Fleet Europe °71

NEXUS COMMUNICATION - FLEET EUROPE #71 - PERIODIC MAGAZINE - SEPTEMBER 2014 - DEPOSIT OFFICE LIÈGE X

SEPTEMBER 2014 - # 71

DOSSIER

LCV Management in Europe in 2014 An insight in managing Light Commercial Vehicles: market overview, new products, trends, and best practices.

MANAGEMENT LCV Case Studies

Baudouin de Mégille & Tiziana Maniezzo (Dalkia)

DOSSIER

BUSINESS

SCOPE

Tips & Tricks in LCV Management

Interview with Steffen Raschig, new LCV boss at Opel/Vauxhall

A look ahead: Last-mile delivery

JOIN THE FLEET EUROPE EVENTS IN HAMBURG - NOVEMBER 18, 2014: IFMI EXPERT SESSION & FIRST EVER FLEET EUROPE REMARKETING FORUM

- NOVEMBER 19, 2014: FLEET EUROPE FORUM & AWARDS 2014

MORE INFORMATION ON FORUM.FLEETEUROPE.COM

THE NEW SEAT LEON ST WITH ONLY 85g OF CO EMISSIONS PER KM 2

TECHNOLOGY TO ENJOY MORE SPACE FOR YOUR BUSINESS The all-new SEAT Leon ST combines contemporary dynamic design with unbeatable practicality, versatility and driving pleasure. It offers a host of functional equipment details that significantly benefit everyday usability. TECHNOLOGY TO ENJOY. / ADAPTIVE CRUISE CONTROL

SEAT FULL LED LIGHTS

/ ADAPTIVE CHASSIS CONTROL

/ FOLDABLE REAR AND PASSENGER SEAT

587 LITRES OF BOOT SPACE RISING UP TO 1,470 l

SEAT EASY CONNECT TOUCH SCREEN INCLUDING NAVIGATION SYSTEM

WHAT OUR CUSTOMERS SAY… “WE CAN SAVE A LOT OF MONEY WITH THIS CAR”

Guido Krings, Director Fleet, Unify GmbH & Co. KG., formerly Siemens Enterprise Communications.

VISIT US NOW ON SEAT.COM AND DISCOVERMORE TESTIMONIALS OR SCAN THE QR CODE

SEAT FOR BUSINESS

SE AT.COM/ BUSINESS Average consumption: 3.2 - 5.9 l/100 km. Average CO2 mass emissions: 85 - 137 g/km.

Firmly into the second half of 2014 and Fleet Europe has four key milestones taking us through late summer, into autumn and leading onto Hamburg in November. First up, we’re marking the launch of our dedicated Light Commercial Vehicles channel on www.fleeteurope.com – featuring regular industry news, case studies, insights, trials and innovations. We’re kick-starting our move into LCVs with this issue of Fleet Europe Magazine – an insightful issue setting the scene and reporting the comparisons, the contrasts, and the innovations within the sector with a unique 360 degree perspective of LCV fleet management across the continent. (see p.6-41) Because so many international fleets are partly or fully composed of LCVs, we hope to see you in Hamburg on 19 November where we will be discussing and expanding on some of the salient issues around LCVs. The central theme of this year’s Fleet Europe Forum is Turning today’s vehicle fleet challenges into successful opportunities, where talks

Hamburg, the centre of fleet management in 2014

EDITORIAL

Four strong suits in Fleet Europe’s 2014 deck

and executive panel debates will focus on drawing out the best in the industry, including this year’s headline topic: fleet management in the Nordics. (see p.42-43/50) It is right after the closing of Hamburg’s Fleet Europe Forum that we’ll be delighted to host the ninth annual Fleet Europe Awards Ceremony, honouring the people, the projects, the best-practice, the technology and the innovation which drive our industry. There are seven award categories and in order for us to reward you on the stage, we’ll have to see you in the crowd first! (see p. 42-43).

Furthermore, on 18 November, prior to the Hamburg show, we’re looking forward to a new session of the IFMI dedicated to Successfully engaging driver behaviour. This IMFI fleet management training session will touch on the direct effect of driver behaviour across the TCO equation.

That same day you can also attend the first Fleet Europe Remarketing Forum which aims to shine a bright light on those international challenges facing the Remarketing industry. (see p. 42-43/52) So those are four good reasons to join us online, in our pages, in the flesh, and perhaps even on-stage in Hamburg. Don’t let these opportunities pass you by!

Steven Schoefs, Chief Editor sschoefs@nexuscommunication.be Twitter : @StevenSchoefs

Be part of the Fleet Europe Community!

LEARN, SHARE AND NETWORK – IN HAMBURG I FMI training session: Successfully Engaging Dedicated Driver Behaviour – Hamburg (DE) – November 18, 2014 The motto for this session: Save money, save lives, save Join the IFMI training session & Enhancethe your fleet expertise 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. Further information at ifmi.fleeteurope.com

Fleet Europe Forum 2014 – Hamburg (DE) – November 19, 2014 The Fleet Europe Forum gathers around 600 European and international fleet decision makers around the theme “Turning today’s vehicle fleet management challenges into successful opportunities”.

You will learn from key-note speakers, discuss with peers and share best practices with the fleet community. Further information and registration details available at forum.fleeteurope.com.

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!

Remarketing Forum – Hamburg (DE) – November 18, 2014 The Remarketing Forum will try and identify the most pressing challenges of remarketing and shed some light on how the market will develop within the next 2-5 years. Expert speakers will share their expertise, present new concepts, trends and trials remarketing stakeholders have to face nowadays, and introduce solutions and ways ahead to succeed.

Further information at forum.fleeteurope.com/remarketing.html

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

Fleet Europe Awards 2014 – Hamburg (DE) – November 19, 2014 The Fleet Europe Awards represent the highest opportunity for professionals within the fleet industry to get the recognition they deserve for bringing improvement to their company and to the market in terms of fleet management. The Awards Ceremony unveiling the winners will be held after the closing of the Fleet Europe Forum. Further information available at forum.fleeteurope.com

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

FLEET EUROPE # 71

P.3

Baudouin de Mégille & Tiziana Maniezzo (Dalkia)

DOSSIER I LCV Management in Europe in 2014 An insight in managing Light Commercial Vehicles: market overview, new products, trends, and best practices.

BUSINESS I

6

I DOSSIER I

The European LCV Fleet Market: A promising year so far . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.6

Interview Steffen Raschig (Opel/ Vauxhall)

44

CONTENT

MANAGEMENT I LCV Case Studies

SCOPE I

A look ahead: Last-mile delivery

53

57

I MANAGEMENT I Why join the Fleet Europe events in Hamburg? . . . . . . . . . P.42

Compact LCVs: A new arrival . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.12

Interview with Baudouin de Mégille & Tiziana Maniezzo (Dalkia) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.44

Medium sized LCVs: A wealth of choice

News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.47

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

P.14

Large LCVs: Changes expected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.20 LCV Management: overview with OEM’s . . . . . . . . . . . . . . . . . . . . P.22 Making LCVs fit for purpose

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

P.28

Get me the job on time ! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.32 The future of the mobility is more than green

. . . . . . . . . . .

P.36

Tips & Tricks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.38 Fit for pupose, also in funding?

Overview with leasing companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.40

Global Fleet Conference: Round Up & pictures

. . . . . . . . .

P.48

I BUSINESS I News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P.51 Interview: Steffen Raschig (Opel/Vauxhall)

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

P.53

Interview: Justin Oltz (SCT Fleet Solutions) . . . . . . . . . . . . . . P.54 Volkswagen Financial Services: Expansion steered by fact-based transparency . . . . . . . . . P.56

I SCOPE I City pollution: Clean up your fleet or clear out . . . . . . . . . . P.57

COLOPHON

Steven Schoefs - Chief Editor - Fleet Europe sschoefs@nexuscommunication.be Laetitia Fernandez - Content & Community Editor - Fleet Europe lfernandez@nexuscommunication.

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 Romina De Gregorio - Internal Sales & Operations rdegregorio@nexuscommunication.be Jonathan Green - Chief Editor Smart Mobility Management jgreen@nexuscommunication.be Johan Verbois - Director of Knowledge Development jverbois@nexuscommunication.be Céline Gilson - Assistant cgilson@nexuscommunication.be

Contributors: Tim Harrup, Frank Jacobs, Ally Millar, Jonathan Green and Jean-François Christiaens Special thanks to: Michaël Gergen (DataForce) Layout: Hungry minds - info@hungryminds.com

EDITOR

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

FLEET EUROPE

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

FLEET EUROPE # 71

P.5

DOSSIER I LCV Management

The European LCV Fleet Market: A promising year so far At a first glance it doesn’t seem to be too complicated to make an analysis on the European Light Commercial Vehicle fleet market. But a closer look reveals that it is not as easy as it seems.

U

No escape: it all comes down to definition So there is a common understanding of how the market should look like. In fact the picture is very diverse because there are some ‘specialties’ to consider. Just to give some examples: Should the group of Pick-Up models (Ford Ranger, Mitsubishi L200, Nissan Navara, Toyota Hilux, Volkswagen Amarok…) be counted as well?

And what about models like the Piaggio Porter or the Multicar M27 which are very popular at municipal energy suppliers. And most likely you don’t want to see tractors or harvesters in the LCV market.

The analysis figures following below are all based on the registration type LCV thus including the passenger car models with an LCV registration mentioned above.

This slightly unusual combination is especially driven by France and Poland.

The magic square The market can be defined either by type of registration or by type of model. This leads to four different variants while combining model and registration types:

The desire to save taxes currently is also very apparent in the Polish market. Due to a loophole in the fiscal legislation, a huge amount of cars has been registered as light commercial vehicles in the first quarter of 2014. Solely looking at the (slightly decreasing) passenger car registrations might lead to a totally wrong picture because more than 20 per cent of passenger car models have been registered as LCV. For some popular models the ratio is even much higher: 80 per cent of Audi Q5, 70 per cent of Volkswagen Passat and almost 50 per cent of Hyundai i20 are LCV. Integrating those registrations turns a loss of 28 per cent for the i20 into a growth of 22 per cent!

4

1

3

2

LCV

Passenger car

1. A passenger car model with a passenger car registration (certainly doesn’t belong to the LCV market) 2. An LCV model with a passenger car registration 3. A n LCV model with an LCV registration (certainly does belong to the LCV market) 4. A passenger car model with an LCV registration

Mode Type

sually people will directly have some typical models in mind while discussing the LCV market. Fiat Ducato, Ford Transit, Mercedes Sprinter, Volkswagen Transporter and smaller ones like Citroën Berlingo, Renault Kangoo or Volkswagen Caddy are LCVs without any doubt.

LCV

Passenger car

Registration Type

P.6

FLEET EUROPE # 71

In the French market a lot of small cars like Renault Clio, Peugeot 208 or Citroën C3 are registered as LCVs and their volume is not negligible. From January-May 2014 the LCV version of the Renault Clio accounts for almost 20 per cent of all Renault Clio new car registrations.

Overall this special impact is gradually decreasing since April but you have to pay attention while comparing current figures with the result of the previous time period.

Figure 1 LCV registrations fleet market Jan-May 2014

Poland. As mentioned above the figures from Poland are very much driven by the current tax legislation and will fall back during the next couple of months. Usually this market ranks behind Spain, the Netherlands and Sweden. Figure 1

140000 120000 100000 80000 60000 40000 20000 0

The weight And here comes the next step of fine-tuning of the definition: the weight. Fortunately, the European Union put a classification of vehicle categories in force that is accepted across all markets and is drawing a line at 3.5 tons. It also applies for our breakdown here. Therefore vehicles like Mercedes Atego or MAN TGL are out of scope as well as the heavier versions of models like Fiat Ducato, Ford Transit, Iveco Daily, Mercedes Sprinter or Volkswagen Crafter.

The market segment Having agreed on the registration type the next hurdle arises:

the market segment. Excluding the so-called Special Channels (registrations on Short-Term-Rentals, dealerships and manufacturer) people would expect that the remaining sales are done on fleet customers.

That’s not entirely true. You can find registrations on private keepers as well. Even though a significant number of those cars have a commercial usage, they are not considered in our analysis to avoid looking at mobile homes or family vans.

The LCV market January-May 2014 The biggest LCV markets in Europe are France and the United Kingdom followed by Germany, Italy and

The year-to-date performance shows the massive growth rate in Poland again but markets like Spain, Denmark and the UK also achieved increases of more than 15 per cent compared to the first five months of 2013. Three out of the biggest four markets are reporting growing registrations; only France is lagging behind a little bit but that might change until the end of the year. Figure 2 Taking a closer look at the big players in the EU-16 fleet market leads to the finding that the Top-7 brands represent about 80 per cent of all LCV registrations in fleets and this share is consistent over the last couple of years.

From January to May 2014, Renault is leading with a market share of 15.1 per cent followed by Volkswagen (13.6 per cent), Citroën and Peugeot (both 11.4 per cent) and Ford (10.1 per cent).

Figure 2 LCV registrations fleet market Jan-May 2014 vs. Jan-May 2013 …

-10 %

-5 %

0%

5%

10 %

15 %

20 %

25 %

30 %

35 %

+ 148 %

40 %

FLEET EUROPE # 71

P.7

On time every time.

International Key Account Management.

The Mercedes-Benz Vans.

A Daimler Brand

Mercedes-Benz vans are always raising the bar and setting new standards. The Sprinter in particular impresses with its outstanding quality, innovative driver assistance systems and revolutionary fuel consumption. More information is available from your Mercedes-Benz partner and at www.mercedes-benz.com

DOSSIER I LCV Management

Figure 3 LCV fleet market EU-16 Jan-May 2014 - market shares

Figure 4 LCV fleet market EU-16 Jan-May 2014 - market shares 2014 2013

MERCEDES SPRINTER

CITROËN BERLINGO

VW TRANSPORTER

VW CADDY

PEUGEOT PARTNER

RENAULT KANGOO

Citroën was able to take over the third position from Peugeot but is only leading by 66 registrations. So the gap is really small.

FORD TRANSIT CUSTOM

RENAULT MASTER

Compared to January-May of the previous year 9 out of the Top-10 brands heightened their LCV sales. Citroën and Volkswagen achieved the most impressive growth rates with 15.3 per cent and 14.2 per cent respectively.

