supposed benefits of such an approach. Combined with the trend towards a more centralised and harmonised management of global fleets LeasePlan does not see a broad interest of international fleets for this approach • Demand for global lease offer and approach: LeasePlan observes consistent indications that more and more companies want to centralise fleet management and related purchasing. Cost savings and process optimisation are the main drivers for this development.

Organisation

GE Capital International is a significant division of GE Capital, in turn a major part of the highly regarded and respected US company General Electric. GE Capital has recently been reorganised into just 2 entities, GE Capital America and GE Capital International, the latter dealing with the world outside the American continent.

These changes will mean GE Capital will now have the flexibility and the global reach to meet changing customer needs, particularly the requirement to have a more Global approach for financial services. GE Capital is always reviewing the products and services it can deliver to further improve its offerings in its current core markets in Western Europe, Iberia and the Nordics. In addition it is exploring how best to serve its customers in new markets in across Europe.

For example it has now implemented a key partnership with a high quality leasing supplier in Poland, probably Central and Eastern Europe’s most pivotal market. This agreement will soon be extended to include the Czech Republic, Slovakia and Hungary. Further opportunities in other countries in the CEE region (and elsewhere in Europe) are constantly being evaluated.

Strategy & Products

At GE Capital International the objective is to grow the business in a way that supports the business of our customers. In 2014 the company will be focusing extensively on increasing and developing the tools and services to meet our customers changing needs. This will include global fleet consultancy and a global reporting dashboard to help our fleet customers to effectively control their fleets across multiple continents. This is just one example – albeit a crucial one – of GE Capital’s capability to provide our customers with the explicit benefits of our global reach, combined with the professionalism and knowledge of local management. This strategy is a direct response to the increasing trend towards global tenders and the swelling chorus of requests from customers for global support.

Evolution

There is a significant trend that our customers increasingly need support for their expanding business in new markets. We are expected to grow with our customers. This has meant that the company is now focusing more on markets such as Poland and the rest of Eastern Europe as well as evaluating opportunities in other emerging markets. Similarly it is investing in its digital tools and its consultancy services to further enhance the value it brings to customers who value the outsourcing model and total cost management focus that GE Capital provides.

How does GE Capital International see the future of: • Demand for global lease offer and approach: GE Capital’s clients are clearly trending towards global tenders, and are increasingly demanding the company for global support.

FLEET EUROPE # 70

P.21

Hyundai i40

A winning combination.

The inspired i40 does not stop at premium comfort, smart technology and stand-out style. With its unmatched 5 Year Unlimited Mileage Warranty and impressively low maintenance costs, the i40 is a car that just keeps on delivering. For more, visit www.hyundai.com/eu

Hyundai Leasing Combined Fuel Consumption for i40 Wagon: 4.3 - 7.7 l/100 km, Combined CO2 Warranty is subject to local terms and conditions. For taxi or rental usage

Emissions 113 - 179 g/km. The 5-year unlimited mileage warranty is valid in all EU member states + EFTA. model specific restrictions apply. For more, visit www.hyundai.com/eu

DOSSIER I Car Leasing in Europe in 2014

Austria

Belgium

Bulgaria

Czech Republic

Croatia

Denmark

Estonia

Finland

France

Germany

Greece

ALD International

ALD Austria Subsidiary T. fleet: 4,725

ALD Belgium Subsidiary T. fleet: 58,255

ALD Czech ALD Croatia Subsidiary Republic Subsidiary T. fleet: 2,746 T. fleet: 12,718

ALD Denmark ALD Estonia Subsidiary Subsidiary T. fleet: 19,823 T. fleet: 1,013

ALD Finland ALD France Subsidiary Subsidiary T. fleet: 18,020 T. fleet: 319,344

Alphabet International

T. fleet: 4,412

T. fleet: 37,642 -

Present

-

T. fleet: 1,410

-

-

T. fleet: 75,200 T. fleet: 144,507

ARI

ARI Fleet Austria Subsidiary T. fleet: 463

ARI Fleet Belgium Subsidiary T. fleet: 2,437

-

-

ARI Fleet Denmark Subsidiary T. fleet: 130

-

ARI Fleet Finland Subsidiary T. fleet: 216

ARI Fleet France Subsidiary T. fleet: 1,686

ARI Fleet Germany Subsidiary T. fleet: 21,536

Arval

Subsidiary T. fleet: 2,804

Subsidiary T. fleet: 36,129

Subsidiary T. fleet: 10,673

Subsidiary T. fleet: 297

-

Subsidiary T. fleet: 283

Subsidiary T. fleet: 205,613

Subsidiary Subsidiary T. fleet: 26,042 T. fleet: 1,575

Athlon Car Lease International

InterleasingGesmbH & Co.KG Network partner T. fleet: 1,217

Athlon Car Lease Belgium Subsidiary T. fleet: 43,408

Business Lease Network partner

-

-

-

Athlon Car Lease France Subsidiary T. fleet: 38,649

Athlon Car Lease Germany Subsidiary T. fleet: 31,759

-

Business Lease

-

-

-

Business Lease Czech Republic Subsidiary T. fleet: 8,200

-

-

-

-

-

-

-

Citroën Finance

Citroën Bank T. fleet: 6,000

Citroën Lease T. fleet: 5,500

PSA Finance T. fleet: 120

-

-

-

-

Citroën Business Finance T. fleet: 107,500

Citroën Bank T. fleet: 39,500

Daimler Fleet Management

MercedesBenz Financial Services Austria

MercedesBenz Financial Services BeLux NV MercedesBenz Financial Services Nederland NV

MercedesBenz Financial Services Ceská republika s.r.o.

-

MercedesBenz Finans Danmark AS

-

-

MercedesBenz Financial Services France S.A.

Daimler Fleet Management GmbH

GE Capital International

Subsidiary

Subsidiary

Network partner

Network partner

Network partner

Network partner

Network partner

Subsidiary

Subsidiary

-

LeasePlan International

LeasePlan Österreich Subsidiary T. fleet: 33,012

LeasePlan Subsidiary Fleet Management N.V Subsidiary T. fleet: 52,378

LeasePlan Ceská Republika s.r.o.

Subsidiary T. fleet: 17,146

-

LeasePlan Swedbank Danmark A/S Network Subsidiary Partner T. fleet: 26,043

LeasePlan Finland Oy Subsidiary T. fleet: 20,422

LeasePlan France S.A.S. Subsidiary T. fleet: 92,802

LeasePlan Deutschland GmbH Subsidiary T. fleet: 85,549

LeasePlan Hellas SA Subsidiary T. fleet: 10,818

Peugeot Finance

Peugeot Bank Peugeot T. fleet: 8,500 Lease T. fleet: 4,500

-

PSA Finance T. fleet: 110

-

-

-

-

Peugeot Busi- Peugeot Bank ness Finance T. fleet: 58,000 T. fleet: 102,000

Sixt Leasing

Sixt GmbH Subsidiary T. fleet: 660

-

Sixt Bulgaria Headquarters Tourist Service RAC Franchise partner T. fleet: 38

Sixt Czech Republic Headquarters Speed Lease a.s.

Franchise Partner T. fleet: 2,936

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

Franchise partner T. fleet: 105

-

Sixt Estonia Headquarters Transporent OÜ Franchise partner

-

Sixt Leasing AG Sixt France Headquarters Headquarter Sixt LLD T. fleet: 67,784 location longue durée SARL Subsidiary T. fleet: 3,669

Volkswagen Financial Services

Network partner Partnership with Porsche Bank Austria

s.a.

Volkswagen D’Ieteren Finance n.v.

Subsidiary T. fleet: 28,364

Network partner Partnership with Porsche Bank Austria

ŠkoFIN s.r.o.

Subsidiary 14,116 contracts

Network partner Partnership with Porsche Bank Austria

Network partner

Network partner Partnership with DNB

Network partner Partnership with the importer

Volkswagen Group Fleet Solutions Subsidiary T. fleet: 48,093

-

-

Figures from 31/01/2014, Alphabet figures from 31/12/2013

P.24

FLEET EUROPE # 70

ALD Germany ALD Greece Subsidiary Subsidiary T. fleet: T. fleet: 3,305 124,024 -

Sixt Greece Headquarters Lion Rental S.A. Franchise partner T. fleet: 2,448

Volkswagen Volkswagen Leasing GmbH Bank GmbH Subsidiary Subsidiary T. fleet: 1,014,000 (included private customers & small commercials)

T. fleet = Total fleet

Hungary

Ireland

Italy

Latvia

Lithuania

Luxemburg

Netherlands

Norway

Poland

ALD Latvia Subsidiary T. fleet: 1,256

ALD Lithunia Subsidiary T. fleet: 994

ALD Luxemburg Subsidiary T. fleet: 9,729

ALD ALD Norway Netherlands Subsidiary Subsidiary T. fleet: 8,362 T. fleet: 24,418

ALD Poland Subsidiary T. fleet: 7,666

Portugal

Romania

ALD International

ALD Hungary Subsidiary T. fleet: 4,961

Johnson & Perrot Network partner T. fleet: 1,591

ALD Italy Subsidiary T. fleet: 108,483

Present

-

T. fleet: 25,313 -

-

T. fleet: 1,856

T. fleet: 88,044 T. fleet: 20

T. fleet: 11,575 -

-

Alphabet International

-

ARI Fleet Ireland Subsidiary T. fleet: 34

ARI Fleet Italy Subsidiary T. fleet: 1,483

-

ARI Fleet Luxembourg Subsidiary T. fleet: 53

ARI Fleet Netherlands Subsidiary T. fleet: 1,763

-

-

ARI

Subsidiary T. fleet: 3,181

-

Subsidiary T. fleet: 132,479

-

-

Subsidiary T. fleet: 3,787

Subsidiary T. fleet: 29,291

Subsidiary Subsidiary T. fleet: 15,072 T. fleet: 5,451

Subsidiary T. fleet: 4,874

Business Lease Network partner

Merrion Fleet Management Limited Network partner T. fleet: 5,200

Athlon Car Lease Italy Subsidiary T. fleet: 8,907

-

-

Athlon Car Lease Luxembourg Subsidiary T. fleet: 1,850

Athlon Car Lease Netherlands Subsidiary T. fleet: 106,623

-

Athlon Car Lease Poland Subsidiary T. fleet: 3,167

Athlon Car Lease Portugal Subsidiary T. fleet: 1,204

-

Athlon Car Lease International

Business Lease Hungary Subsidiary T. fleet: 2,750

-

-

-

-

-

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

Business Lease Poland Subsidiary T. fleet: 6,100

-

-

Business Lease

-

-

PSA Renting Italia T. fleet: 2,500

-

-

-

Citroën Lease T. fleet: 2,200

Citroën Business Lease T. fleet: 130

Citroën Rent- ing T. fleet: 420

Citroën Finance

-

-

MercedesBenz Financial Services Italia, MercedesBenz CharterWay S.p.A.

-

-

MercedesBenz Financial Services BeLux NV

Daimler Fleet Management Netherlands, MercedesBenz Financial Services Nederland B.V.

MercedesBens Leasing Polska Sp. Z.o.o.

MercedesBenz Financial Services Portugal – Instituicao Financeira des Crédito S.A.

