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21.02.08
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HELRPINGA
N
YO EAUPER
U
CH ANER
CLE FER Business motoring strategy and finance
SA ET
FLE
2 21.02.08 www.fleetnews.co.uk
Tax evasion
costs £80m Confusion over IN BRIEF
Jaama seminars
congestion fees
Road tax evasion is set to cost the Jaama is to host a
Government nearly £80 million, nationwide series of
despite the widespread use of ‘Fleet Management
automatic number plate recogni- Essentials’ training days.
tion cameras to catch law The all-day training
breakers. seminars will be held at
The Department for Transport BY DANIEL ATTWOOD cles help pay for the environmen- 14 locations across the
(DfT) estimates that £79 million tal damage they cause.” UK, beginning in
in revenue will be lost this year A warning that the latest changes Mr Livingstone, who is hoping Rotherham on March 4
due to road tax evasion, which to London Congestion charges for re-election in May, empha- and running through to
amounts to 589,000 could be altered again have left sised that the aim of the charge November 18 in
unlicensed vehicles on the fleet managers confused. was still to tackle congestion. Brentwood. For further
roads. The new charges introduced This is despite independent details go to www.jaama.
Just weeks ago, the Commons by mayor of London, Ken Living- research which said the changes co.uk
Public Accounts Committee stone will come into effect on will increase the number of vehi-
quoted the number of unlicensed October 27 and will now be emis- cles coming into the capital and Tyre deal
motorcycles at 40% (Fleet News, sions-based. do little to cut CO2 emissions. Reflex Vehicle Solutions has
31 January). Drivers of cars and twin-cab Motor manufacturer and car agreed a nationwide
However these figures have pick-ups that emit more than dealer associations have contract with ATS Euro-
now been significantly reduced. 225g/km of carbon dioxide (CO2) condemned the changes: “It is master that will see ATS
According to the Driver and will be forced to pay £25. questionable if the plan will supply and maintain tyres
Vehicle Licensing Agency However, cars that produce achieve its aim of further reduc- across Reflex’s mixed fleet
(DVLA), the body charged with 120g/km or less of CO2 and also ing central London traffic levels of 6,500 vehicles.
catching tax-dodgers, just 9.8% of meet the Euro 4 air pollution Sub-120g/km cars will escape and overall emissions,” said Alec
Britain’s motorcycles are emission standard will be able to the congestion charge Murray, chairman of the Retail Inchcape deal
untaxed. enter the capital for free. Motor Industry Federation. Inchcape Fleet Solutions
David Taylor, chief executive Vehicles that fall between the may be changed in the future, And Paul Everitt, chief execu- has won a three-year
of the Motor Cycle Industry two figures will be charged £8. leaving fleets uncertain about tive of the Society of Motor Manu- fleet contract with
Association, said: “The DfT The changes tie in with the how long the exemption for sub- facturers and Traders, said: “This Wesleyan Assurance
should be embarrassed and proposed new bands for company 120g/km car, will stay in force. is totally disproportionate and Society, which operates
should apologise to the vast car tax that will be announced in This means that fleets are does not present a consistent 300 company cars. The
majority of riders who do pay March’s Budget. unclear whether sub-120g cars signal to consumers.” dual badge General
VED.” This means fleets opting for they order now could effectively Sheila Rainger, acting director Motors (Saab and
The DVLA also found that 5.2% sub-120g/km cars will save on tax be pushed back into the charge for the RAC Foundation, said the Vauxhall) and Audi fleet,
of other vehicles, including cars and congestion charges. “Even if catchment pool. changes will “confuse the public is funded on contract
and LCVs, continue to evade drivers rarely visit the capital, “Nobody needs to damage the and reduce support and trust for purchase with the mix of
duty. businesses will still benefit from environment by driving a gas future initiatives”. She accused petrol and diesel cars
Liberal Democrat shadow lower taxes and running costs if guzzling Chelsea tractor in central the mayor of “political gesturing” run on a three-
transport secretary Norman their drivers choose low-emission London,” the mayor said. “The ahead of the election. year/60,000-mile
Baker said: “The DVLA must cars,” said Mark Sinclair, director CO2 charge will encourage people One group backing the move replacement cycle.
redouble its efforts to clamp of Alphabet. to switch to cleaner vehicles or was Friends of the Earth saying
down on tax evaders.” But the mayor warned that the public transport and ensure that it will be supported by most QEK renamed
new scheme is “flexible” and that those who choose to carry on Londoners. Following its acquisition in
Cat’s eyes get both the charges and exemptions driving the most polluting vehi- daniel.attwood@emap.com 2007, Paragon Automotive
has renamed QEK as
www.fleetnews.co.uk 21.02.08 3
NEWS
become compulsory
TomTom has launched a
content-sharing platform
which allows users to
download, upload and
share navigation content
with other users at no
additional cost. The
BY STEVE MOODY fuel costs, but only marginally,” platform will be available
said a spokesman. on the latest version of
Fleets will face increasing fuel “From the perspective of motor- TomTom HOME for both
bills and vehicle emissions from cyclists, there is a reasonable PC and AppleMacs.
2012, but possibly fewer acci- body of European evidence to
dents, after the Government and a suggest that DRL will compro- Duty of care
number of safety organisations mise safety as motorcyclists won’t Nationwide Autocentres
lost their battle to stop daytime be able to be seen as easily by has launched a 19-point
running lights becoming compul- motorists.” duty of care inspection
sory on all new vehicles. A review in 2006 by the DfT of service ahead of the new
Although daytime running the reports from the European Corporate Manslaughter
lights (DRL) seem a safety benefit, Commission on DRL questioned Act. Brakes, steering, shock
giving motorists higher visibility, the level of claimed accident absorbers and wheel
many road safety groups, includ- reduction, although agreed there cylinders are included in
ing RoSPA, argue that motorcy- would be some improvement. the inspection, which costs
clists, cyclists and pedestrians will “There is substantial evidence £25.
be in more danger as the glare that the mandatory use of DRL
could be a distraction, and make would provide a net accident Little Buddy help
non-DRL users less visible. Daytime running lights are to become compulsory on new cars reduction,” said the review.
