fleet europe 57

Ivor Johnson

Face to Face

Economy

Car Manufacturers

Tips & Tricks for an efficientfleet management

Maaike van Hemmen (KCI Europe)Veerle Vallons (Norgine)

Their fleet strategy, their products & services

MaNagEMENT

MaNagEMENT

SCOPE

DOSSIER

APRIL 2012 - # 57

The impact on fleet businessNE

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Learn from the laureatesof the Fleet Europe awards 2011

IFMI Expert Session - June 6th 2012 - BrusselsMaNagINg YOUR FLEET IN CRISIS MODE

M E M B E R O F T H E V O L K S W A G E N G R O U P

The new SEAT Ibiza is designed to be perfectly in tune with the requirements of today’s fl eet manager.Not only has it been awarded a 5-star Euro NCAP rating, but it can also claim one of the lowest emissionsof the market of only 89g CO2 / km. This translates into lower fuel costs, low tax, and lower Total Cost of Ownership. This makes it great choice for the road, and a great choice for your balance sheet.

Average consumption: 3.4-7.6 l/100 km. Average CO2 mass emissions: 89-139 g/km.

SEAT Fleet SEAT.COMFOLLOW US ON:

THE SOLUTION THAT MEETS ALL YOUR FLEET NEEDS

THE NEW SEAT IBIZA.Perfectly in tune for your business

ENJOYNEERING

PAG Fleet 210x297 IB5DM.indd 1 13/03/12 17:25

Fleet Europe’s first 15 years have rushed by! It seems like yesterday since we started up a pioneering B2B maga-zine for international fleet decision makers. But look at how it’s grown: Fleet Europe now is a mature media plat-form integrating print and digital editions, a website, regular newsletters, the Fleet Europe Taxation guide, the Fleet Europe Forum and last but not least, the Fleet Europe awards. and there’s even more ways to keep up with us, via our presence on social media (Twitter, LinkedIn, Facebook) and very social media (the IFMI and other events connecting people). Fleet Europe now reaches international fleet decision makers in over 19 countries. This unique international reach impelled us to rethink our editorial approach for the Fleet Europe magazine, in order to better correspond to our readers’ interests. as we reshape the identity of our magazine, here’s an overview of our new lay-out and structure.

A Reader’s Manual

Caroline Thonnon Partner Content & Business Development [email protected] Twitter: @CarolineThonnon

DOSSIER In each issue, our edi-torial team analyses the latest trends, in partnership with experts on the subject. We provide an annual over-view of what you, as international fleet decision maker, need to know.

MANAGEMENT The fleet manager’s corner. With case studies, management articles, examples of best practices.

BUSINESS Background articles from the industry’s side: car manufac-turers, leasing companies, third par-ties. With interviews and highlights of new products and services.

SCOPE A broader insight on the dynamics of the international fleet business: taxation, legislation, trends, environment, economics. We hope you will like our brand-new approach to Fleet Europe. Enjoy your reading, and thank you for your kind patronage!

Seize 2012, seize the opportunities

Enjoy your new Fleet Europe !

Steven Schoefs, Chief [email protected] : @StevenSchoefs

EDIT

OR

IaL

2012 will be an exciting year for the automotive & fleet business in Europe. Even though most automotive experts are convinced that the European market for new vehicles has reached a saturation point, the car manufacturers themselves remain confident in Europe: they consider it not only a crucial fleet market, but also the ideal test market for new models and technologies. On the other hand, the economic crisis in the Eurozone and the US has infused multinational corporations with the twin attitudes of prudence and rationalisation. This may be a logical consequence of living in uncertain times. But it should not mean that we are afraid of change. These difficult times could provide the ideal occasion to seize new opportunities. Why not use this moment in the economic cycle to update car policies, ‘rightsize’ the fleet, and test new fleet initiatives and technologies? Today might be the ideal time to really ‘partner’ with your suppliers and to discuss with them a road map towards better times. Above all, sharing best practices is crucial. And that is precisely the goal of the Fleet Europe platform: sharing, educat-ing, informing and linking all parties involved. So seize the opportunities of 2012, with your new Fleet Europe.

P.3FLEET EUROPE # 57

M E M B E R O F T H E V O L K S W A G E N G R O U P

The new SEAT Ibiza is designed to be perfectly in tune with the requirements of today’s fl eet manager.Not only has it been awarded a 5-star Euro NCAP rating, but it can also claim one of the lowest emissionsof the market of only 89g CO2 / km. This translates into lower fuel costs, low tax, and lower Total Cost of Ownership. This makes it great choice for the road, and a great choice for your balance sheet.

Average consumption: 3.4-7.6 l/100 km. Average CO2 mass emissions: 89-139 g/km.

SEAT Fleet SEAT.COMFOLLOW US ON:

THE SOLUTION THAT MEETS ALL YOUR FLEET NEEDS

THE NEW SEAT IBIZA.Perfectly in tune for your business

ENJOYNEERING

PAG Fleet 210x297 IB5DM.indd 1 13/03/12 17:25

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DOSSIER I Car Manufacturers’ Fleet Strategy

Organisation, products, services and innovations for 2012

SCOPE Discover the broader world of fleet business

BUSINESS Interview PSa Peugeot Citroën

COLOPHONCaroline Thonnon - Content & Business Development([email protected])Steven Schoefs - Chief Editor([email protected])David Baudeweyns - Sales & Development([email protected])Romina De gregorio - Internal Sales([email protected])Kathleen Hubert - Operations & Communication([email protected])Filip Van Mullem - Marketing & Development([email protected])Pierre-Yves Simon - IT & Web Manager([email protected])

Contributors: Tim Harrup, Frank Jacobs, Dirk Steyvers, Yves de Partz

Special thanks to: Professor Peter Cooke, Bernard Gracia, Bart Vanham

Layout: Un pas plus loin - [email protected]

EDITORThierry 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 EUROPEwww.fleeteurope.com - www.fleeteurope.com/shop

I DOSSIER IIntro ................................................................................................................... P.9

Fleet Community ................................................................................. P.9

Automotive Europe : Flashback ........................................ P.10

Automotive Europe : Future vision ................................. P.13

Strategy & Organisation ............................................................ P.14

Fleet Services ....................................................................................... P.18

Next big thing in fleet business ......................................... P.20

2012 Fleet Models at the Geneva Motor Show .... P.24

Safety Innovation ............................................................................... P.28

Telematics Innovation ................................................................... P.32

I MANAGEMENT ITop 10 tips ................................................................................................. P.34

Case study IBM .................................................................................... P.38

Fleet Europe Award 2012........................................................... P.40

Procurement strategy ................................................................. P.46

I BUSINESS INews ................................................................................................................ P48

Interview - Hyundai Motor Europe ................................... P.50

Sortimo International launches Globelyst C ........ P.52

Interview - Arval ................................................................................ P.54

Interview - Toyota Motor Europe ...................................... P.56

I SCOPE I Impact of the European crisis ............................................. P.58

10

53MaNagEMENT I Cross interview

With Veerle Vallons (Norgine) and Maaike van Hemmen (KCI Europe) 4257

Circulation: 15,000 copies (The cleansing and qualification process has been realized by Dun & Bradstreet Belgium, 2012)

Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication. P.5

Just 114 g/km CO2: even in silver metallic,this is a green company car.With emissions of just 114 g/km CO2, the B 180 CDI BlueEFFICIENCY sets new benchmarks whenit comes to efficiency – thanks to state-of-the-art technological features such as the ECO start/stopfunction fitted as standard and new 7G-DCT dual-clutch transmission. The new B-Class combineslow fuel consumption and CO2 values with enhanced driving pleasure, high safety standards anda roomy interior space concept. www.mercedes-benz.com/fleet

Fuel consumption urban/extra-urban/combined: 5.6–5.4/4.1–3.8/4.6–4.4 l /100 km;combined CO2 emissions: 121–114 g /km.*

* Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intendedsolely to aid comparison between different types of vehicle.

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P.8 FLEET EUROPE # 57

Projet1_Mise en page 1 30/03/12 14:31 Page1

Newsletter DiscussIssuu.com

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19%

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Register to the Fleet Europe Newsletter and receive twice a month the highlights of the sector.www.fleeteurope.com

Managing your fleet in crisis mode – share best practices, tips and tricks with your peers.

Discover the digital edition of Fleet Europe Magazine. Have a look at the more recent edition, or look at our archives.

Join the Fleet Europe LinkedIn group and connect with international fleet professionals, fleet decision makers, suppliers and experts. Already more than 1,300 members. http://www.linkedin.com/groups?about=&gid=157239

Discover the latest magazine, picture from our events, event an-nouncements… If you like our pages, click on ‘LIKE’ and share it with your contacts!http://www.facebook.com/FleetEurope

Follow the latest tweets of@FleetEurope2012and connect to Chief Editor @StevenSchoefs and Partner Content & Business Development@CarolineThonnon

It is all about sharing experiences and best practices. The more you acquire experiences from your peers, the more you will build expertise to manage your fleet. It’s all about being part of and interacting with this community of expert fleet managers and decision makers.

Equilibrium – no major change Decrease in total number of vehiclesDecrease in new vehicle ordersIncrease in total number of vehiclesIncrease in new vehicles orders

How will the size of your car fleet evolve in 2012?

DOSSIERCar

manufacturers’ strategy

from p. 9 to p. 33

dOssIER I Car Manufacturers’ strategy

The best choice is out there

Community

In this yearly dossier we have a look at the fleet strategy of the car manu-facturers, the differences in organi-zation to deal with fleet demands on an international level, the vision of their fleet executives on the future and the new models on the market with developments in safety and telematics. Throughout this dos-sier it will become clear that the car manufacturers have set up an orga-nization that is well adapted to the current fleet needs and that they are continuously looking to be prepared to the future requirements of their

fleet customers, in terms of ser-vices as well as in terms of products and innovation. Good news. Now it is up to you to choose the best car manufacturer(s) for your drivers and your company. When doing that, don’t just look at the trendiness of the range or the purchase price of the model, but keep in mind the total cost of ownership and anticipate to key trends like sustainability, safety and driver satisfaction. Because only when you with a wider scope and a deeper insight, you will make the best choice. ■

Steven Schoefs


Projet1_Mise en page 1 30/03/12 14:31 Page1

Car sales in Europe fell last year to 13.1 million, making it the fourth

successive annual decrease.

dOssIER I Car Manufacturers’ Fleet strategy

A two-tierEuropean marketWithout the supporting impact of the macro-economic situation in the early 2000s, the European au-tomotive industry is now stagnating and seeking a new lease of life on the emerging markets. all with the exception of germany.

Two figures speak for them-selves: from over 15 million units in late 1999, car sales in Europe fell last year to

13.1 million, making it the fourth successive annual decrease and reflecting a structural phenomenon. When an economic crisis strikes, the first thing individuals and com-panies do is to delay the replacement of their car. It is however thanks to companies that the car industry can keep up in countries where car purchase is associated to tax benefits, like in Belgium where the great result of 2011 – 572,211 car registrations, + 4.5% - is likely to remain for-ever unmatched.

In 2011 specifically, the European automotive market has operated at a slow pace (- 1.7%), erasing the 2010 recovery. If France (- 2.1%) or Great Britain (- 4.4%) have managed to limit the damage, the decline was of 10.9% in Italy, and even 17.7% in Spain, which returned to its 1993 level. An uncontrollable phenom-enon in the wake of the sovereign decline or consumption slowdown? Yes and no. It is true that Germany has increased its sales by 8.8% after a very bad year in 2010 due to the suppression of the scrappage bonus scheme.

As regards to brands, we find the same split with the insolent suc-cess of the German manufacturers (+ 7.8% for Volkswagen, the Euro-pean number 1, + 7% for BMW) in comparison with Fiat (- 12.1%) or the French groups (PSA Peugeot Citroën and Renault) that suffered from the end of the bonus schemes. Other manufacturers control the decline (General Motors, Ford) or do a lot better than the market average: Nissan (+ 13.7%), Hyundai (+ 11.5%) or Volvo (+ 10%).

Premium and “low cost”Besides the economic situation, these figures outline some heavy

trends. Thus the car industry re-mains the leading sector of the Ger-man economy with products that have a strong image in terms of quality and reliability.Volkswagen, backed up by the Golf and the Polo, defends its popular car status. Audi, BMW, Mercedes and Porsche are there to add sta-tus, technology and elegance with successful exports. The latter also derive maximum benefit from another trend on the car market that is torn between “premium” and “low cost”. Between these two, there is really no future any longer

except for Hyundai and KIA that have developed original aesthetics, thus adding seduction to their reliability confirmed by long-term guarantees. Even Toyota Lexus, the former num-ber 1, affected by the deterioration of its public image in the United States, but most of all impacted by the Japanese tsunami, is struggling despite the success of the Prius.

To survive, there is really no alterna-tive: to pull the line upwards (Citroën is trying to do this with the DS for example) or to develop products that are highly affordable on an hour-glass-shaped market (strangled in the middle, broad at the top and bot-

tom). The success of the Renault-Dacia confirms it and it is believed that PSA Peugeot Citroën is con-sidering reviving a cheap Talbot. Failing that, the only other option is to cut prices.

This last choice is diffi-cult since profitability has already been seriously

damaged. After two years of stagna-tion, the financial crisis of the sec-ond half of 2008 has not only shaken the US “Big Three” (General Motors, Ford, Chrysler).In annual terms, the European sales have dropped by 25.8% in November. The following year, the governments have had no other choice but to offer bonus schemes, thus saving the automotive industry from another 20% drop. These bonus schemes are associated with C02 emissions and have most of all benefited small cars. The German brands, including BMW and Mercedes, have suffered more.


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Hyundai

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Toyota

Volkswagen

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666.334 624.569 910.283 830.539 1.209.236 358.094 783.290 1.030.568 1.038.372 1.263.013 533.846 1.803.643 245.887

Total number of new car registrations in EU

2001: 14.817,7192017: 18.723.0652011: 14.682.229

Exports, synergies and buy-backBesides this two-tier market that reflects the evolution of the economy and society, two phenomena have marked the last decade for European manufacturers. On the one hand, their implantation in emerging countries that have sometimes become their main global market (that is the case of Audi in China). On the other hand, the develop-ment of synergies and buy-back actions with various degrees of success. The most impressive example of integration is that of the Volkswagen Group (VW, Audi, SEAT, Skoda…). But the Renault-Nissan alliance, which has recently acquired cross-shareholding with Daimler AG (3.1%), has last year enabled the Franco-Japanese duo to kick Toyota off the global podium to get on it behind General Motors and Volkswagen. Then there is Renault, who struggles in France with its aging product range and who saw its sales rise by 40% in Russia where it holds 25% stake in AvtoVAZ (Lada).

Other recent successes are due to buy-back actions based on good understanding (this was not the case for Daimler AG and Chrysler at another time): The Chinese company, Geely, bought Volvo, and Tata, the Indian car manufacturer purchased Land Rover and Jaguar, former Ford’s flagships. While these partnerships benefit finan-

cially to the European manufacturers and technologically to the Chinese or Indian partners, they should also be beneficial to the client who should find products that are both more innovative and of better quality thanks to new investments.

There were also failures (Saab, whose loss was mourn-ed by its fans) and the control of Chrysler by Fiat does raise questions about the future image of the Fiat group, since its subsidiary, Lancia, manufactures old Chrysler vehicles rebranded under Italian colours. CEO Sergio Marchionne has first of all acted as a financier. But the future of a manufacturer also depends on the creative personnel, designers and passion inspired by the prod-ucts themselves. Nobody will contradict us either in Stuttgart, Munich, Ingolstadt or Maranello. ■

Yves de Partz

Wetsern Europe (EU15 + EFTa Countries) : market share by car manufacturer (*)

2011 European Sales Figures

(*) Source: ACEA (European Automobile Manufacturers’ Association)



pioneers are always first.

The new AmperA

www.opel.com

Fuel consumption (combined and weighted) 1.2 l/100 km; CO2 emissions (combined and weighted) 27 g/km (according to R (EC) No. 715/2007).

Driving electricity further. With the Car of the Year 2012.