-

Daimler Fleet Management

Network partner

-

Subsidiary

-

-

Subsidiary

Subsidiary

-

Network partner

Subsidiary

-

GE Capital International

LeasePlan Hungária Zrt. Subsidiary T. fleet: 8,677

LeasePlan Ireland Subsidiary T. fleet: 11,875

LeasePlan Italia S.p.A. Subsidiary T. fleet: 106,679

Swedbank Network partner

Swedbank Network partner

LeasePlan Luxembourg S.A. Subsidiary T. fleet: 8,098

LeasePlan Nederland N.V. Subsidiary T. fleet: 122,200

LeasePlan Norge AS Subsidiary T. fleet: 38,673

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

Subsidiary T. fleet: 22,739

LeasePlan Portugal Subsidiary T. fleet: 85,092

LeasePlan Romania Subsidiary T. fleet: 9,113

LeasePlan International

-

-

PSA Renting Italia T. fleet: 3,500

-

-

-

Peugeot Lease T. fleet: 2,700

-

Peugeot Business Lease T. fleet: 80

Peugeot Renting T. fleet: 1,100

-

Sixt Hungary Headquarters Wallis Autóparkkezelö Kft. Franchise partner T. fleet: 250

Sixt Ireland Headquarters New leasing franchise partner in May 2011 Franchise partner T. fleet: 44

Sixt Leasing Italy Partner Leasys S.p.A. Cooperation partner Already 100,000 contracts

Sixt Latvia Headquarters Transporent SIA Franchise partner T. fleet: 1,929

Sixt Lithuania Headquarters Transporent UAB Franchise partner T. fleet: 92

Sixt Netherlands Headquarters Sixt B.V. Subsidiary T. fleet: 396

Sixt Poland Headquarters Eurorent Sp. z. o o.

Franchise partner T. fleet: 101

Sixt Romania Headquarters Sixt New Kopel Romania SRL Franchise partner T. fleet: 2,834

Sixt Leasing

Network partner Partnership with Porsche Bank Austria

Volkswagen Bank GmbH Subsidiary

Volkswagen Network Leasing GmbH partner Subsidiary Partnership with DNB

Network partner Partnership with DNB

Volkswagen Pon Financial Services Subsidiary T. fleet: 89,039

Volkswagen Bank Polska S.A. Volkswagen Leasing Polska S.A. Subsidiary T. fleet: 7,105

Network partner Partnership with Porsche Bank Austria

Volkswagen Financial Services

Figures from 31/01/2014, Alphabet figures from 31/12/2013

Network partner Partnership with importer Autodisfusion Losch s.e.c.s.

T. fleet: 1,337

-

Volkswagen Møller BILFinans AS Subsidiary T. fleet: 47,604

ALD Portugal ALD Romania Subsidiary Subsidiary T. fleet: 12,906 T. fleet: 7,252

ARI Fleet Portugal Subsidiary T. fleet: 261

VW Financial Services Subsidiary

Arval

Peugeot Finance

T. fleet = Total fleet

FLEET EUROPE # 70

P.25

DOSSIER I Car Leasing in Europe in 2014

Russia

Serbia

Slovakia

Slovenia

ALD International

ALD Russia Subsidiary T. fleet: 17,654

ALD Serbia Subsidiary T. fleet: 1,830

ALD Slovakia Subsidiary T. fleet: 2,347

ALD Slovenia Subsidiary T. fleet: 1,374

Alphabet International

-

-

Present

ARI

-

-

-

Arval

Spain

Sweden

Turkey

UK

Ukraine

ALD Spain ALD Sweden ALD SwitSubsidiary Subsidiary zerland T. fleet: 74,364 T. fleet: 19,849 Subsidiary T. fleet: 3,980

ALD Turkey Subsidiary T. fleet: 9,908

ALD UK Subsidiary T. fleet: 96,108

ALD Ukraine Subsidiary T. fleet: 5,034

-

T. fleet: 33,294 T. fleet: 4,006

T. fleet: 3,918

-

T. fleet: 133,918

-

-

ARI Fleet Spain Subsidiary T. fleet: 1,199

ARI Fleet Switzerland Subsidiary T. fleet: 744

-

ARI Fleet UK Subsidiary T. fleet: 59,949

-

ARI Fleet Sweden Subsidiary T. fleet: 288

Switzerland

Total Europe

984,039

565,115

92,242

Subsidiary T. fleet: 6,912

-

Subsidiary T. fleet: 4,412

-

Subsidiary T. fleet: 67,850

Subsidiary T. fleet: 5,995

Subsidiary Subsidiary T. fleet: 10,408 T. fleet: 89,395

685 302

Athlon Car Lease International

Auto Partners Russia Network partner T. fleet: 3,965

-

Business Lease Network partner

-

Athlon Car Lease Spain Subsidiary T. fleet: 7,002

Athlon Car Lease Sweden Subsidiary T. fleet: 1,438

-

Fleet Corp Network partner T. fleet: 15,291

Lex Autolease Network partner T. fleet: 280,000

563.780

Business Lease

-

-

Business Lease Slovakia Subsidiary T. fleet: 3,250

-

-

-

-

-

-

PSA Finance T. fleet: 50

PSA Finance T. fleet: 40

Citroën Rent- ing T. fleet: 3,000

Citroën Citroën Finans Finans T. fleet: 14,200 T. fleet: 170

-

-

MercedesMercedesBenz FinanBenz Finans cial SerSverige AB vices Espana, E.F.C., S.A.

MercedesBenz Financial Services Schweiz AG

MercedesBenz Finansal Kiralama Türk A.S., Daimler Fleet Services A.S.

MercedesBenz Financial Services UK Limited

-

Citroën Finance

Daimler Fleet Management

-

-

-

46,300

Citroën Contact Monitoring T. fleet: 30,000

211,330

MercedesBenz Financial Services Rus OOO

-

GE Capital International

-

-

Network partner

-

Subsidiary

Subsidiary

Subsidiary

-

Subsidiary

-

LeasePlan International

LeasePlan Rus LLC Subsidiary Start up 2013

-

LeasePlan Slovakia B.V. Subsidiary T. fleet: 6,456

-

LeasePlan Servicios, S.A. Subsidiary T. fleet: 73,695

LeasePlan Sverige AB Subsidiary T. fleet: 25,974

LeasePlan (Schweiz) AG Subsidiary T. fleet: 13,518

LeasePlan Otomotiv Servis ve Ticaret A.Ş Subsidiary T. fleet: 10,466

LeasePlan UK Ltd. Subsidiary T. fleet: 145,249

-

PSA Finance T. fleet: 230

PSA Finance T. fleet: 50

Peugeot Renting T. fleet: 6,700

-

Peugeot Peugeot Finans Finans T. fleet: 14,000 T. fleet: 110

Peugeot Contract Motoring T. fleet: 17,000

Fleetmanager Sweden AB Franchise Partner Start in Q1 2014

Sixt Leasing (Schweiz) AG Subsidiary T. fleet: 3,692

Sixt Turkey Headquarters Articar A.S Franchise partner T. fleet: 139

Sixt Leasing UK Partner Ogilvie Fleet Ltd Cooperation partner Already 10,000 contracts

Volkswagen Finans Sverige AB (publ) Subsidiary T. fleet: 26,000

Network partner Partnership with importer AMAG T. fleet: 10,198

Volkswagen Doğuş Tüketici Finansmanı A.Ş.

Network partner

Volkswagen Subsidiary Group Leasing Subsidiary T. fleet: 99,120

Peugeot Finance -

Sixt Leasing

Volkswagen Financial Services

-

Sixt Russia Headquarters Limited Liability Company RentaLine Franchise partner T. fleet: 60

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

Franchise partner T. fleet: 103

Sixt Slovakia Headquarters GentleCar, s.r.o.

Franchise partner T. fleet: 95

Sixt Slovenia Headquarters ANTICUS d.o.o.

Franchise Partner T. fleet: 265

-

Volkswagen Group Finanz OOO Subsidiary

Network partner Partnership with Porsche Bank Austria

Volkswagen Finanncne Sluzby s.r.o.

Subsidiary T. fleet: 1,602

Network partner Partnership with Porsche Bank Austria

Volkswagen Leasing Subsidiary T. fleet: 14,500

Figures from 31/01/2014, Alphabet figures from 31/12/2013

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FLEET EUROPE # 70

-

200,000

1,015,328

218,500

Sixt Ukraine Headquarters Optima Leasing Franchise partner T. fleet: 208

136,765

-

T. fleet = Total fleet

North America

ALD International

USA Canada T. fleet: 296,000 Network partner Wheels

South America

Mexico: 8,429 Subsidiary Brazil:13,086 Subsidiary Puerto Rico Network partner

Asia Pacific

ROW EU + ROW

Africa

China: 1,504 Subsidiary India: 9,044 Subsidiary Australia & New Zealand: 40,000 Network partner

377,081

Morocco: 6,544 Algeria: 2,474 Subsidiary

of which ALD:

41,081

1,385,300 of which ALD:

1,032,709

Alphabet International

-

-

Australia

-

-

ARI

Arval

United States: 785,299 Canada: 161,017 Mexico: 25,000

-

Brazil, Argentina, Bolivia, Chile, Ecuador, Paraguay, Uruguay: 117,759 Colombia: 10,355 Peru: 1,809 Network partner

Brazil: 13,736

Japan, China, Hong Kong, India, Indonesia, Kazakhstan, Malaysia, Oman, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, Australia, and New Zealand T. fleet: 1,340,000 Network partner

South Africa, Kenya, Nigeria, Namibia, Botswana, Swaziland, Lesotho, Nigeria, Tanzania, Zambia, Mozambique T. fleet: 65,924 Network partner

China: 42 India: 3,486

Morroco: 5,518

-

-

-

Athlon Car Lease International

US, Canada T. fleet: 177,000 Network partner Donlen

-

CitroĂŤn Finance

-

Argentina

-

-

-

-

-

-

Daimler Fleet Management

GE Capital International

LeasePlan International

Peugeot Finance

United States

USA - subsidiary Canada – network partner

Canada, North America T. fleet: 225,000 Subsidiary

-

Mexico, Brazil, Argentina, Puerto Rico

Mexico - subsidiary

Brazil, Mexico T. fleet: 12,257 Subsidiary

Argentina

Australia, China, Japan, Hong Kong, Israel, New Zealand, Singapore, South Korea, Thailand, Taiwan, Dubai, Indien, Malaysia

South Africa

Japan, South Korea, India, Australia, New Zealand Subsidiary

-

800,000 + 1 million +

Australia, India, New Zealand T. fleet: 117,810 United Arab Emirates T. fleet: 3,618 Subsidiary -

358,685 1.37 million -

-

Sixt Leasing

Volkswagen Financial Services

-

USA, Canada Subsidiary

Figures from 31/01/2014, Alphabet figures from 31/12/2013

Argentina, Brazil, Korea, Costa Rica, Dominican Republic, Philippines, T. fleet: 2,000 Guadeloupe, Mexico, Panama, Peru, Puerto Rico, Uruguay T. fleet: 135 Franchise partners

Arab Emirates, Bahrain, Lebanon, Libya, Qatar, Saudi Arabia, Syria, Tunisia T. fleet: 486 Franchise partners

Brazil, Mexico Subsidiary

South Africa; UAE Subsidiary

China, Japan, Australia, India, South Korea Subsidiary

2,621

139,386 -

T. fleet = Total fleet

FLEET EUROPE # 70

P.27

DOSSIER I Car Leasing in Europe in 2014

Greener than you Car leasing companies see Corporate Social Responsibility (CSR) as a way to distinguish themselves from their competitors – and add value for their customers. This is why the fleet industry is pioneering eco-friendly products and services. The industry is a laboratory where the post-carbon mobilities of the future get their first real road test.

T

he vehicle leasing industry will change more in the next 5 years than it has in the past 20 years.

And while the future is by definition unknown, the direction at least is clear: less fossil fuels, more alternative fuels. Less traditional formulas, more telematics-driven solutions.

beyond that target. What the available data makes clear, is how the EU target drives the greening process. LeasePlan International, for example, has a global average of 154 g/km, but is already at 130 g/km for its European fleets.