But Mercedes was shining as well with a double digit increase (11.9 per cent). Figure 3 & 4 Compared to January-May 2013 all current Top-10 models raised their registration volume without exception. The individual development in terms of volume can be seen in the graph above.

The biggest LCV markets in Europe are France and the UK, followed by Germany, Italy and Poland Outlook Even if the definition of the LCV market is not an easy task and a scenario analysis is very much dependent on regional and local conditions, it is valid to predict a growing demand for this type of vehicles.

Direct deliveries to consumers in urban areas are definitively on the rise. The changing business-tocustomer pattern (e-commerce, home delivery etc.) leads to an increase in demand for flexible vans.

P.10

FLEET EUROPE # 71

FIAT DUCATO

RENAULT TRAFIC 0

5000

10000

15000

20000

25000

30000

Today, carriers and logistics companies are already switching to transporters that carry up to 2.8-3.5 tonnes and can get “anywhere”.

Lighter, more agile and faster commercial vehicles do not require large parking spaces, are ideal for urban areas and are increasingly taking over the work of heavy trucks. Furthermore the LCV market is a very interesting segment regarding the further development of alternative powertrains.

A significant number of vehicles has a daily mileage that can be covered by an electric powertrain and larger car parcs can provide the necessary infrastructure like an EV charging station or a natural gas fueling station. ■ Michael Gergen, Dataforce

(Sources: Dataforce)

Listen Understand Support It’s numbers that count – and that’s true today more than ever, with decision makers having to keep a close eye on the outlay for company vehicles and fleet management. That’s why Alphabet’s tailor-made Business Mobility solutions are highly efficient and significantly reduce company fleet costs. And everything Alphabet does is based on comprehensive consulting and providing dedicated service. You couldn’t be in better hands.

Business Mobility. Tailor-made for you at www.alphabet.com

DOSSIER I LCV Management

Compact LCVs: A new arrival Compact utility vehicles are continuing to attract business clients in Europe’s increasingly congested towns and cities. Will the arrival of the new Ford Transit Courier prove to be a game changer for the genre?

W

ith the smaller version of its Transit family, the Courier, Ford has rejoined the battle for the increasingly important compact utility vehicle market.

However, using a sledgehammer to crack a walnut has not always proved effective. Nor profitable.

So this heralds an end to choosing a utility vehicle too big for its business use. There are numerous disadvantages to succumbing to such delusions of grandeur - higher purchasing and running costs, the sometimes disadvantageous size, less convenient storage of goods and reduced driving comfort. Professional drivers who are happy with a smaller loading volume will be very interested in looking at much more compact utility vehicles.

First in this category are modified versions of private city cars, such as the Ford Fiesta Van, the Fiat Panda and Punto Van, or the Opel Corsa Van. The latter is about to be redesigned soon, so consumers will also be able to benefit from some attractive “end of life” reductions.

The advantages of this approach are that it retains a more flattering style of bodywork than with a traditional van, while offering the driving comfort of a private vehicle and more measured fuel consumption.

The other side of the coin is that you have to sacrifice the handy wide doors (goods are usually loaded via the tailgate, as conventional rear doors do not provide easy access), and have to make do with a loading volume of around a cubic metre.

Another disadvantage is that the suspension has not undergone basic tests for carrying heavy loads, so users have to put up with a relatively limited payload of around 500 kg. For customers looking for a more versatile utility vehicle mainly for use in town, the compact utility vehicle

ranges offered by Fiat, Peugeot and Citroën are well worth considering.

The Fiorino, Bipper and Nemo offer the benefit of a loading volume of 2.5 m³ and a payload of 610 kg. Until now, these have been the only representatives in the compact utility vehicle category. But now these three European models will have to compete with the new Ford Transit Courier. This is a model with a size/ load volume ratio intended to attract more than business customers.

At 4.16 m long, the Ford Transit Courier is cleverly positioned between the very compact Fiat/ Peugeot/Citroën trio (3.86 m) and the larger Peugeot Partner/Citroën Berlingo (4.38 m). While still practical in urban environments, this newcomer provides an impressive loading length of up to 2.59 m (if the passenger seat is folded down) and convenience of access thanks to the longer sliding side doors. Another benefit of this model is its driving comfort. With dynamic handling worthy of the flattering reputation of Ford in this regard, the Courier proves to be simply excellent on the roads.

In 2016, the compact utility vehicle sector will have another new member in the form of Fiat. The Italian manufacturer has just announced the signing of an agreement with Renault to provide the technology basis for a future compact model manufactured in France.

Fun and trendy, nothing can match the Twizy Cargo when it comes to small, stylish… and electric… deliveries.

P.12

FLEET EUROPE # 71

Renault Twizy Cargo Is this an excellent urban delivery vehicle, or an appealing publicity

In summary

Go for a compact utility vehicle that enables purchasing and running costs to be minimised. When it comes to buying, you will see all the more how the range of utility vehicles around the 4 metre mark is expanding.

The latest model from Ford’s Transit range is aiming to upset the pecking order in compact utility vehicles. stunt designed to bring a corporate image to life? Whichever it is, the utility version of the little electric four-wheeler from Renault is available at last. It may be pushed down to the second tier, but the hatch back offers boot space of 180 L and enables 75 kg of goods to be transported. It will cost you around  9,000 to get behind the wheel of this playful, fun-to-drive model. Expect a range of between 50 and 70 km.

Ford Transit Courier Based on the platform of the Ford Fiesta, the new Transit Courier retains the former’s driving comfort. In practical terms, users will appreciate the option of being able to load a euro pallet behind the partition, along with the possibility of loading objects (pipes, ladders, boards etc) of up to 2.59 m, as the option of folding away the front passenger seat has been retained.

In mechanical terms, Ford is offering its excellent three-cylinder 1.0 L 100 bhp EcoBoost petrol turbo (119 g of CO2 /km), or the 1.5 TDCi and 1.6 TDCi, 75 and 95 bhp respectively. Powered by the latter, the Ford Transit Courier comes top of the class in terms of emissions, with a CO2 /km level of just 97 g/km.

Fiat Fiorino Available as a “combi” (5-seater) or a van (2-seater), the Fiat Fiorino

The Fiorino is only 3m86 long… and proves to be unbelievably agile in cities!

Even the compact version of the Renault Kangoo can be fitted with a three-seater front bench seat. is the most compact utility vehicle on the market, along with its rivals the Peugeot Bipper and the Citroën Nemo. Despite its limited size (just 3.86 m), it can accommodate a load of 2.5 m³.

The loading surface measures 1.52 m, but this can be extended to 2.49 m by folding down the front passenger seat. Rear access is provided by two swing doors that open to 180°. There is a sliding side door as standard (a second is available depending on the fittings). In mechanical terms, there are four engines available, running on diesel, petrol and natural gas.

Renault Kangoo Express Compact Available in three lengths, the Renault Kangoo Express can fit its bodywork into just 3.89 m (as opposed to 4.28 m for the standard model and 4.66 m for the maxi). Nevertheless, there is 2.3 m³ of load space.

Most compact cars, such as the Opel Corsa, come in utility version on some European markets.

Something unique in this segment is that Renault offers the option of a three-seater front seat, even in the most compact Kangoo. So there is room to carry a third person without having to eat into the load area.

Opel Corsa Van The current Opel Corsa is coming to the end of its life. Its replacement will arrive in showrooms at the end of the year. Nevertheless, the utility version will still be in the catalogue for a few months, giving time for a potential transition to a new utility model. By giving up the rear seat, the Corsa Van offers a load surface 1.25 m long (by 95 cm). This gives a usable volume of 0.9 m³. However, care must be taken not to carry loads weighing more than 475 kg in total. ■ Jean-François Christiaens

FLEET EUROPE # 71

P.13

DOSSIER I LCV Management

Medium sized LCVs: A wealth of choice While the range of compact utility vehicles staying under the 4-metre mark - a typically European requirement is only just starting to expand, a dizzying range of medium sized models is on offer. You really are spoilt for choice!

C

urrent utility vehicles are real chameleons: it is impossible not to find the model suited to your needs.

of manufacturing! Renault has invested over 230 million Euros to make this transition happen.

With an even more robust, angular design and look, the new Trafic has slightly larger dimensions compared to the There are two distinct major groups of medium sized utility vehicles - those between 4.30 m and model it is replacing. The overhangs are extended by 4.50 m in length and those around the 5 metre mark.

10 centimetres at the front and 11 cm at the back respecWhen weighing up the different types of bodywork offetively. The length of the load surface is now the best on the market, at 3.75 m and 4.15 m respectively on the short and red by these two sub-families, it is impossible not to long versions. The market launch of these newcomers is find the model most suited to your needs. Take the new planned for next autumn. The other major attraction in Ford Transit family for example: the short Tourneo the segment will be unveiled at the utility vehicle show in Connect measures 4.44 m and has a load surface of 2.9 m³; the long wheel base Hanover next September Tourneo Connect measures the future Mercedes Vito.

4.81 m and offers 3.6 m³ It is no surprise that it will of load surface; the short share its underlying techTransit Custom measures nology with the entirely new 4.97 m (6 m³) and the long V Class, although in all likewheel base version mealihood it is expected to be given a different shape and sures 5.34 m (8.3 m³ with have a clearly less luxurithe roof raised). In short, it is difficult not to find the utilious look in the passenger compartment. ty vehicle for you in terms of requirements, especially since this example is repeaThe future Vito is neverAt 4.36 m long, the Dacia van provides a load space theless expected to retain ted across almost every of 3.3 m³. some of the technical and manufacturer in the utility electronic equipment that vehicle market. Hence the is unrivalled in the segment. Is this an opportunity to Citroën Berlingo is available in 3.7 m³ or 4.1 m³ versions, gain a small advantage over its long-standing rival, the which then give way to the larger Jumpy offered with Volkswagen Transporter? Of course we can expect the three different usable volumes of between 5.6 m and 7 m³. latter to be completely redesigned - the rewriting of established values in the segment has started!

Until now the new Ford Transits have been the only new offerings in the evolving catalogue alongside obviously oldDacia Dokker Van er models, but the picture is changing. In recent weeks, Since the upgrading of the Logan/Sandero family, Renault and Opel have unveiled new generations of their Dacia no longer offers its Logan saloon (MCV) utility Trafic and Vivaro. For the French manufacturer, this change model. But, under the tutelage of Renault, the Romaof generation also coincides with a major industrial change. nian manufacturer is not neglecting the market - an LCV Formerly built in the Nissan factory in Spain alongside the version of the Dokker leisure activity vehicle (LAV) has Primastar (which disappeared from the range to make way been launched in the meantime. Offering up to 3.9 m³ of for an NV200 specific to Nissan), the Trafic (and some verusable volume (3.3 m³ if the front passenger seat is not sions of the Opel Vivaro) is moving to the Renault factory in folded away) for a price of around  7,500 plus VAT, the Sandouville in France. This is a major first for the factory, Dokker Van has an interesting price/load ratio. which has never assembled a utility vehicle in fifty years

P.14

FLEET EUROPE # 71

DOSSIER I LCV Management

In summary

With the Transit family, Ford has set the ball rolling in redesigning medium sized utility vehicles. Its competitors are or will soon be following suit. A wind of change will soon blow through the segment.

The Citan is now also available as a Crewbus. This is a stretched version with 7 seats.

Mercedes Citan While waiting for the redesign of the Vito, Mercedes will now be offering a more compact utility vehicle thanks to its collaboration with Renault. Hence the Citan comes across as a slightly redesigned Renault Kangoo.

The Citan has had to cope with a fairly limited engine offering since its launch, but it has just expanded its catalogue with more powerful engines.

Nissan eNV 200 Nissan is expanding its NV 200 compact utility range with an electric version. This eNV 200 benefits from the technology of the Leaf electric saloon. Being integrated into the underbody, the lithium-ion battery does not affect the load volume. And Nissan guarantees maintenance costs of less than 20% compared to an equivalent utility vehicle with a combustion engine.

Is it a chance of a lifetime? Only if your daily journeys do not exceed 170 km, the range quoted.

The electric utility vehicle recently proposed by Nissan provides exactly the same load volume as the combustion engine version.

The all new Renault Trafic aims to strengthen its position as market leader.

P.16

FLEET EUROPE # 71

Renault Trafic Renault is looking to its new 1.6 L diesel engine to power the new Trafic. It will be offered as a 90 or 115 bhp single turbo or 120 and 140 bhp double turbo version.

According to Renault, business people will see their consumption reduced by 1 L/100 km on average compared to the previous generation of Trafic. This is a saving of around  1,000 over three years, based on an annual mileage of 30,000km.

Fiat Doblo Advice for business people looking for a very large utility vehicle but with “reasonable” dimensions: the Fiat Doblo can offer a record load volume of 5 m³ (increasing to a full 5.4 m³ when the passenger seat is folded away). This maxi version can also bear up to a tonne of goods! These are figures normally reserved for the superior category.

Since 2008 the Volkswagen Caddy has been available in a stretched version under the name Caddy. This enables it to swallow up to 4.73 m³ of goods.

Volkswagen Caddy The Caddy is the last medium utility vehicle to keep a rigid axle at the rear, so it is designed to take heavy loads. The Volkswagen offering is also marked by the wide range of engines: diesel, petrol, natural gas, integral transmission, double clutch gearbox, etc. It is impossible not to find the version best adapted to your needs.

Peugeot Expert, Citroën Jumpy and Fiat Scudo. This fourth model, which is distinguished only by the Toyota logo on its grille, represents the first step in the collaboration agreement for utility vehicles signed by PSA and Toyota in July 2012. More models are sure to follow. ■ Jean-François Christiaens

Peugeot Expert Thanks to its optional pneumatic rear suspension, the Peugeot Expert can lower its loading sill to just 49 cm.

This is useful to avoid having to lift heavy loads too high when loading. Furthermore, in this lowered configuration, the total height of the chassis can get under the 1.90 m mark, thus facilitating access in cramped underground car parks. In terms of load volume, the Expert can offer up to 7 m³ in its most spacious version.

Toyota ProAce Besides the 100% in-house Hilux pick-up, Toyota’s utility vehicle offering includes only the new ProAce of Franco-Italian origin. In fact it is a new cousin of the

In XL version with a higher roof. The Fiat Doblo can swallow up to 5.4 m³ of goods.

The optional pneumatic shock absorbing system enables the Peugeot Expert to lower its rear loading height by 5 cm.