In addition using headlights at The DfT said the commission’s
all times could increase fuel usage lights in accordance with the rele- is that fitting them to all vehicles assumption of a 15% improvement
by up to 1.5%, a Department for vant European directive. By will remove the relatively high on fatal accidents was “weak” and
Transport (DfT) report has summer 2012, all new vehicle visibility that motorcyclists that reductions of between 3.9%
claimed. types will have to be so fitted.” currently enjoy.” and 5.9% was more realistic.
Transport minister Jim Fitz- Kevin Clinton, head of road This is a view shared by the The report’s authors added that
patrick said: “From early 2011, all safety for RoSPA, said: “We don’t UK’s motor manufacturer’s body, there would be an increase of Windscreen replacement
new types of passenger cars and think that the evidence justifies the Society of Motor Manufactur- between 0.5% and 1.5% in fuel use provider Autoglass has
light vans will have to be fitted daytime running lights on vehi- ers and Traders. “We believe the and carbon dioxide emissions. introduced a new lifting
with dedicated daytime running cles in the UK. Our main concern introduction of DRL will increase daniel.attwood@emap.com and positioning device –
the Little Buddy – to
allow a windscreen
Leasedrive deal
Arnold Clark New car registration fees rise forecast Leasedrive VELO Rental
name change From April 1, the first registration and will take the total paid by could be the basis for further
Management has been
named as the sole
Leasing company Arnold fee for new cars will rise 10% from companies and private motorists changes to motoring taxes in vehicle provider to the
Clark Finance has £50 to £55 per car, according to who are liable to pay the tax to March’s budget.” broadcast and media
changed its trading name the Society of Motor Manufactur- £128 million a year. However, a spokesman for the solutions company
to Arnold Clark Vehicle ers and Traders (SMMT). “We hope this is not a move by Treasury has denied that any Arqiva. Leasedrive will
Management (ACVM). While the increase appears the Treasury to plug holes in its decision on increasing the first provide online booking
ACVM is the largest minimal, it will add substantially finances,” said SMMT chief exec- registration fee or Vehicle Excise and an all-inclusive
dealer-based leasing to the costs facing businesses utive, Paul Everitt. Duty, which is also rumoured to pricing policy, including
company in the countr y, registering several hundred cars “In the grand scheme, an extra be increasing in the upcoming free unlimited mileage.
managing a fleet of more a year. £11 million in tax and a fiver for Budget, has been made. The contract covers both
than 100,000 cars and According to the SMMT, the new car buyers might not sound The Budget will be delivered short and medium-term
light commercial vehicles. move will generate an additional like much. However, we fear that by Chancellor of the Exchequer vehicle rental.
£11 million for the Treasury this ‘every little helps’ approach Alistair Darling on March 12.
www.fleetnews.co.uk 21.02.08 5
EUROPEAN NEWS
www.fleetnews.co.uk 21.02.08 7
NEWS
Maximising future
their driving performance. The EU-funded DRUID Belgium, which is co-ordinating
The project is the latest in a (Driving under the Influence of the project, aims to check 4,000
string of initiatives to provide Drugs, Alcohol and Medicine) drivers, some having been
www.fleetnews.co.uk 21.02.08 9
�������� This week’s vehicle market news and information Edited by Julian Kirk
GM’s blue light fleetpxp p12
A creditable alternative
BY PHILL TROMANS Citroën has moved away from
its historical sales techniques of
The forthcoming Citroën C5 cashbacks, which Mr Hughes
marks the completion of a range said were misunderstood.
that the French maufacturer “We’re putting more focus on
hopes will offer a credible alterna- residual values,” he explained.
tive to established fleet marques. “All the communication now talks
Citroën believes that C5 is a about ‘prices from’ and consumer
key fleet vehicle, with business offers, finance offers. No cash-
sales expected to make up 70% of backs have been placed on any
all vehicles sold when it is vehicle since I arrived.
launched in April. “We have worked tirelessly
With Citroën’s share of the fleet with the residual value guides and
market increasing over recent developed a level of belief and
years, mainly thanks to the C4 trust that we have followed
Picasso MPV, the company’s head through on. Residuals have been
of corporate sales, Ian Hughes, a real key step change and some-
said the C5 would carry on that thing that we have worked very
impetus. hard on.”
“We’re going to give society a In 2007 Citroën saw its fleet
bit of a jolt to try and stop people Fleet boss Ian Hughes (inset) expects the new C5 range to be a key fleet vehicle for Citroën market share rise by 10% in cars
in their tracks, to suggest that and 5% in vans.
there is an alternative vehicle to credibility in the marketplace on not expecting to sell anywhere cant and we’re going to go toe-to- “Other manufacturers have
consider that has all the attributes the back of the C4 Picasso. But near that – we have a reputation of toe with those guys. suggested that this sector is all
of the cars they are used to the C5 is tailored towards the user coming in to this market and “This is a very credible vehicle about quality and no style. We
buying, but with a flair and punch chooser and fleet market. doing well, but the game has and with this, the C-Crosser SUV passionately disagree. Style is
that’s really rather audacious,” he “This is massive for us, the changed. and C4 Picasso, we have a strong part of our history and we think
said. equivalent of the Xantia, which in “The arrival of the German complement of vehicles in the you can combine style and high
“We’ve built our reputation and its heyday sold 40,000 units. We’re marques has been very signifi- £18-£20,000 bracket.” quality in the same packaging.”