ALD International’s global average of 135 g/km drops to 131 g/km for new deliveries in 2013 – and beyond.

G/km CO2 emissions are one example of where the sector is headed. The EU’s target for 2015 is an average (per OEM fleet) of 130 g/km. Many lease companies are already near or even

Business Lease Group, with four subsidiaries in Eastern Europe, already has a total average of 129 g/km, but points out that its more advanced Dutch home market is “well below” this figure.

With group averages of 129 and less than 120 g/km respectively, Alphabet International and Athlon Car Lease International too are well below the 2015 target. Even those companies that don’t provide exact figures, like Daimler Fleet Management, refer to their ambition to “operate in the most efficient way”.

Hybrid vs. electric A laudable ambition, but what does ‘most efficient’ mean? That debate is still raging, and its outcome will determine what post-carbon mobility will look like.

Some schools of thought favour electric, others see hybrids as the way forward, and there are other technologies competing for a share of the future.

Car lease companies are pioneering new products and services, impacting CO2 emissions, alternate motorisations, and comprehensive new mobility solutions.

P.28

FLEET EUROPE # 70

The safe option is to hedge your bets, as ALD does.

With a total of nearly 17,000 new technology vehicles, the company manages the largest such fleet in Europe.

The makeup of that fleet is telling: 12,000 hybrids, 4,500 pure electric cars and 450 plug-in hybrids.

The aim of the ‘new tech’ fleet is to gain experience.

Conclusion so far? E-mobility is gaining ground slower than expected, ALD International admits, but with product offers

© ALD Automotive

The future of car leasing and fleet management will provide services centered on the driver instead of the vehicle.

Already today car lease companies have developed applications and tools for the driver.

becoming more consistent, the electric option could soon reach a tipping point, especially for LCVs. As for hybrids, they might not catch the imagination as electric cars do, but when usage and tax regimes are advantageous, hybrid fleets do boom (especially since the introduction of hybrid diesels, already 20% of recent orders – although petrol hybrids still represent 90% of the total).

So is the sector slowly tilting towards electric? Not so fast! While also offering both electric and hybrid, Arval acknowledges the limitations of the former while estimating that the latter is closer to commercial maturity. LeasePlan International also points out that hybrids are more accepted and in many ways a more proven technology than electric cars.

Another option is to actively push one specific model.

Alphabet International, for example, demonstrates its strong commitment to e-mobility by offering AlphaElectric, a turnkey solution that analyses a client’s electrification potential and proposes a custom-made solution.

The fleet sector’s intense positioning on hybrid versus electric shows just how much ahead of the general market it is: even though both segments are growing nicely in relative terms, they remain very small in absolute terms. Classic power trains are still the overwhelming majority. The new technologies appeal to very specific target groups.

But the choice for or against hybrid and electric is made solely on the basis of the specific company’s requirements.

So the proposal usually still entails a mix of hybrid, pure electric and classic combustion engines.

Sixt Leasing is even more outspoken about the electric option. The company says e-mobility already is a viable option for fixed trips between two destinations, or for travel in an inner city.

The company notices that its customers are increasingly opting for electric mobility – perhaps not surprising, as it offers every electric model available on the market, and has started a strategic partnership in Germany with Tesla Motors, as Athlon did before on an international wide level.

The electric car is an ideal fit for public sector services, large factories and logistics companies. It’s also increasingly used as a pool car.

But although prices for post-carbon cars are coming down, tipping point has not yet been reached: they are most popular in countries such as the UK, Netherlands, Norway, Germany and Italy, where tax breaks have made them attractive options.

Controlling fuel consumption So while important for the future, it is important to remember that hybrid and electric remain effectively marginal options today. So the best thing to do in a sec-

FLEET EUROPE # 70

P.29

DOSSIER I Car Leasing in Europe in 2014 Corporate car sharing is a popular formula, offered by most major fleet companies, often as part of a comprehensive scheme for flexibility.

endeavour that some fleet companies offer comprehensive schemes, touching on vehicle selection, emissions reduction and driver training.

© Alphabet

ALD’s bluefleet does all that, and the company even adds fuel races to demonstrate the fuel-saving capacity of different models.

tor that remains dominated by the combustion engine is to reduce fuel consumption – good for the environment, and the bottom line.

It all starts with good reporting, as quantification is the first step towards rationalisation. Every fleet company has highly performant tools, each with their own peculiar qualities. Daimler Fleet Management’s xFleet, for example, is an online platform telling fleet managers which cars are performing better, and which are worse than average.

Sixt Leasing’s FleetIntelligence provides fleet managers with in-depth info on mileage control, fuel consumption and CO2 emissions. Each tool eventually has the same function: allowing fleet manages to identify and eliminate wasteful behaviour.

An additional way to do that is through driver training programmes, such as Alphabet’s or Arval’s Eco Driver training, or Athlon’s Save Fuel scheme. Alphabet additionally offers Safety Driver trainings and, in some markets, even psychometric testing, in order to limit accidents.

Athlon has another interesting behaviour modification programme, called AlertDriving: it directs the driver to cheaper petrol stations.

It goes without saying that integrating ever more fuel efficient cars into the fleet mix is crucial to controlling fuel costs. In fact, controlling fuel cost is such a multi-faceted

P.30

FLEET EUROPE # 70

Arval’s Measure & Management programme combines eco-driving training with telematics, resulting in improved safety and reduced fuel consumption. LeasePlan International, besides offering various methodologies discussed above, goes as far as factoring in fuel into the driver’s monthly allowance – steering him or her towards the optimum fuel choice.

Such driver empowerment may be the way forward because, as LeasePlan International calculates: “Fuel cost easily represents 25% of the car cost. Less fuel cost means more car”.

Mobility Management The classic company car – whether hybrid, electric or fossil-fueled – is but one focus of the socially responsible mobility of the future. Fleet companies are developing a wealth of products and services offering alternatives, like car sharing and connectivity to public transport.

Corporate car sharing is a popular formula, offered by most major fleet companies, often as part of a comprehensive scheme for flexibility. Take for instance Alphabet International’s car sharing scheme AlphaCity, which will be supplemented by a Mobility Budget. Employees can then spend it on a mix of mobility options – even bicycles.

Other comprehensive schemes include Share Your Fleet, developed in 2013 by Banque PSA Finance Peugeot Citroën, enabling its clients to optimise use of their cars via car sharing, private use in evenings and weekends, etc.

ALD’s newmobility label assembles the company’s efforts to find new mobility solutions, from car sharing and shared offices to multimodal mobility (adding scooters, train subscriptions or bikes to a company car) and mobility budgets.

“Fleet companies jockey to deliver more CSR than their competitors.”

And Athlon’s customer-centered approach stresses the importance of alternatives to travel (flex centres, working from home) and alternatives of

travel (car sharing, public transport, etc.), also offering a mobility audit and an Momas, an online tool for companies to manage all their mobility agreements online.

Quite often, local experiments in specific markets are the laboratories where these solutions are born. LeasePlan International is building on the success of its MobilityMixx schemes in the Netherlands to roll out new services where customers demand them.

Volkswagen Financial Services operates Quicar and Euro-Mobil (its car sharing and car renting schemes, respectively) only in Germany – for now.

Data-driven As these examples show, the laboratory of tomorrow’s mobility is bustling with activity. Car lease companies are pioneering new products and services, impacting CO2

emissions, fuel consumption, alternate motorisations, and comprehensive new mobility solutions.

Perhaps, as some specialists foresee, future mobility will provide services centered on the driver instead of the vehicle. So maybe, in 5 years’ time, when the industry will have changed more than over the last 20 years, we’ll no longer lease a car, but a ‘mobility key’, unlocking a variety of transport options.

It’s still difficult to see how exactly the future will look like, but one thing seems certain: as OEMs, fleet companies and fleet managers increasingly have access to a wealth of telematics, the efficient options of the future will be driven by the data of today. ■ Frank Jacobs

www.volkswagenleasing.de/internationalfleet

International Fleet

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

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

FLEET EUROPE # 70

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DOSSIER I Car Leasing in Europe in 2014

Looking into the crystal ball SIXT LEASING Dr. Rudolf Rizzolli CEO

“

Rudolf Rizzolli

The increasing convergence of vehicles, technology, and the resulting data will continue to enhance the fleet owners’ potential to centralise their fleet management. In this development, also the potential for vehicle personalisation will increase. These benefits also add complexity as a significant challenge that will require a well structured service development and -delivery to simplify the client experience.”

BANQUE PSA FINANCE Philippe Alexandre CEO

GE CAPITAL Alex Barbereau European Account & Consultancy Director

We believe connected cars will be the next big thing in the year to come.

Which is why PSA Peugeot Citroën is working very hard indeed in this field: we aim to seize this opportunity and capitalise on it, in order to be able to provide our customers with fully developed services in this new technology”.

“

ATHLON CAR LEASE INTERNATIONAL Valerie Van Hoof Global Coordination Center Manager

ALD INTERNATIONAL Stephane Rénie Sales & Marketing Director

“ Valerie Van Hoof

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“

Customers increasingly want mobility solutions tailor-made to their international requirements, aiming for maximum flexibility and minimum complexity – and of course a sustainable cost reduction. Sixt’s wide range of mobility services and additional solutions meet these requirements. We are the only single-source international mobility provider offering mobility from one minute to several years”.

“

Philippe Alexandre

LEASEPLAN INTERNATIONAL Jose Luis Criado Managing Director

We expect a shift from car ownership to car usage, especially among the younger generation, and increased mobility on demand, whereby people choose and combine several modes of travel depending on their needs. This will require different mobility providers to work more closely together, and be more flexible”.

FLEET EUROPE # 70

From our experience working with some of the biggest, most effective and efficient fleets in the world, global reporting will be the Next Big Thing in international fleet business. It’s the inevitable result of leasing companies striving to deliver efficiencies for their global customers.”

Jose Luis Criado

Alex Barbereau

“

A lot of Big Things are about to happen. We’ll see more change in the next 5 years than in the past 15. Such as: more international policies, a transformation of the playing field (with more concentration, stronger specialist providers), more action on driver behaviour, and further product and tech innovation, both operational and customer-facing.”

Stephane Rénie

The car leasing industry has changed radically over the past decade and keeps evolving permanently. We take a leap forward and ask the major leasing companies how they see ‘‘the next big thing in fleet management optimization’’.

BUSINESS LEASE GROUP Robbert van Muyden, Director International Sales, Marketing & Operations

“

The international car leasing industry is facing interesting times. So much so that we don’t think there will be only one Next Big Thing.

Robbert van Muyden

he coming years will see a tremendous change in relation to developing mobility solutions, telematics and online services. Furthermore, we foresee a shift from B2B markets to B2C markets, supported by all sorts of new mobility solutions and online services”.

ALPHABET INTERNATIONAL Carsten Kwirandt, Head of Marketing and Business Development

“

We still believe that comprehensive Business Mobility is the key to success.

It’s based on the thorough analysis of our customer’s mobility needs and associated costs. We consult them on every aspect of their corporate mobility and then suggest a customized and comprehensive Business Mobility solution. This approach includes innovative solutions such as Corporate CarSharing, eMobility and a Mobility Budget and uses resources efficiently, keeps costs down and ensures employees stay on the move’’.

Carsten Kwirandt

SOFTWARE SOLUTIONS FOR AUTOMOTIVE FINANCE, LEASING, FLEET AND MOBILITY MANAGEMENT Miles, an end-to-end enterprise software solution for vehicle leasing, financing, fleet and mobility management, covers the full contract life cycle and forms a key component of our customers’ application landscape.

A solution that has been designed to meet the needs of different markets and of different kinds of companies, Miles focuses on providing the best functionality for leasing industry-specific issues and requirements.