123747_SF12_Ampera_pioneers_CotY_Fleetworld.indd 1 14.03.12 15:02

The automotive industry is at crossroads, caught between the economic situation, the rising oil prices and increasing taxes.

Slow recovery as from 2015

The real recovery of the European market should not occur before 2015 but the future of the automo-tive industry will also be linked to the changes in oil prices and to the manufacturers’ ability to react fast-er to customers’ needs.

This is a sign: the European Central Bank should be generous this year with the automotive industry and will

grant loans at a 1% rate. French PSA Peugeot Citroën, whose profit has been halved in 2011, will not fail to use them. In better financial health thanks to its alliance with the Japanese Nissan, its rival, Renault, remains cautious however in its pre-dictions and expects an increased war on price to clear out inventories.

For the manufacturers of small and medium cars, 2012 looks difficult in Europe, after the relative euphoria triggered by the government bonus schemes to promote the most fuel efficient cars.

Overall, the decline of the European market is estimated this year, ac-cording to the Moody’s agency to 6.2 %, that is a total volume reduced to 13.4 million units. Before a pro-gressive re-start to be confirmed in 2013.

Once again, the West European au-tomotive industry is at crossroads, caught between the economic situa-tion, oil prices and rising taxes. If all the manufacturers agree to say that there remains a great development potential for the petrol or diesel en-gines, a sudden surge in oil prices could accelerate the transition to-wards other forms of energy. But how can one plan?

Flexibility becomes keyAs always, the consumer – individu-al or company- will react quickly to these parameters and focus on its wallet, and manufacturers will need to show increased levels of flexibil-ity. The Volkswagen Group will thus inaugurate with the Audi A3 and Volkswagen Golf, the first of three platforms, which in the long-term will be used for all models, Porsche included. A Lego type system that includes the engine blocks, the brake systems, all anchoring points etc and should be used to adjust quickly each production line in order to manufacture this or that model, on request.

What are the perspectives in the slightly longer term? Europe will continue to focus on “downsizing” (reduction of engine capacity), so-briety and more comfortable means of transport, without compromising on design, something that Toyota

for example wants to revive since it has lost market shares to its Ko-rean competitors. Elsewhere (China, Saudi Arabia, India, Russia…), the future is bright for “premium” cars provided governments do not take any measures against these “new rich people” or against pollution. Like the slowdown in registrations imposed in several large Chinese cities.

If, as one hopes, the European econo-my finds itself in better health in 2015, the future of the manufacturers on the old continent will not only imply an increased implantation in Asia and in Latin America - Europe is no more than a replacement market now - but also supposes a great adaptability to new and variable situations around the world. ■


Yves de Partz


pioneers are always first.

The new AmperA

www.opel.com

Fuel consumption (combined and weighted) 1.2 l/100 km; CO2 emissions (combined and weighted) 27 g/km (according to R (EC) No. 715/2007).

Driving electricity further. With the Car of the Year 2012.

123747_SF12_Ampera_pioneers_CotY_Fleetworld.indd 1 14.03.12 15:02

Lancia Voyager Toyota Yaris Hybrid KIA cee’d Mazda CX-5


Looking forward with confidence

Fiat groupRanieri Honorati, Fleet & Used Cars Mar-keting Director, Fiat Group Automobiles

2012 will see the launch of new Fiat Panda in the A segment , as well as the application of the success-ful Twinair engine to Fiat Punto for a top ‘green mix’. The new L0 will replace Fiat Multipla and Fiat Idea.

Fiat will leverage its ecologi-cal leadership (Twinair,Multijet II, eco:Drive) to gain competitive ad-vantage for meeting the demand for sustainable mobility. It will in-crease penetration into small and medium businesses thanks to the Freemont model for which 15% of sales should come from these.

Fiat has headquarters in Turin for product development which also co-ordinates and supports market-ing and sales activities carried on by local offices which have mar-keting and sales staff in order to meet the country specific demand.

Fiat will take advantage of the Fiat Punto TwinAir engine and availabil-ity of ‘eco: Drive Fleet’ for Smart-phone. The company believes Jeep Grand Cherokee, Lancia Voyager and Lancia Thema will increase penetration into small fleet busi-nesses.

Sustainable mobility is one of the core issues of our society. No one doubts the impact of increasing carbon dioxide levels on our cli-mate. So it’s more and more impor-tant to monitor the CO2 emissions and fuel consumption of the fleet.

Toyota LexusJohan Verbois, General Manager Fleet & Remarketing, Toyota Motor Europe

Overall, 2012 is a continuation of Toyota’s product rejuvenation programme, bringing emotion through the GT 86 sports car, and the continued expansion of full hy-brid technology to new segments.

Toyota’s strategy is based on 5 pil-lars. Competitive cost of ownership, leading sustainability solutions, pro-active relationships, clear ser-vice levels and attractive products. All areas are continuously under review and upgrade in reply to fleet customer needs and the changing market environment.

Toyota Motor Europe gives full au-thority to the national fleet entities so they can take full ownership to create the best customer ex-perience and respond to the local customer needs in the best way possible. In addition Toyota Motor Europe supports international fo-cused customers with a dedicated international key accounts team.

In 2012 Toyota will further expand the hybrid offer with the seven-seater Toyota Prius+, the Toyota Prius Plug-in Hybrid, the Toyota Yaris Hybrid and the Lexus GS.

When thinking about greening your fleet, emissions are of course a crucial element. But what will become more and more impor-tant is to look at all emissions, not just CO2 but also NOx and PM as they have an impact on air quality.

KIaChan Uk Jun, Fleet and Remarketing Manager, KIA Motors Europe

KIA is in the middle of a landmark product offensive (four all-new models plus one refresh), so 2012 will be an extremely important year. While the global economy will remain uncertain over the next 12 months, KIA expects to continue to ‘buck the trend’ in recording positive sales growth.

KIA will appoint two new European Key Account Managers in 2012 to get better access to large fleets. In parallel, the emphasis in 2012 will be on the infrastructure in small and medium fleets. The brand is launching six new national part-nerships with international leas-ing companies to offer operational leasing to fleet customers at dealer level in the first half of 2012.

KIA is going to sign certain agree-ments with leasing companies in 2012 again. Corporate agree-ments will be offered proac-tively when the two new Key Ac-count Managers are on board.

The all-new KIA cee’d will be key to the fleet drive, with fleet buyers expected to account for 40 to 50 per cent of cee’d sales in Europe.

Control your costs of ownership by choosing a brand with a high value proposition, low CO2 engines and strong residual values while mo-tivating your employees by listing a dynamic brand that challenges the established manufacturers.

MazdaChristian Blank, Director European Fleet Operations, Mazda Motor Europe

Mazda is anticipating 2012 to be a successful turnaround year with CX-5 and Mazda 6 acting as a catalyst. In April, Mazda will launch the all new C-SUV CX-5, which is based on its new SKYACTIV tech-nology emitting 119 g/km and best in class fuel efficiency.

In 2012 Mazda will further increase its focus on small and medium sized fleets. At the beginning of this year, it established a team of fleet development managers, who will focus on Austria, Switzerland, South-West Germany, and Northern Italy. Additionally, Mazda will con-tinue to develop and strengthen the relationship with selected leasing partners.

Mazda has a team of almost 50 peo-ple in Europe. In line with the strat-egy to focus on small and midsized fleet and to be as close as possible to the customer, Mazda focuses its efforts at market level. Interna-tional fleet inquiries have success-fully been coordinated through a one face to the customer approach.

The key fleet model in 2012 will be CX-5, which Mazda will use to enter the C-SUV segment. This segment has been growing above average and will continue to do so in many markets.

When our engineers develop a new vehicle, they are inspired by our slogan Defy convention. I rec-ommend the same approach to fleet managers when they take their purchasing decision because Mazda is an excellent alterna-tive to the traditional players.

2012 in a nutshell

Fleet strategy in 2012

Fleet organisation in 2012

On the model front

a piece of advice for fleet owners


Audi A3 Opel Mokka All-New Volvo V40 Renault ZOE

The automotive world has had to face up to tough economic times in the same way as many other industries. On top of this, it has to take into account changing legislation in terms of emissions, changing driver behaviour and other fleet manager requirements. The major car manufacturers remain confident, however, and give us a flavour of the major lines of their strategies for 2012.

Volkswagen groupMartin Jahn, Managing Director of Volkswagen Group Fleet International

Volkswagen Group (Volkswagen, Audi, SEAT and Škoda) will be intro-ducing additional product highlights for customers in 2012. It is therefore approaching the year ahead with a positive mindset, in spite of the somewhat uncertain economic situ-ation in some European countries.

Volkswagen Group will continue to keep a watchful eye on the market to ensure that it can adapt to fluc-tuating conditions and any changes in customer requirements. Custom-ers want reduced complexity, and Volkswagen plans to supply this. For example, Volkswagen Group controls the international tendering process centrally

Škoda, as an example, is currently running a program called Fit For Fleet, which is mainly focused on SME businesses. Fit for Fleet pro-gram is focused on improving pro-cess and competence on the side of the importers and dealers towards the fleet clients. Volkswagen Group also has the experience and exper-tise required for dealing with both lo-cal and global tendering processes.

The new A3 from premium brand Audi. SEAT plans to give its best-selling Ibiza a facelift, while Škoda will introduce a new vehicle posi-tioned between Fabia and Octavia with at this point working name A-Entry.

Volkswagen Group is not merely intent on increasing the number of orders and vehicle deliveries, but primarily strives to provide diligent customer care. This is our defin-ing objective – for 2012 and beyond.

Opel/VauxhallIan Hucker, Director, European Fleet & Remarketing, Opel/Vauxhall

2012 will be an exciting year for Opel/Vauxhall. Beyond the fur-ther advancement of conven-tional powertrains, Opel is in-vesting over one billion Euros specifically for the development of alternative propulsion technology.

To meet the growing demands of European and global fleet custom-ers, the Pan-European Corporate Account team at Opel/Vauxhall has recently been expanded and its lev-els of expertise increased. The team of dedicated Corporate Account Managers is based in different Eu-ropean Regions (e.g. Germany, the UK, Hungary, Belgium) so that they are familiarized with customer spe-cific demands across Europe.

Opel/ Vauxhall has a dealer network with a total of more than 3,750 dis-tributor sites across Europe. The re-pairer network coverage in Europe of close to 6,500 sites provides cus-tomers with the peace of mind that is so vital to their business operations.

Opel/Vauxhall is preparing to launch an impressive number of new vehicles this year, including the Mokka, Ampera, Zafira Tourer, New Astra GTC, new Astra OPC and the new Astra 4 door. In particular, the Ampera, the extended range electric vehicle (E-REV), is brand ambassador.

Whilst TCO will always be at the heart of an International Fleet Manager’s decision making, driver appeal is an increasingly impor-tant element of any fleet policy.

VolvoJavier Vazquez, Director International Major Accounts, Volvo Car Corporation

Volvo Car Corporation will continue expansion plans throughout 2012 and invest for the future. The focus will be on 3 main areas: strengthen-ing the brand through the Designed Around You strategy, launching of the All-New V40 5-door hatchback and the V60 Plug-In Hybrid and China ramp-up through increased sales and dealer development.

2012 will see further improve-ment, as Volvo establishes a new dedicated Global Fleet organisation, with one aim – to get even closer to customers and respond quickly to find solutions for their demands and needs.

Following the set up of the new global fleet organisation, the first task will be to review the structure, to ensure that the brand continues to provide optimum support for both international and national clients.

The All-New Volvo V40 is Volvo´s entry into the premium hatchback C segment, challenging the Audi A3 Sportback and BMW 1-series and is the latest exemple of true luxury Scandinavian design from Volvo.

International customers should be looking beyond the basic transac-tional price and consider the true running cost of relevant models including fuel efficiency and low CO2 taxation benefits. They should also consider the service and sup-port proposition, ensuring that they are working with a partner bringing innovative fleet prod-ucts and services to the market.

RenaultOlivier Gautier, Head of Fleet Marketing & Business Development, Corporate Sales Division Renault

Backed by the momentum of inter-national growth, major launches (including Clio IV and ZOE), a new range of Energy engines and the in-troduction of the new design identity, Renault will continue to grow sales, in line with the objectives in the Renault 2016 - Drive the Change plan.

The launch of new models and engines in 2012, especially in the C Segment with the new Mégane & Scénic Collection 2012 linked to competitive engines in CO2 (Mégane Energy dCi 110 hp 90g CO2), and the complete electric range (Twizy & ZOE following Kangoo ZE & Fluence ZE launched in 2011) will reinforce Renault’s capacity to target small fleets but also large accounts.

The Renault structure is struc-tured to serve large interna-tional clients with 8 Interna-tional Key Accounts Managers (IKAMs) at international level; over 100 Key Account Managers (KAMs) at national level; fleet teams in the Renault network at local level.

Alongside the models mentioned above, the new Clio IV, model to be launched at the end of 2012, will announce the new identity of the brand.

The main advice we could give in-ternational fleet customers during the car brands selection phase: select a structure allowing the cus-tomer to be fully supported in their own international development. Select a vehicle range highly com-petitive in terms of price, total cost of ownership and CO2 emissions.


Jaguar XF SportbrakePeugeot 4008 Mercedes A-Class


PSa Peugeot CitroënOlivier Bodet, Director B2B, Peugeot Citroën

PSA Peugeot Citroën’s first ambition in 2012 is to stay a step ahead in design with distinctive vehicles (DS line, …), and services (mobility ser-vices: Mu by Peugeot, Multicity by Citroën…). PSA Peugeot Citroën is also offering low-carbon vehi-cles thanks to the full hybrid diesel solution HY-brid4, already available on Citroën DS5, Peugeot 3008 and soon Peugeot 508 saloon and 508 RHX.

Small Fleet: development of dedicated busi-ness solutions through the dealer network; Me-dium Fleet: a European programme in Citroën Business centers (more than 500) and Peugeot Professional centers (650). These programmes include additional sales and after sales services dedicated to B2B customer requirements. Key accounts: Dedicated International Key Account Manager team in order to offer a simple and ef-ficient communication solution: one single point of contact for both Peugeot and Citroën.

PSA Peugeot Citroën has reinforced its organ-isation with a new department: International Fleet Sales and Development (IFSD) which aims to respond more effectively to specific busi-ness requirements. Its International Key Ac-count Manager (IKAM) team is dedicated to in-ternational tenders and business development with large fleets. When the fleet demands are related to a single country, it is managed by the National Key Account Manager. In addition PSA Peugeot Citroën has implemented a dedi-cated team to Long Term Leasing companies.

Citroën: Increased range with new compact SUV model: Citroën C4 Aircross. New style for Citroën C1, Berlingo and Jumpy. Peugeot: 2012 will see the market launch of Peugeot 208, and 3 full hybrid diesel models fit-ted with HYbrid4 technology: Peugeot 3008, 508 RXH and 508 saloon car; the brand will continue forwards, in particular, with the launch of the Peugeot 4008.

It is important for fleet managers to find the right partner for their fleet needs. Therefore, working with a car manufacturer which has a consistent experience in fleet management with a total understanding of their require-ments is a key point. At PSA Peugeot Citroën, we build our models with a clear understanding of B2B specifications as well as an economic vi-sion and last but not least a performance focus.

Jaguar Land RoverSimon Dransfield, General Manager, Corporate Sales Europe, Jaguar Land Rover

2012 is an exciting year as Jaguar Land Rover has several new products being launched, expanding the product range and attracting new customers to both brands. It is constantly developing new products for fu-ture launches, and updating current models to meet the changing technological environment, customer needs and reduce its carbon footprint.

The company will continue to launch cars/deriva-tives that are targeted at fleets and executives. It will continue to adopt a balanced and mea-sured approach to the fleet market working in partnership with rental, leasing and end user companies. In addition to this, Land Rover is the vehicle of choice for a significant number of gov-ernments and industries where there exist spe-cialised functional car requirements.

The Corporate Sales team enables the needs of the customers within their own countries to be met.There is also a central contact, so that internation-al fleet demands can be met, and all sales teams will work together to ensure that the customer receives the best information and offer available.