A product of the collaboration between PSA and Toyota in the utility domain, the ProAce is a cousin of the medium-sized Peugeot, Citroën and Fiat utility vehicles.

FLEET EUROPE # 71

P.17

If only every business partner was so reliable.

The new Passat and Passat Variant.

As advanced as you are.

Fuel consumption of the new Passat/Passat Variant in l/100 km: combined 5.3–4.0/5.4–4.1. CO2 emissions o

www.volkswagen.com

of the new Passat/Passat Variant in g/km: combined 139–106/140–107. Illustr. depicts optional equipment.

DOSSIER I LCV Management

Large LCVs : Changes expected While waiting for the complete redesign of the large utility vehicles and the formation of new alliances, the technical upgrading of several benchmark models in the segment is setting the tone. The partnerships of today will not be those of tomorrow among the family of heavy duty vehicles.

I

t is impossible to recoup the costs of developing a large utility vehicle on a go-it-alone basis. Although still very significant, in Europe this segment accounts for just 500,000 or so total annual units (which is a slight increase of 0.24% compared to 2010). On the other hand, in an increasingly competitive market, it is hard to lose any customers to a competitor. This is why Volkswagen has decided not to continue its collaboration with Mercedes on the successor to the Crafter.

Volkswagen wants to take advantage of the expertise of heavy goods vehicle manufacturer MAN, whom it will bring into the fold when a new generation of the Crafter is launched in 2016. Hence Mercedes will need to look towards Renault, its new partner for both private cars and utility vehicles, for help in developing its future Sprinter.

Another major change is expected: Fiat will not be sharing its large utility vehicle with French group PSA in the future. The Italian manufacturer prefers to rely more on the brands in its new American portfolio to bankroll its upcoming utility vehicles. The French group will therefore be turning to Toyota. Ford, on the other hand, is going it alone. However, it can rely on a potential market that is significantly larger than that of the European manufacturers. And it is benefiting from the redesign of its family of utility vehicles to offer its new heavy duty vehicle, the Transit 2T, on the modular basis of its medium sized model, the Transit Custom.

(notably a reversing camera, a lane departure warning system, a docking station for a digital tablet, etc.) and in mechanical terms are worth a mention. In the French models, there is a 2.2 L HDI available with 110, 130 and 150 bhp, plus a 3.0 L 180 bhp HDI. These are engines that guarantee fuel savings of up to 1.3 L/100km (or 34 g of CO2 / km) compared to the engines they are replacing. The Fiat Ducato, on the other hand, is offering a 2.0 L 115 bhp Multijet, a 2.3 L 150 bhp Multijet and a 3.0 L 180 bhp Multijet.

Another major player in this redesigned segment, the Renault Master, is benefiting from a new mechanical update. Its engines are adopting the twin turbo technology and are evolving towards greater power (up to 165 bhp) and less consumption (up to 1.5 L/100km less than previous engines). In terms of equipment, it is worth highlighting the arrival of a latest generation ESP which includes Extended Grip (for a smoother ride even on slippery surfaces), hill start assistance and trailer sway control.

Besides these developments, it is impossible to ignore the major innovation in the heavy duty segment - the Ford Transit 2T. This move comes when we know that the Transit has been the best-selling vehicle in the utility sector in Europe for over 25 years. While waiting for their competitors’ redesigns, which are not planned until 2016, the new Ford Transit 2T, the Master and the Ducato/ Boxer/Jumper trio have a free hand to attract customers looking for large volume vehicles.

While waiting for these far-reaching redesigns, current models are benefiting from minor adaptations. This is the case with the Fiat/PSA trio (the Fiat Ducato, Peugeot Boxer and Citroën Jumper). Besides a completely redesigned front aspect, changes in terms of equipment

Pick-up and 4x4 Discover on our website www.fleeteurope.com our new LCV channel with interviews and case studies, and the article on the Pick-up segment “Pickups: when the frenzy reaches Europe”.

P.20

FLEET EUROPE # 71

Launched in 1965, over 7 million units of the Transit have already been produced! The very latest version is coming into the showrooms.

The Crafter is no longer to be produced in the Daimler factory alongside the Sprinter. From 2016, Volkswagen will produce it in Poland.

The Peugeot Boxer has just been substantially revised, as its new front end demonstrates.

Ford Transit 2T The new Transit 2T is the only model in the segment to offer a choice of front wheel drive, rear wheel drive and integral transmission. In practical terms, the side doors offer an opening width of 1.30 m - a record for the category. Mechanically, the largest Transit is a copy of its smaller brother, the Transit Custom. In terms of choice, customers will be able to select from 100, 125 and 155 bhp versions of the 2.2 TDCi. Volkswagen Crafter The new Crafter will be manufactured in Poland from 2016 onwards. Between now and the end of the year, Volkswagen will start the construction of a new factory in Września to welcome it. The site, which will also i clude painting and assembly units, will cover more than 220 ha.

Peugeot Boxer The Peugeot Boxer (and its cousins the Fiat Ducato and Citroën Jumper) offers the largest usable volume with an overall length of just 6.36 m, which is 50 cm to 1 m less than its competitors. It also has one of the largest ranges of maximum permissible gross weight, stretching from 2.8 to 4 tonnes. Unlike its competitors, who are opting for rear-wheel drive for the “bulkiest” models, this heavy duty vehicle is still only offered with front wheel

The NV400 is now available in a Crew Van version with 7 seats in order to take more workers to the site! drive. It is a choice that enables better payloads to be offered than with the rear wheel drive vehicles, which are penalised by the weight of the drive shaft. But, depending on the conditions, it may not always favour traction.

Nissan NV400 Although developed in the shadow of its twin the Renault Master, the Nissan NV400 shares its practical qualities, such as its unmatched ride comfort for the segment, its driveability and its long wheel base. Its payload, which has been increased to the equivalent maximum permissible gross weight in the segment, will also be appreciated - 1,620 kg for 3.5 tonnes maximum permissible gross weight - worth noting at the very least!

Available as a 4X4 with heightened bodywork, the Mercedes Sprinter can go onto (almost) any worksite.

Mercedes Sprinter A proper chameleon, the Sprinter covers a range stretching from 7.5 m³ (short version with normal roof) to 17 m³ in its largest version (the extra long version with a long wheel base and super-raised roof). Its maximum payload is 2,710 kg. n Jean-François Christiaens

FLEET EUROPE # 71

P.21

DOSSIER I LCV Management

LCV fleet management: What manufacturers have to say Products, connectivity and fleet agreements. Here’s what Fiat Professional has to say.

Trends, tendering, connectivity and more, with Volkswagen LCV.

What new LCV products and services will you be launching this year?

Starting from May 2014 we launched the New Ducato. We have invested in development, technologies, people and process total of 700 million euro in 5 years, a dedicated team of 6,600 people.

What are the main trends in the LCV marketplace?

We see more and more customers asking for solutions – serving their individual business needs. Volkswagen Light Commercial Vehicles is focusing on eight commercial customer groups such as: Courier & Logistics, Service & Mobile Workshops, Police & Military etc. These user groups look for their vehicle based, individual business solution. Our wide model range offers countless modifications. If this is not individual enough, the Volkswagen Business Unit for Specialization (B.U.S.) offers tailor made conversions ex-factory.

Its resistance and reliability have been proven by 10,500,000 km of test. Thanks to the great reliability and the high quality standard reached by the New Ducato, Fiat Professional and Mopar have developed a complete Mechanical Coverage Program called Max Care, a service product that increases Residual Value.

How is connectivity and the emergence of telemetry impacting LCV design and fleet management?

The new “connected world” has a deep impact on the design of a commercial vehicle. The on-board electronics has to be empowered and it is necessary to integrate many technological components to offer an innovative approach with the vehicle.

It is necessary to connect all the main devices in order to take under control all the functioning parameters of the vehicle, including passenger requests and to be able to share this data with communication devices, wired or not.

Do you have international fleet agreements? If so, please tell us about them and your ambitions.

We have a portfolio of more than 70 international fleet agreements. Among these are some with the European public and private mail & delivery sector where Fiat Professional is leading.

P.22

What topics and issues are important for corporate fleets when tendering for LCVs? Corporate fleets, as all fleets, want to have someone being responsible for their tender and all questions which may occur in this context. Reliable and quick regarding the response time, with an expert view on technical details and knowledgeable in terms of possible conversions or body builder solutions.

How is connectivity and the emergence of telemetry impacting LCV design and fleet management?

We feel the upcoming trend as well. Volkswagen is working on different solutions for the connectivity and telematics data output to serve multiple devices on the customer side.

We will continue both to acquire new customers and to constantly improve the relationship with our present customers.

Is there a future for alternative powertrains, like hybrid and electric powertrains, in LCV fleets?

Volkswagen Group is offering and testing these solutions in the passenger car brands. The successful alternative power trains will find their way to light commercial vehicles.

Want to hear more what Fiat Professional has to say?

Read the full interview on www.fleeteurope.com

Want to hear more what Volkswagen has to say? Read the full interview on www.fleeteurope.com

FLEET EUROPE # 71

peugeot.com

NEW PEUGEOT 308 SW NEW BLUEHDI ENGINE 85 g OF CO2 /KM WITH 120 HP FOR EXTENDED SENSATIONS

85 g OF CO2 /KM 3.2 L/100 KM Combined consumption (l/100 km): from 3.2 to 5.6. CO2 emissions (g/km): from 85 to 129.

Enjoy extended sensations with the new diesel BlueHDi engine. Thanks to the adjustment of the combustion and to the post-treatment of exhaust gases, CO2 emissions are reduced to 85 g/km. Available in 120 hp for only 3.2 L/100 km. 308 SW is the Car of the Year 2014.

NEW PEUGEOT 308 SW

DOSSIER I Car Leasing & Fleet Management in Europe

New product launches and safety.

Ford share their insights.

What new LCV products and services will you be launching this year?

2014 is a busy launch year. This year we are concluding the launch of our all new Transit family of products, from the smallest Transit Courier, the Transit Connect, Transit Custom and the largest Transit, four completely all new products launched over a two year period.

This represents the most extensive range of commercial vehicles in our history. But we realise our customers need more than product and they want to be reassured through the ownership cycle, that we will take care to minimise downtime and keep their vehicles on the road.

So we are progressively introducing our Transit 24 Service Promise this year, which will be offered via all our specialist Transit Centre dealer network.

What safety features are available to help keep drivers and other road users safe?

Transit Custom is the only van in its class to have been award 5* NCAP. Similarly Ranger is the only pick-up it is class to also have been awarded 5* NCAP. So you can see that safety is a high priority. In addition to the targeted use of high strength steels e.g. boron steel and comprehensive airbag availability, new technologies such as Active City Stop is now available on Transit Connect, which is designed to reduce the likelihood or consequences of your van colliding with the vehicle in front in slow-moving traffic by applying the brakes if it is detected that a collision is likely.

Want to hear more what Ford has to say? Read the full interview on www.fleeteurope.com

P.24

FLEET EUROPE # 71

Products, analysis, insight and more. Here’s what Michael Pflüger from Mercedes-Benz Vans has to say.

What new LCV products and service will you launch this year?

For Mercedes-Benz Vans, it’s the year of the Vito.

Low on costs, high on payload, expert on safety.

As a mid-size van the new Vito is setting benchmarks. With up to 1,369 kg of cargo capacity, it will have one of the highest payload in its class. At the same time the purchase price and maintenance costs are unexpectedly low. It is the first vehicle in its class available with a choice of rear-wheel, all-wheel and now front-wheel drive too.

What are the main trends in the LCV marketplace?

Customers more and more ask for an OEM, which offers an one stop solution, regardless if it is national or international. That includes a strong sales network, a well-trained fleet sales force, a highly capable on-site service and last but not least the key support from national and international Key Account Managers. Other important product relevant issues for customers are competitive TCO components, residual values, less downtime, reliability and functionality, quality and safety.

What have been the effects of the economic recession on LCV fleet purchase and what does the future hold?

As expected, a trend to renting and leasing could be observed. But offering the customer more flexibility will hold also true in future. We are very well prepared for this.

Is downsizing and rightsizing of LCVs an issue in today´s corporate fleet management and if so, why?

Rightsizing is the trend. The more specific the tasks get, the more specific the LCV has to be. And we have them all in our portfolio.

Want to hear more what Michael has to say? Read the full interview on www.fleeteurope.com

neW ViVaro

Ready foR biggeR plans.

With loading capacity for up to 3 euro-pallets and extra-wide loading doors (up to 250 degrees). designed to get work done. opel.com fuel consumption combined 6,5–5,9 l/100 km; Co2 emissions combined 170–155 g/km (according to R (eC) no. 715/2007).

DOSSIER I Car Leasing & Fleet Management in Europe

Market trends and right sizing explained by IVECO.

Products, connectivity and rightsizing. Cédric Douls, PSA Peugeot Citroën, explains.

How important is the LCV segment to your fleet market share?

Our fleet market share in Europe is comprised of a 50% car and 50% van (light commercial vehicles) split. Our group is present in 160 countries and is n°1 in Europe with 21.5% market share (the second place player has 15.5% share).

What are the main trends in the LCV marketplace?

After a poor 2012, commercial vehicle sales in Europe started rising again in 2013 – and we feel the same will happen in 2014. General consensus is that a progressive recovery is expected also in the following years – but will remain moderate. An industry increase of approximately 20% is forecasted in the next 5 years. Focusing on 2013 results; LCV EU27 Market from 2.8-6.0 t counts around 700,000 units (- ca. 2% vs. previous year), checking the segment where the New Daily achieve better performances such as the 3.5-6.0 t segment. Due to the strong crisis, in particular the construction sector has suffered an important decline promoting the field of door to door distribution and sales via the internet. This situation brings an important increase on Panel Van vehicles in comparison of the Chassis cabs. In fact before the crisis the mix was 50/50 today we are 65% Panel Vans / 35% Chassis Cabs.

P.26

What new LCV products and services will you be launching this year?

The new Peugeot Boxer and Citroën Jumper have just been launched in May 2014 and revealed at the Commercial Vehicle Show at the NEC in Birmingham. In March 2014, we have also launched the New Electric versions of Peugeot Partner and Citroën Berlingo.

How is connectivity and the emergence of telemetry impacting LCV design and fleet management?

These new technologies are already integrated in our LCV vehicles thanks to telematic boxes.