THINKING CAP
Hardworking Martin Ward scours the globe for the week’s insider fleet intelligence
MONDAY unkind, but it is based on its cars externally, but now watched by six of those
Went down a ver y busy M1, the H-1 van which is due puts a small sticker on the Highways Agency traffic
as always, to the Midlands to early next year. A-pillar stating exactly what officers – how annoying is that?
have a look at some The i50M, which goes on the car is, its engine size and
forthcoming models from sale in June, is following the power output. THURSDAY
Hyundai. Unfortunately, they ‘i’ badging that Hyundai has The third car we looked at I’ve been using a Fiat 500
were ver y early pre- chosen to use for all its was the i30 estate which over the past week, and I
production vehicles so I models – with the M goes on sale in April and will think Fiat has done a
Fiat 500 is priced realistically
wasn’t allowed to drive them. standing for MPV. be priced at £700 more than fantastic job on this Polish-
The first was the eight-seat The second ‘i’ we saw was the hatchback. built small car. The quality is
i50M, a van with windows the i10, which is the Amica good and the styling both histor y. If it had been used
and seats, which is similar in replacement and due on sale TUESDAY inside and out is a master- in The Italian Job instead of
size to a Volkswagen in early April. The styling of Set off from Yorkshire to Luton piece. It is also priced the Mini, then it might have
Transporter or Toyota this small car is a huge airport to fly down to Nice for realistically. been more easily recognised.
Hi-Ace. To call it a van with improvement on the Amica the revised Mercedes-Benz SLK But does it attract the This little car is great in
windows is probably a bit and should appeal to a wider launch, but due to an accident attention the Italians told us most departments, but Fiat
age group. Only one engine on the M1 I missed the flight. it would at the Turin launch? is going to have to create
will be available at launch – a After many hours sitting in In a word – no. demand for it and not
1.1-litre 66hp petrol, but a the car, I finally made it to the In Italy and across Europe depend on nostalgia. My
1.2-litre 75bhp version may incident. The road was down to ever yone has grown up with daughter, and most of her
become available later. the hard-shoulder, with all three the old 500, which has not friends, have never heard of
There will be three models lanes covered in sand, presum- only been the family run- the Fiat 500. One saw it and
at launch: Classic, priced at ably to soak up a fuel spillage. about but also an icon. thought it was a Ford Ka!
£6,495, Comfort at £7,095 The sand was being brushed Here in the UK, it would
Martin Ward is
Hyundai’s new i10 and i50M and Style at £7,595. into the central reservation by appear that ver y few people CAP’s manufacturer
Hyundai no longer badges one bloke and his brush, know about the 500 and its relationships manager
10 21.02.08 www.fleetnews.co.uk
Eco Bravo driven p15 Lexus IS F tested p15 MINI Clubman on test p19 Long-term update p20-21
IN BRIEF
www.fleetnews.co.uk 21.02.08 11
Trimble Vehicle Tracking Solutions
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To find out which one of our
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14 21.02.08 www.fleetnews.co.uk
NEW LAUNCHES: FIAT BRAVO 1.6 MULTIJET/LEXUS IS F
www.fleetnews.co.uk 21.02.08 15
You’ll get vital information on your
fleet from reports such as:
your fleet?
18 21.02.08 www.fleetnews.co.uk
ROAD TEST: MINI CLUBMAN COOPER D
P11D PRICE
■ Nissan Qashqai
1.5 dCi Acenta
■ Volkswagen Golf
estate 1.9 TDI S
The Clubman adds practicality but retains the icon’s difference The Clubman is cheapest, but has
the smallest boot space and no air-
Clubman £15,315
A-Class £15,507
con. The A-Class includes air-con but Golf £15,555
has 15-inch steel wheels against the Qashqai £16,234
MINI’s alloys. The Golf offers a big features cruise control, parking
boot, but for £700 extra the Qashqai sensors, climate control and more.
SMR COST
Over a fleet life of three years/ ppm/60k total
60,000 miles, the A-Class, with its A-Class 2.65/£1,590
variable service intervals, is the Clubman 2.77/£1,662
Golf 3.01/£1,806
cheapest car to maintain. But the
Qashqai 3.61/£2,166
MINI, with10,000 and 15,000-mile
checks, and the Golf, with VW’s behind. In fact, only around £600
BY PHILL TROMANS The excellent handling of the variable servicing, are not far separates first place from last.
FACT FILE hatchback is admirably retained.
Seldom had the car world seen
more controversy than when P11D value £15,315
Some say the Clubman is not
quite as agile, but unless you
FUEL COST
BMW launched the new MINI CO2 emissions (g/km) 109 drive the two versions back-to- Thanks to a combined mpg of 68.9,
BIK % of P11D in 2008 13% Clubman 7.21/£4,326
back in 2001. Many fans of the back you’d be hard pressed to the Clubman romps home when it A-Class 8.63/£5,178
Graduated VED rate £35
original Issigonis-penned icon Insurance group 8 tell. It’s almost go-kart like in its comes to fuel spend, partly thanks Qashqai 9.16/£5,496
were outraged by the inflated Combined mpg 68.9 ability to whip round corners, to the stop-start system included as Golf 9.16/£5,496
parody of their beloved classic, CAP RV (3yr/60k) £7,450/49% although some may find the ride standard. The Mercedes-Benz makes Nissan and Volkswagen, which both
but the wider public were smitten Monthly lease (3yr/60k) £265 rather firm. 57.6mpg, putting it ahead of the return 54.3mpg.
by its cute looks and nippy ■ Looks Another unique feature is a
performance and more than a
million have been sold world- ✔ ■ Handling
■ Frugality
right-side suicide door to allow
passengers easier access to the
DEPRECIATION COST
wide. back. Great in Europe, but not so The Golf, A-Class and Qashqai are all Clubman 13.10/£7,860
Until recently, the range ■ Sparsely equipped good in the UK where passengers thumped by the rock-solid residuals Golf 16.05/£9,630
consisted of various flavours of ✖ ■ Small boot
■ Silly suicide door
are disgorged into the road. of the MINI. The Clubman has a CAP A-Class
Qashqai
16.97/£10,182
18.05/£10,830
hatchback. But now there is the MINI is selling the Clubman as RV of 49% and will cost almost
Clubman. a more practical alternative to the £2,000 less in depreciation over three placed Golf. It has an RV of 38%, the
Immediately, more furore 260 litres. Fold the rear seats hatch, but don’t be fooled. While years/60,000 miles than the second- A-Class 34% and the Qashqai 33%.
followed its announcement, as down and you get 930 litres of the boot is undeniably bigger than
critics correctly noted that the
twin opening rear doors of the
space.