The new Jaguar XF Sportbrake, powered ex-clusively by diesel engines and driving the rear wheels via an eight-speed automatic gearbox, will be a key model for fleets. In 2012 Jaguar Land Rover expects to see a growth in new car performance in the region of 9.6%, despite the challenging economic outlook.The platform for this improved sales perfor-mance lies with the establishment of the Jaguar XF2.2 and Range Rover Evoque as viable com-pany cars.

To keep the policy balanced, there needs to be something there for everyone, from the engineer right through to the boardroom. Our cars attract new recruits and give exist-ing employees something to work towards.

Mercedes-BenzHans-Georg Lutz, Senior Manager International Corporate Sales Mercedes-Benz Cars

Regarding Mercedes-Benz brand, the intention is to exceed the record sales of 2011 and once again plan to achieve the best year in the com-pany’s history. In addition to the B-Class, in 2012, Mercedes-Benz is expecting a further boost from the sustained high demand in the C-Class seg-ment, continued growth in SUV sales and the launch of the new A-Class and the CLS Shooting Brake.

This is driven by a strong commitment to provide fleet customers with the best fleet solutions. Mercedes-Benz always strives to meet their re-quirements in terms of sales and service offers. Key Account Managers are experts in their fields and well-connected throughout the whole com-pany in order to best answer customers’ most in depth requests.

International KAMs represent the ‘One-Face-to-the-Customer’ to centralised procure-ment departments. At national level, the com-pany has set up fleet programmes in all key markets and established sales and service structures. Offerings are targeted to com-panies operating country-wide with fleets of all sizes. At a local level, the Mercedes-Benz Fleet Centers provide vehicle solutions.

The star in 2012 will be the A-Class. With its expressive design and highly innovative technol-ogies, it embodies the pulse of a new generation at Mercedes-Benz.

As environmental and cost aspects increase in importance, international fleet customers should consider selecting a truly sustainable fleet partner that can provide them not only with a wide range of vehicles to satisfy varied requirements, but also with environmentally friendly products.

2012 in a nutshell

Fleet strategy in 2012

Fleet organisation in 2012

On the model front

a piece of advice for fleet owners

Steven Schoefs ■


Together we are heading for the top.

Always on the rise – Alphabet and ING Car Lease have come together in order to grow together. By joining forces, we shape tomorrow’s mobility market and provide innovative solutions for individual needs.

We call this business mobility: By combining our strengths, we replace fl eet management with fl exible mobility solutions.

To drive your business forward: www.alphabet.com

Alphabet_Campaign_ final_Merger_120308_RZ.indd 1 09.03.12 12:50

Together we are heading for the top.

Always on the rise – Alphabet and ING Car Lease have come together in order to grow together. By joining forces, we shape tomorrow’s mobility market and provide innovative solutions for individual needs.

We call this business mobility: By combining our strengths, we replace fl eet management with fl exible mobility solutions.

To drive your business forward: www.alphabet.com

Alphabet_Campaign_ final_Merger_120308_RZ.indd 1 09.03.12 12:50

The Kia Picanto is typical of modern small cars – brimming with equipment.

as part of a questionnaire we asked the major manufacturers to answer, we asked them what they felt were their main assets towards fleet cli-ents. This could be in the form of products, coverage, services… here is a short selection of what they had to say.

All of the brands provided de-tailed information, and the points below are not exhaus-tive. They do, however, repre-

sent a good idea of how modern car manufacturers are moving forward and how they are attempting to satisfy the evolving needs of the international fleet market.Fiat is clearly basing its approach on several factors. In terms of product, Fiat Punto and Panda are performing extremely well, and in 2011 increased by 11%, while Alfa Giulietta has be-come a favourite in the C-segment. KIA too has a product offensive: the all-new Picanto (A-segment), Rio (B-segment), and Optima (D-seg-ment), models were launched 2011, and the important C-segment will be attacked with another all new model, the cee’d new generation, launching in March at the Geneva Motor Show.At the directors’ end of the car park, Jaguar Land Rover, alongside its Sportbrake, has launched The Range Rover Evoque a compact, advanced technology SUV, with the lowest fuel consumption of any Range Rover. The 2WD, eD4 Diesel Coupé emits less than 130 g/km of CO2 emissions.Mazda is very clear about its major benefits: the main product assets for fleet are clearly Mazda6 and CX-5, and the brand points out that both are per-forming exceptionally well in terms of residual value. Volvo is pushing its DRIVe models with low emission

Services meeting evolving needs


ers. It points to more than a decade of experience of providing both Global and Pan-European contracts, making it very well placed to understand the needs of corporate customers who are looking to consolidate their purchases into a single agreement. PSA Peugeot Citroën’s B2B strategy is also based on ease of use, and pursues a single aim: to bring business customers a one-stop solution in vehicles, services and an optimised TCO. Peugeot and Citroën are also seen as two brands with a broad range of appealing prod-ucts, and business sales teams that have made customer satisfaction their main priorities.Renault states that its international fleet customers also obtain the posi-tive economic benefit and simplicity of global one-stop negotiation, with Key Account Managers working di-rectly with the customer subsidiaries and all major leasing companies to ensure that national market contexts, cultures and requirements are under-stood and respected.

SustainabilityToyota cites the environment as a ben-efit, saying that Toyota Motor Europe has been confirmed as the automotive industry leader with lowest CO2 emis-sions in the recently published 2010 final report by the European Com-mission and European Environmental Agency (with a figure calculated under the current regulations based on the 65% lowest emitting vehicles of each manufacturer). This result validates the company’s long-term global strat-egy towards clean and sustainable mobility through the introduction and mass marketing of vehicles with full hybrid technology and Toyota Opti-mal drive technology. Volkswagen too sets great store by its network and

engines and 2012 sees the launch the V60 Plug-in Hybrid, a car which Volvo sees as confirming its position at the forefront of environmental technology. In addition, there is to be a new prod-uct offering to the C segment, increas-ing the scope of the range.Mercedes-Benz clearly has very high hopes for the new B-Class where fuel consumption undercuts its pre-decessor by up to 21 percent. And of course hopes are very high for the new

A-Class which will hit the European showrooms in September. For the first time a Mercedes-Benz with an inter-nal combustion engine will emit just 99 grams CO2 per kilometre.

Fleet supportMoving away from models, there is the critical question of services to fleets. Opel/Vauxhall, as part of General Mo-tors, says it is one of the few OEM’s that can offer true Pan-European and Global support for its custom-


a few choice words…“The critical component to building our success is with the SME market where the deal-ers are the most connected.” (Jaguar Land Rover)

“The fleet business is get-ting more and more strategic. Fleet customers are looking for a wide range and local service support.” (Fiat group)

“KIA aims to be Europe’s 10th-largest mainstream brand by 2013 (from 17th in 2011), with annual new car sales of around 450,000 units.” (KIa)

“Cost reduction will remain the key challenge of the com-ing years for fleet managers.” (Mazda)

“The first Opel Ampera’s will be delivered to fleet customers in 2012, marking the start of a new era of electric vehicles entering mainstream fleet operations.” (Opel/Vauxhall)

“The internationalisation of cus-tomers is taken into account, from the beginning of the model conception and, at each point of development.”(PSa Peugeot Citroën)

“Mobility offers and sustainable development policies adapted to fleet customers requirements based on TCO reduction are the main key business values for the international fleet business.” (Renault)

“In the near future, we consider Plug-in Hybrid will be most re-alistic in terms of utilizing elec-tricity.” (Toyota Lexus)

“Fewer approved manufactur-ers on the tender list means improved manageability of both the process and costs.” (Volkswagen group)

“The trend is moving towards car sharing. Young people of-ten just use a car when it’s needed instead of owning one.” (Mercedes-Benz Cars)

The Range Rover Evoque targets fleets with emissions of under 130 g/km.

Tim Harrup

portfolio. Vehicle delivery figures for 2011, it says, were excellent, and its growth outstripped the overall mar-ket. This, it says, shows that the Group and its brands are in good shape in terms of customer perception. The Volkswagen Group also has a global network and a product portfolio with an environmentally friendly model range.The company states that it has skilled employees who have the experience and expertise required for dealing with both local and global tendering processes.

Fleet objectivesWhat are the next major objectives of some of the manufacturers in terms of fleet? Fiat is monitoring the down-sizing of the car policy of the large and medium companies, along with the theme of eco-sustainability and fuel consumption reduction that may influence the product mix. The com-pany is also forecasting an increase in sales to small enterprise and inde-pendents. PSA Peugeot Citroën states that its B2B objectives in 2012 are to consolidate development in the B2B channel in Europe (2012 target of 16% relevant fleet market share on 7 main B2B markets in Europe against 15,7% in 2011). The launch of Peugeot 208 and Citroën DS5 is expected to help the group develop its presence in car policies. The acceleration of B2B sales development in main overseas mar-kets such as China, Brazil, Russia is also one of the key objectives for the group in 2012.

Within two years, Toyota aims to be close to what it considers to be a nor-mal sales volume in Europe, one mil-lion Toyota and Lexus vehicles. Toyota also sees the European B2B market growing slightly, whilst the private market stays under great pressure. Mercedes-Benz sees further growth opportunities, especially in North America and in the BRIC countries, as do many other manufacturers.In Western Europe and Japan Mer-cedes-Benz wants to strengthen its market position, particularly by ex-panding the product portfolio. Overall it assumes that the global car market will grow by around four percent in 2012 and that its own sales will grow faster than the market. It is quite clear that all of the manufacturers are con-centrating on two major themes in terms of ensuring that their clients are kept satisfied.Firstly, the model line-up, which is af-ter all their core business. Models are becoming more sophisticated across the entire range. Even the smallest cars have equipment previously re-served for their larger cousins, while larger ‘executive’ models now provide levels of fuel efficiency and CO2 emis-sions which might have been thought impossible only a few years ago. Secondly, service to the customer is playing an even more important role. Large international customers now expect a simplified offer across many countries, and often with a single point of contact. Product development and service… the keys to success. ■



Tomorrow is notjust another dayOne of the main characters of the international automotive world is the permanent will to adapt products and ser-vices to the continuous changing environment and ever more demanding society. as an international fleet manager it can be useful to know which trends are here to stay. according to the European fleet executives of the car manu-facturers, electric and efficient urban mobility is one of them.

Fleet business is getting more and more strategic. Fleet customers are looking for a wide offer range and local service support.”

The synergy with Chrysler will let us expand our distribution with a wide offer range in different continents.”

The next big thing in international fleet

business

The next big thing for your brand

Ranieri Honorati, Fleet & Used Cars Market-ing Director, Fiat Group.

Johan Verbois, General Manager Fleet & Remarketing, Toyota Motor Europe

It will become more and more im-portant to look at all car emissions, not just CO2 but also NOx and PM as they have an impact on air quality.”

Toyota’s new Global Vision makes Europe the focal point for planning small and compact cars. We will further recruit professionals to strengthen our Europe-an teams, in all functions, in developing our next core models for Toyota globally. This will also support European opera-tions, in view of 25 new or updated Toyota and Lexus models rolling out over a pe-riod of 24 months starting from Septem-ber 2011.”

Chan Uk Jun, Fleet and Remarketing Manager, Kia Motors Europe

New mobility concepts due to the changing lifestyle of the customers and new powertrain technologies will change the fleet business in the near future. Ex-ample: Ownership of an electric vehicle will not be the main priority of the user chooser in the year 2020. Manufacturers will have to develop new business mod-els to cope with this trend.”

Put simply, KIA’s enhanced product range. KIA has one of the newest and most exciting models ranges of any man-ufacturer in Europe. Kia’s C-segment contender, new cee’d will be pivotal in boosting Kia’s retail sales and, together with the flagship Optima, this new model will also help drive fleet sales.”


Christian Blank, Director European Fleet Operations, Mazda Motor Europe

Martin Jahn, Managing Director, Volkswagen Group Fleet International

Javier Vazquez, Director International Major Accounts, Volvo Car Corporation

Hans-Georg Lutz, Senior Manager Interna-tional Corporate Sales, Mercedes-Benz Cars

Cost reduction will remain the key challenge. Driven by the continuing economy crisis, short term cost savings have been generated through measures like lease extensions, fleet policy down-grading, centralized purchasing etc. However, these measures are not appro-priate in the medium term as they clearly negatively impact driver and therefore employee satisfaction. It will be crucial to find ways that combine cost savings whilst still ensuring high quality mobility solutions.”

SKYACTIVE Technology is the most fundamental technological revolution for Mazda. It will defy convention by com-bining outstanding performance with outstanding fuel economy. All vehicles to be launched in the coming years will contain SKYACTIV technology.”

There are two fundamental issues. The first is the issue of green fleets, and the second is the Increasing internation-alisation of the company. The tendering process now applies to an increasing number of countries. At the same time, we are striving to reduce the costs that result from the complexity of handling tenders. Fewer approved manufacturers on the list means improved manageabil-ity of both the process and costs.”

We are honing our processes in order to accommodate changes in the requirements of our customers. As a global company, we have a significant competitive edge that we will use to the advantage of our customers. ”

We see two dominant trends; mini-mizing environment impact and simpli-fying customers lives. For the environ-mental challenge, sustainable mobility will mean an increased demand for ho-listic solutions to clean transportation needs. In simplifying customers’ lives, we mean a range of solutions including in-car connectivity and also innovations such as on-demand service solutions enabling customers to have upgrades and information directly delivered to the vehicle.”

Our focus for this year is on 3 main areas: strengthening the brand through our Designed Around You stategy, launching of our All-New V40 5-door hatchback and the V60 Plug-In Hybrid and China ramp-up through increased sales and dealer development.”

The next big thing is already happen-ing. It is the trend towards electric driven vehicles. Mercedes-Benz is the only pre-mium brand that offers four electric ve-hicles which are produced under series conditions: A–Class E-CELL, smart fortwo electric drive, Vito E-CELL, and our fuel cell vehicle, B-Class F-Cell. Furthermore, there is a trend towards car sharing. That is why we are advancing projects such as car2go, a free-floating car-sharing initia-tive, and car2gether, a web-based ride sharing community arranging incoming offers and requests for lifts.”

The new Mercedes-Benz generation of compactcars will be important.. Across all engine variants of the different series we will set a new benchmark regarding fuel consumption in the compact segment. With the new B-Class we already have the first car of this new generation on the market. In 2012 the new A-Class will hit the road. The new A-Class is the pulse of a new genera-tion of sporty-emotional vehicles which will open up our brand increasingly to younger customer groups, and develop further mar-ket regions. Regarding smart, in 2012 we have two highlights coming up: the smart ebike and the third generation of the smart fortwo electric drive.”



Olivier Bodet, B2B Director PSA Peugeot Citroën

Olivier Gautier, Head of Fleet Marketing & Business Development, Corporate Sales Division Renault

Simon Dransfield, General Manager, Corpo-rate Sales Europe, Jaguar Land Rover

Ian Hucker, Director European Fleet & Remarketing, Opel/Vauxhall

The next big thing for our group is to provide mobility offers which can suit the fleet demands. Further than a TCO ap-proach, we are interested in fleet usage and complete services.”

Mobility offers and sustainable de-velopment policies adapted to fleet cus-tomers’ requirements based on TCO re-duction are the main key business values for the international fleet business.”

We have an incredible focus on building business through our network. The critical component to building our success is with the SME market where the dealers are the most connected. Here Jaguar and Land Rover will en-sure that all the superb new vehicles launched will be presented in a focussed and support manner to our new custom-ers.”

Peugeot and Citroën are aware of the customer and sustainable issues and this is why we have developed our mobil-ity solutions, tailored to fleet needs. Also, the internationalisation of our customers is taken into account, from the beginning of the model conception and, at each point of development.”

Renault, with the launch of the zero emission vehicles, is playing an impor-tant role towards fleet customers in their capacity to reduce costs, fuel consump-tion and Co² emissions. This year will be a decisive chapter in Renault history with the launch of two electric models: Twizy & ZOE, completing Fluence Z.E. & Kangoo Z.E already available on the fleet market.”

The next big thing in international fleet

business

The next big thing for your brand

Whilst TCO will always be at the heart of an International Fleet Man-ager’s decision making, driver appeal is an increasingly important element of any fleet policy.”