Connected to fleet management platforms, our customers are able to monitor their fleet, reduce costs and improve their quality of service for their customers.

Is downsizing and rightsizing of LCVs an issue in today’s corporate fleet management and if so, why?

Fleet managers look for rightsized vehicles with the correct power line that can grant the best solution in terms of TCO result. This is the strategic goal that IVECO follow on all the new model range. In particular the New Daily, thanks to the new engines (Euro6 ready) and the big improvements on aerodynamics grant a reduction of -5.5% on all vehicles that can achieve a -14% with the ‘Eco pack’ that includes Eco switch, Start & Stop and intelligent auxiliaries.

Is downsizing and rightsizing of LCVs an issue in today’s corporate fleet management and if so, why?

LCVs are key for many of our customers, and here they are the main tool of their drivers. Downsizing and rightsizing are not the main priorities.

Want to hear more what IVECO has to say? Read the full interview on www.fleeteurope.com

Want to hear more what MPSA has to say? Read the full interview on www.fleeteurope.com

FLEET EUROPE # 71

Rather corporate customers are looking for improvements in terms of fuel consumption and CO2 emissions. They are also looking at telematics to increase their productivity and decrease their mileages.

Market share, product and tendering tips introduced

by Opel’s Ciprian Suta.

Tendering, connectivity, fleet agreements and more. Philippe Paoli, Renault, offer some words.

How important is the LCV segment to your fleet market share?

LCVs have always been an important part of our product sales mix and the offering we provide to fleets, not just on a pan European level but at a global level too. We have always sought to provide our corporate and fleet customers with vans that fit the need and do the job they are intended for as effectively as possible – right the way across our LCV range. At the same time, this has been backed up by a greater emphasis on first-rate, top notch customer service and to ensure that we always go the extra mile for our customers.

What topics and issues are important for corporate fleets when tendering for LCVs? We need to know the usage and category of the vehicles required, we need to understand what exactly the vehicles are used for to make adapted proposals. In this respect it is important for us to meet also the fleet department, maybe even the drivers, next to the procurement.

The backbone of our LCV range is the Vivaro – which has a 10% market share in the European Van-D segment, so it’s a great contributor to our fleet sales results.

What topics and issues are important for corporate fleets when tendering for LCVs? Corporate fleets have a number of objectives when they seek to add new LCVs to their fleet. The ideal proposition must not only be fit for purpose, but must have class leading TCOs, great reliability and functionality and be capable of standing up to whatever its working life throws at it.

At the same time, LCVs increasingly have to be more driver-orientated with greater comfort levels, greater connectivity and improved styling and driving dynamics, more closely allied to that of a passenger car than ever before. To fit in with current corporate environmental policies and the latest legislative thinking, modern LCVs must also deliver improved fuel consumption and lower carbon emissions.

Want to hear more what Opel has to say? Read the full interview on www.fleeteurope.com

How is connectivity and the emergence of telemetry impacting LCV design and fleet management?

Fleet Asset Management is a key tool provided by Renault. An IT box implemented in the vehicle transmits 60 data each day to a data center, which provides very useful information to the company (mileage, fuel consumptions, driving attitude, etc.).

We also developed R&Go which allows users to use their own smartphone or tablet in the vehicle.

Do you have international fleet agreements? If so, please tell us about them and your ambitions.

Yes, we have 150 fleet agreements covering PC and LCV. With them, we can help our major fleet customers wherever they have a need for LCV (where Renault is present). In some cases, these also allow us to make a joint pre-launch of new vehicles, like Zero Emission vehicles in South America for example.

How do you manage equipment and fit out requirements from corporate clients?

We work either with many converters in partnership, or we are able through our in-house converter Renault Tech, to equip and fit out the vehicles directly in the factory (more than 120,000 transformations in 2013).

Want to hear more what Renault has to say? Read the full interview on www.fleeteurope.com

Jonathan Green

FLEET EUROPE # 71

P.27

DOSSIER I LCV Management

Making LCVs fit for purpose A shiny new LCV may look visually appealing, but until it’s converted into a fully functioning service vehicle it’s nothing more than a piece of metal that moves. Let’s find out what corporate buyers need to think about when getting their LCVs ready for the road.

R

oof racks, side racks, side steps, ladder bars, pipe tube carriers, bumper and nudge bars adorn LCVs up and down Europe’s highways. Then there’s lighting and security to spec out. And this list only just touches the surface of the type of kit that could be needed on the outside of a new company LCV.

On the inside it’s about the bulkhead, ply lining and seating arrangements. Michel Mehil, International Development Director, at Gruau, the specialist convertor, also tell us that turning cars into LCV is something that’s popular at the present time given tax advantages. “We take out the back seats of a passenger car and put panels in so that the car can be registered as an LCV.” Simple as that, but those tax advantages lead to TCO savings that all add up.

And all this to discuss before we enter the world of racking: a weird and wonderful realm in itself. But we are not finished yet. There’s full scale LCV conversion

for bespoke company vehicles to think about too. What about inside the cab I hear you cry! Okay, you’re right, there’s reversing cameras, parking sensors, driver recording cameras and driver comfort to consider, but this article can’t cover every single permutation. After all, LCVs are complex creatures by their very nature It’s all about the TCO methodology Yes, you guessed it. Successful LCV procurement is all about understanding business needs, building the TCO methodology around them, and communicating requirements to suppliers in a clearly structured tender document. It sounds simple doesn’t it?

Get it right and like magic your basic van becomes a service van, primed, ready and fit for purpose. Get it wrong and you’ll be facing some tough questions from the top.

Preparation and planning is the only way ahead in corporate van procurement. So here are some things to think about as you start your LCV adventure.

If time and motion studies reveal that drivers are spending too much time searching for their tools then something needs to be done.

P.28

FLEET EUROPE # 71

LCV Procurement : Get it right and like magic your basic LCV becomes a service LCV, primed, ready and fit for purpose. Get it wrong and you’ll be facing some tough questions from the top Step 1 - Horses for courses when it comes to TCO Get the specification right by getting stakeholders on-board early. They are better placed than anyone to design the TCO methodology.

Let’s use the topic of LCV conversion to explore the TCO methodology a little further. A business is after a horsebox and has consulted a specialist supplier, Gruau, to make one.

So think about how stuff can be stored smartly to up employee productivity and include this in the TCO calculation.

Frederic Strass, Vice President of International Business Development, Sortimo tells us his company is more than a provider of racking systems. “We are in the business of optimising processes and boosting business productivity for our customers,” he says.

Now, dear reader, if it’s to carry a prize winning filly it’s all about the animal’s comfort, safety and security. The TCO methodology is weighted towards buying a box that helps the horse romp home in the next race.

Step 3 - Smart storage and downsizing Store all the stuff that is needed in a smarter way and it might be possible to downsize the type of vehicle that is being procured. Just imagine how much that could save in purchase or lease costs, and day to day running expenditure. Yes, I can hear you counting the Euros.

On the other hand, if you are a farmer wanting to transport a donkey a very different type of box will do. You get the point. Understanding operational outcomes and how value is created comes before anything else. So, in this step it’s all about finding out how the van is used and then seizing opportunities to create added value.

“You are not just buying an LCV, you are buying a delivery system,” says Thomas Johansson, Vice President, Modul-System HH AB. Racking, he says, can increase the storage space in a van by 50, 100 or 200%.

Step 2 - Optimise employee productivity Don’t forget that drivers are employees. They are not being paid to drive, but to deliver a product or perform a service. So, ensuring employee productivity is of paramount importance.

LCVs hold lots of stuff and everything should have its place for easy access, but does it? If time and motion studies reveal that drivers are spending too much of the day searching for their tools then something needs to be done. It’s time to talk about racking.

Carlsberg Sweden knows a thing or two about the importance of storing components correctly. One of the first companies to use Modul-System’s new lightweight van racking solution, the brewer has labelled every drawer and box with its contents to reduce the time technicians take to find the correct item.

Lennart Mattsson, purchasing manager at Carlsberg Sweden, is a buyer who takes a strategic view about value creation. He says the most important thing is to have a supplier that provides the lowest total cost based on the product being functional and practical.

Smarter stowage also means less time travelling back and forth to the depot and more time on the road. It’s yet another productivity consideration to pop into the TCO equation. Johansson is also quick to add that carrying products securely means less damage and breakages.

Refrigeration: Keeping cool with some simple tips LCV TCO is a hot topic, but for some businesses keeping things cool is all that matters. Refrigerated vans carry precious cargos but costs still need to be kept under control. Here are some simple tips to ensure you get the best from your refrigeration system.

• Pre-cool the refrigerated compartment prior to use: Ensure products are loaded at the correct temperature. If you want to deliver goods at 3ºC then make sure they are at 3ºC when loaded.

• Encourage drivers to keep the door opening times to a minimum. They wouldn’t leave the fridge door open at home would they?

• Don’t restrict air circulation around the load or the evaporator. Give it chance to breathe.

FLEET EUROPE # 71

P.29

DOSSIER I LCV Management

fuel consumption figures, alternative powertrains and driver behaviours as ways to curb fuel costs, LCV procurement means thinking about smarter logistics and light-weight racking materials.

Modul-System says that for a fleet where the average racking system is reduced by 44 kg (from 144 kg to 100 g) fuel consumption can be reduced by 0.1 L/100 km 1.

A little number, but multiplied many times and a big number comes out of the other end.

You know the rest and anything that secures fuel cost saving has to be a good thing, right?

You are not just buying an LCV you are buying a delivery system,” says Thomas Johansson, Vice President, Modul-System HH AB.

What do occurrences like this cost your company?

Mr. Strass at Sortimo is also seeing a trend towards downsizing. “Increasing urbanisation and the ongoing rise of the metropolitan marketplace means that operators are looking for smaller and cleaner vehicles in city centres,” he adds.

Parking challenges, pollution controls and fuel costs are helping to drive this trend. Racking, leading to efficient use of space, means vehicle downsizing becomes an option. And with downsizing comes TCO savings from purchasing or leasing a smaller LCV, lower fuel costs and reductions in all the other inherent running costs incurred when managing a fleet of vehicles.

Step four - Safety first Yes, you’ve heard it before but a company’s people are its biggest asset.

There’s standard best practice stuff about safety ratings and driver behaviour, but with LCV there’s more to consider. Take the kit that’s carried in the back for example. Is it carried securely or are you risking the wrath of authorities? Is the weight of the loads being carried acceptable?

If the risk of prosecution isn’t enough to encourage action, then senior managers should be made aware of the battering the brand could take. EU legislation ensures minimum standards, but arguably a serious approach to safety looks beyond the basic requirements.

Step six - Environmental awareness please LCVs smartly procured, kitted out and deployed will not just make your peers green with jealousy, but ensure that the company is doing its bit to minimise emissions and boost environmental performance. Work towards boosting environmental performance is a win-win, so it’s a no brainer.

Step seven - Residual Values It would be remiss not to mention residual values (RV) when talking about the TCO. Whilst there’s some luck involved in getting a good values (we learnt that during the economic crash), there’s not a lot that should be left to chance.

For example, if fitting out your van with racking means new holes have to be drilled then be prepared to take a hit on its Residual Value. New holes mean more chance for wear and rust. So, prior to purchase, think about what racking is going into the van and compare this to LCV design specs.

The RV impact of conversion or hammering holes in the chassis could sway TCO calculations in favour of different manufacturers and models. It’s worth checking out.

Building the best LCV procurement is about far more than just buying an LCV. It’s about building a service and delivery vehicle that creates value for the business. So, next time the conversation turns to LCV conversion or racking, make sure you add your voice to the discussion and focus in on the true TCO. n Jonathan Green

1

Step five - It is all about fuel High five! It’s time to fuel the conversation. The home of an LCV is on the road and fuel costs can only be classed as hugely significant in the LCV TCO equation. Alongside

P.30

FLEET EUROPE # 71

In the example Modul System assume that the vehicle is fully laden consumes 9.4 L/100 km. It is also assumed that the consumption is reduced by 0.18 L/100 km per 100 kg weight reduction. Source: www.worldautosteel.org/projects/ determination-of-weight-elasticity/

www.corporate-sales.renault.com

New ReNault MegaNe with a 1700 kM* RaNge. less tiMe at the fuel puMp. MoRe tiMe foR youR busiNess.

EnErgy dCi 110 EnginE 3 ,5 l / 100 km** - 90 g Co2/ km** #NewMegane

Technology: multimedia connected r-Link tablet new TCe 130 EDC : dual clutch automatic gearbox with petrol engine Telematic services available

dRive the ChaNge

*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 LCV Management

Get me to the job on time Customer service is everything and there’s a fine line between success and failure. With LCVs connecting a company to its customers, we find out how smarter driver management can help to boost business performance.

W

hen UK supermarket chain Sainsbury saw online grocery sales spike, it realised that the driver carrying the shopping could be the only company representative that some of its shoppers would ever see.

All of a sudden the retailer’s customer service credentials rested on the shoulders of an employee recruited to drive a van. The grocer saw the risk and acted promptly. Customer service training was initiated, employee pay was upped and the rest, as they say, is history.

The take-away here for fleet professionals is simple: LCV drivers are more than just men or women who sit behind the wheel. They are employees with a specific skillset that needs to be accounted for in the TCO equation.

Relationship economy Customer service is all about building relationships. And for a company with a mobile workforce two-way communication is critical. Thankfully, ubiquitous connectivity combined with advances in telemetry mean there are more opportunities than ever to performance manage a mobile workforce. Being on the road no

P.32

FLEET EUROPE # 71

longer means being away from the office. Filomena Berardi, senior analyst at ABI Research, believes that telematics will play an increasingly important role in fleet optimisation.

“Delivery fleets are working hard to keep costs down; and telematics is still important for route planning and monitoring driver behaviour. In fact the number of subscribers using telematics in this sector is set to reach over half a million by 2019,” she says.

However, with just one in five corporations saying they get the information they need from field service data to successfully do their jobs1, it’s perhaps not surprising that telematics is now in the limelight. So here’s a quick tour of how telemetry can help deliver top draw customer service whilst boosting the bottom line.

Data, data, data If you get me the data I’ll give you answer. It is time to use big data and move from reporting events to understanding the reasons why they occur. It’s exciting stuff. Telemetry offers data on where the fleet is, what it’s up too and how the van and its driver are performing in real time. Johnson Controls is one company that’s taking advantage. Christy Coyte Meyer, Director,

For an international company with a mobile workforce twoway communication is critical.