BMW has crammed in all sorts
the hatch, it’s still tiny.
Rather than being a family car,
WHOLELIFE COST
new car were not derived from of emission-reducing technology the Clubman represents an alter- The Clubman is easily the cheapest Clubman 23.08/£13,848
the original Mini Clubman, but as standard, including start-stop, native to the modern ubiquity of car to run over three years/60,000 Golf 28.22/£16,932
from the Morris Mini Traveller brake energy regeneration to the hatchback. It’s still cute, it’s miles. Strong residuals, an econo- A-Class 28.25/£16,950
and Austin Mini Countryman. charge up the battery, and a gear- still a great drive, and it’s still mical engine and decent SMR costs Qashqai 30.82/£18,492
Everything forward of the B- shift indicator for optimal fuel effi- rather impractical, but it is that make it more than £3,000 cheaper to is very close behind, but the Nissan is
pillar is identical to the hatchback. ciency. As a result, the 1.6-litre little bit different and that should run than the Golf. The Mercedes-Benz £1,500 more expensive again.
Those who know the hatch will engine emits just 109g/km of CO2 guarantee it success, even if, at
feel instantly at home inside as all
is very familiar, from the huge
and boasts a combined fuel
economy of 68.9mpg.
£15,315 with a sparse level of kit,
it’s far from cheap.
VERDICT
central speedometer to the pleth- Picking a winner here is more difficult than it first appears. The
ora of toggle switches adorning MINI Clubman is miles in front when it comes to cost, but if
the dashboard and roof. drivers want any extras – such as air conditioning – then the
The Clubman is 24cm longer price will very quickly start ramping up. Although it’s great to
than the hatch and offers 8cm drive, it’s not particularly practical. The Qashqai has piles of
more legroom to rear seat passen- luxuries as standard, but is much more expensive. Ultimately in
gers. But it’s the boot that people fleet, cost has to be a big priority, and for that reason the
will notice. The split rear doors Clubman takes it.
divide opinion, but they open to
reveal a boot space increased by ■ WINNER: MINI Clubman Cooper D
100 litres over the hatchback to
www.fleetnews.co.uk 21.02.08 19
LONG-TERMERS: HONDA CR-V 2.2 i-CTDi EX/AUDI TT 2.0 TFSI
A
lphabet: BMW’s own spaghetti soup of a leasing company – or a serious
multi-marque player?
It’s certainly serious enough to have made impressive progressive
over the past three years, even though it has climbed just one place up
the slippery pole of the FN50 leaderboard.
In 2005, Alphabet was the 13th biggest contract hire company with 28,000 vehicles
on its books. A year later, the company had trodden water: 13th, but the company’s
book had gone up to 36,470 vehicles.
And now, in the 2007 list, Alphabet is 12th, but this time with 40,588 vehicles: a 45%
upswing on 2005. Some result. No wonder, then, that Richard Schooling (right),
commercial director, was smiling when I met him.
Just the day before our interview, BMW had recognised this achievement by
promoting Richard to chief operating officer, with increased responsibilities for BMW
Group Financial Services.
Also with Richard was Mark Sinclair (left). Mark takes over as head of Alphabet
from Richard. Trained as a chartered accountant, and with a CV that includes BMW
Financial Services and seven years with Alphabet, we’ll be hearing more from Mark
in the future.
So, two for the price of one: can’t be bad. Fleet News should get the proper low-
down on Alphabet, then.
Let’s start with Alphabet as a multi-marque leasing player. I always thought Alpha-
bet was a good way of disguising the company’s owners, because it distanced the
contract hire company from the holding company’s own products.
But is Alphabet serious about being multi-marque, or is Alphabet just another
channel for selling BMWs?
“Calling ourselves Alphabet obviously helps. And while we fund all BMW manage-
ment cars, we do have very good relationships with the likes of Lexus, Audi,
Mercedes-Benz, Nissan and Volkswagen. Being called Alphabet certainly helps with
any political sensitivities there,” says Richard. “But we must have strong relation-
ships with these manufacturers to operate as a multi-marque company.”
But surely the lustre of the blue and white BMW propellor plays a part in the attrac-
tiveness of Alphabet to companies?
“Well, yes and no,” counters Mark. “In some ways BMW is so powerful as a marque
it often outweighs any advantage. But, on the other hand, it does give us financial
stability.
“The other thing is, we don’t do special deals on BMWs, even though that’s the
market perception. Other companies can get better discounts than us! But obviously
we have a focus on BMW so we do well on contract hire with them.
“But really the customer decides where the value lies. For example, Alphabet has
one of the strongest residual values in the market on Audi. In fact, we’re strong on all
the premium brands,” continues Mark.
“Our cars have a good reputation in the used market. They are rarely over three
years old, they’ve been well looked after and have a low mileage. That gives us an
edge in RV setting. Only 25% of our used cars go to auction: the rest go to dealers or
used car buyers.”