The first Ampera’s will be delivered to fleet customers in 2012, marking the start of a new era of electric vehicles en-tering mainstream fleet operations. This is only the beginning of a long term tran-sition towards more sustainable forms of transportation and we are excited to be at the forefront of this change.”

Steven Schoefs ■


27.02.2012 17:13 PDF_QUADRI_300dpi_txvecto


27.02.2012 17:13 PDF_QUADRI_300dpi_txvecto


Yesterday in Geneva, tomorrow in your fleet

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1. KIa cee’d Sporty Wagon The new cee’d Sporty Wagon will go on sale across Europe from the second quarter of 2012.

2. BMW 116d BMW continues the development of fuel efficient vehicles with the EfficientDynamics technology.

3. Mercedes-Benz a-Class The new A-Class has become a stylish, young of heart car.

4. Hyundai i30 This new model has to compete in the C-segment, critically important for fleets.

5. Citroën DS5 The Hybrid version of the Citroën DS5 emits only 99 g/km of CO2.

6. audi a3 To be the successor of a successful car is never easy.

7. Volvo V40 The new Volvo V40 will be fitted with the City Safety, now operating up to 50 km/h, and the first pedestrian safety airbag.

8. BMW i3 The BMW i3 has to respond to individual urban mobility schemes of younger people in big cities.

9. Renault Twizy The Twizy is a practical mix of an urban scooter and an electric car that answers the future urban mobility needs of youngsters.

10. Mazda Takeri conceptThe foretaste of the future Mazda 6 .

11. SEaT Mii The new Spanish rose, here is the SEAT Mii.

12. Ford B-Max This small monovolume is characte-rised by its sliding rear doors and by the lack of central support.

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13. Peugeot 208 Together with new 208, Peugeot has put the new compact SUV 4008 on the stand at the Geneva Motor Show.

14. Toyota Yaris hybrid The Yaris hybrid gets 100 hp and CO2 emissions of only 79 g/km.

15. SEaT Ibiza The little SEAT comes back even more feisty and still sober.

16. Tesla Model S The Tesla Model S is the new premium electric saloon car that was presented at the 2012 Geneva Motor Show.

17. Opel ampera The Opel Ampera /Chevrolet Volt has been elected as European Car of the Year at the start of the Geneva Motor Show 2012.

18. Fiat 500L The new Fiat 500L (4.14 m), is an urban minivan that will be launched later this year.

19. Renault ZOE The new ZOE is a full electric compact vehicle that will be sold in from autumn.

20. Škoda Citigo With the Citigo, Škoda has presented its new entry to the small citycompact segment.

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Caroline Thonnon& Steven Schoefs ■

OUR NEXT RENDEZ-VOUS WILL BE AT THE PARIS MOTOR SHOW IN OCTOBER 2012.



presents 6Brussels June 2012 International Fleet

Managers Institute

Organised by

Major sponsorOrganiser Partners

Tuesday, June 5th 201219:00 Welcome Dinner

Wednesday, June 6th 201208:30 Welcome coffee09:00 Opening of the session09:10 Macro-economic view on the economic and financial crisis10:00 Key lessons learned from the previous crisis 10:30 Coffee Break11:00 Understanding the regulations to control the downside of the crisis

PROGRAMME

BENEFITS

TESTIMONIALS

11:30 Opportunities driven by the crisis 12:00 Case Study 1 12:40 Case Study 2 13:15 Lunch14:30 Workshops > Workshop 1: Exchanging best practices relating to the previous crisis > Workshop 2: Creating of the “Fleet To Do List” when in a Crisis 16:45 Report of the workshops by the IFMI partners

17:00 Wrap up & end of the program

You will learn how to:> Adapt to a changing environment to manage a fleet.> Overcome the crisis challenges in your fleet mana-

gement, implementation and sourcing strategy.> Turn a crisis situation into a business opportunity.

Wim Buzzi, Category Manager Fleet at Coca-Cola Entreprises: “The IFMI is a unique international training platform with a special attention for exper-tise and the exchange of best practices on hot fleet topics. The IFMI is a great networking opportunity in an informal atmosphere.”

Jean-Noël Gouillou, General Purchasing Director at REXEL Group: “The IFMI is an excellent training plat-form to get an up to date overview of international fleet management and a good insight in upcoming fleet challenges.”

You will be given the opportunity to:> Exchange best practices with “colleagues” from

various multinationals.> Discuss with your peers in a unique environment.

Join the expert training session on managing your fleet in crisis mode

www.fleeteurope.com/ifmiPlaces are limited, so get your early bird registration now!Early bird registration fee of €550 valid till May 4th 2012

A technological arms race has generated a market wide

introduction of highly advanced features.


The current predominance of all technologies improving the environmental performances of cars would al-most led to believe that car manufacturers are relegating the development of new safety features to the back-ground. The different car brands, however, prove the exact opposite. In safety too, the sky seems to be the limit.

The first Euro NCAP press conference presenting crash test results in 1997 was not only a clear indica-

tion of the increasing importance attached to safety fifteen years ago, it was first and foremost an abso-lute jump-start for traffic safety in its broadest possible meaning. Af-ter all, the then heavily contested crash tests set an industry standard against which all brands could compare their per-formance.

A couple of years later this standard was a very popular marketing tool that still proves to be use-ful today.

Of course, the prolif-eration of safety items over recent years is more than a marketing stunt. It signifies just as much a clear reflection of ever more strin-gent legislation as a crystal-clear translation of a demand from the car buying public. On top of that a technological arms race has gener-ated a market wide introduction of highly advanced features that until recently were the absolute privilege of only the most prestigious manu-facturers: those able to ask from their customers a substantial fi-

nancial effort in exchange for extra protection.

Pro-activity is the key wordToday nobody seems ready to com-promise on their safety, that of its passengers and, indeed, that of all other road users. In practice this means that cars today not only oblige to the law by offering ABS and electronic stability control

as standard, they almost all aim at a maximum score of five Euro NCAP-stars, a decent pedestrian protection and, preferably, some in-novative safety feature. As a result warning systems for lane depar-ture, blind spot and even drowsi-ness go hand in hand with adaptive lightning, collision alert and adap-tive cruise control.

Avoiding accidents is now as much a concern as mitigating the results of the next unavoidable crash. This

move from passive to active and even pro-active safety is reflected in the safety strategy of all car manu-facturers.

It goes without saying that a lot of manufacturers are rather secretive about future safety innovations. The more reserved approach of Asian brands is a case in point.

The Toyota Group even prefers not to comment on future safety devel-opments. KIA from its side is keen to stress the actual, more or less classic safety offerings (ABS, ESP, airbags and high-strength struc-ture) across its range rather than lift a corner

of the future safety veil. An acknowl-edged safety pioneer as Volvo on the other hand, is not afraid of commu-nicating a clear future plan. In 2007, Volvo adopted its Vision 2020.

This states that no one is to be seri-ously injured or killed in a new Volvo by 2020. The strategy is to primar-ily assist drivers to avoid accidents but, if an accident cannot be avoid-ed, to mitigate the impact of the crash and protect during the crash. This is to be achieved through a set

Protection first


automatic Emergency CallIn 2010 EuroNCAP already rewarded the post-crash SOS-system of both PSA Peugeot Citroën and BMW. The main reason is simple. These systems can save some 2,500 lives per year on European roads and reduce the number of heavily injured victims by 10 to 15 percent. At this moment the PSA Peugeot Citroën system is operational in several European countries. Once the service is acquired, it is free of charge and remains operational for 10 years.

Protection first

of advanced active safety systems designed to moni-tor traffic, to assist drivers and to actively intervene if a crash is unavoidable, and through effective crash safety protection systems.

The Fiat Group disposes of a system ‘sweeping’ the disc brakes clean in rainy conditions as to reduce stopping distances at the moment(s) of truth, a technology a number of other luxury brands also offer.

The same goes for the deployable bonnet and the adap-tive headlights the Italian group offer. Jaguar/Land Rov-er offer such safety items too, combining them with a large array of other systems: from the classic reinforced (but lightweight) bodyshell to their renown Pedestrian Contact Sensing System and a state-of-the-art intelli-gent braking system.

Holistic approachOther brands heavily investing in assistance systems that recognise potential danger at the earliest stage, trying to warn the driver first before intervening are Mazda, Mercedes-Benz, Opel and the Volkswagen-group. Mazda not only offers generally spread safety systems as lane departure warning, collision reduc-tion systems and adaptive headlights, it considers its SKYACTIV Technology improving the crash test perfor-mance of its vehicles, as an integral part of the brand’s safety approach. Mercedes-Benz from its side covers an enormous amount of safety systems by its holistic ap-proach called “Integral Safety”. In this approach every

safety item aims to help the driver to avoid accidents by using the on-board systems to their maximum capac-ity. Similar things can be said about Opel that will roll-out new driver assistance technologies across its range during 2012.

No small achievement is we consider that innovative safety features follow the classic top-to-bottom strategy of all high tech solutions in the automotive industry. And since all good things go by threes, Volkswagen Group follows a similar path as its German rivals.

Convinced that downsizing should not apply to safety, this group too offers a large array of safety systems to the broadest possible car buying public.

1 million vehicles equippedFrom a strong belief that passive safety is a basic ne-cessity even the French manufacturers tend to follow a comparable philosophy, be it with their own accents. One of Renault’s safety baselines for example, says that technology should be used to compensate for road traf-fic issues and driver errors. A strategy put into practice by their brand-new Visio System. The PSA Group en-dorses a similar viewpoint by combining classic pas-sive safety systems with advanced active safety items. This group however, goes one step further by offering its fleet customers the so called “eTouch” (Citroën) and “Peugeot Connect” services. According to many a spe-cialist though, the latter probably are the next big step forward, as these systems cover the accident phase that


The safety benefits of PSA Peugeot Citroën SOS-system are beyond doubt. At this moment the PSA Peugeot Citroën system is already operational in several European countries.

It goes without saying that a lot of manufacturers are rather secretive about future safety innovations.

Tim Harrup

received the least of attention so far. The fact that PSA Peugeot Citroën already equipped a million vehicles with the emergency call system so far and that it is planning to do the same with 500.000 cars during 2012, means that this safety technology is finally getting the widespread diffusion it deserves. As such, this type of post-crash warning system is not entirely new, but their impact on road safety could be huge (see box).

The working principle is fairly simple. When the crash sensors in the car detect the car has been in an accident, the system (equipped with SIM card, GPS, microphone, loudspeaker and battery back-up) sends an SMS to a call centre detailing the location of the car at the moment of the impact and the last ten known positions of the vehicle.

The system can establish a communication between the occupants and the call centre operator if desired, but the latter can also immediately notify the emergency services. In other emergency situations the system can even be activated by pressing down the SOS-button for 2 seconds.

If anything this overview clearly proves that safety has never been relegated to the background by the automotive industry. As a sales argument or marketing tool it might have been overwhelmed by environmental considerations that enjoyed the support of CO2-dictated incentives and legislations, but no manufacturer with decent sales ambitions can do without appealing safety features.

Since all manufacturers provide the more traditional ways of (passively) protecting a car’s occupants, the differentiation has to be found in innovative items and the range-wide application of (newly introduced) safety features. That most of brands prefer not to make their rivals any smarter than they already are only strengthens the fact that safety still is a big issue. ■



www.citroenbusiness.com

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CITR_1109181_C-Zero 210x297.indd 1 03/10/11 10:48


www.citroenbusiness.com

DO SOMETHING GREATWITH ELECTRICITY.

Thousands of scientists and engineers have utilised the most advanced technology available to ensure we are never without power. It’s up to us to use this power wisely and thanks to the new Citroën C-Zero that’s the easy bit. With 150 Kms on a single charge, zero noise, generous cabin space, regenerative braking, and an 80% range on a thirty minute quick charge the new Citroën C-Zero means you can harness the real power of electricity.

Scan the code to watch our TV commercial.

NEW CITROËN C-ZERO. 100% ELECTRIC.

CRÉATIVE TECHNOLOGIE

CITR_1109181_C-Zero 210x297.indd 1 03/10/11 10:48

Introducing CO2-friendly technology is no mean feat, getting the most out of it probably is an even bigger challenge. With the help of some telematic novel-ties car manufacturers aim to put their sustainable theories into practice.

Maybe it is due to the ever closer link be-tween the two subjects, but telematics turn out to be an almost even secretive is-sue as safety (see page 28). All manufac-

turers admit that telematic devices can really benefit driver behaviour, but some remain very reticent when it comes to revealing any details.

Not so Citroën that already launched its Citroën EcoDriving (as part of the Citroën eTouch package) in 2010. This online service that is also available as an iPhone-application gives customers reliable data on their fuel consumption and CO2-emission, setting these figures off against a virtual companion EcoPro-fil. Citroën’s PSA-partner Peugeot introduced its per-sonalised sustainable service Peugeot Eco Consult-ing a year later. This service aims to bring expertise on three separate levels. First is establishes a bench-mark for your fleet by evaluating CO2-emissions by vehicle, by brand, by country and by segment. Sec-ondly Peugeot make eco driving courses accessible to its partners. Last but not least, on-board tools can advise drivers on how to drive more economically. Via Peugeot Connect Fleet the system can even provide relevant data to the fleet manager.

Renault too is convinced that on-board support is the way forward. Its R-Link, an integrated tabled poised to equip most of Renault’s future models, offers a number of highly practical (and entertaining com-munity) applications. On top of this and its known eco-driving programme DrivingEco2 Renault will in-troduce its Fleet Asset Management service in 2012. This exclusive service targets fleet managers and long-term lease companies by permitting real-time management of vehicle fleets. The result should be a more effective fleet management without any inter-vention needed from the driver’s side......................................................................................

The futuristic F 125 concept-car Mercedes revealed at last year’s Frankfurt Motor Show showcased many web-base telematic features that Mercedes is currently deve-loping into production models.

Fleet Management in real terms



Fiat eco: Drive Fleet is a text-book example of an easy to understand and easy to use telematic application that al-lows drivers as well as fleet managers to govern the own carbon footprint. It is available for any Fiat with Blue&Me-technology and can be down-loaded free of charge at www.fiatecodrivefleet.com

Renault’s R-Link is one of the many examples of a novel telematic applica-tion. It combines the functions of a classic infotainment system while packing more than 50 different apps.

Telematicscan improve

the sustainabilityof both the

automotive industry and the fleet

business.

Dirk Steyvers

Comprehensive approachFiat offers eco:Drive fleet, a tool with the mission to reduce CO2-emission by some 15% by training individual drivers through telemat-ics. An analysis of driving data is translated in easy to understand tutorials that can be downloaded to USB or smartphone. Volvo and Jaguar Land Rover follow a simi-lar approach. The Swedes provide Volvo On Call, a mobile application offering a vehicle dashboard feature with extensive driving data. Togeth-er with Volvo On Call and the Sen-sus interface the brand opts for an all-embracing strategy. The same comprehensive approach marks out Jaguar Land Rover, even if their on-board systems tend to keep the driver in charge of all the aids at his disposal.

The German manufactures we questioned kept rather quiet. Opel and the Volkswagen Group did not want to share any telematic ambi-tions. Mercedes-Benz on the other hand, admits to be very concerned about the genuine value to the cus-tomer of any telematic application. This brand sees an outstanding role for all kinds of functionalities and says it is working on a large extent of web-based telematics show-cased by their spectacular F 125.

KIA and Toyota Lexus communi-cated a very similar message. Con-vinced of the potential added value of telematic devices both agree that driving behaviour can be influenced positively. Toyota Motor Europe even acknowledges having a clear roadmap on the future of telemat-ics. Mazda combines an approach

of continuous improvement with the development of future features and today’s already daily practice of pro-viding a comprehensive on-board system.

Cost potentialSummarizing the future telematic developments of car manufactu-rers highlights in the first place the enormous potential of these kind of devices. Much of it is still to be ex-plored, but the slumbering benefits are clear. Applied to the fleet sector a substantial improvement in indivi-dual driving behaviour would result in a considerable reduction of costs.

Fuel consumption (and thus CO2-emission) could be cut noticeably combined with a serious reduction of the fleet managements costs. In short, telematics could improve the

sustainability of both car manufac-turers and fleet managers by some impressive margin. So even if at this stage telematic innovations might still be ‘work in progress’, we from our side are most eagerly looking forward to the future developments. ■


Ensure you allow time to discuss the

good things and don’t always focus on the negatives. Normally there is more right than wrong in most relationships.