Global Fleet Management, says gaining access to detailed data on fleet operations in the US has enabled the firm to take a fresh look at its operations and make change happen. They are not the only ones taking advantage of what telemetry offers.

Who is coming to the rescue?

When the call comes in for a field service engineer who’s best placed to respond? Which engineer has skills and materials to get the job done? Who’s able to respond fastest? No fear, with telemetry you’ll have all the answers from the comfort of your office chair.

Millers Vanguard, a supplier to the food service industry, has deployed Trimble’s GeoManager Fleet Management solution to do just this. “The real-time location intelligence and trip management tools provided by Trimble Fleet Management will allow us to optimise route planning, reduce unscheduled stops and allocate tasks to a technician closest to a

Big Brother or Big Mother?

Data may be key is getting people to change, but privacy is pretty important too. In a surveillance society we’re increasingly suspicious about how companies are mining and manipulating our data.

Who has access to data and how that data is used are sticky issues. So bear this in mind when talking about telemetry to fleet drivers and decision makers.

Ride roughshod over driver concerns and you could have a mutiny on your hands.

call out,” says Mo Williams, operations manager at Millers Vanguard.

This tech is helping fleets respond to customer requests more quickly and efficiently, improving employee productivity as technicians are able to complete more jobs per day.

Get me to the job on time?

Congested city streets and clogged up highways cause big delays.

Navigation 2.0, the marriage of navigation with advanced telematics, opens up a new avenue. Giles Margison of Tom Tom Telematics, says Navigation 2.0 offers more than direct job allocation to the best placed driver with auto navigation.

“Job status can be updated in real time and provide immediate reporting to the company and clients. In addition the unit allows for two-way messaging with text-to-speech technology for a fast and safe method of communication,” he says. Here’s a piece of kit that brings your company back office systems into the cab and merges it with a super smart navvy system. It’s

multi-platform synchronicity optimising on the road performance.

reputation? The evidence, from analysis of 1.3 million police crash reports by AXA, the insurance company, suggests so. When compared with other road users van drivers face increased risk in a number of areas including changing lanes, motorway driving and reversing. Safety clearly deserves special attention in the LCV fleet.

Driver Behaviour With all this high tech talk it’s easy to forget about the driver. For fuel efficiency and safety reasons alone you’ll want to know which of your drivers have their foot to the floor.

Real-time feedback mechanisms, such as MiX Telematics’ RIBAS, offering a dashboard mounted display featuring status alerts reflecting driving-style is one such system.

It flags practices like over revving, excessive idling, harsh braking, harsh acceleration and speeding.

Again, there’s tech to help with solutions like lane departure warning, forward collision warning and speed limit indication offering assistance. For example, a pilot of Mobileye’s collision avoidance systems by Coca-Cola Hellenic saw forward collisions cut by 50% and lane departure incidents decline by 80%. So successful was the pilot that Coca-Cola is now rolling out 17,000 systems across 28 countries.

With real-time data display drivers can see where they can improve, and back at the office you get all the data you need too. Driver psychology isn’t a simple business. See what works, record the results and build on them.

Keeping customer happy With telemetry tools helping to optimise job allocation you’ll be boosting client satisfaction and posting employee productivity gains, whilst preserving your vehicle assets and lowering running costs. The only question left now is what’s stopping you getting started?

Let’s play safely Does the person behind the van’s wheel deserve their much maligned

1

Transforming Service Delivery:

Case study

An insight report 2014, Trimble

FLEET EUROPE # 71

P.33

DOSSIER I LCV Management

Better behaviours boost business performance Dirk Aernouts, Director, Aernouts Logistics Support, is a happy man and so are his clients. His fleet of 45 LCVs and trucks are moving around the BENELUX region more effectively and efficiently than ever before. And his bottom line and business reputation are reaping the rewards as a result.

W

hat’s changed I hear you ask. Simple; Aernouts Logistics Support decided to invest in telemetry and take action to change business processes and driver behaviours. And the financial savings -  25,000 in vehicle costs alone - speak for themselves.

“It is important to remember that on top of this saving there are operational efficiencies as a result of improved job allocation, routing and traffic avoidance too,” Dirk adds. So how did it all happen?

In the beginning After an initial foray into track and trace proved successful back in 2010, Dirk decided to take a more holistic approach.

“We started thinking about how we could use telemetry to improve job allocation and delivery,” he says.

“And we also wanted to optimise driver performance behind the wheel.”

Dirk Aernouts of Aernouts Logistics Support: “Telematics has made our business smarter and we’re serving our clients better as a result.”

“Initially we didn’t tell the drivers that we were monitoring them,” Dirk tells us. “For a two-month period we collected and analysed the data. We then shared the findings and discussed with drivers what needed to be improved.”

FLEET EUROPE # 71

On tyres the best driver travelled 80,000 km before a change was needed, but another managed just 20,000 km. It is in areas like this that TCO savings really start to add up.

“We can show our drivers what is possible, because it is already being achieved by their colleagues,” says Dirk.

And with in-cab technology supporting behavioural change Aernouts’s drivers have been fully engaged in the programme.

Getting information about on the road performance was the key. Dirk turned to TomTom Telematics to help unlock the data with Aernouts deploying its navigation and real-time traffic reporting solution, as well as telematics tools to monitor driver behaviour.

P.34

And there have been some startling findings since the solution’s introduction. On fuel, for example, the best performing driver achieved 100 km on 11 litres whilst the worst used 14 litres.

Jeroen Groenendijk, TomTom Telematics Sales Director Benelux and the Nordics, believes people want to do the right thing. “99% of people have good intentions and want to do things better.

They just need to know what can be improved and how.”

“Dirk’s drivers are showing the way,” says Groenendijk.

Dirk sums it up by saying: “Telematics has made our business smarter and we’re serving our clients better as a result.” What’s not to like about that? ■

Jonathan Green

DOSSIER I LCV Management

The future of the utility vehicle is more than green Although utility vehicles are still principally designed to reduce their purchase and running costs while maximising their practical aspects, they are not evolving in a parallel world. They are also having to reduce their pollutant levels, yet still offer greater functionality and a high level of safety. Let’s have a look at the new trends in the sector.

U

tility vehicles also have to rein in their emissions and guarantee the safety of their passengers. But, compared to private cars, light utility vehicles have the benefit of an additional year to comply with the drastic Euro 6 anti-pollution standards.

This important milestone comes into force on the 1st of September 2015 for deliveries of new vehicles, and the 1st of September 2016 for all registered vehicles.

Manufacturers are already having to prepare to cross that bridge. To get there, utility vehicles are increasingly going down the route of downsizing and adopting other mechanical improvements associated

with private vehicles. The new Renault Trafic, for example, now only comes in a 1.6 L diesel model with single or double overfeed, the previous 1.9 L and 2.0 L diesel models having been dropped.

The level of progress among traditional combustion engines may still be significant, but it will not be long before we see a flood of hybrid versions sweeping into the world of light utility vehicles.

This move is even more spectacular with petrol engines if you consider the small, three cylinder petrol engine providing 100 bhp under the bonnet of the Ford Tourneo Connect.

By modifying the injection and the turbo pressure and looking at the aerodynamics, the manufacturers have already managed to record significant reductions in consumption.

These features, coupled with the general availability of stopstart systems and the existence of eco-friendly models (e.g. the BlueMotion and BlueEfficiency), are enabling utility vehicles to make considerable reductions in their pollutant and CO2 emission levels.

Next up, we will see SCR (Selective Catalytic Reduction) filters coming into general use, as is already the case with the latest generation of the Mercedes Sprinter, for example. By using a urea-based liquid (AdBlue), this system enables drastic reductions in pollutant emissions

Safety is key for LCV manufacturers and their corporate customers. Herewith an example of blind spot detection.

P.36

FLEET EUROPE # 71

of nitrogen oxide to meet the highly restrictive Euro 6 standards for diesel engines.

There is also a notable expansion taking place in the range of utility vehicles equipped with engines capable of running on natural gas.

But the success of this formula varies greatly from market to market in Europe. 100% electric utility vehicles are also being progressively offered in greater numbers (Renault Kangoo ZE, Peugeot Partner, Citroën Berlingo, Renault Twizy Cargo, Nissan eNV200, etc.).

However, their sales figures are still very marginal and their role is often confined to large public companies.

Safety improvements Light utility vehicles have generally had to adapt to the latest safety technologies, but they still benefit from the general use - or democratisation - of certain equipment that has become standard in private vehicles.

For example, business customers will appreciate the fact that the general availability of more cutting edge electronics systems enables them to benefit from not just a traditional stabilisation system, but a system that ensures better traction when starting on surfaces with low grip, a hill start assistant, an automatic downhill braking system and the much-loved trailer sway control (TSC).

Some models go even further, offering a lane departure warning system, active surveillance of blind spots, an anti-sleep alarm, an automatic emergency braking system, and even a vehicle stabilisation system for strong side winds. There is also a system for automatically calling for help in the event of an accident. All this equipment is generally offered as options, of course.

Even so, one cannot help but see encouraging signs for the future

More and more LCV models are capable of turning into fully-fledged mobile offices, integrating a complete range of tools to simplify the life of a business person on board.

here. It should be said that the independent organisation Euro NCAP is monitoring utility vehicles as well, and manufacturers seem to be progressively paying more attention to the area of safety in their vans.

Mobile offices Utility vehicles are ensuring connectivity, offering new touch screens and other information distribution systems developed for private vehicles. In addition to Bluetooth connections, enabling telephone calls to be made and SMS messages received with complete security, utility vehicles are also starting to offer on-board Internet connections and online services via numerous applications.

These open up an almost unlimited level of use: finding an address on the

Internet, confirming one’s arrival via email, directly updating one’s diary via voice command after finishing a call, finding the cheapest petrol station in the immediate environs, etc.

Some models are capable of turning into fully-fledged mobile offices, integrating a complete range of tools to simplify the life of a business person on board, such as digital tablet tools, docking stations for portable computers and an A4 format writing tablet.

Ultimately these are features that will be much appreciated by those who spend a sizeable proportion of their day on board their workplace. ■

Jean-François Christiaens

In summary Utility vehicles are still primarily work tools and they are not subject to the excess of modernisation faced by cars. Even so, they are benefitting from the technological, environmental and safety advances developed for their «little siblings». And they are also striving to make work days more comfortable. Who can complain about that?

FLEET EUROPE # 71

P.37

DOSSIER I LCV Management

Revealing secrets When you ask fleet managers for ‘tips & tricks’ they would offer to other fleet managers some of the most important issues instantly spring to mind. Where LCVs are concerned, some of the advice may be similar to advice for car fleet managers – but by no means all of it! Here, we list the top tips from three experienced international LCV fleet managers – Lorette Bernacki of Manpower Group, Manoella Wilbaut of DHL, and Chris Tinajero of Ericsson.

1 2

Model Selection - Selecting the wrong vehicle will either lead to poor operational performance because the vehicle is under-specified or higher operational costs because the vehicle is more than is needed. A poor decision here will usually have an impact for three or more years.

Driver Behaviour - There are several solutions available to help monitor and improve how the vehicle is used. Before implementing driver cameras, telematics or navigation programmes, secure a

wanted position and determine how much management is needed. Most of these programmes will need fleet office oversight to be successful.

Lorette Bernancki Manpower Group

3 4

Fuel Management - Fuel programmes are more than discounts from fuel providers. Sometimes the biggest value in a fuel programme is collecting mileage/kilometer information to manage fraud and the life cycle cost of the vehicle.

Maintenance Costs - Have a clear maintenance strategy and control your maintenance costs.

This is valid for both passenger vehicle fleet and commercial vehicle fleet. When the vehicle is an asset and working tool, it is strategic to improve the uptime while controlling costs and to have a clear operations strategy.

5

Think ahead how Telematics will be used Telematics broaden the scope of possibilities.

But it is very important before jumping onto the technical elements to be very clear about what you want to achieve.

6 Manoella Wilbaut DHL

P.38

FLEET EUROPE # 71

Think about placing the Insurance - On the traditional insurance market, benefits identified are: direct cost savings (monthly fee), improved processes for the drivers (single process even in multi leasing environment), indirect cost savings with a preferred repair & maintenance network that includes smart repair techniques and better end of contract management.

Chris Tinajero Ericsson

7

Information Management and Privacy - Topics are interlinked. Inform users as clearly as possible on how and why information will be used, and get their buy in. Or in other words, think the change management through.

8 9 10

Consider an international Benchmark - Including local leasing companies in this exercise. The purpose is to validate the strategy, identify potential gaps with the partners and decide if a new RFP is required.

Bulk Order - This is likely to result in additional discount on volume with the local dealers.

Use two Leasing Companies - Do this in each country (one international + one local) in order to benchmark quotes from the two partners at each order. â–

Tim Harrup & Steven Schoefs

DOSSIER I LCV Management

Fit for pupose, also in funding?

To gain a further insight into the way LCV fleets are funded and managed, we asked a few of the leading leasing companies for their experiences.

Those which replied had some very interesting points to make, and a selection of these points is to be found below.

O

ne of the first questions to be answered is whether there is a specific way in which LCV fleets are managed and funded, compared to car fleets. Knut Krösche of Volkswagen Financial Services, says that it is a specific business, but this does not mean that the finance side has to handled differently. In general there is a lease contract with products allied to this. The specific nature of the business is at the customer’s end – LCVs are normally working tools but not benefit vehicles.

VWFS offers all of the services that it does for passenger cars.

Bettina Nickel of Daimler Financial Services agrees that LCV fleet customers require specific solutions, tailor-made to suit their needs.

However there is usually no need for specific funding solutions. Simon Cook of GE Capital states that LCVs are first of all tools for job and hence managed like truck fleets, which GE Capital thinks is a good decision for running a commercial vehicle fleet of any size. LCV fleets are best managed by dedicated professional fleet managers, Mr Cook says.

Choosing the vehicle Moving on to the question of what fleet managers are looking for when selecting LCVs, Nathalie de Vries of

P.40

FLEET EUROPE # 71

LeasePlan states that having a cost efficient, fit for purpose vehicle and maximising the vehicle uptime are important items. The vehicle should meet the specific business requirements to do the job. It should technically be in order and if multiple drivers are driving the LCVs, the vehicles should always be at the right place and in the right condition.