Our Focus on Your Business

Miles is the product of many years of experience. Its flexibility and quality, combined with Sofico’s 25 years of experience and dedication, makes it a reliable solution to support the strategic objectives of every leasing company.

Sofico N.V.

www.sofico.be

Technologiepark 1, B-9052 Zwijnaarde, Belgium +32 9 210 80 40 - sofico@sofico.be

DOSSIER I Car Leasing in Europe in 2014

Global strategies focus on BRICS Even though the economic news from the BRICS has been rather mixed of recent, they will remain a major focus for the global strategies of most lease companies over the next two years. But the world is bigger than Brazil, Russia, India, China and South Africa. The improving economies of Europe and North America underscore the point that mature markets remain crucial to any global leasing strategy.

E

urope’s Big Five markets (the UK, Germany, France, Italy and Spain, a.k.a. the EU-5) will continue to be the leading markets in terms of number of vehicles leased, say Alphabet and others. Especially now that many are recovering, and showing robust growth again.

erogenic group of countries, where it has yet to offer full-service leasing, i.e. Portugal, Russia and Turkey. Business Lease too is concentrating its efforts on markets where full-service leasing hasn’t mainstreamed yet: the Central European markets where it is already present, and the wider area.

Nordics Expectations are especially high for those markets that suffered most during the recent crisis. Promising figures indicate that Spain, Italy are bouncing back vigorously, growing at above average rates. Several companies also single out Scandinavia for growth. Arval opened up new subsidiaries in Denmark and Finland, and Sixt Leasing has high hopes for the Nordics too.

Turkey In fact, if companies are looking for the highest growth rates, they would do best to look at Eastern Europe, Brazil and Turkey. These markets are where GE Capital International has captured the clearest indications that fleet managers are looking to expand.

Turkey, that growing economic power bridging Europe and Asia, is singled out as an important market by several leasing companies – Arval even coins the term BRIT (Brazil, Russia, India and Turkey)

Volkswagen Financial Services, for its part, will focus on a more het-

Russia, not only exciting by night but also a promising yet difficult car fleet market for suppliers and coporate clients.

If you want to keep updated on global fleet management trends, then our dedicated platform Global Fleet www.globalfleet.com is the place to be. Visit the website now, register and have access to unique premium content.

in its overview of growth markets (foreseeing growth of up to 28% in Turkey).

The ‘original’ BRICS are still growing at a consistent pace, if somewhat slower, now they are approaching maturity. Still, there is no room for complacency, even in these emerging markets: as Athlon points out, there are still quite a few hurdles to be taken before the BRICS can be considered mature full operations car leasing markets.

Mexico And yet, fleet companies are already looking beyond China, India and Brazil at upward trends in other prosperous markets in Latin America and the ASEAN region.

ALD International, for example, is expecting double-digit growth in Mexico – and indeed also in Romania and Poland. For if the economy prospers, so will fleet sales... ■ Frank Jacobs

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DOSSIER I Car Leasing in Europe in 2014

Car rental: Standing out from the crowd The highly cost competitive world of car rental means that the industry big boys are constantly looking for ways to differentiate themselves. With on demand mobility and connectivity shaking up all areas of the auto industry we take a closer look at what’s going down at the rental yard.

W

ith little opportunity for product differentiation, car rental providers battle to win over corporate customers with competitive pricing as well as top of the class customer service. Car rental is a tough business, yet with the arrival of 24/7 connectivity there are more opportunities than ever for rental providers to stand out from the crowd.

We asked some of Europe’s biggest players about evolutions in the rental marketplace and how corporate clients can optimise their arrangements. Enterprise, Hertz and Sixt came up with the goods for you. Here’s summary of what they had to say.

Market outlook Carlson Waglonlit Travel, the travel management company, predicts that changes in car rental prices will vary across Europe in 2014 with some countries seeing prices rise for the first time in years.

Russia is predicted to see the biggest jump with a 3-4% rise in prices, whilst Sweden is next in line with a 2-3% increase. Germany could see prices rise by 2% or fall slightly, and it’s a similar picture in the UK with prices predicted to be plus or minus 1.5%. So how important is the corporate market to the big rental players?

B2B is vital Enterprise told us that the corporate market was “absolutely vital” to building and developing its business throughout Europe. Enterprise has acquired Citer in France and Atesa in Spain in recent years, and has been busy boosting its franchise network to achieve a comprehensive network of branches right across the continent. It expects the market to perform well and grow - as long as services and products evolve to meet corporate customers’ needs.

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With leasing companies, car sharing organisations (CSO) and OEM’s all chomping away at the shared space the rental players might see their corporate market share being eaten away.

Sixt told us that it’s ambitious in the corporate market, whilst recognising the importance of maintaining a well-balanced portfolio of private and corporate customers. Likewise at Hertz where B2B and B2C revenues are split right down the middle.

Hertz, like Enterprise, has been acquiring businesses to boost its portfolio. With the addition of Dollar Rent A Car and Thrifty Car Rental to Hertz portfolio in late 2012 the company told us that, although primarily leisure brands, they are also able to cater for some corporate needs.

Thrifty, for example, is implementing a new Small Business Programme in France and Spain.

Welcome to Innovation Avenue Under pressure buyers are looking for ways to slash costs in all areas of fleet operations and car rental is now under the microscope. So how are the rental providers responding to changing market conditions and offering added value to their corporate customers?

We asked the suppliers to tell us.

MORE POWER. LESS FUEL. BMW CORPORATE SALES. Whatever angle you view it from – the BMW 420d Gran Coupé is impressive in every respect. This is because it combines distinctive aesthetic appeal with powerful driving dynamics, including 8-speed Steptronic transmission with economical average fuel consumption levels of just 4.9 l /100km.

And the BMW ConnectedDrive services and apps such as Real Time Traffic Information are equally efficient – getting you to your destination via the fastest possible route. Find out more at www.bmw-corporate-sales.com

BMW Corporate Sales

BMW 420d Gran Coupé: Output in kW (hp): 135 (184).

Fuel consumption in l /100 km (urban / extra urban / combined): 6.0-5.8 / 4.2-4.1 / 4.9-4.7.

CO2 emissions in g/km (combined): 128 -124.

Fuel consumption figures are based on the EU test cycle.

www.bmwcorporate-sales.com

Sheer Driving Pleasure

DOSSIER I Car Leasing in Europe in 2014

With little opportunity for product differentiation, car rental providers battle to win over corporate customers with competitive pricing as well as top of the class customer service.

Shared economy B2B corporate car sharing is all set to boom just like its B2C brother. With leasing companies, car sharing organisations (CSO) and OEM’s all chomping away at the shared space do the rental players see their market share being eaten away?

Enterprise is excited. It says that customers can only benefit from competition in the car share market, both in terms of pricing and education. It’s an area that’s set to grow further and one that will present significant opportunities they say.

Sixt sees a big future for car sharing in cities. Its premium car-sharing service DriveNow, a joint venture launched in 2011 in partnership with BMW, had 215,000 registered users at the end of 2013 (up from 75,000 in 2012). The service is available in Munich, Berlin, Düsseldorf, Cologne, and Hamburg in Germany, but roll-out will come to other European capitals and cities in 2014/2015.

With car sharing gaining popularity Hertz believes it will easier to expand Hertz 24/7 service and showcase its competitive advantages.

Powering the Future How to integrate alternative power trains in corporate fleets has got buyers scratching their heads. We know that in our heart of hearts that such powertrains have a place in our fleets, but we’ve yet to see how we can get the business model right or drivers fully engaged.

Hertz currently has over 50,000 vehicles equipped worldwide to operate in either car rental or car sharing mode. It’s certainly primed and ready to move.

Hertz has increased the number of hybrid vehicles in fleet by 55 per cent since 2012, and like the other rental players responding to our questionnaire says it has seen an increase in customers asking for vehicles with alternative powertrains.

It says the service is proven to reduce fleet costs and emissions at the same time. Hertz Eileo technology and GPS also allow fleet managers to access real-time information on where vehicles are and where they are needed, whilst the Radio-frequency Identification (RFID) technology makes it possible to track the drivers’ behaviour.

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Rental provides a way of getting drivers into cars with new powertrains to have a play - without incurring the expense of full on investment.

As well as alternative powertrains there has also been a rise in demand for more fuel efficient engines. Sixt tells us it is offering a wide range of different vehicles, including cars with modern alternative power trains,

including the new BMW i3. Enterprise too has invested in a fleet of electric vehicles with its urban customers being offered more choice when choosing to rent a car.

Performance management The marriage of efficient and low emissions motoring, and the rise of the shared economy, has seen corporate customers push out the boundaries on how supplier performance is measured. Hertz partnership with Heathrow Airport Ltd is a good example of how holistic costing matters more than rental price.

The arrangement has seen the deployment of Hertz 24/7 to drive down costs and support Total Cost of Ownership objectives. Hertz 24/7 has helped Heathrow Airport Ltd achieve a 25% reduction in the total vehicles operated and a 15% reduction in management resources. There’s also been a 28% reduction in emissions.

Getting more from your rental fleet So what do our rental players have to say to buyers getting the best from a car hire strategy? Buyers need to look at total cost of ownership and not just the tag price is the top tip from Hertz. Hertz works with its corporate customers to identify savings opportunities in the full rental process we were told.

With different offers in the market Sixt says buyers should focus in on the Total Cost of Ownership when appraising offers. Searching for the solution that suits the specific needs of the business is strongly recommend - as is sourcing a mobility solution which enables the client to reduce its fleet costs sustainably.

Innovation Avenue: Sixt Unlimited to get enhanced With the number of Sixt Unlimited customer contracts doubling in the past year this innovative mobility offer from Sixt has become well established since being launched in 2012.

With Sixt Unlimited frequent travellers are able to select a vehicle from the category of their choice at Sixt service stations in nine European countries for a monthly flat rate. It offers flexibility, a wide range of vehicle categories, freely selectable terms of duration as well as flexible price models.

There’s also the opportunity to take advantage of a special pre-paid rate. In the new age of on demand mobility it’s a solution that makes more and more sense to corporations.

Car rental is under the microscope of under pressure buyers

Enterprise says buyers need to go strategic, look at the long term and not define car rental as a commodity.

It’s a service they say and should be procured as such.

Alongside cost and compliance, think about convenience and plan ahead for the next three or five years with a provider that has the strength and flexibility for the long-term.

Innovation Avenue: Getting connected with Hertz

Whichever way you go with your rental provision remember to add up all the costs, focus in on what’s convenient to your company and travellers, and keep on pushing the envelope. The world of car rental has a big say in the future of corporate mobility and together we will make it happen. ■

In addition to navigational tools, mobile Wi-Fi is also becoming another popular choice for travellers according to Hertz. It offers a WiFi service for customer that allows the high cost of roaming to be avoided in several markets including Germany, Italy, Spain, Australia & New Zealand and the UK.

Jonathan Green

Hertz also continues to upgrade its mobile apps for iPad, iPhone and Android and has seen its solution downloaded over 2.7 million times.

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opel.com Fuel consumption combined 3.7 l/100 km; Co2 emissions combined 97 g/km (according to r (eC) no. 715/2007).

MANAGEMENT I News PSA to offer in-built fleet management system

Guide to Fleet Management Turkey available now

Optimising and reducing a vehicle’s total cost of ownership (TCO) is now a critical challenge for all fleet managers. In collaboration with its partner Orange Business Services, PSA Peugeot Citroën launched a fleet management solution in April covering the entire Peugeot and Citroën line-up.

The Global Fleet team, in partnership with Turkish Auto Leasing and Rental Companies Association TOKKDER, is happy to announce that the English version of our Guide to Fleet Management in Turkey is available. This unique publication presents not only essential information on fleet management in Turkey but also covers best practices and differences between the Turkish and European fleet markets. Order now at shop.globalfleet.com.