MANAGEMENT I Tips & Tricks

Learn fromthe winners!

The three winners in the International Fleet Manager of the Year’ awards at the Fleet Europe Forum in November, clearly have a lot to pass on to their fellow fleet managers. So we asked Ivor Johnson (Pfizer), Holger Wiegand (3M) and Ralph Ruckgaber (IBM) for their top tips.

1 Leverage the supplier relationship. All too often companies out-source the management of their fleet and fail to engage with their chosen supplier. This is a very important resource and source of knowledge that should be fully utilised in order to maintain a well run fleet. Ensure there is structure and regular engagement at mul-tiple levels –operational, day-to day management and strategic.

2 It is considered impor-tant to carry out supplier audits to review KPI’s and processes, and to benchmark. An interna-tional industry network

to include both client companies and suppliers is a good way of ensuring dialogue. And on top of this, review-ing progress with all stake-holders (internal and external) will keep the process moving forwards. This may involve score-cards. To make this possible, comprehensive service level agreements need to have been agreed with all suppliers upfront. But be realistic, don’t try to measure absolutely everything – concentrate on those items that can make a meaningful difference in improving the way the fleet is run.

3 Amongst the ‘basic’ elements of a car pol-icy which need to be agreed with suppliers is the establishment of a TCO-driven policy

including model selection, resid-ual values, CO2 emission levels… Then corporate discounts should be obtained where possible, not just for vehicle purchase, but also for tyre replacement, fuel etc. And if it makes sense to extend contract durations, make sure this is possible.

4 And finally, main-tain a good balance between consolida-tion and competition amongst suppliers. Along with this criti-

cal client-supplier relationship, there is also, of course, the ques-tion of how a company organises its fleet management internally.

One of the elements which has most evolved in modern fleet operations is that nowadays, almost everything is based on external suppliers. In the past somebody in the company would write out a cheque and buy the cars, and these would be ‘maintained’ by the company mechanic from time to time. But now not only are the vehicles sourced, but so is the finance, the servicing, the fleet management… It is within this context that our three top fleet managers first of all pay so much attention to supplier relationships in their top tips.


Ivor Johnson, EMEA Regional Fleet Director, Pfizer

Holger Wiegand, Sourcing Operations Manager, 3M Europe

Ralph Ruckgaber, Manager EMEA Lead Cars & Car Lease, IBM

Benchmark and review existing car policies on an annual basis… the markets are changing very fast and a car

policy can be quickly outdated.

Don’t try to measure absolutely

everything – concentrate on

those items that can make a meaningful

difference.”

7 The fleet strategy is not an isolated case, so en-sure this is aligned with the company’s overall strategy, and that top management is support-

ive of the fleet policy and under-stands what it is trying to achieve, through a defined ‘fleet mission’. A fleet steering team may well be an ef-ficient way of achieving these objec-tives, including executive members. In terms of reporting on the fleet performance and progress towards goals, there are also a number of imperatives.

8Fleet managers should look to capture excep-tions and have a pro-cess whereby all par-ties are proactive in the resolution process.

9Facilitate management decisions and commu-nication with all coun-tries.

10 and, of course, deliver compelling results!

5Sharing best practices amongst different coun-tries can only be benefi-cial, and this should in-clude not just processes, but also initiatives. A

business intelligence data base may prove to be an ideal tool for this. And make sure the chosen approach is based on organisational efficiency.

6 The harmonisation of car policies between coun-tries may be part of the overall policy, and this too should be realistic. Only harmonise where

it is possible, and restrict areas to those which are actually useful. But whatever level is chosen, check fre-quently for compliance. For many companies this part of the operation may be in the form of determining policy guidelines and local varia-tions. One size does not fit all, so allow for theses local requirements, whether in terms of car models specified or other aspects.

Tim Harrup ■


Mr. Allan Rushforth, Senior Vice President & COO of Hyundai Motor Europe

AdvERTORIAL I New generation i30

Equipment levels

Meeting all needs

1. Comfort• Keyless engine starting

and stopping

• 10-way powered driver’s seat adjustment

• Heated front seats

• Electronic handbrake

• 7-inch navigation touch-screen

• Speech recognition GPS system

• USB and i-pod terminals

• Dual zone air conditioning

• Automatically illuminating door handles

2. Safety• Cruise control with

speed limiter

• Rear view camera

• Panoramic roof

• Heat reflecting solar glass

• ESP (Electronic Stability Programme)

• ABS (anti-lock braking)

• VSM (Vehicle Stability Management)

• BAS (Emergency Brake Assist system)

• HAC (Hill Assist Control

• ESS (Emergency stop brake-light flashing)

• 6 airbags plus optional knee airbag

3. Power• Three 1.4 and 1.6 litre diesel

engines (90, 110 and 128 bhp)• Three 1.4 and 1.6 litre petrol

engines (100, 120 and 135 bhp)

• 6 speed manual or 6 speed automatic gearbox

• CO2 emissions from 97 grams per km

The features available on the new generation i30 are clearly inspired from ‘the class above’ and in particular from the all new, award-winning Hyundai i40 estate and sedan. Features are standard or optional according to model and market.

FLEET EUROPE # 57P.36

In designing the new generation i30, Hyundai had a number of priorities: European drivers want the highest quality, they want exciting design, they want all the latest safety and comfort options. In addition to these, fleet owners and operators want a class-leading TCO, and they want something they have not had before – a car which, if it remains in their fleet for three, four or even five years, will never be out of guarantee – however much it is driven! And leasing companies want to be able to offer this to them. Welcome to the new generation Hyundai i30!

The new generation Hyundai i30 is a newborn champion. The new generation i30 sets new standard in terms of quality, functionality,

safety and peaceful driving pleasure.

What the fleet experts say

In common with all Hyundai cars, and whether acquired privately, as part of a fleet, purchased outright, leased or on a long term rental basis, the new generation i30 benefits from this unique warranty :

• 5 year unlimited mileage warranty• 5 years of vehicle health checks• 5 years of roadside assistance.

And this unique warranty does not expire if you sell the vehicle.

The next owner receives the remainder of the five years – adding greatly to the residual value, particularly in a typical 3-year lease situation.

The 5-Year Triple Care Guarantee

Designed, engineered and produced in Europe, new generation i30 benefits from Hyundai’s unique ‘in our own hands’ advantage. Hyundai is the only car manufacturer to produce the high tensile, high grade steel for its cars in its own steel mill. From this, right through to financing, everything is taken care of in-house. Recognition has been quick to come: for two years running

Hyundai has been voted number one manufacturer in the Quality Rating produced by respected German specialist magazine Autobild… which also compares the new generation i30 favourably with Europe’s best-selling car model (also German…!). With i40 break and sedan and i30 hatchback, there simply isn’t anything better for fleet managers to choose in the C and D segments.

Hyundai: leading the way in quality

“Our brand and our products in Europe are basically a triangulation of quality, low emissions and value. But when it comes to new generation i30, we add to this great design and desirability. This means that people will choose the car with their hearts, and not just their minds.”

Allan Rushforth, Senior Vice President and Chief Operating Officer, Hyundai Motor Europe

“I think that new generation i30 is a good alternative to traditional fleet cars – the German brands in particular. I think it is well equipped, it looks good and it drives well. I would purchase it personally and for fleet it could do very well when people get more aware of the car and the rapidly rising Hyundai brand.”

Manuel Weber, International Account Director, LeasePlan International

More information on the model range and fleet services of Hyundai Motor Europe can be found at www.hyundai-fleet.eu.

Discover our dedicated website

FLEET EUROPE # 57 P.37

about...

Ralph Ruckgaber and IBM were re-warded with the International Fleet Innovation award 2011. The jury was impressed by the internally developed cost reporting and RFP tools that give a complete overview of all necessary cost and calcula-tion elements in IBM’s fleet man-agement.

Ralph Ruckgaber, graduated Business Administration Scientists, is in his role of a Global Lead responsible for a total of 85 countries. He has held the post of fleet responsibilities for over twelve years, and has been very much respon-sible for setting up a global EMEA- and global-wide policy.

Future plans include first an EMEA-wide fuel tender, and the extended rollout of the electronic driving licence control. Ralph Ruckgaber is based at IBM headquarters in Germany.

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

MANAGEMENT I Case study IBM

A 360° vision of a 63-country fleetRalph Ruckgaber

The IBM fleet in figures

Cars in Europe 26,500

Cars in other GEOs 2,500

Cars worldwideincl. novated leasing fleets

34,000

Number of countries in EMEA

63

Number of countries in other GEOs

22

Main funding Operational lease


We are expecting an annual reduction of the

average CO2 emissions of the fleet of 15%.

Tim Harrup

Ralph Ruckgaber, global Lead Cars, for IT giant IBM, went home with two prizes following the Fleet Europe awards 2011. What persuaded the jury to crown him with the International Fleet Innovation award and give him third prize in the International Fleet Manager of the Year category? an insight into the IBM approach.

IBM has operated centralise fleet management since 2007. From the outset, a major priority has been to optimise costs, and to do this, Ralph Ruckgaber has looked at all elements – reduction of resources,

headcount, process optimisation and more. Alongside this, CO2 emissions reduction has been a priority, and the international fleet policy is therefore very much influ-enced by TCO and CO2. At EMEA level, the fleet is oper-ated by twelve centralised buyers, four operational Fleet Management Departments, and input from HR.

Where supplier selection is concerned, a Procurement Council considers the options and sets the outlines, but in terms of Processes, the local input is taken into ac-count and all relevant local stakeholders are involved. Tenders at global or EMEA level are the fore-runner to the absolute majority of all selec-tion decisions. All of this is encased within a centralised EMEA fleet programme which, as well as be-ing CO2 focused, operates an EMEA centralised tender process.

Total policyThe IBM Global car policy emis-sions guideline sets clear rules for CO2 and for other precisely de-fined emissions. In other GEOs it considers for example NOx (both NO and NO2), hydrocarbons, carbon monoxide and particulates in the AP region… And in each case, the harmful effects of these emissions are stated (respira-tory problems etc…) rather than just setting out that these emissions need to be reduced without saying why. Where the CO2 emissions limits are concerned, the most commonly used and understood, and increasingly the ba-sis for national taxation, standard maximum limits have been set at 120 grams/km for diesels and 140 grams for petrol engines. Where car drivers have been allowed to opt for a superior model, these limits can be increased by a maximum of 20 grams.

It is recognised, however, that some countries outside of Europe may need to be given some time to totally con-form to these rules simply because the model offering may not be varied enough. IBM goes further than setting CO2 limits, however: the guidelines recommend that pet-rol cars are used for shorter trips such as in urban areas, and diesels for longer trips. Because Euro standards are used as a main reference point by many countries outside of Europe, the Euro 5 emissions standard has been set, and all cars in the region must adhere to this. The overall policy and objectives are set out in a programme intro-duced by Ralph Ruckgaber under the name of ‘IBM Fleet 360° on Demand’.

Fleet details, CO2 footprints, tender tools and templates, along with a car reallocation programme, are made avail-

able to stakeholders, emphasising the complete scope and total transparency of this tool.

Substantial reductionsAs a result of all these action points, IBM is forecasting substantial reductions in the main environmental KPI’s from a fleet perspective: during the three years from the end of 2011 to the beginning of 2015, it expects to see an annual reduction of the average CO2 emissions of the fleet by -15%.

group supplier policyThe IBM fleet policy fits into an overall Environmen-tal Management System (EMS). This involves planning, identifying environmental goals, and then implementa-tion, followed by training where necessary. The impact of suppliers and their actions is a highly important element of the EMS, which therefore sets out eight supplier re-quirements, embracing topics including energy conser-vation, greenhouse gas emissions, waste management, recycling…

This is not just a theoretical aim, the actual use of re-sources such as gas, electricity and water, is monitored

compared to a baseline period. Progress is measured monthly, with a final result for reducing con-sumption being arrived at annually. Supplier companies are required to publicly disclose their environmen-tal goals and achievements. Em-ployee training, self-assessment programmes and audits, along with management reviews, form anoth-

er IBM requirement for its suppliers. In addition, repre-sentatives of many of a supplier company’s functions are to be included on a committee to meet quarterly.

ComplianceThe EMEA standard car policy has been fully implement-ed in almost all 37 countries of Europe and compliance is also full. This is helped by the fact that although there is some allowance made for model selection variations from the standard car policy in different countries, there is otherwise little scope for local fleet functions to amend other parts of the fleet policy.

The centralised EMEA sourcing hub located in Hungary is responsible for monitoring and ensuring this compliance. In terms of measuring TCO on an international basis, and despite the fact that some 26,500 cars are involved across EMEA region, reporting, although centralised, is on a car by car basis. This is facilitated by use of the leasing com-panies selected, and an SAP system.

Almost all cars are managed under an operational leas-ing formula, which means that all costs can be captured. When considering TCO, IBM takes into account not just the vehicles themselves, however, but also the internal staffing levels required to run the fleet operation.

Ralph Ruckgaber is confident that along with the high de-gree of compliance, a high level of transparency across the fleet operation has led to the efficient cost/resource achievements. ■


And the Fleet Palm goes to…you

For the sixth time in a row, Fleet Europe will reward excellence in fleet management with the organization of the Fleet Europe Awards. This year you can be the winner on 22 November in Cannes.

MANAGEMENT I Fleet Europe Awards 2012

This year’s edition of the Fleet Europe awards – the European fleet event of the year - will be organized on 22 November at the French Riviera in Cannes. For the 6th year in a row the European fleet community will gather in Madrid to reward the achievements their peers. The event will reward the best case studies throughout Europe in front of the “crème de la crème” of the international fleet community.

The Fleet Europe Awards represent the highest opportunity for professionals within the fleet industry to get the recognition they deserve for bringing new solutions and improvement to the market and to their company. The Award ceremony in Cannes on 22 November will once again close the Fleet Europe Forum.

This year’s categoriesFollowing the success of the previous editions, we are retaining different Award categories:

- The International Fleet Manager of the Year Award o Previous winners: Raphaëlle Jeanneret, Novartis

(2007) - Claus-Peter Krüger, Shell (2008) - Werner Berger, Nestlé (2009) – Bruce Maclaren, Microsoft (2010) – Ivor Johnson (2011)

- The International Fleet Green Award o Previous winners: Akzo Nobel (2007) -

Hewlett-Packard (2008) - Bayer (2009) – Nokia Siemens Network (2010) – 3M Europe (2011)

- The International Fleet Safety Award o Previous winners: Shell (2008) – BP (2009) –

Coca-Cola Hellenic (2010) – Nalco Europe (2011)

- The International Fleet Mobility Award o Previous winners: Barilla (2009) – Accenture (2010) –

3M Europe (2011)

- The International Fleet Innovation Award o Previous winner: Vodafone (2010) – IBM (2011)

The jury of international fleet managers, lessors, car manufacturers, fleet specialists and people from Fleet Europe will nominate the finalists according to the evolution of their fleet policy, the implementation of key issues like sustainability, safety and driver behaviour and the view on cost control. If you are a fleet manager with an international scope and you and your company have achieved an optimization of the fleet management process and fleet management policy, you are the ideal candidate for this year’s Fleet Europe Awards.

aPPLY NOW! If you want to join please register at www.fleeteurope.com/awards or send an e-mail with your contact details to Steven Schoefs([email protected])P.40 FLEET EUROPE # 57

1 Personal RecognitionThe Fleet Europe Awards gives you the recognition and the reward you deserve, from your peers and

from international suppliers.

2 Team recognitionWinning an award is a way of showing your fleet team that all the hard work they have put into im-

proving fleet management has been worthwhile, and has been recognized at an international level.

3 PublicityBeing a candidate will also bring you media cover-age. The winners will be announced at the Fleet

Europe Awards ceremony in Cannes on 22 November 2012, which will be the closing event of the Fleet Eu-rope Forum 2012.

4 Professional developmentFeedback from the jury provides guidance and support from experts.

5 BenchmarkingThrough third-party recognition, you will be able to benchmark your fleet management against

others, and share your best practices with peers.