Matt Dale of ALD Automotive looks at the role expected of leasing companies. He says fleet managers are looking for companies to help and advise them on their LCV fleet for the long term, not just looking at the front end price. And he agrees that uptime is key, so offering innovative solutions to keeping vehicles on the road is vital. Fleet managers are also looking to manage costs and reduce fuel bills where possible.

Driver focus Driver management has become a vital element of running car fleets.

What is the situation where LCVs are concerned? Knut Krösche of Volkswagen Financial Services: “Telematics are even more important than in cars, because it is a matter of route planning, of early warning for services - wear and tear can be higher in this domain.”

Also Bettina Nickel of Daimler Financial Services is convinced that

It seems only fair to take the driver’s requirements into account when selecting LCVs for your fleet.

driver management is becoming increasingly important for LCV fleet managers. Fuel-efficient driving, accident-free operations, minimum downtime and intelligent route selection in crowded metropolitan areas are the most important aspects.

Does this mean that drivers should have a say in choosing the LCV? Simon Cook of GE Capital has mixed feelings on this: “Overall, we would say no – most fleet managers choose a vehicle based on the selection criteria mentioned earlier. However there a few fleet operators who do consider driver acceptability as part of their decision making process. This can be seen when vehicles are chosen for their interior features such as air-conditioning, seating position, cab space, ergonomics rather than pure payload and fuel consumption performance. In general, we do

The LCV market is evolving “The LCV market is not only growing but the profile of LCVs is also increasing. This leads to an increase in the complexity of LCV conversions.” (ALD Automotive) “The LCV fleet market is developing very dynamically.” (Daimler Financial Services) “Fleet managers are thinking about trying to get LCV size down and thus reduce fuel/maintenance spend. The fuel saving alone from moving down in size can be 25 to 30.” (GE Capital) “The LCV market is becoming more specialist. Whereas in the old days LCVs were treated like big passenger cars, it is now being acknowledged that LCVs require expert knowledge.”

(LeasePlan)

consider that driver acceptability should be considered, but we don’t think it is a primary criteria at present. However as the focus shifts towards more employee-led business activity, it will progress up the list.”

At LeasePlan Nathalie De Vries has a slightly different view: “You may think that the choice of LCVs is less sensitive as it is a tool of trade vehicle. You’d select the most cost efficient LCV that meets the requirements in terms of measurements and qualifications. But on the other hand, a driver may spend most of his/her working hours in the LCV so it’s only fair to take the driver’s requirement into account. Also in the LCV fleets you need to find the balance between driver satisfaction, costs and the impact on the environment.” Knut Krösche of Volkswagen Financial Services sees another, emerging trend: “There is a slight

trend towards giving drivers a bit of choice in the vehicle they use. It is not automatically ‘This is your van, your tool, take it’. The more the business relies on its drivers, the more it needs good reliable drivers, the more the employer opens up some of the choice of vehicle to the driver.”

Residual values And finally, what about the increasingly important issue of residual values? Our leasing experts admit that the lease rate can be highly affected by the residual value and the initial discounts. “The difficulty in RVs for LCVs is the factor of so many different options,” says Knut Krösche of Volkswagen Financial Services. Logic, if the LCV model is highly specified for a particular use it may have a very limited appeal on the used market, or may require substantial work to take out the first set of options and put in a new set…

“There are so many options available on LCVs, depending on needs of the individual user: cooling units, shelving, tipping, special bodywork… It makes the business more complex.”

(Volkswagen Financial Services)

Matt Dale of ALD Automotive is in agreement where the importance of RVs are concerned: “The future value of an LCV is driven by supply, demand, condition and mileage but the fleet operator only has control over condition and mileage. Both of these are actually very simple to manage, but often they get forgotten until the end of the contract.

By managing the mileage with the funder and encouraging drivers to look after vehicle and report damage, many end of contract costs can be avoided. By implementing some simple in-life procedures, fleet managers can save money at the end of the contract.” ■ Tim Harrup

FLEET EUROPE # 71

P.41

MANAGEMENT I Fleet Europe Forum and Awards

Turning today’s vehicle fleet challenges into successful opportunities “Turning today’s vehicle fleet challenges into successful opportunities” is the theme of this year’s Fleet Europe Forum and Awards. Taking place in Hamburg, Germany, on 19 November 2014, the Fleet Europe Forum & Awards is the premier event for executives looking to optimise their fleet programmes and find solutions to common challenges. This full-day event will be preceded on 18 November by two other gatherings: the International Fleet Managers Institute (IFMI) and the Remarketing Forum.

F

leet Europe, together with international fleet managers, has worked on understanding the needs and requirements of the industry to build the programme of this year’s Fleet Europe Forum (Hamburg, 19 November). This year’s theme “Turning today’s vehicle fleet challenges into successful opportunities” invites fleet stakeholders to look into the future of car and LCV fleet management, and will also see big ticket fleet topics like policy, driver behaviour, alternative powertrains and corporate mobility put under the microscope, whilst the Northern European fleet market will be dug into to learn from differences.

Learning and sharing The Fleet Europe team have been lucky enough to work with Europe’s leading fleet experts to devise an engaging agenda for the 2014 Fleet Europe Forum. Whether you are a newcomer to fleet management or a seasoned veteran there’s plenty on offer at this year’s Forum.

Here’s just a snapshot of what you can expect: • Learn about trends: Find out what’s happening in the international fleet

P.42

FLEET EUROPE # 71

market and start preparing your fleet for the future • Learn about best practices: Hear how leading buyers have made change happen and take their insight back to your business • Learn about new solutions: Leading suppliers will be showcasing their solutions in the thematic Fleet Europe Village • Learn about others experiences: Network with fellow buyers to learn the tricks of the trade;

• Share your story: Come along, contribute and share your story An event for all fleet executives The Fleet Europe Forum has been designed to meet the needs of the forward-thinking fleet executives.

With keynote presentations tackling the big ticket issues in fleet management, and the Fleet Europe Village themed around the connected car, alternative powertrains, corporate car sharing and LCV management, the Forum covers all the angles a fleet executive needs.

And the Village has never been bigger: its 1,600 sqm will allow delegates to roam through suppliers’ exhibition booths and discover the latest products, services and

Fleet Europe Forum Programme at a Glance Hamburg, 19 November 2014 (08:00 – 16:45) Walking breakfast - Opening of the VILLAGE The geography of fleet management: Northern exposure

Which markets will grow, and by how much?

And what can we learn from the differences in fleet management in Northern Europe?

Coffee break Best practices & winning strategies in car fleet management

All about funding and bundling. The latest on going green, staying safe and being compliant.

And how to keep your drivers happy.

Lunch Ins and Outs of LCV Management

LCV management comes with its own set of rules and requirements, starting with the question: How many do you need?

Coffee break A checklist of fleet management steps to consider

Changing behaviour, powertrains or mobility policy: there’s a whole range of ways to optimise your fleet.

But which measures are right for you?

Register now at forum.fleeteurope.com Need more info on the programme? Contact Laetitia Fernandez at Fleet Europe: lfernandez@nexuscommunication.be - Tel: +32 4 387 87 52

Join Successfully the IFMI training engagingsession dedicated driver behaviour & Enhance your fleet expertise

Save money, save lives, save the planet is the motto behind the International Fleet Managers Institute (IFMI) training session to be held in Hamburg on 18 November 2014. Keynote speakers, industry experts and fleet managers will discuss the impact of driver behaviour on fleet management today, with a focus on fuel management, CO2 emissions, driver 2014 PROGRAMME reporting and safety, and insurance and risk management. If you manage a corporate fleet with an international dimension and wish to lessen the risks reThe grand finale to a full day learning, sharing and networking, the Fleet Europe lated to driver behaviour and Awards Ceremony will celebrate excellence in international fleet management. their impact on the total cost of your fleet, register now at ifmi.fleeteurope.com. innovations around the connected Fleet Mobility Award, and Internationcar, alternative powertrains, corpoal Fleet Innovation Award. Fleet supprepared two other exciting events rate car sharing and LCV managepliers will also be part of the show, addressed to those fleet and remaras the International Fleet Industry ment. Another novelty in the Village is keting stakeholders who would want Award rewards their innovative efits vehicle exhibition, where the latest to benefit from further insight into car and LCV models will be on display. forts to help the buying community their respective businesses. optimise fleet performance and deCelebrating excellence liver sustainable solutions. Last but On 18 November, the day before the not least, the name of the 2014 inThe grand finale to a full day of learnFleet Europe Forum & Awards, fleet ing, sharing and networking, the 2014 ductee to the International Fleet Hall and remarketing executives will Fleet Europe Awards Ceremony will of Fame will be disclosed to celebrate have the opportunity to gather in celebrate excellence in international the achievements of a fleet industry smaller numbers: on the one hand fleet management by unveiling the leader and pioneer who has signififleet customers can join members winners of the much coveted Fleet cantly contributed to the international of the International Fleet Managers Europe Awards. International fleet fleet management profession.

Institute (IFMI) to discuss and debate managers will be competing for the driver engagement and behavioural following titles: International Fleet Looking for more? change; on the other hand Fleet EuManager of the Year, InternationFocused on always providing more rope organise their first Remarkettraining and networking opportunial Fleet Green Award, International ing Forum, exploring best practices ties to its audience, Fleet Europe has Fleet Safety Award, International and efficiencies in the second life of fleet and leasing vehicles.

Tackling vehicle remarketing

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.

> 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

challenges

Used-car value volatility, cross-border flows, globalisation, taxation changes, Big Data impact… the challenges in remarketing are many. Vehicle remarketing being part of the fleet DNA, Fleet Europe has decided to organise the first ever Remarketing Forum in Hamburg on 18 November 2014. With this event Fleet Europe aims to identify the most pressing challenges of remarketing today and to shed some light on how the market will develop within the next 2-5 years. Expert speakers will share their expertise, present new concepts, trends and trials remarketing stakeholders have to face nowadays, and introduce solutions and ways ahead to succeed.

Learn more at http://forum.fleeteurope.com/remarketing.html

With the support of

Major sponsor

After all, Fleet Europe set its mission a long time ago to informing and training international corporate fleet leaders across Europe – and beyond.

And this year again, with the 2014 Fleet Europe Forum and Awards and two side events, it certainly aims at turning today’s – and tomorrow’s – vehicle fleet challenges into successful opportunities.

Laetitia Fernandez

FLEET EUROPE # 71

P.43

MANAGEMENT I LCV Management Case Study

Reality on the ground If you’re transitioning from a role in car fleet management to take charge of a fleet of LCVs, you’d be right in thinking there’s a knowledge and an experiential crossover. Yet, for all the similarities between cars and their hard-working cousins, there’s differences aplenty; from the obvious to the intricate. To lay it out for us, we sat down with two LCV leaders.

F

or an in-depth industry overview, we turned to LCV specialist Baudouin de Mégille, a Renault veteran and the man once responsible for over 30,000 vehicles at Veolia Group.

“The key difference in LCVs is that the choice of policy must be related to what the company does,” says Baudouin de Mégille.

“Of course, companies like Veolia – where there were plumbers, electricians and service staff – need differently configured vehicles to perform a multitude of tasks. Basically, the vehicles have to suit what its users do each day and the overall strategy has to relate to, and accommodate, that.”

How big a say do drivers have in vehicle choice?

Baudouin de Mégille: I think it’s very helpful for the fleet manager to talk directly with drivers to see whether the vehicle they have been given is the best tool for the job – they’re the ones with the direct, hands-on experience. I find that vehicle choice is, often, left up to team leaders who can be guilty of making assumptions or sticking with the current system out of ease and habit without consulting drivers.

Is an LCV fleet financed differently from a car fleet?

B. de Mégille: Not in the way it’s financed but the trends are different. Generally speaking, LCVs tend to drive less so they last longer and therefore either have longer lease contract lengths or, when it comes to vehicles with expensive fixtures, fleet managers often determine it’s more cost-effective to buy. Especially as LCVs, up to ten years at least, have at least some resale value.

P.44

FLEET EUROPE # 71

Baudouin de Mégille advises LCV fleet managers to provide driver safety training.

What’s the strategy when it comes to fitting out vehicles?

B. de Mégille: Most difficult is ensuring some sort of standardisation and making sure the vehicles aren’t over-fitted; which is problematic in a diverse fleet.

Most vehicles, of course, may only cost  1,000 -  2,000 to equip, and here the standardisation is an important element to get right because volumes are higher.

Tip for fleet managers Baudouin de Mégille: The most difficult thing is to give to the driver exactly what he needs. Of course, some drivers will point out that they have things they don’t need, but it’s human nature to want a bit more than is necessary – so don’t hesitate to say “no!”

It’s up to the fleet manager to explain the practicalities of each vehicle and the company system to drivers.

From fuel cards to GPS, training makes the driver’s job easier and cuts down waste.

A company like Veolia might require storage units and shelves as standard, but select additional equipment, perhaps for specialist underground surveillance work, which has to be rationalised.

It’s easily possible that fitting the vehicle costs more than the cost of the vehicle itself, so managing all this equipment is part of the fleet manager’s job.

He or she also has to take account of how long the vehicle will be in the fleet – as a general rule, the more expensive the fit-out, the fewer miles the vehicle is likely to cover.

Does custom fitting cause a problem in remarketing?

B. de Mégille: In my experience, this type of equipment is more an added value than it is a financial burden.

While it’s true to say the lease company can have a difficult time creating added value from the equipment – and there’s usually equipment costs included in the residual value agreement – a vehicle fitted with simple equipment such as shelving can draw interest from many sources, including the likes of independent traders.

Baudouin de Mégille believes in standardising where possible when it comes to LCV fleets.

Sometimes it may be helpful for the fleet manager to talk directly with drivers to see whether the vehicle they have been given is the best tool for the job

How safety-conscious are LCV fleet managers?

B. de Mégille: This is a very important question.

Because the safety of the vehicle is so linked with the safety of personnel, I deem it very important that LCV fleet managers provide driver safety training. Teams have to be kept safe – so the vehicle’s equipment and the driving environment have to be safe places too.

How important is TCO for an LCV fleet manager?

B. de Mégille: Price can really rocket for the fleet when it comes to fitting.

National fitting companies just don’t exist so, region to region, there could be huge cost discrepancies.