So, multi-marque, but with a distinct German upmarket flavour seems to be the
Alphabet deal. Certainly, for a young company – just 10 years in the market – Alpha-
bet has a very confident tone of voice.
“I think that, when we started, we had the opportunity to create something new
based on the experience of older players within the industry. So we’ve had a confident
voice from the start and that confidence is also expressed visually in the way we
present ourselves,” reckons Richard.
“We’re also confident in the way we approach customers. We’re about long-
termism, doing what is right for the customer. So that might mean we’ll challenge
22 21.02.08 www.fleetnews.co.uk
ALPHABET ALPHABET’S
RE-ORDER FIRST DEAL
Richard Schooling, formerly Alphabet’s Richard recalls the first sale Alphabet
commercial director, is now chief ever made 10 years ago. It was for a
operating officer of the company. Hyundai Coupé, a Fiat Coupé and two
In addition, he has director level Ford Mondeos. The model mix has
responsibilities for BMW Group Financial broadened since then, he assures us...
Services – a group with a portfolio worth
£4billion and is an umbrella organisation
for six separate businesses, each with its
own head. TOP TEN
These are:
■ Alphabet: the contract hire
MODEL MIX
company. BMW 24.24%
■ Alphera Financial Services: retail Volkswagen 19.63%
finance for non-BMW franchises. Ford 14.65%
■ BMW/MINI Financial Services: Audi 8.24%
dealer-based financial products. Vauxhall 5.19%
■ Insurance: from motor to life. Renault 5.01%
■ BMW Bank: BMW/MINI credit cards. MINI 3.83%
■ Rolls-Royce Financial Services: Peugeot 2.90%
dealer-based financial products. Toyota 2.83%
Schooling’s new responsibilities Mercedes-Benz 2.36%
include group marketing and group
pricing. “My role is to make the business
scaleable and prevent duplication of
management,” says Richard.
“There is a steady erosion of the
boundaries between fleet and personal
leasing, and retail and commercial
finance channels. As a group, we are well
placed to anticipate the effects of these
market changes.”
blue-chip tenders. We might be harder to deal with, but the answer isn’t always yes.
You don’t want to store up problems for later on.
SCHOOLING’S I THINK IF
“We’ve certainly never lost a company on service, although we have lost a customer
because we weren’t big enough. So FN50 size does matter to some customers – but TIPS FROM WE FIND A
it’s the service delivery that is critical to us.”
That’s useful to know. But how else can Alphabet help fleet managers?
THE TOP COUPLE OF
“Running a fleet is all about the basics,” replies Richard. “It’s about getting some of
the softer issues right which is an area where we can help. Let’s take the environ-
Golden rules for success
Honesty: it’s simply a question of BLUE-CHIP
COMPANIES
ment – today’s hot topic. How should a fleet manager tackle this issue for their doing what you say you were going
company? to do.
IN 2008 THAT
“Go out and plant trees? That’s such a cop out. It’s a case of educating people. So
we use Deloitte’s wholelife cost tool to identify the greenest cars; we have Fuel Sense, What makes Alphabet tick?
a driver’s guide to more economical driving. There are lots of little tricks – like
WOULD BE
Have fun doing things well. It’s a unique
turning off your engine if stationary. These are all things that a fleet manager can get part of the way we work.
his drivers to do now.
“I think the other area where we’re strong is helping fleet managers with staff
employment incentives. On the one hand you have sophisticated fleets that have
And a bit of advice for fleet
managers?
GOOD
either a company car scheme, or a structured employee car ownership (ECO) Don’t get taken in by people offering a
scheme. Or both. But in the middle are those companies that offer just cash. How can great deal today that’s not sustainable
you service these customers properly? How can you keep the staff happy and moti- tomorrow. And don’t overcomplicate the
vated? But how can the company fulfil its duty of care and stop their staff just wander- tendering process.
ing into a dealership looking for the lowest-cost deal?
“I would advocate that fleets didn’t offer cash, but an ‘ECO-lite’ product. It’s not tax What’s the best piece of advice
based. It’s a scheme where employees can take the cash alternative but under the you’ve been given?
employer’s own rules. Respect customers.
“It’s a case of the market maturing and understanding how best to service these
changing requirements. That’s very much the case with my new job.” ECO car or company car: what do
Looking ahead, it will be Mark’s responsibility to push Alphabet further up the you drive?
FN50 ladder. Will they scramble up to 11th? Well, it has to be an ECO car from us! I
“We’re looking for stable growth. I think if we find a couple of blue-chip companies currently drive a BMW X5 but I’m moving
in 2008 that would be good. Bigger businesses tend to play to our strengths: breadth to a 3 Series Coupé next.
of financial products and service delivery. It’s a good way to enable growth for us.”
www.fleetnews.co.uk 21.02.08 23
REMARKETING: ALTERNATIVE FUELS
T
AT A GLANCE not write off he motoring indus-
■ Relatively low numbers in the marketplace.
■ Seen as marginal by professional buyers.
biofuels yet – try is increasingly
looking for alterna-
■ Pockets of demand in congested urban areas. despite tives to fossil fuels
■ Motorists generally prefer diesel. reluctance to and, of the emerg-
ing technologies, biofuel power
adopt the has been one of the leading
new fuels contenders for the near future.
As with all new technologies,
the risk of investing is high. Will
those that trust in biofuel have
their faith rewarded when they
come to sell the vehicles on?
THE BACKGROUND
The use of biofuels, and the
production of the raw material it
is made from, has been mired in
controversy. Many fear that the
environmental effects of large-
scale biofuel production could
counteract the benefits that using
the technology for transport
brings.