6 Meet other industry achieversAll nominees will be invited to attend the Awards ceremony in Cannes, a great opportunity to net-

work, share ideas and knowledge.

7 Internal communicationAnd winning an award, of course, is excellent news for internal communication throughout the

company.

International Fleet Industry award 2012For the third time, Fleet Europe will award a special prize for the innovative efforts of the Fleet Industry Suppliers: the International Fleet Industry Award. This Award highlights innovative approaches, tools, products or services offered by international fleet suppliers. Last year, the specific jury composed of fleet managers decided to reward the company Mobileye for their car application to enhance driver safety. If you are a fleet supplier with an innovative heart, you can be the next winner!

7 reasonsto participate

Steven Schoefs ■


on thewww

Everything that moves your fleet

m.fleeteurope.com

TwitterFollow Fleet Europe on Twitter twitter.com/fleeteuropetwitter.com/CarolineThonnontwitter.com/StevenSchoefs

LinkedInConnect with international fleet decision makers, yours peers and suppliers to exchange ideas.Linkedin.com/fleeteurope

Veerle Vallons (Norgine) & Maaike van Hemmen (KCI Europe)

KCI EuropeSector of activity: Medical devices

Fleet Manager: Maaike van Hemmen

Job title: Senior Manager EMEA Fleet

Number of years in post: 3 years

Countries in account: Austria, Belgium, Denmark, Fin-land, France, Germany, Hungary, Ireland, Italy, Middle East (Dubai), the Netherlands, Norway, South Africa, Spain, Sweden, Switzerland, Turkey and UK

Number of vehicles in account: 1,100; 700 passenger cars and 400 LCVs

Total number of vehicles: 2,600

Financing method: operational lease

CO2-limit: yes, 165 g/km for all levels

Tip for peers:“In every meeting, know your margin of negotiation. Know on which points you can compro-mise, and which points you definitely need to win.”

NorgineSector of activity: Pharma

Fleet Manager: Veerle Vallons

Job title: Global Category Manager

Number of years in post: 3 years

Countries under responsibility: Austria, Belgium, Denmark, France, Germany, Ireland, Italy, the Nether-lands, Norway, Portugal, Spain, Sweden, Switzerland and UK

Number of vehicles: 430, all passenger cars

Financing method: operational lease

CO2-limit: yes, 180 g/km for top management;160 g/km for other functions

Tip for peers: “Involve your stakeholders in every ma-nifestation of change, communicate clearly and cor-rectly, and don’t forget the driver.”

P.42

MANAGEMENT I Cross interview

This is the start of a new format: an interview with two international fleet managers. The first to take the plunge are Maaike van Hemmen and Veerle Vallons, fleet managers at KCI Europe and Norgine, respectively. Their shared aim: to improve fleet coordination and efficiency. This time, Fleet Europe is not the only party asking the questions. The interviewees also interrogate each other.

Maaike van Hemmen:“I still remember my first day at KCI Europe well. That very day, the company’s EMEA Central Company Car and Car Allowance Policy went live. I had just about four hours to go over it and make some adjustments here and there. The biggest pitfall was my lack of interna-tional experience. I just assumed that the methods of report-ing and the communications with suppliers and partners at a European level could and would be conducted in the same manner as in the Netherlands. But that’s not the case. Also, I quickly found out that you need to speak with the local de-partments of your international suppliers, and that too is an additional obstacle: they don’t all speak the same language - literally and figuratively.”

Veerle Vallons: “Cars are a sensitive topic. Almost everyone has an outspoken opinion on the subject, and what’s more: they’re convinced they’re right. This means that if you want to conduct a successful centralised policy, you’ll need to tear down quite a few walls, because you can’t please everyone. As fleet manager, it’s your job to formulate and defend the common interest, with respect for corporate strategy. That is anything but easy. Additionally, the introduction of a centrally coordinated fleet policy needs change management in the different national markets, because it’s subject to different cultures, different policy accents, and even different com-pany cars.”

You’ve also cut back on the number of suppliers. How did you accomplish that?M. van H.: “After the actual salary itself, the car is the most important aspect of the employment contract for the em-ployee. So you should know what’s on offer at your competi-tors, and you should determine your offer based on the mar-ket situation, and your own corporate strategy. That choice impacts the cost of your fleet policy, but it also determines your attractiveness as an employer. Also, you try to harmon-ise wherever possible, to keep the policy implementation as transparent as possible. That implies you limit the number of suppliers you work with. In the beginning, we dealt with 28 different leasing companies, now we’re down to four. We do check in every year with each of our national markets to determine whether our supplier choice is still justified. If necessary, we adjust - because our staff satisfaction is es-sential.”

V. V.: “We’re working on a manufacturer analysis, but our fleet is not sufficiently large to spark the spontaneous in-terest of the main brands. Which is a shame. For now, our drivers have free choice of brand, but I hope to harmon-ise this soon. Lease-wise, we work with a single preferred supplier, but with every order, we always check their offer against that of a local player. So it’s eminently possible that a leasing company other than our preferred supplier wins a deal. To follow through such situations, I’ve created a follow-up document myself, to manager the orders, the runtime of lease contracts, etc.”

at present, your CO2 limits are 180 g/km and 160 g/km for Norgine, and 165 g/km for KCI Europe. Isn’t that a bit on the high side?V. V.: “We’re competitive with our peers in the pharmaceuti-cal market, and every year, we manage to lower our CO2 av-erage through the introduction of new vehicles into our fleet. Of course, some companies have a lower CO2 average, but that is very sector-specific”

M. van H.: “Since a couple of years, I’m responsible for ad-justing our CO2 limits. When I arrived at KCI Europe in 2009, the sky was just about the limit. I then initiated CO2 limits, first at 175 g/km, then at 165 g/km. We now have a proposal to reduce our limit to 150 g/km. This is not a company ob-ligation, but a personal initiative, to challenge myself, our stakeholders, and the market itself.”

To what extent are you receptive to hybrid and electric ve-hicles?M. van H.: “When I started work at KCI Europe, I immediate-ly removed hybrids from our policy: the profile of our drivers is inconsistent with the appropriate use of hybrid technology. Our people average 48.000 km per year, to a large extent on the highway. Hybrids are not the ideal cars for this. Electric vehicles may be the future, but today it’s still too early. There are not enough models to choose from, they’re remarkably ugly, their range is very limited, the infrastructural and legal frameworks are still too vague.”

V. V.:“We operate a couple of hybrids in the UK, but we aren’t adding any to our fleet. That may have to do with the fact that the TCO of these vehicles is not attractive enough. We’re open to the introduction of new technologies, but that will take time: the different stakeholders must each approve of the idea, and need to know exactly what their role is, and what the consequences would be.”

Fleet ladies in the driver’s seat


MANAGEMENT I Cross interview

I compare my own fleet policy with the industry benchmark of the leas-ing company and the industry benchmark of Towers Watson. I blend these three together and then make a proposal to my Vice President. We determine in which countries we need to position ourselves on, over or under the mar-ket. Currently, the preliminary budgets are still drawn up without fuel costs, but I want to change that quickly. This places even more responsibility for vehicle choice on the driver - with driver participation of course. If you give your drivers a say, this creates an almost immediate understanding for any future change .”

What questions does Veerle Vallons have forMaaike van Hemmen?

How do you ensure that your car policy remains market-based?

What’s your view on fuel management?

Are you planning to start with a Mobility Policy?

At my previous employer, I chose to approach this issue in a positive man-ner, by competition together with the suppliers. Damage-free driving, fuel consumption and traffic fines were measured every quarter, and the ‘best in class’ were rewarded. After a mere 7 months we saw a marked improvement in damage levels, and fuel consumption decreased by 20%. The fun bit was that drivers started challenging each other. I want to revisit this exercise soon at KCI Europe. As for fuel card use, we should rationalise where possible but be careful to maintain competitiveness. At KCI, we have two fuel suppliers per country. Another tip is to ban so-called high-performance fuels, as they don’t improve our cars’ performance. Those fuels only start to produce benefits af-ter 160.000 km, which is more than our lease cars will reach.”

No. I still consider Mobility to be an over-hyped marketing concept. It’s my duty to guarantee the best mobility options for our staff, so they can do the best job possible. No matter how you look at it, to our people that still means the company car. Safety and Fuel are more important.”


Steven SchoefsPictures: Philippe Buissin, Imagellan

We don’t have a unified safety policy yet. Last year, my UK colleagues screened the behaviour on the road of their drivers via an online training course, followed by an evaluation. One section did not require further action, but a second group needed to follow an in-class training course. A third seg-ment had to go on an actual on-road course. Our subsidiaries in Germany and France have also sent people into training, but we’re treating this as a local phenomenon so far. We are continuing to analyse vehicle damage in closer detail, and take HR measures when appropriate.”

What questions does Maaike van Hemmen

have forVeerle Vallons?

Do you have a Safety Policy?

Do you have software to centrally manage fleet costs and savings?

Do you have a fleet tool?

Again the answer is: not yet. But from my position in the Purchasing de-partment, I have a good sense of the cost, and the savings we generate in re-lation to market values. Because we perform a ‘mini tender’ for each vehicle, we have different prices from different suppliers for each one. I start from the initial prices, average them to arrive at the average market price, which will serve as the basis for the cost/savings ratio. The final monthly lease rent I then compare with the base, and the difference is reported as a cost or a sav-ing - and this over a period of a year.”

No, but I did an assessment of three tools last year. I compared our cur-rent Excel-based reporting tool to some offers provided by the suppliers - and to the prices they charge for them. I’ve concluded that even though they record and analyse more data, our tool is sufficient for our reporting requirements today. In 2013, I want to revisit the assessment, because it would be useful to have an efficient tool that could quickly, simply and accurately analyse the data of our various leasing partners.”


MANAGEMENT I Procurement

Why purchasing helps to create value

In the corporate world, Purchasing and Procurement have to find the best suppliers in terms of quality, cost and lead time. For years, this has meant two things above all others: reducing cost and optimising the sup-plier portfolio. But that is changing. The aggressively price-driven attitude of many purchasing professionals has decimated the suppliers market. Here’s what the Brave New World looks like from a purchasing perspec-tive.

1. How to help create value?In the short term, Purchasing and Procurement are used to picking the easy, low-hanging fruit. But the profes-sionals in this field need to change the way they view the world. They need to switch from the classic ‘Win/Lose’ mindset to a more ‘Win/Win’ perspective. Where their at-titude still is determined by the maxim that to decrease price is to decrease cost, they need to grasp that to in-crease market share is to increase profit. So the question is not how to pay less, but how to sell more (i.e. increase market share) or sell better (i.e. increase profit).

2. How to add to value creation?Suppliers that help us sell more are those who bring large volume at low cost. The suppliers that help us sell better are those who generate innovation. How can we make sure we - and not our competitors - are chosen by those suppliers, in support of those strategies? The answer lies, at least partly, in the personal relationships we must build with those suppliers.

3. Supplier Relationship ManagementWe all need to develop a strategy to manage a supplier portfolio. We must be mindful on the one hand of sup-pliers in function of their importance in terms of spend or criticality, and on the other hand of the volatility of the market itself. All of us use the famous Peter Krajic matrix. We know that our relationship with our suppliers corresponds to the quadrant which we’re in. (see below)

Quadrants 1 and 2 are the easiest ones for Buyers. Quad-rants 3 and 4 are more critical, due to the market’s level of difficulty. In the latter quadrants, we normally try to be recognised by important suppliers as preferred clients, in order to secure volume or potential for innovations. That might sound straightforward enough in theory, but reality is a bit more complex: the relationship is determined by how well we fit with the suppliers, and how well we, the buyers, fit with them!

1. RoutineLarge product variety

High logistics complexityLabor Intensive

Systems contracting+ e-commerce solutions

Large supplyMany suppliers witha dependent position

Reduce number of suppliers

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Difficulty of the supply market

Low

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Alternative sources availlablePossible substitionCompetitive bidding

Many competitorsCommodity products

Buyer-dominated segment

3. BottleneckMonopolistic marketLarge entry barriers

Secure supply &search for alternatives

TechnologyFew, if any, alternative

suppliersSupplier-dominated segment

4. StrategicCritical for products costsDependence on supplier

Performance-basedpartnership

Market leadersSpecific know-howPower unbalance

Client continueswithout motivation...

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Importance for the suppliersto have us as client

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How to sell ourcompany to the supplier?it asks for in depthknowledge aboutthe supplier


ConclusionPurchasing and Procurement need to make a mental switch, and add to their company’s Value Creation. That’s a very new approach, one which depends largely on our relationship with suppliers…

The future of those relationships is rooted in the interactions we’ve been having with those very same suppliers over the last few years. These relationships should be based on trust and confidence. In other words: the company’s value of tomorrow is based on the values of today! ■

What is EIPM?The European Institute of Purchasing and Supply Chain Management (EIPM) offers the only executive MBA accredited by the AMBA, a complete certification programme for professionals, and in-companies programmes in nine different languages around the world.

Bernard GRACIA is Dean & Director of the EIPM






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General Motors Chairman and CEO Dan Akerson (left) with PSA Peugeot Citroën Chairman of the Managing Board Philippe Varin (right).

Philipp Waldmann and Bart Van Rossen both join the internatio-nal board of HPI Fleet. The new appointees will join chairman Steffen Giebler, and each will be responsible for a number of countries. Philipp Waldmann (photo, 48 years) takes on Ger-many, Austria, Switzerland, Italy, France, Spain and Portu-gal, while Bart Van Rossen (37 years) will be responsible for the UK along with Ireland and the Nordic countries.

BUsINEss I News

arval expanding after a good 2011Arval has reported an increased level of activity in 2011, despite the difficult eco-nomic situation. The BNP Paribas sub-sidiary now has a leased fleet of 687,000 vehicles in Europe, an increase of 3% on the previous year. The company pur-chased almost 211,000 vehicles during the year, beating the previous record set in 2008. There was a heavy increase in the number of cars sold, 191,000 – up by 28%. In its home country of France, Arval remains market leader, and in Europe as a whole it attributes some of its success to newly-acquired subsid-iaries such as Commerz Real Autole-asing in Germany. Arval is also making progress in emerging markets includ-ing Brazil, India and Turkey. Speaking of further geographical development, Director Philippe Bismut confirmed: “I am happy to announce that our pres-ence in Scandinavia will be reinforced by a subsidiary in Finland, which will be operational in the next few months”.

Significant growth for aLD automotive in 2011ALD Automotive has published a report on the year 2011 and what it expects to see in 2012. The report shows that the subsidiary of Societe Generale is

the second largest leasing and fleet management enterprise in Europe, and the third largest in the world, with some 917,000 vehicles under manage-ment in 37 countries. Growth in 2011 was in particular boosted by the United Kingdom, which grew by 23.3%, Italy (10.6%), France (9.8%), Belgium (7.3%) and Germany (6.3%). These five coun-tries represent a fraction under 80% of ALD Automotive’s worldwide business. But ALD Autimotive is also present outside of Europe, seeing 19% growth in the BRIC countries in 2011, and a massive 87% growth in Mexico. It now has 800 international accounts, having signed 33 new agreements in 2011. For 2012, ALD is predicting further growth, but at a more modest level. It expects to see fleet decision making become more and more international, and it also expects to gain market share in emerging markets.

gM and PSa Peugeot Citroën create a global alliance

General Motors and PSA Peugeot Citroën announced the creation of glob-al strategic alliance that has to contrib-ute to the profitability of both partners and to improve their competitiveness in Europe. The alliance is structured around two main pillars: the sharing of vehicle platforms, components and modules; and the creation of a global purchasing joint venture for the sourc-ing of commodities, components and other goods and services from sup-pliers. Each company will continue to market and sell its vehicles indepen-dently. GM and PSA Peugeot Citroën intend to focus on small and midsize passenger cars, MPVs and crossovers. The companies will also consider de-veloping a new common platform for

3 qUESTIONS TO

gIOVaNNI TORTORICI President A.I.A.G.A.