This solution is based on the use of an autonomous telematics box (ATB) connected to a vehicle’s controller area network (CAN) bus. This system enables automatic reports of precise, reliable data from the vehicle’s onboard computers to be generated.

More fleet management services in Poland T-Mobile Poland is now offering a new fleet management service for entrepreneurs under the name of ProAuto. It is designed to provide better task management for individual vehicles in the light of unexpected events or changed weather conditions. Alongside its basic functions, the system also provides additional functions such as notification of technical inspections.

From left to right: Caroline Thonnon (Global Fleet Leader), Ilkay Ersoy (TOKKDER Chairman), Tolga Özgül (TOKKDER General Coordinator), and Thierry Degives (Nexus Communication Managing Partner).

INSIDE FLEET Multi-sector global powerhouse SGS has over 10,000 fleet vehicles at all stops across the globe.

Global Category Manager Travel & Fleet Ben Varey shines a light on the company’s plan for 2014.

“Our global strategy is still in development”, says Ben Varey. “At the moment, we strategise on a country-by-country basis or on a regional basis – for example North America is a joined up programme.”

“In development” you say, what are next steps in joining it up?

Ben Varey: It’s a two year programme. We just spent ten weeks collecting data from 25 countries to rationalise our OEM relationships and look to scale operations.

I see this as the first step in aligning global operations.

You work with nearly 30 OEMs today. How many would be the ideal?

B. Varey: “It’s difficult to know as we haven’t yet finished our tendering exercise. I’d say between 5

BEN VAREY, SGS and 10 in the first stage. Then in 18 months time I’d expect to narrow down even more.”

And leasing companies – how many do you work with?

B. Varey: “We have a couple of car leasing partners we work with closely – but we do have a long list of leasing companies that we’re trying to rationalise; and there’s been some consolidation already.”

What other challenges do you foresee see during the next two years?

B. Varey: “Better alignment of our data will begin to underpin everything that we do.”

You have experience in travel management, are there lessons fleet can learn from travel?

B. Varey: “Yes, it’s difficult to be specific but they share similarities – they’re both highly emotive

Choose your car fleet battles carefully

areas. Perhaps the travel category has more global alignment, and more corporate programmes are managed on a global basis – but I think over the years fleet will catch up.”

What tip do you have for fleet managers thinking about going international?

B. Varey: “It’s vital to communicate effectively, and to be open and transparent but most importantly – choose your battles and choose them carefully! On the other hand look for quick wins and demonstrate the value of what you’re doing – that helps keep your momentum, and your local stakeholders are more likely to buy into the next steps of the programme.” ■ Steven Schoefs

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MANAGEMENT I Franck-Olivier Bizot, Sanofi

Driver TCO is key With around 110,000 employees, presence in over 100 countries and a turnover of around 33 billion Euros, Sanofi is a bona fide world healthcare company, producing medicines and vaccines along with therapeutic solutions.

Franck-Olivier Bizot – Sanofi’s Global Lead Buyer of ‘Fleet, Handling Equipments, Insurances & Financial Services’ – tells us how they organise some 30,000 cars across the globe. With around 110,000 employees, presence in over 100 countries and a turnover of around 33 billion Euros, Sanofi is a bona fide world healthcare company, producing medicines and vaccines along with therapeutic solutions. Franck-Olivier Bizot – Sanofi’s Global Lead Buyer of ‘Fleet, Handling Equipments, Insurances & Financial Services’ – tells us how they organise some 30,000 cars across the globe.

F

ew ‘Fleet Procurement Managers’ can match global responsibility with Franck-Olivier Bizot.

And given the size and reach size of Sanofi’s world fleet it’s imperative the local-central balance is just right.

What types of vehicles do you have in the Sanofi fleet?

Franck-Olivier Bizot: “We’ve around 30,000 vehicles across spread over some 70 countries, composed principally of two vehicles types. First, managers’ cars represent something like 20-25% of the total fleet – the remaining 20-25,000 comprises our fleet of medical reps who go and visit customers. Lastly, we’ve around 1,000 LCVs for the industrial site and supply chain.”

How do you organise and coordinate more than 70 countries and seven regions?

F-O Bizot: “Via Matrix Procurement, our role at Global Producrement is to define our long range planning in markets and regions. We strategise over a three to five year period, looking at evolutions in pricing, interest rates, residual values, fuels, and elements which fall outside of the leasing contract – such as fiscal regimes.

For which countries are you responsible?

F-O Bizot: “Sanofi has seven geographic procurement regions and I have global responsibility for Matrix Procurement – an internal organisation which is structured at global, regional and national levels.

There are five procurement domains within each part of this organisation, and among those five is ‘non-production’ or common spend and that’s where fleet comes in. I am responsible for everything to do with the fleet and some associated elements.”

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“Our role at Global Procurement is to define our long range planning in markets and regions” says Franck-Olivier Bizot. “We strategise over a three to five year period.”

Sanofi’s Fleet at a Glance Company:

Sanofi

Sector:

Healthcare

Fleet Manager: Franck-Olivier Bizot Title:

Global Lead Buyer ‘Fleet, Handling Equipments, Insurances & Financial Services’

Countries under responsibility: Global Total vehicles: 30,000

So we define the major trends and strategies for the regions and set guidelines. Though it’s worked out at a local level, albeit with social and fiscal discrepancies.

Some 80 - 90% of the strategy is applied globally.”

Do the regions or countries have their own fleet management teams?

F-O Bizot: “I’d have to start by pointing out that the regions are delineated by ‘business group’ rather than by geographical location alone. The central procurement structure is very much the orchestra conductor for all of the regions where car policy is concerned, but the way the fleet is actually organised depends on the individual countries and their own situations.

For example, some countries have an internal fleet structure, some countries report to HR, some countries report to General Services, and some countries outsource fleet management.

Our objective is not to have imposing top-down global fleet management but to have a coordinated system by which we can manage key elements – including fuel, contracts and especially ‘Driver TCO’ – in every country.”

Explain ‘Driver TCO’.

F-O Bizot: “There is a lot of attention paid to the TCO of a vehicle, but we know that around half of the elements within the TCO are impacted by the behaviour of the driver. A medical representative spends around half his time behind the wheel – so safety training is very important, and ours are very much linked to eco-driving techniques.

For example, a driver with a heavy right foot is not only going to burn a lot more fuel, he’s going to be less safe on the

road for himself, his passengers, and other road users.

And that’s before we think about the cost of any damage.

We want to pursue this via a number of channels, including but not limited to the use of specialist fleet management companies. For example, one company we work with (UKGRS), though it’s international, customises its training according to the environment of the customer and its drivers.”

What are the major lines of the fleet strategy imposed on your countries?

F-O Bizot: “Working with our internal ‘business partners’ (HR and Finance), our current strategy involves rationalising the number of manufacturers we work with whilst maintaining a range of vehicles which covers the needs of our various countries.

It is important to work with HR and keep their needs – especially those around compensation and benefits – in mind as it’s an important factor in and motivating sales forces and management staff and attracting new talent; especially in emerging countries. We keep these factors in mind and we work with a range of manufacturers and leasing companies for our preferred approach (long term, full service rental) and acquisition methods. We have some vital criteria for our suppliers – they have to be both present and mature in the countries in which we operate, and they must have supplier service and quality standards.”

In which domains do the individual regions or countries have a choice?

F-O Bizot: “Our approach is not to define the brands we want to work with, but to define the types of models we

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MANAGEMENT I Franck-Olivier Bizot, Sanofi

we need to work with. A ‘model’ is defined, depending on the country, as either the level of entitlement or by model segment type: monospace, city car, compact, sedan, estate for example.

Then there’s regionally specific criteria to take into account based on needs in the market itself, trends within that market, and perhaps even the fiscal requirements of the country or region in question.

Countries have the option to choose the model and brand they wish from the range of suppliers we have defined. Employees are not allowed to downtrade or uptrade in terms of models, but can elect to upgrade equipment at their own expense; so long as its ratified at a national level.”

With so many vehicles in so many countries, do you have cross-border procurement for volume discounts?

F-O Bizot: “Final calls for tenders are made either at national or regional level, but we have global agreements with manufacturers which means we can negotiate with a pool of different manufacturers, giving them figures on the size, make-up and distribution of our fleets in different countries. This allows us to create preferential terms for the whole of the Sanofi group.

We do not believe a single procurement model – or a single car brand – will work across the whole world; given the scope and range of existing import and distribution networks at play. For us it makes no sense to impose one single, universal system.”

Do you impose certain safety or environmental features?

F-O Bizot: “We have pre-defined limits set by and within the automotive industry, involving both active and passive safety features, but we go a little further where the environment is concerned. A fleet of 30,000 vehicles obviously has an impact in terms of greenhouse gases so we have set CO2 emissions standards based on European legislation.

Move towards mobility management Franck-Olivier Bizot: “Although we are looking at mobility technologies, and have what we call a mobility plan, this remains something that’s – for now – limited to the urban sphere; especially where electric cars are concerned.

From solutions involving air travel, trains, carsharing in Paris with auto’lib, many options are open to us. We have to remember that mobility should be inclusive – it has to be available not only for those members of staff who are eligible for company cars, but also for those who aren’t.

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At present we’re studying a range of options and investigating opportunities to work with specialists – for example Ubeeqo (the former Carbox).

We’re currently mapping a project that promotes using a different vehicle at the weekend; encouraging employees to opt for a less expensive car and use other forms of mobility alongside. We’re also hypothesising what we’re calling ‘mobility credit’ which could be used in the context of car-sharing, for example.”

The medical representatives of Sanofi spend around half their time behind the wheel – so safety training is very important, and are linked to eco-driving techniques.

By 2020 we want to be below 100 grams CO2 on average

We also limit the use of diesel – and have adapted our own limits for countries which still use petrol. We pay great attention to developments in the powertrain domain – whether in diesel, hybrids, or plug-in hybrids.”

Are there regional variations in your approach to reduce emissions?

F-O Bizot: “Yes, we approach our markets in specific ways depending on the context and norms and what’s appropriate in that market. In Japan, for example, around 90% of our fleet is hybrid. And in Brazil they very much favour flex-fuel vehicles which can run on bio-ethanol or petrol. We are looking carefully at our strategy in North America, and starting to downsize our fleet of six-cylinder vehicles, because the USA alone counts some 5,000 vehicles.”

Do you have a CO2 emissions target?

F-O Bizot: “We’re closely watching what the automotive industry itself is doing and sticking to that as close as possible. We had set ourselves a target of 120 grams per km by 2015 – and we’ve already met that. Right now we’re well below the European average and by 2020 we want to be below 100 grams.” ■

Tim Harrup

“We do not believe a single procurement model – or a single car brand – will work across the whole world.”

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MANAGEMENT I Fleet Europe Awards 2014

This Award is yours to win!

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Have you ever wondered how you work compares to your peers? Have you ever fantasized on your achievements being acclaimed by a crowd of international fleet stakeholders? This could become reality: by applying to the 8th edition of the Fleet Europe Awards (Hamburg, 19 November 2014), you’re only one step away from getting the acknowledgment you deserve. Your work matters: apply now!

he Fleet Europe Awards – to be held in Hamburg on 19 November 2014 - 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 Hamburg will be the climax of this year’s Fleet Europe Forum & Awards.

Fleet Manager Award categories Have you implemented innovative strategies or tools?

Is your car policy CO2-driven? Have you taken steps to enhance the mobility of your employees? Is safety at the core of your fleet strategy? Benchmark you car fleet policy and achievements by applying to one of the Awards listed below.