But when standardisation is done right it impacts the TCO positively. ■

Tim Harrup & Ally Millar

FLEET EUROPE # 71

P.45

MANAGEMENT I LCV Management Case Study

LCV Management is more than transferring car knowledge over Tiziana Maniezzo is the Belux Fleet Manager at Dalkia, but she also is involved in dedicated projects for Veolia Water & Waste in the Zen zone. Tiziana gives us an insight into the issues surrounding the running of a fleet of LCVs.

“

We have around 450 LCVs ranging from the small Renault Kangoo Express up to the large Peugeot Boxers – which are among the biggest in the fleet.”

How do you acquire the vehicles, leasing or purchase?

Tiziana Maniezzo: In the past we purchased, but now we have moved over to operational leasing as it’s easier to manage. We have a tailor-made operational leasing package which helps us in every aspect of the fleet – from planning to budgeting.

What are Dalkia’s selection criteria when it comes to LCVs? T. Maniezzo: Because manufacturers share so much technology, quality differences have become very slight. Mercedes shares a platform with Renault, and Opel shares a platform with Fiat, so basically for our vehicles, which do only around 20,000 miles a year, it comes down to price and it comes down to service.

How do you handle the fleet in accounting terms?

T. Maniezzo: With a fleet such as ours, each vehicle can be assigned to an individual site and can, therefore, represent a cost to that site.

With the right fleet management

The Dalkia LCV fleet Headquarters: Brussels Fleet manager: Tiziana Maniezzo Vehicles in fleet: 450 Acquisition type: Operational leasing

P.46

FLEET EUROPE # 71

database any company can put the costs of LCVs to a specific site or area or country, depending on what the individual customer needs. This I find is different for cars, those costs are usually spread across different sites or departments but with LCVs you get to categorically assign it.

Are CO2 emissions a factor?

T. Maniezzo: Yes, and we already have some of our LCVs running as low as 118 g/km. We get this sort of emissions level from the latest versions of the Peugeot Partner and Citroën Berlingo and it’s exceptional in an LCV. In fact, it’s almost impossible to go lower without switching to CNG or electric.

How is running an LCV fleet different from running a car fleet?

T. Maniezzo: There are a number of different aspects of a light utility vehicle fleet so it’s not simply a matter of transferring ‘car’ knowledge over. The two may be almost identical to drive, but each has specific and different functions. Whereas people take their work car home at the weekend and drive the family around, LCV vehicles are very much a working tool. The job of our LCVs is to fetch materials from suppliers, to transport them from site A to site B and ultimately, to provide service and satisfaction to the paying customer.

Do you undertake any driver training?

T. Maniezzo: We hope to drive more awareness about road safety so it’s our intention to do this in the future, and to try to avoid any safety issues around driver behaviour. Some passenger car manufacturers provide

“We have a tailor-made operational leasing package which helps us in every aspect of the fleet,” says Tiziana Maniezzo, Fleet Manager of Dalkia Belux.

driver training courses and I’d like to think we can do the same with our LCV fleet.

Does the fact of being part of Veolia have any impact on your fleet policy?

T. Maniezzo: It probably will but at the moment we’re in something of a transition period. We will probably align our management and purchasing policies to those of Veolia or Veolia to ours. ■ Tim Harrup & Ally Millar

About Dalkia Founded in 1998, Dalkia came under the umbrella of Veolia Environnement in 2001. In 2014 there was further split, with the French business going to Electricité de France – EDF – and the international side remaining with Veolia. In Belgium and Luxembourg, Dalkia employs some 1,650 persons. It turns over around 175 million Euros.

NEWS I LCV Management Case Study

Iron Mountain selects Lex Autolease Iron Mountain, an information management and storage services provider, has re-appointed Lex Autolease as the sole vehicle supplier and fleet management services provider to its fleet of 235 light commercial vehicles. Its fleet of Ford Transit vans is fitted out to allow for sensitive information and various media formats to be transported safely without fear of damage.

Lex Autolease was selected following a thorough tender process which required applicants to demonstrate an ability to tightly control costs and provide full fleet management services, including breakdown recovery and replacement tyres. Legend: As part of the agreement with Iron Mountain, Lex Autolease will deliver a further 71 vans to the business by the end of the year.

FMS catch on in the east

Unlimited mileage: Always read the small print The more miles a vehicle travels the more wear and tear it suffers. And the less it is worth when the time comes for it to be sold at the auction house. It’s no wonder that contract hire leasing suppliers want to know about expected mileage up front, and put in penalty clauses if the odometer goes over the expected mileage. So it’s interesting to see the availability of unlimited mileage leasing contracts. Type the term into your internet browser and see what pops up.

Surely such an offer presents a huge risk for a supplier.

Scratch beneath the surface and unlimited leasing contracts are simply finance leases, and so the issue of residual values is really, really important in the TCO equation.

Add in the fact that a finance lease requires hirer to pay equal monthly fees for the period and then pay a lump sum, and the numbers start to look different than what may have been initially perceived. Keep your eyes open and always focus on the total cost of ownership. (source: Bynx)

Fleet management systems (FMS) deployed in Russia, CIS and Eastern Europe are set to double in the next five years, according to Swedish-based market research firm Berg Insight. A study from the firm forecasts growth from 2.9 million FM units in the last quarter 2013 to 5.9 million by 2018.

This however, is a slight fall on an earlier forecast

by Berg which predicted sales 6.1 million units. The Russian market, which accounts for almost half of the market, is predicted to see a slight fall in sales, though the total installed base is still expected to double. The region’s biggest market is predicted to see sales rise from 1.3 million at the end of 2013 to 2.6 million by 2018.

If the offer of an unlimited mileage leasing contract sounds too good to be true it probably is.

CO2 emissions tops choice criteria The latest quarterly Company Car Trends research from GE Capital, Fleet Services finds that ‘CO2 emissions limit’ is the number one factor used when setting the criteria for a company car choice list. This factor, along with ‘fitness for purpose’ and ‘maximum monthly rental’, make up the top three criteria when company fleet managers are considering their car policy, reveals the survey. More than 50% of respondents named these top factors while all others received the vote of fewer than 20% of respondents.

Gary Killeen, Fleet Services Commercial Leader for GE Capital UK, said: “The company car choices that organisations are making in 2014 remain very much based on providing vehicles that are tax and fuel efficient thanks to their low CO2 rating, are practical for fleet purposes, and can be acquired in a cost effective manner through

a defined monthly rental. We may be heading towards better economic conditions but the fleet industries general mindset shows no signs of significantly changing.”

The company car choices that organisations are making in 2014 remain very much based on providing vehicles that are tax and fuel efficient thanks to their low CO2 rating.

FLEET EUROPE # 71

P.47

MANAGEMENT I Global Fleet Conference

Global Fleet Conference: Round Up A gathering of global fleet experts from six continents came together in Brussels, Belgium, for the inaugural European edition of the Global Fleet Conference this June. They left the conference happily exhausted after two days of executive level discussion and debate. Here’s a short selection of some of the nuggets that they took away about the fast-evolving world of global fleet management.

Going global with procurement in the driving seat - The Global Fleet Survey revealed that corporate fleet management is increasingly procurement led and globally focused. Corporate fleet managers are also more eager than ever to get their hands on quality data about everything to do with their fleet’s performance.

It’s all about savings, savings, savings - Did someone mention savings? With fleet leaders facing rising demands for savings the pressure is building to evidence the benefits to the bottom line. Driving efficiencies through economies of scale, increased cost control and process harmonisation are the ways in which fleet executives are responding to the challenge.

People make change and create success - Gaining an insight into corporate needs and understanding existing business practices are the essential ingredients of success

when designing a global fleet programme. So the importance of stakeholder engagement when kicking off a global fleet strategy cannot be underestimated.

Global drives local and local informs global - Giving too much power to local decision makers is a recipe for disaster in global fleet management. It’s all about retaining control of country programmes, but this doesn’t mean riding roughshod over regional and country based considerations. Embrace idiosyncrasies and individuality and your fleet will flourish.

Safer streets start with safer fleet policies - Fleet managers need to be sales people for fleet safety. A culture of corporate safety driven from the senior management helps, but driving the safety agenda from driver TCO upwards matters for all fleet executives. You are able to make a difference.

Let’s become creators of value The highest calling of fleet management is translating the goals and the objectives of a corporation and then implementing them on the ground. If fleet managers can demonstrate how they help to do this - and make the business tick then a new discussion about value creation is bound to ensue. It’s time to look towards the future of fleet management.

Blue skies, bright ideas and blossoming relationships - Blue-sky thinking and collaboration between industry leaders gives rise to innovation. With experts from the four corners of the world attending the Global Fleet Conference executives had a unique opportunity to hear how fleet management happens all around the world. Where else can you get insight like that? ■

Jonathan Green

The buyer only Global Fleet Advisory Board, who had helped build the programme of the conference, shared their fleet strategies, opportunities and challenges one day before the start of the conference.

P.48

FLEET EUROPE # 71

The 2014 Global Fleet Conference attracted 155 global and international fleet stakeholders from 21 countries covering the world’s six continents to Brussels.

1 - When going global, “the success of a programme is based on effective relationships – with internal clients and external suppliers,” explained Alain Duez, Global Fleet & Mobility Procurement Lead at Accenture.

2 - Chris Tinajero, Global Category Manager at Ericsson, told delegates that “striking the right balance between global and local requirements needs to be skilfully executed. Giving too much of the power to local decision makers is a recipe for disaster.”

1

3 - Christy Coyte Meyer, Director, Global Fleet Management at Johnson Controls: “Implementing a telemetry solution isn’t just a task for the fleet team. It involves operational teams on the ground as well IT experts.”

2

4 - “The highest calling of fleet management is translating the goals and objectives of the corporation and implementing them on the ground,” stated Jim Frank, CEO of Wheels.

5 - Andy Sacha (Nestlé), 2013 International Fleet Safety Award Winner, insisted: “Safety is a tough task for fleet managers and one that needs to be sold into the business. It’s not a mandated issue in our business, but we are making it happen.”

3

6 - The findings of the Global Fleet Survey, presented

by Mike Antich from Automotive Fleet (left) and Steven Schoefs from Fleet Europe (right), showed that 78% of respondents want to go global in fleet management within the next 2 to 5 years.

4 5

7 - “If you put garbage in you get garbage out,” said Luc Dendievel, Category Director Fleet – EMEA at Johnson and Johnson, who presented on the global reporting and data management at the Global Fleet Conference.

8 - For Lutz Hansen (left), Lead Buyer Fleet Management at Bayer Healthcare, it’s all about the data - and not just getting hold of mileage information: “We want actual fuel consumption so our reporting is as accurate as it can be.”

6

7 8

9 - The conference offered delegates the rare opportunity to listen to a geographically diverse and highly eclectic group of buyers and fleet experts, who talked openly about best practice in their home markets.

9

BUSINESS I News Big Romanian order for Opel Movano Opel Romania has won a public bid to provide 600 Opel Movano Trabus vehicles to the Romanian Government to provide transport for children to and from school. The 600 Movano Trabus models have been converted to carry 16 passengers by a local supplier. The 2.3 CDTI Movano Trabus has been homologated according to European safety standards, and has also been speed limited to 90 km/h at the request of the fleet customer.

The 600 Movano Trabus models will provide 9,600 children with transport to school from the rural areas where they live.

Efficiently managing your fleet in Turkey Fleet Europe and FleetCorp are happy to announce the launch of the Fleet Academy Turkey, the first-ever training programme for corporate vehicle fleet managers in Turkey. Decision makers responsible for the car fleet in Turkey – Fleet Managers, Human Resources, Procurement and Finance – will have have the opportunity to take part in two dedicated sessions (5-6 November, 14-15 January) of two days covering the basics of fleet management – from the Total Cost of Ownership to contract negotiation, through the essentials of the car policy, funding options, reporting, etc.

Renault to build LCV’s for Fiat Renault has announced that in 2016 it will start production of a utility vehicle for Fiat in one of its French factories. In a communiqué, Renault said that it had signed an agreement with its Italian counterpart and that ‘the style of the vehicle will be developed by Fiat and that it would have unique and distinctive features’.

It will, however, be built on a Renault platform. It will be sold under the ‘Fiat professional’ brand.

Further information on registrations can be requested by sending an e-mail to Romina De Gregorio: rdegregorio@nexuscommunication.be.

Enterprise acquires Burnt Tree Enterprise Rent-A-Car has announced that it has acquired commercial vehicle provider Burnt Tree, taking its fleet of commercial vans and trucks to more than 25,000.

The agreement includes Burnt Tree’s diverse commercial fleet of 17,000 vehicles (including commercial vans, HGVs, refrigerated trucks and accessible minibuses) and its proprietary fleet management technologies, as well as its network of 20 branches and a staff of 400. The purchase increases the breadth of vehicles and services that Enterprise can provide to its customers under its flexible commercial vehicle hire division, Flex-E-Rent.

Renault and Fiat have signed an agreement under which Renault will supply Fiat with a light commercial vehicle based on a Renault platform.

FLEET EUROPE # 71

P.51

BUSINESS I Steffen Raschig, Opel / Vauxhall

Combining style, functionality and TCO in LCVs Opel/Vauxhall has recently set up a stand alone division for commercial vehicles, under the leadership of Steffen Raschig. The new Director Light Commercial Vehicles explains the brand’s policy on LCV’s and fleets.

Why has Opel/Vauxhall decided to create a stand-alone division for commercial vehicles?

Steffen Raschig: Looking more broadly, Opel has been working for at least the past three years to overcome some considerable headwinds and we have been successful in this.

We realised that we should also focus on the commercial vehicle side of the business too because this is an important business both for us and for our network. We understood that we needed a dedicated team for commercial vehicles and we created a division to house all of this.

How would you describe your business?

S. Raschig: Our business is about relationships and trust. If a customer doesn’t know us, he has to be convinced that he can trust us, and this is why the business is all about people.

We have a team of professionals and of specialists to ensure that we create this trust. This is also why we have taken such trouble to ensure that we have the right people to run the LCV business.

We sell via a dealer network across Europe and we therefore make sure that our dealers believe in us too. If

this isn’t the case, the dealers cannot pass on the right trust and relationships to their customers.

Do you have a strategy towards LCV fleets?

S. Raschig: Yes we do, although we didn’t have to start from scratch in this as we have always had people with a focus on LCVs. Fleet has always been important to Opel and we have personnel within the commercial arena who are strongly connected to the fleet team. But creating a dedicated team for various elements of our business does not mean creating isolated silos. The teams work together. The LCV sales team interacts with the passenger car sales team in the fleet segment.