1. What is the a.I.a.g.a. and what are the objectives? The Italian Association of Fleet Buyers and Fleet Manager (A.I.A.G.A.) exists for about a year. Its main goal to train and educate on fleet management. We aim for the full recognition of the profession of car fleet manager, a responsibility that is part of the most advanced business strategies, and in this sense, our task is above all to share experiences and make them available to our members. Today, we count already around 100 members. The next step is the launch of specific working groups on common interest issues and specific events. The asso-ciation also represents fleet mana-gers to the official authorities.

2. What activities does the organiza-tion have ?In addition to a quarterly report, a barometer, which is presented to the automotive industry (manufacturers, rental companies and operators), we have created on online library of com-mon interest. We stimulate networ-king and sharing of experiences. Our next event is “Drive Car Company” in April 2012.

3. What is the most striking trend or main concern of the Italian fleet managers?Finding a balance between pressing demands of cost saving with price lists and fuel prices. Followed by the desire for innovation, but no great desire to invest. From this comes the idea of expanding the horizon of the Fleet Manager. Today, Fleet Manager, Mobi-lity Manager, Travel Manager, Purcha-sing Manager, IT Manager must work together with the same goal: Sustai-nable Mobility.

Caroline Thonnon ■


Norbert van den Eijnden, CEO of Alphabet International, was named VDO automotive Mana-ger of the Year in the Nether-lands. The award was created by the Dutch magazine Automotive and is sponsored by VDO, the automotive supplier.

arval UK has announced a number of changes to its executive manage-ment team. Following the divestment of the AllStar fuel card business, Robert Pieczka has returned to Arval UK as Business Development and Marketing Director. Fiona Hall, formerly Commercial Director, has left Arval and her role has been segmented to reflect the very different needs of Arval’s corporate and SME customers. As a result, Mike Curtis will lead the Corporate Sales Division and Elliott Woodhead will lead the SME division and third party partnerships.

3 qUESTIONS TO

JORDI VILa ONSES General Manager Corporate Sales Nissan Europe

1. Nissan has a clear fleet oriented ambition in 2012. How will corporate clients see this ambition translated?From 2011 to 2014 we want to increase our fleet sales by about 40%. Although 2011 was a good year, we are still under-represented in B2B sales. So we will concentrate on optimizing our central organization within Nissan Europe and our Regional Business Units in the different markets. We will have additional dedicated fleet sales people, we will develop our B2B mar-keting strategy and improve our pre-sence in the car policies of corporate clients by paying attention to dedica-ted after service, optimized TCO struc-ture and residual values.

2. Until last year Nissan had a sepa-rate sales organization for passenger cars and LCVs. That has changed now. What are the advantages of the new overall sales organization?As Nissan is convinced to grow on the private car market as well as on the LCV market, it is necessary to harmo-nize the sales strategy, so that we can service all clients in the most efficient way. The overall sales organization gives the B2B client and the lease company the opportunity to have one single point of contact. Of course there will still be specialized people and de-dicated expertise, but we believe that a harmonized and integrated sales structure is the best way to meet mar-ket needs.

3. What are the ambitions in 2012 with the Nissan Leaf? In Fiscal Year 2011 we plan to sell 5,000 Leafs in Europe to grow. In 2012 we are aiming to sell 8,000, with a fleet target of over 50%. But we will do it thoughtfully, developing a plan so to ensure a sustainable presence on the electric vehicle market, providing the clients the best possible ownership experience and the driver the best dri-ving experience. Steven Schoefs ■

BUsINEss I News

low emission vehicles. The first vehicle on a common platform is expected to launch by 2016.

athlon Mobility Consul-tancy takes First Smart Mobility awardOn March 15th in Brussels, Athlon Mobility Consultancy has won the first Smart Mobility Award for Innovation with the mobility management system Momas. According to the jury members – 18 buyers of fleet, travel and mobility from large international corporations - the main reasons for Athlon Mobil-ity Consultancy and Momas to win the Award are that the management sys-tem is a true mature one-stop shop so-lution addressing the various aspects of mobility, allowing to find the best possible travel combination, flexible and configurable to the needs of differ-ent organisations and/or countries and enabling many of the operational pro-cesses to be automated through and in-tegrated process workflow. The Smart Mobility Award, an organization of Fleet Europe’s sister magazine Smart Mobil-ity Management, was handed over by Belgian Federal Secretary of State for Mobility, Melchior Wathelet.

Hedef Fleet Services choses Miles from Sofico Arval has reported an increased level Turkish leasing company Hedef Fleet Services, has installed Sofico’s Miles software solution to manage its active fleet of 12,000 vehicles more effectively. Hedef is one of the top three leasing companies in Turkey and has around 1,500 fleet customers. To manage the growing complexity and to meet the ambitious expansion plans Hedef re-quired a new and powerful leasing and fleet management system. After an RFP, Sofico, whose systems manage

around 700,000 vehicles globally, was appointed as the software manage-ment applicant.

Opel ampera/Chevro-let Volt is Car of the Year 2012 The Opel Ampera / Chevrolet Volt has been elected as European Car of the Year at the start of the Geneva Motor Show 2012. The Ampera/Volt beats the Citroën DS5, Fiat Panda, Ford Focus, Range Rover Evoque, Toyota Yaris and Volkswagen Up! to the title of Car of the Year.

Orange opts for DS3Citroën has delivered 70 of its DS3 mod-els to mobile phone operator Orange in France. These form the first part of a total of over 200 of the model which will enter the Orange fleet. They are customised in appearance by having an orange coloured fibre-optic running down the side. Orange has selected the HD90 power unit, which limits average CO2

emissions to 98 grams per km.


allan Rushforth, Senior Vice President & COO of Hyundai Motor Europe, is convinced Hyundai can become a top 5 player in Europe in the years to come.

BUsINEss I Hyundai Motor Europe

Aiming the top 5in Europe

Hyundai has been making a mark in fleets for the past two years. The ix35, new generation i30 and i40 are beautiful examples of how Hyundai is becoming a car manufacturer that understands the needs of the European customer and the fleet business.

“But there is still a long way to go”, says Allan Rushforth, Senior Vice President and COO of Hyundai Motor Europe. “We have had four years of continuous growth and even in times of crisis Hyundai does well. Last year for example we sold more than 4 million vehicles worldwide for Hyundai as a brand and almost 6.5 million as a group, including KIA. We are the fastest growing car manufacturer. Our scope gives us a competitive advantage in markets like the BRICs be-cause we are present over there since many years.”

How important is Europe for a global player like Hyundai?Allan Rushforth: “It may sound strange, but it is prob-ably the most important market in terms of development and fleet opportunities. But we still have a long way to go. We have a market share of 3% in this very mature market, which means we have a good 2% of growth to go before we have reached our global average of 5.2% of market share. This year we are aiming for a 3.5% market share. Europe is very influential in how car brands are seen globally, so we have a lot to win in Europe.”

How important are fleet sales in Europe?A. Rushforth: “We would like to achieve a 50-50 split but more important is to improve our penetration in true fleet

and to sell cars to small and profitable businesses. Our challenge is to move from 60,000 fleet vehicles sold in Eu-rope last year to 100,000 fleet vehicles this year. In rental sales our objective is to do no more than 8-9% of total sales. The reason is to give our products visibility with potential customers who today drive other brands. Our ambition is to sell 500,000 cars by early 2013 and around the middle of the decade we want to achieve a 5% market share in Europe and after that we want to be amongst the top 5 manufacturers in Europe. Since 2008 we have seen 40% growth.”

How are you going to achieve these targets? A. Rushforth: “Firstly we are going to improve sales to fleet, secondly upgrade our dealer network, and thirdly we are going to give our brand relevance to European customers, to create Hyundai brand awareness and to increase the brand image. We realize that in the short term Hyundai is not go-ing to be a top 5 brand in Europe when it comes to sales, but we are convinced that we can quite rapidly become a top 3 player when it comes to service and customer satisfaction. We have a program to cover this ambition step by step and if you know a little bit about Hyundai then you know that this will become reality.”

What do you need to improve fleet sales? A. Rushforth: “First of all, fleet business centers. We will have 500 at the end of 2012 and these business centres are the perfect link with our fleet customers. We now also have a dedicated fleet team with a central organization and 28 dedicated local fleet managers, who can concentrate on corporate sales and on the relationships with our partners such as leasing companies and rental companies. And we have understood the importance of residual values and whole life cost so we have a Used Car Program under the name i-Best and there is of course our 5 Year triple care warranty without ownership and mileage limitations.”

Who are your competitors? A. Rushforth: “Our main competitor was and still is Toyota. If we look to the European market I see that we have begun to compete with French and even German brands. This is the best evidence that our brand is growing on the Euro-pean continent. In contrast with other brands the financial and economic crisis has been an opportunity for Hyundai to increase our sales as customers are open to new products with high value.” ■

Caroline Thonnon and Steven Schoefs


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BUsINEss I sortimo International

Using composite materials for in-vehicle equipment

Sortimo, the worldwide specialist in tailor made in-vehicle equipment, has presented. Its newest product globelyst C. The globelyst C prod-uct range consists of environmental friendly fiber composite materi-als which deliver not only a weight reduction of between 25 and 35 % compared to other materials but also bring strength and stability, water resistance and liquid tightness.

According to Sortimo, a weight reduc-tion of 100 kg reduces fuel consump-tion between 0,3 and 1 litre per 100 km with a reduction of 8 to 15 g of CO2/km. The new Globelyst C program will be on the market from Spring 2012 and will be offered alongside the current Sortimo Globelyst M range, where metal materials are used. Because of the intensive production process, the cost of fiber materials, and the highly sustainable character of the product, the cost price of the Globelyst C range will be higher than the Globelyst M range. But the price setting will cer-tainly be very competitive says Sorti-mo. Large corporates and large fleets will presumably be more interested in Globelst C than SMEs . The next innovation from Sortimo can be seen at the IAA in Hannover in September 2012, where the company will present the test pilot results of a Sortimo ap-plication for smartphones.

Thomas Pfalzgraf, Head of Interna-tional Business Development at Sor-timo International confirms that the development of the new Globelyst C program is the biggest step forward in the 40 year history of Sortimo. “Light weight development is es-sential for the future. The upcoming hybrid and electric vehicle technol-

ogy implies a battery that takes up space and weight, and thus reduces load capacity. Weight reduction on in-vehicle equipment is therefore im-portant”. The introduction of the Glo-belyst C program will be done step by step. “We will start still this year in our home market Germany, After the launch in Germany we will see how we will proceed with other markets, be-cause not only we at headquarter but also the markets have to be ready for this new product line. ”

2011 was an excellent year for Sor-timo. Can you repeat this in 2012?T. Pfalzgraf: “You are right that 2011 for us was a record year. In terms of sales and growth it has been the most important year so far. Between 2009 and 2011 we were facing the impact of the economic crisis. Orders were put on hold and clients were waiting be-fore investing in new tools and equip-ment. But from 2011 our order chain became back on track, with a turnover of more than 80 million euros for Sor-timo International, the division that is dealing worldwide with the in-vehicle equipment. This year we are confi-dent that we can continue our growth. There is an economic recession, and this means that the market slows down but on the other hand people are open to new things, so there are opportunities. We expect a lot from the German market, as German busi-ness people have the money but don’t want to invest in finance products but instead opt for investments that are good and secure for their businesses. And then we hope to grow in France, the UK, Scandinavia and the USA where we have a joint venture with Knapheide and already have 230 ser-vice stations.”

What about the emerging markets?T. Pfalzgraf: “We are already present in China, Thailand and Russia, but there we follow the fleet market and our fleet clients. In Brazil we are not yet active, but we are looking for the right moment to enter the market.” ■

Look for the best solution…The slogan of Sortimo is clear: Others may be cheaper, but never better. Thomas Pfalzgraf: “This slogan can be translated into smart advice. If you look for a solution, look at a complete business solution that fits your needs. Don’t opt for the lowest price only, but pay attention to the service network, the reactivity of the supplier and the total cost of ownership of the chosen product.”

Steven Schoefs


The trio at the head of International B2B Sales at PSA Peugeot Citroën : Ludovic Musy, Olivier Bodet and Stéphane Chesnel.

BUsINEss I PsA Peugeot Citroën

Reinforced B2Bcoordination on group level

at the beginning of this year, PSa Peugeot Citroën estab-lished a new entity, International B2B Sales, responsible for the fleet sector. The new organisation demonstrates the strategic position occupied by fleet at the highest level of the group, as confirmed by Frédéric Saint-geours, the new head of the Peugeot and Citroën brands who has taken over from Jean-Marc gales. Fleet Europe met Olivier Bodet, B2B PSa Peugeot Citroën, and Stéphane Chesnel, Head of Interna-tional Fleet Sales & Development at during the geneva mo-torshow.

Fleet Europe: What are the objectives of this new structure?Olivier Bodet: The principal objective is to generate more B2B sales, while always differentiating the Peugeot and Citroën brands. The new entity is in fact a coordination of 4 entities: Peugeot Professional International, Citroën Business Interna-tional, short term rental and TCO and finally the LCV team. This management structure thus takes on all of the company sales of the PSA Peugeot Citroën group.

Stéphane Chesnel: I am taking responsibility for the IFSD (In-ternational Fleet Sales Development) part which takes on the activities of Peugeot Professional International and Citroën Business International. The main focuses are: the IKAM team for large accounts, the long term renting team, back office in charge of assisting the sales teams and two business develop-ment teams. One of these is for Europe and the other for the major emerging zones. The objective is to expand the maturity and quality of our offering.

O. Bodet: Another entity which makes up International B2B Sales is international short term rental and TCO, which is the responsibility of Ludovic Musy.

What is the real reasoning behind this reorganisation?O. Bodet: The group has decided to return product manage-ment to the Peugeot and Citroën brands, along with strategic and operational marketing. In this way, the European Com-mercial Management structure can concentrate entirely on the business and its development, both at central and local levels.

What are the advantages for B2B clients?S. Chesnel: The major advantage is that the client is firmly at the centre of our concerns. At international level, our teams adapt to the wishes of the client. Some want to have a single point of contact for both brands, others prefer specific contact persons. Our teams are trained to respond to both cases. We organise ourselves around the client. We have also been work-ing to facilitate back office and logistics operations, which are

very important for the client, a real improvement in the quality of our service.

What will be the impact on fleet sales volumes?O. Bodet: The objective is quite clearly to allow the IKAM (Inter-national Key Account Managers) more time to be able to serve each client even better, and enable them to better develop re-lationships with new clients. ■

BRIC countries at the centre of developmentThe International B2B Sales division is also involved with countries growing rapidly, such as those of the BRIC.“In China, the B2B market is still in its infancy. There is talk of an explosion in sales from 2012, in 2013 and in 2014. At PSA Peugeot Citroën we are taking care to supply specific responses which take account of a different business model. We are getting ready to develop a TCO approach here. It should be noted that in China we have a product development entity. And the TCO strategy is taken into account from the conception stage of a vehicle. What are the levers which will influence the TCO? We really do find ourselves at the centre of this approach. We represent the voice of the client.”

Caroline Thonnon and Steven Schoefs


BUsINEss I Arval

Full service vehicle leasing still best business model, even in a crisis

Tero Tapala is the Director of Sales & Marketing at arval - BNP Paribas group. at the geneva Motor Show Fleet Eu-rope touched base with him for an insight in the trends at arval and in the wider marketplace.

FEU: Is the European leasing sector feeling the effects of the economic crisis?Tero Tapala: Full service vehicle leasing (FSL) as a business model has never been questioned. Companies understand the advantages. During the first crisis, we saw a reduc-tion in the number of company vehicles, especially in those companies that had to downsize their staff. But FSL itself was never questioned. I don’t expect this to change, even if 2012 turns out to be a year of deepening crisis. Of course, there will be further downsizing, driven by CO2 regulation and tax measures. This is what I’m seeing at this Geneva Motor Show. Hybrid is slowly becoming a normality. Last year, the electric vehicle was a real hype. Now I feel it’s a viable option, waiting in the wings. I don’t really see great changes ahead: everybody will keep fighting CO2 emissions. This is the real big trend, and one that influences directly the TCO.

are the trends the same everywhere in Europe?T. Tapala: “Considering Europe as a whole, we witness a small growth. However, the real motors of growth are Bra-zil, Russia - and Turkey and India are catching up. The first

and foremost demand out of these markets is for education and information on FSL, because most companies there still opt for vehicle purchase. The advantages of leasing are not yet well known. This is why it’s good that several international players are active in these markets. But usu-ally this takes time. In India, for example, the company car is part of the wage packet, as in Europe, but is paid for by the employee.”