For fleet managers, this means
uncertainty. As more manufactur-
ers produce vehicles capable of
running on biofuel, and more
fleets take steps to reduce their
ammering?
ing the turnover in the used car with the motoring public. In turn, change in public opinion before
market.” there is no doubt that the RVs of any kind of ‘alternative’ fuels
Tony Gannon, communications such vehicles will always be at the become acceptable.
director at BCA, agrees that high end of market demand and UK motorists are still moti-
acceptability with the general value.” vated first and foremost by price,
motoring public is key. There is still considerable and getting a good deal on the
carbon footprint, the attraction of invest in facilities for the supply of “They will drive the demand in uncertainty over what will happen used cars they buy. Biofuels will
greener vehicles grows. But another new fuel after not realis- the used market,” he says. “The in the future because of the rela- have to tick a lot of boxes before
should the controversy over the ing the expected returns on the rule of thumb is where fleets go, tively small numbers of cars avail- motorists will choose them over
future of biofuelled vehicles put investment they made to accom- motorists follow, and fleets are able. diesel or petrol and in the short-
you off? Will you get a sound modate the supply of LPG. going heavily with diesel. So it is Jeff Knight, forecast manager to medium-term that looks like a
return when the vehicles reach “In terms of residual values, perhaps less a question of future for CAP, doesn’t think there is a hard task.
the end of their fleet lives? our early forecasts valued biofuel residual values, and more about conviction among manufacturers “This suggests that it is unlikely
The European Union backs vehicles at the same mark as future consumer perceptions. that biofuels are worth seriously that UK motorists are ready to
biofuels and has plans to increase ‘standard’ petrol equivalents, “As the majority of modern cars pursuing. But that doesn’t neces- wholeheartedly embrace green
its target for biofuels use in trans- since these cars are designed to can run on a specific petrol/bio- sarily mean that those who have issues and alternative fuels of
port from 2% to 10% by 2020. use E85 as well as standard 95- fuel mix it could be said we are purchased biofuel vehicles will be their own accord. It might mean
But there are concerns that octane unleaded. selling biofuel vehicles every day at a disadvantage. that the only way to make UK
increasing production could itself “However, early indications already, but we have yet to see “They will probably achieve motorists ‘greener’ is by making
cause environmental damage, and indicate that used car buyers are such specialist vehicles as the very reasonable values because it expensive for them not to
a group of UK MPs recently called only willing to take biofuel models Ford Focus FFV or Saab 9-5 there are so few of them,” he says. change their habits.”
the plans reckless. The EU has at a lower price – up to £500 less BioPower to judge how they will “It’s the same as LPG – if you get If you already have biofuel-
dismissed the concerns, but the in some cases. ” perform.” a good quality model to the right powered cars, don’t despair.
concerns raise a question about Mr King says this lower pricing Rob Barr, group communica- person, they will pay for it.” “The few examples BCA
the future of a technology that policy seems only to be evident in tions director for Manheim, is Tony Gannon adds: “We have handles seem to find ready buyers
many don’t see as a long-term the trade values achieved. more positive. already seen a variety of alterna- if valued in line with market
solution. “Retail pricing may be equal to “Consumers are clearly increas- tive fuels heralded as the answer expectations,” says Mr Gannon.
or higher than the equivalent ingly interested in the environ- to global warming – such as LPG “Otherwise, the normal rules of
REMARKETING standard petrol models – dealers mental impact of motoring but or hybrids – and motorists are remarketing apply – presentation
Crucial to the success and contin- see the green credentials offered they are also still primarily influ- understandably wary. and preparation are as important
‘ ’
uation of biofuel vehicles is the by biofuel technology as a poten- enced by economics,” he says. “There still needs to be a sea- as for any other vehicle.”
infrastructure to ensure a supply tial profit maker,” he says. “We know from all the recent
is available to drivers. “These observations have been research that if the green box can
“This is a real stumbling block,” made on a very small sample of be ticked, together with a package THE GENERAL RULE OF
says Jason King, head of market
intelligence at EurotaxGlass’s.
vehicles since relatively few
biofuel vehicles have been regis-
of tried and tested technology
combined with fuel economy,
THUMB IS WHERE FLEETS
“Fuel companies are reticent to tered in the UK so far, thus limit- then this will be a vote winner GO, MOTORISTS FOLLOW
date event venue
10 March 2008 Fleet News Awards Grosvenor House Hotel, London
22 April 2008 Fleet News Risk in Fleet National Motorcycle Museum, Birmingham
17-19 June 2008 Company Car In Action Millbrook Proving Ground, Bedford
Late September 2008 Fleet News Hit for Six South
Early October 2008 Fleet News Hit for Six North
4 November 2008 FN50 Conference & Dinner Royal Lancaster Hotel, London
2 December 2008 Fleet Van Conference National Motorcycle Museum, Birmingham
Your views, your queries, your chance to get involved Find your
favourite
Recognition plan
s
FLEET CV
Phil Green Letters – p35
Describe your fleet BY EMMA COOPER ations in relation to points. Helpline – p37
We have 34 vehicles – 31 SkillMiles points can be earned
cars and three commercials. Fleet managers and industry for a range of activities, including
leaders could now have their financial donations to education
How did you come to efforts to improve staff skills and programmes and participation in
work in fleet? attract new talent recognised by skills-related working groups,
I have a varied vehicle the Institute of the Motor with suggestions on improving
background going back to Industry (IMI). training standards.
my time in the Army but As the sector skills council for Steve Nash, aftersales director, “I’m interested in
acquired the fleet along with the industry, the IMI has launched BMW Group UK and chairman of replacing the air in my
my facilities role for the the SkillMiles scheme, with the IMI executive board, said: tyres with nitrogen. Do
rugby club. companies and individuals accu- “The SkillMiles scheme provides you need special tyres?”
mulating points for their contribu- a meaningful way of acknowledg-
Would you recommend tion to areas including learning, SkillMiles will recognise efforts ing efforts and paying tribute to First car – p39
working in the industr y? leadership, management and to raise industry standards those who are actively making a
Yes I would. The combina- recruitment. difference to the industry through
tion of responsibilities is a The IMI will judge efforts on small organisations are weighted their work and commitment to
challenge – looking at duty a tiered system, ensuring fairly, awarding bronze, silver, improving performance, many of
of care, purchasing, funding, contributions from large and gold and platinum accredit- whom are unsung heroes.”
insurance, maintenance etc.
staff into a combination of Peugeot has appointed David tions between the company’s central service departments, as well as Competition – p39
owned, sponsored or leased Peel (pictured) as fleet director. continuing to manage licensee relationships and franchise sales. Ms We have
cars. He will be responsible for fleet Paul has worked in the car rental sector for more than 20 years. five copies
sales, contract hire, rental and of the
What is the biggest used vehicle operations. Previ- 2008
challenge with your fleet?