What constitutes a large LCV fleet?

S. Raschig: The major international parcels delivery companies obviously have thousands of vans…

But we don’t make a distinction between large fleets and small fleets.

They may have different needs but they are all customers looking for the right answer to their transportation needs.

What are fleet managers looking for in LCVs? S. Raschig: Functionality is clearly a key driver because fleet managers are looking for a solution to a

Steffen Raschig is the new Director Light Commercial Vehicles at Opel / Vauxhall.

particular challenge. But we have now added a great deal of design into the new LCVs – the Vivaro for example which we are launching now. The LCV operator, apart from having a functional tool, needs to be safe and needs to feel comfortable in his vehicle. He also needs to feel good about driving it.

On top of all this, Total Cost of Ownership is vital. In Germany we have managed to reduce the TCO on the new Vivaro by 17% compared to the previous model. ■ Tim Harrup

FLEET EUROPE # 71

P.53

BUSINESS I Justin Oltz, SCT Fleet Solutions

Speeding for fuel savings “If we can make a car go faster, we can also limit its speed,” says Justin Oltz, Vice President of SCT Fleet Solutions. It’s a simple, straightforward statement from a business leader who has grand ambitions for his company’s fuel efficiency and safety solutions.

T

he Sanford, Florida-based business, has so far equipped over a million vehicles with its specialist tech in the US, Australia and Saudi Arabia. And now SCT has got Europe in its sights.

two as a way to save, is the ability to reduce engine idle rounds per minute.

“For those drivers who sit in traffic often, or utilize their vehicle as a ‘home office’ lowering idle RPM’s results in important savings in fuel and carbon emissions,” says Justin Oltz.

It’s as easy as 1, 2, 3…

Get fuel consumption on a downward trajectory and you’ve got TCO savings galore. And one of the best ways of doing this - and improving fleet safety - is to reduce the top speed of vehicles. With SCT’s tech the top speed of vehicles can be limited in 1 mph (1,5 km/h) and 5 mph (8 km/h) increments. On top of speed limitation, and coming in at number

Thirdly, smarter shifting of transmission points ensures maximum efficiency. “Driving an automatic gearbox often means that energy is wasted during the transmission between gears. With our technology the shift points are adjusted to the optimum position to ensure the same level of efficiency as a manual gearbox,” explains Justin Oltz.

And finally there’s the opportunity to get the torque curve and engine throttle tailored to optimize acceleration and eliminate ‘jack rabbit’ starts. The result, once again, is felt in the fuel tank and reduced carbon emissions, but there are wider TCO benefits with better engine balance limiting wear and tear.

Justin Oltz, Vice President of SCT Fleet Solutions, explains that expanding OEM relationships and integrating telematics are top of the agenda.

P.54

FLEET EUROPE # 71

How does it work?

The device plugs into the OBDII Port where it starts a conversation with the vehicle’s factory-fitted computer calibration and explores where opportunities for optimization can be actioned. It then tells the engine to change its behaviour by transferring the new calibration to the vehicle’s computer. “Our system is tamper-proof and there are no parts to install. This means

it takes only 7 to 10 minute to install,” adds Justin Oltz. And with one device it’s possible to service up to 1,000 vehicles. But what does all this mean for OEM warranty?

According to Mr. Oltz there isn’t an issue with legislation clearly placing the responsibility on the OEM to honour its agreements.

“We’ve equipped 1 million vehicles and we haven’t had an issue so far,” he says. “We have partnerships with the three main brands in the US – Ford, GM, Chrysler – and we are in development with Toyota and Nissan. The goal is to extend our relations and partnerships with OEMs and fleet management companies and demonstrate the advantages of our product,” adds Justin Oltz.

Tell me more So what’s the cost? Well it all depends on the size of the fleet and the applications that are desired.

The maximum retail price per vehicle for the Top Speed Limiter is in line with the cost of approximately 2-3 tanks of petrol with a payback of 4 months - on average. North Carolina State University reports that the system gives an average of 8% fuel reduction, 6% CO2 reduction, 16% reduction of carbon monoxide, 25% reduction in fuel flow rate during idle and 29% reduction in the maximum fuel flow rate. ■

Tim Harrup

18 November I Grand Elysee Hotel I HAMBURG

Successfully Engaging Dedicated Driver Behaviour The International Fleet Managers 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.

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 with Early Bird fee, please visit ifmi.fleeteurope.com Early bird fee: EUR 495 excl. VAT (until 30 September) Note that your IFMI registration grants you free access to the Fleet Europe Forum & Awards (19 November)

Organiser

With the support of

Major sponsor

BUSINESS I Volkswagen Financial Services

Expansion steered by fact-based transparency

Car leasing presence in Europe Austria

Network partner Partnership with Porsche Bank Austria

Czech Republic

ŠkoFIN s.r.o.

Subsidiary 14,116 contracts

Estonia

In our latest issue of Fleet Europe we forgot to mention the presence of Volkswagen Financial Services in the geographical overview of the main car leasing companies in Europe, Fleet Europe °70 - pages 24 to 27. So here you can find a rectification, and we asked Knut Krösche, Head of International Fleet, After Sales & Used Car at Volkswagen Financial Services to comment on the geographic presence of his company.

You operate in 49 countries worldwide, but you expect your biggest growths in emerging markets like China, Brazil and South Africa. How will you do it?

“For Russia, we’re planning to increase our full-service offer. The Russian market hasn’t grown as strongly as most expected, and in a way, that’s good for us: we weren’t ready for large fleets in Russia. So we can use this time to get ready, and grow with the market when it does. We will then be able to offer a more complete fleet offer to our Russian customers. As for China: its fleet market is still small, compared to its overall vehicle market. So further growth is expected.

Currently, we’re present in Beijing, Shanghai and 3 other locations. By 2016, we’ll be at 30 locations in China.”

How are you going to secure your growth ambitions in the more mature markets in Europe?

“We already have the right processes and products. We want to put new

and better systems in place. We’re approaching these countries from a fleet management perspective rather than from a traditional full-service leasing perspective. One example: our FleetCars reporting system. We found a solution to offer the complete functionality via our smart login, enabling a roll-out to more than 34 countries. LeasePlan is the only other lease company with a unique, worldwide system.”

What are your USPs? “We’re a one-stop shop. We have the brands, we have the services.

Actually, in Germany we even started a fleet management company, CarMobility. Also, we are financially robust – and you can be sure we will always accompany our brands. In times of crisis, there is no risk that we will stop or be sold off, as sometimes happens when a bank owns the leasing business.” ■ Steven Schoefs

P.56

North America

South America

Asia Pacific

Africa

USA, Canada Subsidiary

Brazil, Mexico Subsidiary

China, Japan, Australia, India, South Korea Subsidiary

South Africa; UAE Subsidiary

FLEET EUROPE # 71

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

Subsidiary T. fleet: 28,364 Croatia

Bulgaria

Network partner Partnership with Porsche Bank Austria

Denmark

Network partner Network partner Partnership with Porsche Bank Austria Finland

France

Network partner Network partner Volkswagen Partnership with Partnership with Group Fleet DNB the importer Solutions Subsidiary T. fleet: 48,093 Germany

Volkswagen Leasing GmbH Subsidiary T. fleet: 1,014,000

Greece

Volkswagen Bank GmbH Subsidiary

(included private customers & small commercials)

Ireland

Volkswagen Bank GmbH Subsidiary

Lithuania

Norway

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

Romania

Network partner Partnership with Porsche Bank Austria Slovakia

Volkswagen Finanncne Sluzby s.r.o.

Subsidiary T. fleet: 1,602

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

Volkswagen Group Leasing Subsidiary T. fleet: 99,120

Hungary

Network partner Partnership with Porsche Bank Austria

Italy

Latvia

(included in German figures) Volkswagen Leasing GmbH Subsidiary

Network partner Partnership with DNB

Luxemburg

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

T. fleet: 1,337

Sweden

Volkswagen Financial Services outside of Europe

Belgium

Poland

Netherlands

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

Portugal

Volkswagen Bank VW Financial Polska S.A. Services Volkswagen Subsidiary Leasing Polska S.A. Subsidiary T. fleet: 7,105 Russia

Volkswagen Group Finanz OOO Subsidiary Slovenia

Serbia

Network partner Partnership with Porsche Bank Austria Spain

Network partner Partnership with Porsche Bank Austria

Volkswagen Leasing Subsidiary T. fleet: 14,500

Switzerland

Turkey

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

Ukraine

Network partner Partnership with Porsche Bank Austria

Volkswagen Doğuş Tüketici Finansmanı A.Ş.

Network partner

SCOPE I City pollution

Clean up your fleet or clear out With air pollution causing consternation in city halls across Europe the emissions performance of your company van fleet could soon become a bigger issue than you ever imagined. We look through the haze and see what’s on the horizon.

O

n December 4th 1952 the wind dropped over the UK city of London and a thick fog began to form. When the air began to clear five days later, the city started to count the cost. In under a week the smog had caused the deaths of four thousand people, and in the weeks that followed the death toll topped eight thousand. This death rate, similar to London’s cholera epidemic of 1854 and influenza epidemic of 1918, was too much for the public to take.

Politicians were forced by the populous to take action and the first Clean Air Act came into force in 1956.

That’s the history lesson over and done with, but it’s not the end of the story. Today, London, at ground level, may appear to be smog free, but there’s an invisible killer in the air. Concentrations of nitrous oxide (NO) and particulate matter (PM10) have reached such levels that the city is once again is recording thousands of pre-mature deaths.

European problem London should not be singled out as Europe’s dirty demon. Earlier this year Parisians wheezed as the city, cloaked in polluting smog, initiated transport restrictions in an effort to help clear the air.

to be in the range of  330-940 billion per year. Yes, you read that right.

With the situation especially severe in urban areas it’s not surprising that politicians are once again being pressured by the public to find a solution.

Fleets in the firing line All very interesting you may say, but what’s it got to do with corporate fleets and LCVs? Well, the primary cause of pesky air pollutants causing the problem is transport. And on top of that, the fuel that’s most polluting is diesel.

Our seemingly insatiable appetite for material things means more internet firms than ever are delivering stuff to office receptions and homes. Then add in all those service vehicles and it’s clear why the rising number of vans is causing administrators to curse.

In an effort to tackle polluting diesel engines, Europe’s cities are hybridising their bus fleets and encouraging – in some case mandating - all electric taxi fleets. The next natural target for special treatment in the war against air pollution is the van. © Getty Images

Paris clearly has its air quality problems. So too do the cities of Brussels, Berlin and Barcelona. Poor air quality has become such an issue that the European Commission has been forced to take legal action against 18 member states for serious air quality breeches.

How dangerous is dirty air?

How dangerous is a little bit of pollution? Air quality is the number one environmental cause of premature death in the EU. To put that into perspective more people die from breathing the air than lose their lives in road traffic collisions.

From a fiscal perspective the external health-related costs to society from air pollution alone are estimated

The London Smog in 1952. Thousands of citizens died.

FLEET EUROPE # 71

P.57

SCOPE I City pollution

The use of taxation measures could weigh heavy on TCO so be pro-active in your fleet procurement.

Clean up or stay out Berlin banned the dirtiest diesels a decade ago, whilst other German cities have Green Zones which specify standards that vehicles must meet. London, under EU pressure to up its performance, has radical plans for an Ultra Low Emission Zone.

By 2020 London is looking at letting only zero or ultra low emission vehicles into There might be a chance that electric LCVs will be the only thing soon allowed the capital’s central zone in European city centres. during working hours. If you don’t meet the criteria you are not coming in.

It’s as simple as that.

So how are cities and corporations trying to change air quality for the better before the legislators take action, and what do you need to know to get your fleet of LCVs So, Mr and Mrs Fleet Manager what vehicle models prepared for the future? and business model are you going to be buying for the London market in the future? It looks like diesel is on Go electric the way out.

The move to electric vehicles (EVs) amongst delivery firms is gathering momentum. EVs in delivery fleets Re-engineering the business model have a huge market potential according to ABI Research Tinkering with powertrains, but retaining the same busiand several organisations are already deploying them ness model may not be enough. It’s down to congestion for last mile of delivery. charges and other taxes to drive behavioural change and push alternative business models to the fore.

FedEx Express is operating over 200 EVs and nearly 400 hybrids in the United States, France, Germany, The use of fleet consolidation centres and changes to Italy, Japan, Brazil and China. TNT has introduced EVs last mile delivery logistics are the structural changes in London, whilst DHL is switching to EV delivery in to the business model that could help cities across Bonn, Germany.

Europe improve air quality. Such models have now moved on from being simply pilots which means that Filomena Berardi senior analyst at ABI Research says van procurement needs are changing too. the future for EVs is bright. “Going forward EVs are the future for last-mile delivery,” she concludes.

Time for change Bold and brave legislation is needed to drive behavioural change. It won’t be popular, but business as Tax it till behaviours change usual has left Europe with a legacy of poor air quality.

A decade ago London introduced a congestion charge.

Re-engineering business models and pushing cleaner Stockholm introduced one in 2006, whilst Milan, powertrains appears to be the way out.

Italy, introduced its ECOPASS scheme in 2008 before moving to a full-blown congestion charge in 2012. With Are you willing to be a pioneer and part of the soluthe principle of charging in place, such schemes are tion, or will you continue to contribute to the problem ? being deployed to tackle air quality too.

Answer carefully. The impacts, both financially and in terms of your company image, could be very costly. ■ This July London’s Mayor, Boris Johnson, announced plans to double the congestion charge costs for diesel cars when compared to their petrol counterparts – and that’s on top of London’s Low Emission Zone.

Jonathan Green

P.58

FLEET EUROPE # 71

peugeot.com

NEW PEUGEOT BOXER HARD CRAFTED TO CRAFT HARDER

1.42 M OF USEFUL WIDTH BETWEEN THE 2 WHEELS Combined consumption (L/100 km): from 6 to 9. CO2 emissions (g/km): from 157 to 238.

One of the heaviest authorized load on the market with a loading capacity from 8 to 17 m 3 and a useful width of 1.42 m between the 2 wheels to optimize all of your loading maneuvers.

NEW PEUGEOT BOXER

A STRIKING ACQUISITION

The new NX hybrid crossover. Striking design meets innovative technology. Discover more at lexus.eu/NX

The new NX