What is arval’s geographic coverage these days?T. Tapala: “At present, Arval is active in 23 countries world-wide. We’ve just added Denmark, and our presence in Scan-dinavia will be reinforced by a subsidiary in Finland, which will be operational within the next few months. Globally, this represents a fleet of 687.000 leased vehicles, since we at Arval talk of leased fleet, this figure excludes fleet man-agement contracts. We have a lot of international clients with large fleets in Scandinavia, and those markets are ma-ture - hence the desire to set up shop there. After this, it’s important to keep our eyes peeled and be attentive to shifts in the market. Also, we regularly study growth opportuni-ties, as we’ve done recently in Spain and Germany.”

How do you see the global market evolve?T. Tapala: “PHH Arval Global Alliance is a partnership that covers on top of the 23 Arval countries North America, South Africa and other African countries, Japan and Thai-land, and others. It’s an alliance that’s gaining in impor-tance. We’re sensing that companies are again starting to think ‘globally’, and we’re seizing this trend to offer a true, global offering that provides real added value.”

What are the major trends among customers?T. Tapala: “The amount of international biddings is greatly increasing. In 2010, we had just over 60. In 2011 we already had 90. We think this number will increase further in 2012, by over 30%. These are existing customers, or companies that are not yet a customer of Arval but are looking for sav-ings. This increase thus is an indirect result of the economic crisis. Also, more and more fleet managers have been giv-en the green light by their management to internationalise their fleet.”

One last tip for managers?T. Tapala: “We’re witnessing over the past months a drop on the second-hand car prices . So, if the mileage allows it, the extension of a contract may be an economical option. … ■

Tero Tapala, Director Sales & Marketing: “The next big thing for Arval? To develop a few of our great ideas in 2012. “

Caroline Thonnon


Think Again. New Generation Hyundai i30. www.hyundai.com

Fuel consumption in MPG (l/100km) for New Generation i30 range: Urban 29.7-68.9 (9.5-4.1), Extra Urban 54.3-80.7 (5.2-3.5), Combined 41.5-76.3 (6.8-3.7), CO2 Emissions 159-97g/km.

Second impressions are even better.

210x297_i30front_SP_NC_FleetEurope_39L.indd 1 07.03.12 18:46


Think Again. New Generation Hyundai i30. www.hyundai.com

Fuel consumption in MPG (l/100km) for New Generation i30 range: Urban 29.7-68.9 (9.5-4.1), Extra Urban 54.3-80.7 (5.2-3.5), Combined 41.5-76.3 (6.8-3.7), CO2 Emissions 159-97g/km.

Second impressions are even better.

210x297_i30front_SP_NC_FleetEurope_39L.indd 1 07.03.12 18:46

growth in 2012Johan Verbois sees a bright future for Toyota Motor Europe. “Last year we sold more cars en closed more fleet deals than in 2010. hereby we have restarted our growth in Europe with the ambition to sell more than 1 million cars steadily and profitably.”

Johan Verbois, General Manager Fleet & Remarketing at Toyota Motor Europe, sees a bright future for Toyota and Lexus.

BUsINEss I Toyota Motor Europe

More consistency in new customer fleet approach

Since the beginning of 2012 Toyota Motor Europe has installed a new Fleet account Management approach that is acting proactively. Johan Verbois, general Man-ager Fleet & Remarketing at Toyota Motor Europe, ex-plains how this new fleet approach can help to realise Toyota’s ambitions in Europe.

“Before 2012 our fleet policy was focused on local fleet capabilities, such as the establishment of Business Centers and the recruitment of dedicated fleet people in the different countries. That exercise has been done. To-day my team counts 3 International Key Account Manag-ers (IKAM) that take care of the operational contact with the European and globally oriented fleet customers and that form the operational connection with specific leas-ing companies. The three IKAMs focus on headquarters in specific regions but on customer demand however they can be flexible and work whereever in Europe.”

Isn’t it strange that the IKaMs take care of the cus-tomer relation as well as of the contact with leasing companies?J. Verbois: “Not to me. In doing so you create more consistency within the team and towards the market. If someone were to leave the team, the other know exactly

what to do because they perform the same tasks. The knowhow is shared. On top of this, our approach encour-ages internal competition and commitment, which can never be a bad thing in a service-minded environment. Surely this means that all follow-up from my side will be more difficult, but the increased output and higher quality largely compensate for that. Besides, in the near future I intend to expand the fleet relations towards dif-ferent stakeholders such as procurement specialists, HR people and consultants. The use of social media can come in handy to strengthen and perpetuate these rela-tions.”

Does this new approach mean that Toyota resolutely opts for fleet sales?J. Verbois: “Fleet has been indicated as 1 of priorities by the Top Management. The accompanying slogan sounds. ‘Affordable cost of ownership based upon op-timal residual values and customer quality’. The inter-est in fleet sales is not to be doubted any longer. Our management and network realize the added value of it. Encouraged by the focus on CO2 and the development of fuel efficient technologies customers too, ask more and more for Toyota and Lexus fleet sales. We realize that our strategic approach on sustainability is appreciated by the fleet community because we bring a straightfor-ward message. What we promised 10 years ago weren’t empty words, but turned into daily reality.”

Is it true that Toyota explicitly opts for a global ap-proach in terms of fleet business?J. Verbois: “We certainly intend to do so, because we are a true global manufacturer. The strategy is to han-dle global fleet deals on the location where the client is settled. Internally we set up a global fleet management structure last year in order to be able to react to global customer questions.” ■

Steven Schoefs


fleeteurope.com

More news on

The French car leasing business is quite positive for 2012.

The European clearing house will not just help the network opera-tors and e-mobility providers, also car manufacturers and leasing companies will benefit.

sCOPE I News

Diesel prices increased by 44%According to a study of VAB (www.vab.be), the average diesel price in 8 Eu-ropean countries increased by 44% in comparison to June 2009. The global trend is that diesel prices increased more than petrol prices.

Car power taxed in ItalyThe new Italian premier. The pack-age, entitled ‘Salva Italia’ (save Italy) includes increased taxation on cars. A new ‘luxury’ tax of 20 Euros per kilowatt of power over 185 kilowatts has been introduced for cars, with this applying proportionally at 60%, 30% and 15% for cars which are respectively 5, 10 and 15 years old. The tax no longer applies when cars reach the age of 20 years.

New car market still suffering in 2012Research by JATO Dynamics shows that the uncertain economic situation con-tinued to hit the European car market in February 2012. Overall, sales across Europe were down by 9.5% compared to the same month in 2010, bringing the cumulative two month drop to 8.1%. All of the ‘big five’ markets fell, with France and Italy the worst performers,

both around the 20% down mark. Ger-many and the UK showed little change, and even Spain only recorded a de-crease of 2.4%. In brand terms, a slight drop (-1.6%, - 0.7% YTD) by Volkswa-gen failed to dislodge it from top spot, where its YTD sales of almost 250,000 are around 65,000 higher than second placed Renault, with Ford, Peugeot and Opel-Vauxhall all in the 145,000 to 162,000 band. The Volkswagen Golf continues to be Europe’s bestselling car (70,000 YTD).

More leased cars on French roadsFrench leasing association SNL VLD has reported that although the overall leasing market was slightly down in 2011 – by 1.4% j – the company mar-ket was actually quite well up, putting on 6.7%. The overall fleet on French roads operating under long term leas-ing also increased, by 3%, made up of 2.5% in pure long term leasing and 5.4 % for fleet management. Long term rental companies expect a further rise of similar proportions during this year.

Car and technology industries seto collaborateConnectivity has become a word and a concept much used in the domain of cars over recent months. Now, the KPMG Global Automotive Executive Survey shows that the growing con-sumer demand for built-in wireless communications in cars is likely to lead to more collaboration between compa-nies in the automotive and technology domains. A majority of global automo-bile industry executives questioned said that they believed that joint ven-tures and strategic alliances between their industry and the technology world would represent a successful invest-ment strategy. A third of those ques-

tioned said they intended to pursue such collaboration. The same propor-tion said that they expected a car’s connectivity to represent a consumer purchasing criterion over the next five years. According to KPMG Head of Au-tomotive John Leech, consumers will extend their expectations for instant access from the home to the car.

germany, Netherlands and Belgium develop clearing house for e-mobilityThree operators of charging networks for electric cars are developing a com-mon European clearing house for e-mobility. This joint initiative of the op-erators behind Blue Corner (B), e-laad (NL) and ladenetz (D), called e-clearing.net, will act as the central interface that

streamlines authorisation, clearing and a vast array of value-added services for e-mobility. A projected rise in e-mo-bility will necessitate a more compre-hensive solution. Interconnecting the growing number of systems, integrat-ing navigation and reservation options, and billing between providers, will be major tasks for e-clearing.net. The first applications will go online in June 2012, and will be free of charge for the first few years.

Pric

e di

ffere

nce

dies

el/p

etro

l

Comparison diesel prices

Feb.2012

Jun.2009

% increase

Luxembourg 1,271 0,88 44%

Spain 1,413 0,982 44%

Italiy 1,738 1,08 61%

Belgium 1,55 1,063 46%Netherlands 1,499 1,089 38%

Switzerland 1,61 1,099 46%

Germany 1,559 1,134 37%

France 1,55 1,158 34%

average 34%

Evolution prices petrol versus diesel

-0,2

-0,1

0

0,1

0,2

0,3

0,4

0,5Feb/12Jun/09

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FR


The message today is ‘plan be-fore you act’ but beyond that look to be able to use your purchas-ing power as well as utilising the economic downturn to imple-ment structural changes for the business as it will emerge in the recovery.

sCOPE I The Eurozone

The Eurozone crisis seems to have been with us forever. Politicians have been talking around the greek situation for four years, even before the most recent euros 130 billion bailout. Without seeking to allocate blame or identify inde-cision the crisis is here and has to be resolved and it has an impact on the European fleet business.

The delights of common financial policies and the rarefied atmosphere of shared fiscal disciplines and defaults are beyond these current notes. But is the current Euro-crisis different from a business viewpoint from than any other re-gional crisis?

The Finns had a crisis twenty years ago and came out of it through their own efforts. Sweden and the United Kingdom too have had crises and worked their way out without so much as a sniff of teargas. Currently Portugal and Ireland are patiently getting on with austerity returning to economic normality.

Eurozone GDP fell by 0.3% quarter on quarter in the fourth quarter of 2011, with few economies escaping contraction. This is the first drop overall since third quarter 2009, although since second quarter 2011, growth has been faltering.

While Germany may be showing the first signs of bottoming out and possible recovery it is likely the rest of the Eurozone will continue to contract overall in the first and possibly sec-ond quarters of 2012.

The sheer fragility of the financial and banking situation in the Eurozone is underlined by some transnational organisa-tions at the close of business each day transferring cash to London and into sterling.

The common characteristic of changes in the Eurozone has been the reluctant acceptance that nations have been spending more than they have earned and now have to contract. That means overall tightening of fiscal poli-cy, a loss of services and a squeeze on consumer pur-chasing power, growth and overall business sentiment. ........................................................................................

A New Sort of Crisis


a Fleet Operators Tool Kit- Use Eurozone purchasing power- Match local fleet supply and

demand & look for deals- Predict future used vehicle

residuals- Ruthlessly dispose of used

vehicles & other assets- Restructure & reorganise fleet

for future not historic require-ments

- Look for the best deals – from OEMs & leasing companies

- Match/exceed austerity else-where in the business

sCOPE I The Eurozone

The Fleet Operators’ DilemmaFrom the pan European fleet opera-tor’s viewpoint, the critical issue is one of balance – where will business hold up, where will it develop or contract, what will be the implications for fleet – and are there any opportunities for real benefit?Vehicle sales in the Eurozone are an interesting measure of change. Re-duced sales mean massive discounts may be offered by all OEMs. While these may encourage some incre-mental sales even if only private units being replaced ahead of time, what might it mean to the fleet operator? Is this an opportunity to negotiate an updating of the fleet on advantageous terms in individual countries even if not right across Europe?The used car equation must be taken into account of course. Would any highly advantageous new car terms be wiped out by failing residuals? The equation is further complicated by looking ahead to the replacement of those possible new units. In 3-4 years’ time there will be a shortage of used cars with the associated price impli-cations.Consider some of the individual mar-kets; - In France, for instance, there has

been an 8% rise in forecast residu-al values in the last year, a vote of confidence in used vehicle prices. Rental rate too have stayed remark-ably stable across the year. A sign of a market on the cusp of a recovery – if so, what might be the fleet im-plications?

- Germany, the strong man of Europe, has reported, according to expert-eye’s European Leasing Index report, shown a reduction in the last quarter of 2011 of 1.3% in rental sales with a reduction over the year of 4% in val-ue terms while residual values have shown a significant improvement.

- Italy might be reported as present-ing the least optimistic used vehicle market in the last year. Over that pe-riod there was a 1.5% rise in forecast residual values but a 3.2% reduc-tion in the last quarter. Lease prices have, in the last quarter, shown a 0.5% reduction but overall a 1.6% rise since May 2010.

- Spain tops the European league in terms of confidence in the future de-spite its 20% unemployment figures

and 50% youth unemployment. Over the last year there has been9.7% in-crease in residual values although that has stabilised in the last quarter with a 0.8% decrease. Spanish leas-ing customers have, in the last year seen a 3.5% drop, of which 0.8% re-duction has come in the last quarter.

Such figures are indicative and may be repeated across the Eurozone. It has been suggested by more than one Pan European fleet manager that ‘merely surviving is a good start’. That chal-lenge may well not be as far from re-ality as it seems. Economic recovery through Euro-zone restoration is on the cards – but when? And, in the meantime, what is the most acceptable strategy for a pan European fleet manager?The simple answer is ‘nobody knows’ the real answer to either question. The role of the fleet executive is to provide business mobility at the best possible cost; stretch that to Euro-zone and it may become a little more complex. The answer is probably one of ‘think Eurozone – act local’ – quite simply run each market as an inde-pendent fiefdom seeking the most cost effective operation in the market – but watching carefully what is hap-pening in the surrounding countries. Are there cost reduction – or increas-es - changes which you might be able to utilise with your suppliers?One caveat – if the fleet is being up-dated then be sure to update it to fu-ture requirements and not to match past business models which may need to be changed.

The Case for the OEMThe OEM has an even bigger dilemma than the fleet operator. Vehicle manu-facturing capacity in the Eurozone is much greater than demand yet there are many deals between OEMs and national governments to retain pro-duction and employment.The low demand and enforceable manufacturing deals could create problems of large unsold inventories. Answer? Find a way of reducing ca-pacity or enhancing the value added of the vehicles which are manufactured. Result? Reduce the mix of smaller vehicles and focus on larger vehicles in the range – at least one OEM is al-ready doing this.But who will buy those units? Fleet

operators and leasing companies are generally the biggest buyers, but com-panies are holding back on vehicle re-placements and even downsizing their fleets. More aggressive pricing would appear to be one answer – but what will that do longer term to residual values if some classes of units are steadily being discounted?Is this a case where OEMs need to stimulate the used car market?

Where Next?‘Retrenchment’ is not an attractive word but it is highly germane to the Eurozone fleet industry during the crisis. The fleet operator needs to bal-ance supply and demand and be ruth-less in disposal if units are ahead of requirements looking to come out of the trauma with a modern, cost effec-tive fleet. The OEM and leasing com-pany have an equal challenge in terms of ensuring excess volumes are not offered at unrealistic prices – short term sales are all very well but further down the line a used vehicle market needs to be protected, even if volumes to market are reduced.At all levels of the fleet supply chain the message is ‘plan before you act’ but beyond that look to be able to use your purchasing power as well as utilising the economic downturn to plan and implement structural chang-es for the business as it will emerge in the recovery. ■

Professor Peter CookeUniversity of Buckingham, UK


fleet europe 57

Documents

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