Improving the attitude of
ously the northern regional
director, he replaces Steve Harris
New MD for IAM fleet group Michelin
guide to
some of the younger rugby who has been named fleet opera- Seb Goldin is the new managing director of the Institute of Advanced eating out
players allotted a company tions manager at Peugeot’s Motorist’s (IAM) fleet group. He will be responsible for the running up for
car and therefore improving Robins & Day dealer group. of IAM’s fleet companies, including Pro-Drive and Drive & Survive. grabs.
the care of our vehicles. Previously, he was partnership director at Royal Mail. Simon Best
joins as managing director of membership and corporate services.
How do you relax at the Job of
weekend? the week
Watching rugby, juggling
with my fantasy football
McCall manages national network TTL CONSULTING
teams, working out at the Lexus has appointed Iain McCall as national manager of network Area fleet managers,
gym and hill walking in the development. He will be responsible for franchise representation, various locations p33
Brecon Beacons. business development and the management of franchise standards.
He was previously regional manager for the manufacturer.
How does your new role How was your first day? What has been your greatest and use me to understand what
SETTLING IN differ from your last job at Everything that I had been challenge so far? the competition’s doing.
Lex? promised was ready for me to I sat a two-hour examination on
Mark
Cassidy
My previous role was very much collect, which is always a day 16 of my induction. What are you enjoying most
Corporate focused on managing a promising sign. about the role?
sales relationship and delivering on a And your greatest The autonomy to re-open past
manager pre-set agenda. This new Have you had a bad day yet? achievement? relationships and seek future
Inchcape role allows me the freedom to Not yet. Hopefully I have enough I have a lot of industry opportunities to work together.
Fleet concentrate on developing experience to spot one coming knowledge and it’s great when There are so many avenues to
Solutions relationships from scratch. and work through it. colleagues ask for my opinion investigate within fleet.
www.fleetnews.co.uk 21.02.08 31
Recruitment Call Daniel Bragg: 01733 468271
email: daniel.bragg@emap.com
Brighter future
ZONE FLEET BUSINESS MANAGER
MANUFACTURER NORTHERN IRELAND £NEG
Established car manufacturer requires a Northern Ireland based Fleet Sales Manager
to assist this volume operation to increase B2B vehicle sales penetration.
01235 536440 An enthusiastic and professional Fleet or B2B Manager is required to rise to the challenge of 2008 targets.
Further details and applications to:
www.steele-dixon.co.uk Bill Porteous on 07753 982 311 bill@steele-dixon.co.uk
www.dwc.co.uk www.nicholasrecruitment.co.uk
32 21.02.08 www.fleetnews.co.uk
A more individual approach
Fleet Services Manager – Tyne and Wear - £30k Basic plus Bonus, Benefits.
Our client, an FN top 20 Contract Hire business is seeking a Fleet Services
Manager. Managing a team of 8 Maintenance Controllers in authorising dealer
repairs on contract hire vehicles as well as planning and implementing a
maintenance strategy which includes the use of “1 link” platforms.
BDM – Finance, Large Ticket- M4 Corridor - £30k basic + OTE + Bank Benefits
Something quite different - the ideal candidate will have a full understanding of
asset finance products including contract hire and ideally daily rental vehicles.
Working from a home base but with National support to provide funding for major
fleets. As a well established Bank brand, our client can offer successful people,
real career growth opportunities..
Enquiries@Nicholasrecruitment.co.uk
For a confidential discussion ask for Derek Webb on
A L A S TA I R A M E S
01889 591554
Mention always
For on line application and more vacancies go to the right
www.nicholasrecruitment.co.uk FleetNews person
for the job
when
To advertise here call calling
Daniel Bragg on 01733 468271 Specialist Search and Selection
To view a variety of current positions visit our website www.alastairames.co.uk or ring for details.
Tel 0207 917 1855 Fax 0207 917 1856 alastair@alastairames.co.uk 211 PICCADILLY, LONDON W1V 9LD
Why attend?
1 Learn about the new Corporate Manslaughter Bill and
ways to protect your fleet from prosecution.
2 Gain an in-depth understanding of the latest risk issues
3 Discover fresh thinking from some of the industry’s
foremost experts
4 Share ideas and issues with like-minded fleet operators
5 Find new ways to manage employees with safety
in mind
6 Prepare your fleet for the impact of financial
challenges ahead
7 Investigate what potential suppliers have to offer
8 Exploit ideas for potential savings from more
efficient operations.
9 Take away the skills to cut accidents and reduce
costs on your fleet
10 Maximise your influence over senior management
www.riskinfleet.co.uk
www.fleetnews.co.uk 21.02.08 33
Fleet services Call Dee Kennedy: 01733 468275
email: dee.kennedy@emap.com
Leasing
Telematics
www.fleetnews.co.uk
www.fleetnews.co.uk
www.fleetnews.co.uk
Green Fuels
34 21.02.08 www.fleetnews.co.uk
LETTERS ■ Email: fleetnews@emap.com. Please include name, job title, company and address Interface
Leasing firms should Insurance
and young
60%
Jaama.