All Award categories open to international fleet managers (fleet customers) will be assessed by a heterogeneous jury of international fleet managers, lessors, car manufacturers, fleet specialists, as well as the Fleet Europe editorial team. This jury will take into account the evolution of your fleet policy, the implementation of key issues like sustainability, safety and driver behaviour and the view on cost control.

This award rewards the person or the team having most successfully developed an international fleet management strategy leading to an optimised TCO. • 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) – Luc Dendievel, Johnson & Johnson (2013)

It’s time to win an Award: Apply now!

You can’t win if you don’t enter! So, if you are a fleet manager with international responsibilities and if you and your company have optimised the fleet management policy and processes, or if you are a fleet supplier that has developed a new tool which helps optimise car fleets, you are the ideal candidate for this year’s Fleet Europe Awards. Apply now! at forum.fleeteurope.com, or send an e-mail with your contact details to Laetitia Fernandez (lfernandez@nexuscommunication.be).

This award is given to a company that has successfully implemented a green project for its fleet to optimize sustainability.

• Previous winners: Akzo Nobel (2007) - Hewlett-Packard (2008) - Bayer (2009) – Nokia Siemens Network (2010) – 3M Europe (2011) – Bayer (2012) – Luxottica (2013)

This award is given to a company that has successfully implemented a fleet driven safety project, within the framework of the CSR strategy.

• Previous winners: Shell (2008) – BP (2009) – Coca-Cola Hellenic (2010) – Nalco Europe (2011) – Almirall (2012) – Nestlé (2013)

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MANAGEMENT I Fleet Europe Awards 2014

This award celebrates the company that has successfully implemented a mobility project for its fleet.

• Previous winners: Barilla (2009) – Accenture (2010) – 3M Europe (2011) – BNP Paribas Fortis (2012) – Luxottica (2013)

This award rewards an innovative project in a specific field of fleet management (car policy, implementation, green, mobility or safety approach, driver satisfaction…).

• Previous winner: Vodafone (2010) – IBM (2011) BNP Paribas Fortis (2012) – Capgemini (2013)

This Award aims at rewarding the innovative efforts of the fleet suppliers. Another jury, composed by international fleet managers only will evaluate the degree of innovation and the cost-efficiency of the new tools and/or services proposed by the fleet suppliers applying for this category.

• Previous winners: Arval Analytics (2010) – Mobileye Safety Device C2-270 (2011) - TCOplus Greencube & Fleetcube (2012) – Mobileye 5-Series (2013)

The International Fleet Hall of Fame Award recognizes fleet industry leaders and pioneers who have significantly contributed to the international fleet management profession. Eligible nominees must have at least

Step into the spotlight, and into the footprints of International Fleet Manager of the Year 2013 Luc Dendievel (Johnson & Johnson): this year you could be the winner and step on Hamburg’s Fleet Europe Awards stage on 19 November.

5 years of international fleet management experiences and have contributed significantly to the industry.

Do you know a international fleet professional who meets these criteria? Nominate your preferred fleet leaders now by sending an e-mail to Laetitia Fernandez (lfernandez@nexuscommunication.be). Once the list of nominees has been put together the complete Fleet Europe community will have the opportunity to vote and elect the new inductee to the International Fleet Hall of Fame.

• Previous winner: Tony Elliott (2010) – Gianluca Soma (2011) – Bruce MacLaren (2012) – Pascal Serres (2013) ■ Steven Schoefs

Why Participate

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

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

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.

5. Meet other industry achievers All nominees will be invited to attend the Awards ceremony in Hamburg on 19 November 2014. This is a great opportunity to network, and share ideas and knowledge.

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

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

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Join the IFMI training session & Enhance your fleet expertise

The International Fleet Management Institute (IFMI) provides international fleet managers with ongoing training opportunities.

Are you the manager of a fleet of cars and/or LCVs – and does your job have an international scope? Then the International Fleet Managers Institute (IFMI) is what you need!

With knowledge transfer at its core, the IFMI gives you the opportunity to: > Participate in professional training to decision makers in international fleet management; > Meet other fleet management professionals to exchange experiences and best practices; > Share creative and innovative thinking in all aspects of international fleet management.

2014 PROGRAMME > Webinar: The Impact of Engaged Driver Behaviour 11 September 2014, 15:00-15:45 (CET) Shaping driver behaviour is a key part - and a key challenge - of today’s fleet management. So how exactly do you engage drivers to modify their behaviour to fit various objectives such as cost, safety and the environment? Learn more during this interactive webinar.

> Successfully Engaging Dedicated Driver Behaviour Hamburg, 18 November 2014, 08:30-18:00 (CET) Motto for this session: Save money, save lives, save the planet. Keynote speakers, industry experts and fleet managers discuss the importance of driver behaviour in today’s fleet management, with special attention for fuel management, CO2 emissions, driver reporting and safety, and insurance and risk management. Special focus on best practice sharing with fleet peers and opportunity to network.

For further information and to register to one of our training sessions, please visit ifmi.fleeteurope.com Organiser

With the support of

Major sponsor

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MANAGEMENT I Safety Corner

Make it safer and the savings will come By putting safety first in the car fleet policy we can make the roads that little bit safer and be rewarded with TCO benefits. It’s time to take action.

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o you know how much it cost to insurance your fleet last year? Or what the financial and operational costs were because of collisions?

It’s likely to be a big number. The good news is it’s a cost that can be contained. Fleet Europe spoke to Andrew Price, Regional Practice Leader, Zurich Risk Engineering Europe, and Andrzej Sacha, Global Fleet Solutions Manager at Nestle Business Services, to hear what they had to say about making safe and financially sustainable fleets a reality.

It’s often suggested that the best way to achieve improvements in fleet safety and reductions in insurance premiums is to invest in driver training programmes.

Is this a good starting point?

Andrew Price: “Assuming the question refers to behind the wheel training, then driver training can be a useful risk management tool, but only when employees are working in an environment in which they are able to drive safely – so the management systems and operating practices of the organisation have to allow this – and also where there is a well-developed on-road safety culture. All of this often takes years to develop.”

Okay. Where should fleet managers start the journey?

A. Price: “The most important starting point is to get the management systems right.

This is not just the driver safety management policies and procedures, although obviously these are important, but also the operational practices and procedures – these must align with the safety aspirations, and what is realistically achievable in the business, if any sustainable reduction in the collision and claim rate is to be achieved.”

And what about the next steps?

A. Price: “Once the management systems which are aligned to an organisation’s safety-operational balance are embedded, the next stage is to understand the root

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Andrew Price of Zurich is convinced that driver training can be a useful risk management tool, but only when employees are working in an environment in which they are able to drive safely.

causes of the existing collisions. This is not simply looking for trends (e.g. third party hit in rear) but more importantly what were the underlying reasons that led to the driver having the crash.

The important thing here is to not focus solely on the driver – it is often management and/or operational reasons that led to the driver behaving in such a way that a crash was almost inevitable. An in depth post collision debrief process, conducted in a culture that does not look to apportion blame, will be required to achieve this.

Collision analysis is an important process but, by its very nature, is reactive. The use of proven driver risk assessments, and driver behaviour telematics, will highlight

The Step to Success, according to Andrzej Sacha of Nestlé: Andrzej Sacha, Global Fleet Solutions Manager at Nestlé Business Services and winner of the International Fleet Safety Award 2013, shares his thoughts on corporate policy and practices to engage drivers in fleet safety.

What are the essential ingredients of success?

From our experience road safety programmes work best when you have the following conditions:

1

A central direction for a fleet safety programme.

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trong senior management commitment and leadership. When fleet safety has the engagement S of corporate and local senior management it becomes engrained in the culture of the company.

You are then on the road to success.

3

Look at innovative ways to implement the programme and to excite the guy or girl on the road i.e. offer recognition of some sort and use gamification.

4

Where we own the vehicles we offer drivers a reduced price if they choose to purchase the vehicle.

This incentivises him or her to look after the vehicle and drive safely.

5

Bring safe driving behaviours into the equation when recruiting a salesperson or a driver.

To read what else Andrzej has to say about insurance and fleet safety policy go to www.fleeteurope.com

those employees who are more likely to be involved in a collision in the future.

You still need to understand the underlying reasons why this is, but once understood you can then select the appropriate management and/or employee focused interventions to help prevent collisions from occurring.”

How long is it - on average - before corporates start to see the benefits of taking action with falling insurance premiums?

A. Price: “This is an impossible question to answer – each customer develops their risk management programme at different speeds, often depending on all the other conflicting needs of their business.

The International Loss Control Institute estimate that for every €1 paid out by an insurer there are €8-53 in uninsured losses, depending on the severity of the incident.

These hidden costs can include absenteeism, brand damage, lost sales and productivity – the exact nature of these losses will depend on the nature of the business.”

So do you offer discounted premiums to your customers who are looking to implement a risk management programme?

A. Price: “Our preferred approach is to offer customers who want to work in partnership with us some financial incentives to manage risk.

When the business spans countries or continents – we have many customers with an international insurance programme in place – it is common to find that some countries (or individual business units) embrace the concept more than others, so when results will start to impact on the overall premium is always difficult to predict.

This works best when they are given loss ratio targets to achieve, where if they are successful they earn a rebate on their premium. Some customers even set their own premiums through the loss ratios that they achieved in the previous year. Having a financial incentive in place helps to ensure that customers remain focused on managing the risks effectively.” ■

That said, most of our customers understand that the uninsured losses associated with the collision have a far greater impact on their business than the premium spend.

Jonathan Green

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BUSINESS I Renault-Nissan

The French-Japanese connection Strategic agreements between car manufacturers are becoming more commonplace. But probably on of the most comprehensive is the Renault-Nissan Alliance. We asked Emmanuel Longeard, International Key Accounts and Alliance Sales Director for Renault, and Jordi Vila Onses, General Manager Fleet & LCV Corporate Sales for Nissan, how their brands work together.

Renault is well-established in fleets – how do you intend to maintain this position?

Emmanuel Longeard: “Globally, fleet sales represent around a third of all Renault sales. The sales volume represented close to 800 000 vehicles in 2013. By fleet we mean anything belonging to a professional customer. So this is a strategic market which we intend to grow to around a million vehicles by 2016.

Renault is now a worldwide manufacturer – although France is still our major market, Brazil and Russia are second and third.

We are really developing fleet sales everywhere and we have Fleet General Managers in each region.

The Alliance is one of our strong points now, as we can offer a full range across the whole world. We have a Corporate Sales Division to look after this segment.”

Nissan is not yet a major fleet player. So how do you intend to improve this position?

Jordi Vila Onses: “Worldwide, fleet sales represent around a quarter of all Nissan sales. This means about 1.25 million vehicles out of the 5 million annual sales. Our geographical coverage is different from Renault, as we are, in relative terms, more concentrated in AsiaPacific and the Americas. And fleet is still developing in these regions.

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In Europe we sold some 650,000 vehicles during the last financial year and we are planning to grow this to 750,000 this year. Our market share in Europe is 3.9% but less in fleets, 3.4%. We are working on structural, sustainable fleet growth in Europe, and since 2011 there has been a strong effort to structure Corporate Sales with a resulting share growth of over 20%, with more people employed in the various countries.

We also have a growing network of Business Centres, which will soon grow to around 450. Fleet sales management is one of our strategic themes, with the large fleets in particular.”

Are there any ‘ground rules’ where competition between Renault and Nissan is concerned?

JV Onses: “We are an Alliance, not any sort of merger, so each of the brands boosts its business.

Each brand manages its own positioning. But of course we have identified common ground. This in particular helps us with very large accounts of more than 3,000 vehicles in more than one region.

These corporates make it worthwhile for us to make an offer at Alliance level. We are structured to respond to this type of client. It is our geographical and product lineup complementarity which is such a strong point for us.”