“yes” in our online
poll at the bottom of
the homepage at
20 40% filled up “just in case”.
And despite the gradual
decline in the number of filling
the folk who sell the stuff are
being squeezed out and more
of us will have to go back to
■ By writing to Fleet News you agree
to have your details passed on to
Jaama and may receive offers from or
0 in association with Bauer Automotive
Fleetnews.co.uk YES NO stations in the UK, we still filling up “just in case”. unless you state otherwise.
www.fleetnews.co.uk 21.02.08 35
To
To advertise
advertisecall
FLEET SUPPLIERS GUIDE Dee Kennedy
call
FLEET SUPPLIERS GUIDE Sponsored
Sponsoredby Enterprise Rent-A-Car
byEnterprise Rent-A-Car
Sheryl Graham
01733
01733468275
468256
www.carcost.co.uk
To advertise here
call Dee Kennedy
on 01733 468275
www.chipsaway.co.uk
0800 028 7878
Fast, Cost-effective, Safe, Fleet Repairs On the spot
www.ajc-bodyshop.com auto paint repairs
...call Beth on 020 8225 5860 Tel: 01784 221 329 Email: uksalesteam@erac.com
Ask about our unique pick-up (or delivery) service www.yourfleet.co.uk
www.marlborough.uk.com www.enterprise.co.uk The best car leasing deals for business and personal users. Available to view online
36 21.02.08 www.fleetnews.co.uk
HELPLINE ■ Do you have a problem with your fleet? Email: fleetnews@emap.com
Interface
REMOVING LOGOS FOREIGN
Getting a branded
DRIVERS
Q I am thinking of
employing a few Eastern
European van drivers as I
PHILIP SOMARAKIS
STEVE JOHNSON
Director of
no driver’s mate, no sharing of employer. It could also include steps were taken to prevent Senior solicitor, Blake communications,
lifts, no pooling of use, then the the fleet manager. The maximum smoking. The most practical Lapthorn Tarlo Lyons DriveTech (UK)
www.fleetnews.co.uk 21.02.08 37
AND FINALLY... Interface
‘
You couldn’t make it up... I received a call from a
driver asking for
instructions on how to get a
puncture repaired. I advised
CONTACT US
Fleet News, incorporating Company Car, is
Real-life stories about your fleet’s dimwit drivers that our policy was to use
published by Bauer Automotive, Media
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Kwik-Fit and offered to put 6EA. Phone 01733 468000. Fax 01733
468296. Email fleetnews@emap.com
him through to the local
branch. EDITORIAL
EDITOR
The driver’s response Martyn Moore 01733 468024
was: “OK. My oil light has martyn.moore@emap.com
been flashing for nearly two DEPUTY EDITOR
Julian Kirk 01733 468308
weeks. Will they look at that julian.kirk@emap.com
at the same time?” NEWS EDITOR
Daniel Attwood 01733 468294
I couldn’t believe it and daniel.attwood@emap.com
asked if he had checked the SECTION EDITOR
’
Adele Barry
level. Apparently he “hadn’t (currently on maternity leave)
had the time”, but as he MOTORING WRITER
couldn’t use the car because Phill Tromans 01733 468314
phill.tromans@emap.com
of the puncture he thought it REPORTER
would be a good time to get Emma Cooper 01733 468309
emma.cooper@emap.com
both issues sorted. SUPPLEMENTS EDITOR/EVENTS
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john.maslen@emap.com
Email stories about your drivers CONTRIBUTING EDITOR
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PROJECT MANAGER
BRAKE DRUGS AND
Not overly endowed with factor. Renault’s Laguna may be reproduced without the permission of
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www.fleetnews.co.uk 21.02.08 39
ADVERTISEMENT FEATURE
T
aking much of its of efficient petrol and diesel some models. New Fiesta retains
exterior and interior engines. The 1.25-litre (60PS and the MacPherson strut front
design from the 80PS) and 1.4-litre (91PS) Duratec suspension and twist-beam rear
striking Verve Concept, petrol units are joined by a new suspension layout that has been
the 2008 Fiesta, which will be Duratec 1.6-litre Ti-VCT option. one of its traditional strengths,
unveiled at next month’s Geneva This advanced powertrain but the new suspension and
Motor Show, marks a major provides an additional 15PS over steering system has undergone
leap forward in terms of style, the outgoing 100PS model but, significant development.
craftsmanship and quality of thanks to variable valve timing, Ford’s engineers have
materials. with no fuel consumption penalty. enhanced Fiesta’s ride comfort
The sixth generation of the Ford’s economic TDCi and isolated road, wind and
Fiesta family, which will be common-rail diesel engines will powertrain noise from the cabin.
offered in both three and five-
door bodystyles when it goes
continue to be offered in 1.4-litre
(68PS) and 1.6-litre (90PS) guises.
The result is an impressively quiet
drive for a small car.
Focus on training
on sale in the autumn, remains Later in 2008 a Fiesta ECOnetic Electric-Power Assist Steering Ford has ensured that its dealers
true to Fiesta fundamentals of with CO2 emissions of less than (E-PAS) is introduced in the Fiesta are fully prepared for the new Focus,
practicality, affordability, agility 100g/km will be available. for the first time. with special training for 2,400 UK
and safety – in a structure that’s All Fiestas will be equipped E-PAS provides the right dealer staff at Henry Ford College,
both lighter and stronger than with the slick Ford Durashift balance of low-speed assistance Loughborough.
before. five-speed manual transmission, and excellent feel and The training combined interactive
It will be available with a range with automatic available on responsiveness. classroom sessions with on-road
driving of Focus and key competitors.
The Focus training programme
40 21.02.08 www.fleetnews.co.uk