Emmanuel Longeard, International Key Accounts and Alliance Sales Director for Renault.

Jordi Vila Onses, General Manager Fleet & LCV Corporate Sales for Nissan.

E. Longeard: “The first question is: ‘What is best for our client, what does he want, what added value can we bring by making an offer at Alliance level?’ This is the strong point of being part of the RenaultNissan Alliance. Where products are concerned, and taking Brazil as an example, Nissan produces pick-ups and Renault doesn’t – so again we are complementary. We can supply cars and pick-ups into a fleet from the two brands.”

The first question is: ‘What added value can we bring to a client by making an offer at Alliance level?’

Tell us some more about how this Alliance works in practice.

E. Longeard: “When a client is looking for a worldwide tender, with our two brands he can have a single point of contact to cover both members of

the Alliance, plus Infiniti, and Dacia.

This helps because we can offer a truly comprehensive range across all continents, in all countries. The single point of contact, whether he is from Renault or Nissan, will do all of the work for the client. Calls for tender used to take one month, two months, maybe more when clients had to call each manufacturer and each country separately… all that is in the past with the Alliance.”

JV Onses: “We also have a Global Corporate Operations Committee which meets every month. We decide to which accounts we will go together to make an offer. So we have this real structural governance too.”

E. Longeard: “I can give concrete examples of clients which have benefited from the Alliance.

There are already more than 20, including the French company Danone which has a worldwide fleet, and the American pharmaceutical company Merck Sharpe and Dohme. In both cases, we bid and followed up as the Renault-Nissan Alliance, for our customer’s benefit.” ■ Tim Harrup

i t ’ s n o t t h e car i t ’ s o u r 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.

BUSINESS I Athlon Car Lease International

Our business is more than just leasing cars Armand van Veen has only been CEO of Athlon International since 1 January, but he is hardly new to the business –or the company.

As Athlon’s General Manager in the Netherlands since 2011, and earlier during five-year stints at DLL Translease and DLL Financial Solutions, he had built up plenty of fleet experience. Which he will now bring to bear on Athlon’s international car fleet business.

A business in pretty good shape…

“

Indeed! All the indicators are pointing up: we’ve grown our fleet to 245,000 contracts, our financial performance is strong, profits have increased considerably in 2013 and this year is proving excellent as well in terms of volume and profit”, says Armand van Veen. “We’re increasing both our international and our SME clientele. Customer loyalty is up. And we’re on our way to becoming a leader in mobility solutions”.

Athlon is burning with ambition to differentiate itself as a mobility solutions provider. But wasn’t your ambitious Five-Step Mobility plan launched a bit too soon?

Armand van Veen: “We had this vision, where we wanted to move from car leasing to mobility solutions. Which means we had to put our money where our mouth is.

So no, I don’t think the Five-Step Mobility plan was too early.

When I became GM of Athlon Netherlands, one of my ambitions was to provide products and services for the Five-Step plan that

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would prove its value to the market.

And I think we’ve done that: in three years’ time, we moved from just the vision to plenty of products to support it. At least in the Netherlands and Belgium. We’re not pushing these products where there isn’t a demand. But wherever it does come, people will look to us as the company that does more than just leasing cars”.

How is your Transatlantic partnership with Donlen working out?

A. van Veen: “Just now, we’re finalising the first European deal of an American customer of Donlen.

That deal should be done this June.

But when it is finalised, it will be definite proof of the value of our cooperation”.

How important are the BRICs and other emerging markets to you?

A. van Veen: “The BRICs are interesting –, but we’re not going to move into any emerging markets, unless our customers ask us to offer them solutions there. We already established a partnership in Russia and Turkey, to offer our customers our solutions.”

More leasing companies are focusing on the end client. Do you see fleet management evolving from a B2B tot a B2E business?

A. van Veen: “Yes, I do. Because driver satisfaction is part of the product you’re delivering, especially in a mobility solutions approach. But also because, in some more mature economies, the flexibility of the labour market is such that four-year contracts are outdated –for employees as well as for their company cars.

Armand van Veen, the new of Athlon Car Lease International In which case you have two options: either make contracts more flexible, or try to establish a formula in which you’re dealing directly with the employee who drives the car.

We’ve just finished a pilot in the Netherlands, where we focus on employees of Athlon customers, offering them interesting private lease conditions, which we’re able to do because their company’s fleet is already with Athlon.

We’ve rolled out this pilot at two of our major clients, and it’s been quite successful. Which is encouraging us to move this scheme out onto the whole Dutch market, during the second quarter of this year”. ■

Steven Schoefs

BUSINESS I GE Capital International

Our value is that we’re global “I have a mandate to grow”, says Maurice Benisty, “which is a powerful motivator.” Maurice Benisty is the Chief Commercial Officer of GE Capital International, the global specialist finance firm dedicated to the mid-market, and a division of General Electric. The business is focused on commercial lending and leasing, incorporating areas including fleet, equipment finance and corporate finance.

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aurice Benisty’s geographical remit is Europe and Asia Pacific, but many of his customers are global. Which is at the core of GE Capital International’s fleet strategy: “With our strength in the US, European and Asian market, we have significant breadth and presence, and the ability to serve large customers. So we focus on global accounts, on customers operating across more than one jurisdiction.”

Over the past few years GE Capital’s strategy on fleet in Europe has been unclear. How important is this business to you now?

Maurice Benisty: “It is important.

Globally, we have a million cars.

About 400,000 of those are in the International business – our business outside of the US - and those are split evenly between Europe and Asia. That makes us a major provider of fleet services globally.

We’re very focused on growth, and this means growing all of our commercial entities and businesses.”

What are GE Capital’s focus areas for fleet in 2014 and 2015?

M. Benisty: “Growth – to be precise: growing faster than the market. Our focus is to become simpler, faster and better connected to our customers – particularly those operating internationally where we can add the most value. We’re also adding more consultants to our Key

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Solutions consultancy capability – as yet mainly a strength in the US and Europe, but we’re building it up in Asia too now. We have some great digital tools for our customers, and we will be investing significantly in them in ’14, including a global dashboard for customers and extending our Telematics capability. And we will focus on growing our outsourcing and sole supply relationships.”

In how many countries do you have operations, and which are your most important markets?

M. Benisty: “We’re present in 30 countries across GE Capital International (our business outside of North America), and for Fleet specifically, we are present in 17 countries.

Our biggest businesses are in the UK, Germany, France, Australia and Japan. We’re starting to see recovery in Southern Europe. That’s been the toughest market, but we’re seeing some stability return, and we’re seeing more market activity again.”

It’s very interesting to compare the characteristics of those markets.

The UK operates on an outsourcing model, and is an advanced fleet market in many ways. We think we can leverage that model more broadly across Europe to provide better service to our customers.”

Some competitors establish their own subsidiaries in new markets.

GE Capital uses partnerships to

provide its fleet services in some markets. What’s the advantage of working through external partners?

M. Benisty: “If our value proposition is to differentiate on service, provide better data and analytics, provide more outsourcing – if we can do that with strong partners, that’s a much quicker route to market than to build a greenfield site in each jurisdiction.

So: if you can execute well, you can also do it via partnerships. And as I said: we’re in 20 countries globally

Maurice Benisty’s one piece of advice on international fleet management “Complexity of a multinational organisation is the biggest challenge. We see this in global tenders: there is a desire for standardisation, but that’s not necessarily in line with what each country wants to achieve. So I think you have to make hard choices about the extent to which you want to standardise and work with a global provider. And the extent to which you can’t. The more complexity you create, the harder it is to drive the cost benefits that come from global contracts.”

Maurice Benisty, CCO of GE Capital International: “Our focus is to become simpler, faster and better connected to our customers – particularly those operating internationally where we can add the most value.”

as regards Fleet. We go where our customers want us to go, and where we don’t have our own operations, we work through partnerships.

In terms of investment and resources, we want best-in-class digital tools, a quality, consistent telematics capability, more consultants... In short, we want more of what defines our value-add in the countries we’re in. Capital and resources are always limited. And we’d rather invest in those areas before we’d invest in adjacent countries – as it’s not what the customers are looking for the most”.

What is the importance of the Consultancy Division to your business, and how do you see its future?

M. Benisty: “Its importance is critical. We’ve been offering this service for ten years. Part of the competitive advantage comes from having ten years of data, and if customers request it from us, we can benchmark our customers’ fleet performance on different measures.

Whether it’s their performance on emissions, on driver safety, on TCO. We can show where they sit against their peers. We can show where they sit across portfolios, and we can come up with strategies that help them manage their fleets more

We will be investing in a global dashboard for customers and extending our Telematics capability effectively. The telematics capabilities will enable us to continue taking this to the next level.

We also supplement it with our Access GE offering, where we bring GE’s best practices and consultancy from beyond the world of Fleet to solve our customers’ biggest problems in areas like talent management, financial management, productivity and so on.”

For today’s fleet managers, data privacy is a hot-button issue.

What’s your take on it?

M. Benisty: “It’s an issue beyond fleet. Obtaining the consents to share customer information between different entities is complex.

Some areas you can do for this, others you can’t. One of the areas this impacts fleet management is with the development of global dash-

boards. Some data has to remain within the domain of the company and cannot be shared externally.

So we are working on a framework that allows us to deliver a dashboard consistent with the data we’ve agreed to report for our customers, and vice versa. If they want more data to enrich those dashboards, they’re going to do that within the environments we create for them.

On telematics, the consents you need for taking and using data varies geographically. The legal requirements are different in each country. That may appear to be an obstacle, but it can be overcome – it just requires a huge amount of resource and the ability to articulate the driver benefits available through that data.” ■ Steven Schoefs

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BUSINESS I LeasePlan International

Geographical expansion is a long term strategy “Our objective is to keep developing our service delivery to clients, offering real added value in the areas that matter most to them such as cost control and reduction, process optimisation and, corporate responsibility; in emissions reduction and driver care”, says Jose Luis Criado, Managing Director of LeasePlan International.

T

he car leasing and fleet management company that was launched 51 years ago manages today over 1,3 million cars in 32 countries worldwide. “We continue to invest in improvements of our service and are, again, looking into geographical expansion. Last year we went to Russia, this year it’s Canada. We don’t have a defined country list, but we’re closely looking at Eurasia and South America.”

You launched in Russia last year. What are the biggest issues you’re facing?

Jose Luis Criado: “I don’t have to tell you that Russia is big – it’s basically the size of the US and Canada put together. It’s very populated in the West but less so in the East, so there’s logistical issues we don’t have in Europe. There are 9 different time zones; this means that if you want to repair a car in Vladivostok, you can’t call our Moscow HQ because people are still sleeping.

So it requires an entirely different set up of services.

You have to learn to adapt and become more efficient relating to the environment in which you’re operating in. But clients do understand the situation as they are working in the same context.”

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“We aim to give international clients a harmonised service experience”, says Jose Luis Criado, who uses the Bic Mac as a metaphor.

“Wherever you are, you know what a Big Mac is, and that’s what you expect, perhaps the dressing may be different, but the burger is essentially the same everywhere.”

pact on the type of fleets you have in this area and the required fleet management approach. Brazil has a totally different identity to Mexico. Although the Brazilian corporate fleet market is, say, only half the size of Spain right now, in ten years it could be four times the size of Spain and that affects the whole industry.”

When it comes to expansion, do clients dictate the agenda?

JL Criado: “It’s a mix of client demand and potential on the ground. The first trigger in moving to a South American market like Chile is client demand, but the local market size still is a factor. Japan for example is a country where potential outweighs current client-desire or demand. We’re not present there yet, but it can be a highly significant market.”

How important are BRIC and emerging markets for LeasePlan?

JL Criado: “LeasePlan is already present in three of the four BRIC nations - and these are key for growth. They’re expanding markets and maturing fast to more advanced levels of fleet and TCO control. It’s the same situation for Mexico. In terms of fleet management, relatively it’s still in development, but because of its proximity to the US it holds an interesting blend of the US and European leasing approaches.

How do you see the car fleet leasing model evolve, keeping in mind the discrepancy between close end formula in Europe and open end method in the United States?

JL Criado: “There is a conceptual difference in fleet management approach between North America and basically the rest of the world. And the difference is not in funding, but in who takes the risk. In North America, the client keeps the operational risk of the fleet, including the residual value, and in most cases even the financial risk. What we call the European model is based on the client outsourcing the whole risk of its car fleet to a leasing company.

The local culture influences how the market grows and also defines the profile of the clients. This all has an im-

This leads to fundamental consequences in the service delivery and the needed expertise, with both the fleet

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client and the leasing company. As in Europe the risk and the fleet management is outsourced, the client expertise focuses on strategic elements like car policy, car fleet control, supplier relationships, etc. In the so called ‘open-end’ approach, as common in the US, the need by the fleet client to have in house fleet expertise in operational disciplines is much higher. However we observe, as global companies move into more centralized fleet management practices, the efficiency needs will lean more towards an outsourced approach, in line with the European model.”

Is it fair to say that you see geographical expansion as a long term strategy, not a quick win?

JL Criado: “Yes. We are in 32 countries to stay – when we invest in systems, training and setting up the whole operations, we do so on the basis of a long-term vision.

We prefer to set up with our own systems, procedures etc. as we aim to give international clients a harmonised service experience. Perhaps not a very sexy example, but if you have a Big Mac, wherever you are, you know what a Big Mac is, and that’s what you expect. Perhaps the local dressing may be different, but the burger is essentially the same wherever you go.”

We’re all concerned with privacy, but how do we balance that with the need to capture data?

JL Criado: “Privacy concerns go hand in hand with the request for new personalised fleet and driver services.

Like many companies in- and outside of the leasing industry, we are continiously looking for the best balance between meeting client demand for a more efficient and personalised service vs privacy and legal limitations.”

Finally, what tips would you offer for fleet clients looking to drive those efficiencies?

JL Criado: “A car is is a business tool that has several purposes – it’s a tool of trade, a motivational tool and a benefit in kind. All these objectives add value to the company which should be measured. For this reason it is important that the company, together with their leasing partner makes sure they get the most business value out of their fleet investment via a clear service level agreement supported by the relevant performance indicators.” ■

Steven Schoefs

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BUSINESS I News DirectLease restarts its German branch

Manheim holds first on-line LCV auction

DirectLease, the car lease company specialised in online fleet management services, has re-launched its German subsidiary. DirectLease operates in the Netherlands and Belgium - and now again in Germany. The company had been doing business there until 2010 and managed around 1,000 fleet vehicles in Germany, but ceased its new sales operations there because of the financial crisis. DirectLease has weathered the crisis well and has a new main shareholder, Van Mossel Group. Its board of directors and shareholders are convinced the time is right again to roll out the company’s unique online car lease concept internationally.

Vehicle remarketing organisation Manheim has completed its first open online van auction event. Manheim’s first open online auction for LCVs attracted more than 70 buyers who logged on for the mix of leasing companies’ and manufacturers’ vehicles. The overall conversion rate for the auction was 60%. Matthew Davock, head of LCV at Manheim Commercial Vehicles and the auctioneer on the day, said: “This new online auction proposition uses our Simulcast technology and permits us to list vans with images and condition reports, irrespective of their location in the UK. Our latest figures highlight that, since the launch of the new version of Simulcast in February 2013, online bids have increased by 41%. In addition, 28% of vehicle purchases now take place online through Simulcast”.

TomTom SaaS solution growing TomTom Telematics (formerly known as TomTom Business Solutions) has announced that it now has 28,000 customers and 350,000 vehicles subscribed to its Software as a Service (SaaS) fleet management solution. This represents a 38%year-on-year growth.

Its WEBFLEET platform provides real time vehicle tracking, driving information and reports on operational performance to fleet managers. Commenting on his company’s success, Thomas Schmidt, Managing Director, TomTom Telematics, said: “The growth of WEBFLEET is founded upon its success in helping businesses operate more efficiently by turning large vehicle data volumes into actionable insights.”

Online auctions are part of Manheim’s new online trade sales programme, which now includes a ‘Bid & Buy Now’ facility.

Hitachi Capital moves into Poland

Working with a team in Poland will provide Hitachi with a valuable insight into the Polish market and is an excellent platform for growth across the rest of Europe.

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Hitachi Capital (UK) has announced that it has signed a share transfer agreement to acquire 90% of the shares of Corpo Flota Sp. z o.o. (‘Corpo Flota’), making the company a majority owned subsidiary. Corpo Flota operates a comprehensive car fleet management business in Poland, including auto leasing, maintenance and fleet management. Hitachi Capital has been conducting market research in several European countries, including Poland, as part of a planned expansion into Europe.

The acquisition of Corpo Flota allows the business to combine its experience in the UK car and commercial vehicle leasing markets with local management expertise and supports an immediate market entry to capitalise on growth prospects as European markets recover from recession.

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SCOPE I News LCV market increases in first quarter The European automotive association ACEA has published figures which show that in March, demand for new commercial vehicles in the EU increased for the seventh consecutive month. Total commercial vehicle registrations grew by 11.1%, to a total of 185,520 units. Growth was sustained across all segments of commercial vehicles. All of Europe’s ‘big 5’ markets posted increases, the most spectacular of which were in Spain, which suffered greatly during the crisis. It saw sales rise by 26.8%. Italy posted the newt best

increase (+16.3%) while the UK and Germany came in at either side of the 10% mark (11.0% and 9.8% respectively.) France recorded a marginal increase of 0.3%. These figures mean that in the first quarter of the year, the EU market expanded by 9.8%, totalling 443,000 units. Where the ‘small van’ category alone is concerned (up to 3.5 tonnes), March saw the segment grow by 12.4% to 157,333 units. Year to date growth in this segment is up 10.6% compared to the same period last year, to a little over 369,000 units.

Alphabet still developing mobile offering

The third generation of the Audi A3 has been named as ‘World Car of the Year 2014’.

Alphabet is developing an Android version of its Alphaguide service, currently available on AppStore for iPhone, iPad and iPod Touch and available in eleven countries. This serviced enables users to optimise their journeys by using the in-built geographical location device. This allows users to take advantage of any of the services they may need which are included in their Alphabet contract: fuel card, tyres, servicing…

Thanks to another of the functionalities, drivers can also have access to a used car site operated by ‘La Centrale’ and containing an Alphabet page. This may be useful if a driver wishes to purchase his own company car at the end of its contract, for example.

Audi A3 is World Car of the Year The third generation of the Audi A3 has been named as ‘World Car of the Year 2014’. The jury making this award is made up of 69 journalists from 22 different countries. The latest version of the Audi A3 is available in 3-door, Sportback, Cabriolet and Sedan body versions. There are also a number of powertrain options: alongside the traditional diesel and gasoline units, the A3 is available in ‘g-tron’ mode which uses a form of fuel developed by Audi from green electricity and which produces no CO2 during use.

Alphaguide enables users to optimise their journeys by using the in-built geographical location device.

Croatia market turns upwards The most recent entrant into the European Union, Croatia, has recorded a sales increase in terms of new cars for the month of March. Citing local sources, reports that almost 3,000 new cars were sold in the country during the month, some 22% up from the previous year. This brings sales for the first quarter to around 7,400, 13.6% up on the first quarter of 2013.

The podium places both for the month and the quarter are occupied by Volkswagen, Skoda and Opel. Volkswagen owes its top spot not to having the best-selling car in Croatia, but to having three models (Golf, Polo and Passat) in positions 3, 4 and 6. Croatia’s favourite car is the Skoda Octavia.

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SCOPE I Car Taxation

Lessons learned from the Fleet Europe Taxation Guide 2014 Welcome to the Fleet Europe Taxation Guide 2014.

With the support of PwC and its network, the eight edition of this unique company car taxation tool is now available via Fleet Europe’s e-Shop found at http:// shop.nexuscommunication.be/. Once again we’re delighted to present you with an update of car taxation regulation in 28 countries, including key EU markets, Switzerland, Russia and Turkey.

Taxation issues are central in corporate car fleet management for good reason – tax has a crucial bearing on the shape of any market; influencing vehicle choice, size, style, sales, fuel type and engine displacement.

While car taxation can be a considerable and an escalating cost, it’s a controllable element so long as a company arms itself with a smart fleet tax strategy.

In 2014, international corporate fleets are doing just that by combining environmental altruism with fleet taxation policy. We’re seeing the point where CSR can mean big tax savings.

The vast majority of EU Member States – over 20 top Euro economies – have developed clear and evolving CO2-inspired taxation policies that exemplify how the deployment of fuel efficient fleet cars can drive down the tax burden, delivering bottom line efficiencies and putting smiles on the faces of the finance team.

Leitmotiv Although we can expect more alternative powertrains and engine downsizing as time goes on, it’s worth noting that EU lacks synergy in tax – there’s no common taxation solution when it comes to company cars.

And the former needs the latter if it’s to make a lasting, consistent, and far-reaching impact across the continent. The hope is that our thirst for sustainability is matched and a continental Leitmotiv can start to direct local taxation schemes.

Nevertheless, a fleet manager should always account for car tax in the decision-making process. It’s a worthwhile mechanism for positioning cars in a policy segment, benchmarking car choice and weighing up initial, and ongoing, cost implications – including accurate forecasts on residual values.

With the right tax policy the fleet manager can even roadmap his technological trajectory, identifying those green innovations that are most cost-efficient and able to drive down tax even more. ■ Steven Schoefs With the support of

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SCOPE I Residual Values

The considered view The experts of BF Forecasts like to look at the evidence, see if there are any analogies in the recent past, consider what they’ve found, form a conclusion and then deliver a reasoned view. Shooting from the hip with instant opinions has an obvious attraction but there’s an old saying about being too hasty and repenting at leisure. In this contribution from Tim Lewis, BF Forecasts analyses the withdrawal of Chevrolet in Europe.

T

here are brands, and certainly models, which hold an iconic status whereby, if they disappeared from the market, their used values would remain stable or, in all probability, even rise. This doesn’t just apply to classic cars, or one or two very rare hypercars, there are instances of this in current production and, ironically, GM has an excellent example in the Corvette – if this model were ever to cease production, used car values would potentially increase, due to the significant number of die-hard enthusiasts who would insist on keeping the legend alive.

however, history has some tough lessons in the recent past, namely Saab, Rover, Dodge, Chrysler etc. Typically, used car values have fallen by between 6% and 12% and we believe that Chevrolet is likely to follow this tendency – after all, it never managed to carve out a niche for itself, despite considerable success in the World Touring Car Championship, not repeated in the British series.

Positive side However it may be able to gain some small comfort, because we believe Chevrolet’s experience will be at the lower end of this range, as demonstrated in the attached charts. After all, Chevrolet is only withdrawing from the European market, continuing its presence in the rest of the world. Consequently, people have more confidence in the second life future of the brand’s products. This is in sharp contrast to those manufacturers that have failed completely. This, however, may only be a small crumb of comfort to customers who will still be facing a significant increase in depreciation. ■

6 to 12% Chevrolet, unfortunately, is in a different category.

Happily, it has never really been a volume fleet contender, although stock is being liquidated at super-fleet discount levels! For those who have bought its cars,

Tim Lewis BF Forecasts

RV FC Trade 3 years / Average Mileage (per Segment) as percentage of the list price

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