Fleet Europe Forum
The 2018 Fleet Europe Forum will dive into three topics of the day: tomorrow’s payment models, electrification and autonomous vehicles.The Fleet Europe Forum is one of the highlights of the Fleet Europe Summit, which takes place on 27 and 28 November in Barcelona. Here’s a short overview of the three Fleet Europe Forum sessions: Are you ready for tomorrow’s car payment model flottas?Are long-term lease contracts on their way out? New financing models are on the rise, such as private lease, subscription models and pay-per-use services. This has implications for HR, Finance and Mobility Departments, not to forget the actual users.An expert of Frost & Sullivan will give an outlook on what these new payment models will bring. What if the future is more than just electric? Step by step, or kilometre by kilometre, electric vehicles are entering the mainstream. However, diesel and petrol won’t disappear just yet. So how do you find the right fuel for each vehicle in your fleet?A representative of The Climate Group will give details about their EV100 initiative and will explain how companies can achieve an electric and zero-emission fleet.
When and why will your fleet become autonomous?
Vehicle connectivity and self-driving technology are advancing at great speed, but are entirely self-driving cars really around the corner? What solutions are ready for implementation today? New technologies in this field will also have implications on Mobility, Finance and HR departments.ForumFor the fifth time already, the Fleet Europe Summit will host the Fleet Europe Remarketing Forum, where around 200 industry professionals from various parts of the remarketing industry will discuss how they can prepare for the rapid transformation they are witnessing every day.Vehicle remarketing is an integral part of today’s fleet management and the European remarketing industry is an important economic sector that is increasingly faced with important changes in legislation, taxation, internationalisation, technology, digitalisation and the difficult to predict used-car values.
Powertrain & WLTP
The powertrain transition in particular is creating unprecedented challenges for leasing companies that will have to deal with big volumes of used diesel vehicles. A panel of industry insiders will debate on the best strategies. WLTP will also impact residual values. How can remarketing companies deal with vehicles that have an old-style type approval? Not only the vehicles but the remarketing sector itself is evolving, too. Increasing numbers of used cars are sold online but there is still a lot of room for improvement and optimisation of processes.Other challenges for the remarketing industry that will be addressed during the Remarketing Forum include mileage fraud. Experts will look at national examples and at the European perspective to tackle this issue.
The new business models and the change from B2B to B2C will trickle down to vehicle remarketing. But how and to what extent? Leading experts will present their case studies. And going further with innovation, the finalists of the 2018 Car Remarketing Award will pitch their newest solutions.
Perhaps one of these solutions answers the issue related to the harmonisation of cross-border sales administration and the way digitisation can bring value, before we deep dive into Electronic Customer Relationship Management (eCRM) and its relevance for cross-border used vehicle sales. The final chapter of this year’s Fleet Europe Remarketing Forum tackles the road map of the European Car Remarketing Association CARA with a focus on the fight against mileage fraud. (www.fleeteurope.com)
Who uses telematics and why?
New research conducted by Arval in the UK has shown that the primary reason why fleets adopt telematics is ‘to locate vehicles’.
This reason was cited by 95% of fleets and followed by ‘improving driver safety’ (87%), ‘improving driver behaviour’ (875%), ‘reducing fleet costs’ (75%) and ‘optimising journeys’ (70%).
The findings come from the 2018 edition of Arval’s Corporate Vehicle Observatory Barometer, research which covers over 3,700 fleets. Overall, 33% of UK fleets say they use telematics compared to 19% across 12 other European countries surveyed.
There is a definite bias towards adopting the technology for larger fleets, with just 17% of those with fewer than 10 vehicles using telematics compared to 47% of those with 10-49 and 56% of those with more than 50 cars and vans. Shaun Sadlier, Head of Arval’s Corporate Vehicle Observatory in the UK, comments: “Telematics remains a hot topic among fleets and, as its cost has fallen in recent years, we have seen quite a dramatic increase in usage. Certainly, we aren’t surprised to see around one in three fleets now using it. However, what is more interesting is that the top five reasons for using telematics were mentioned by the majority of fleets, showing that there is probably no single reason that businesses start to use the technology. Instead, the driving force behind telematics adoption appears to be a basket of benefits related to safety, cost and efficiency and it is all these things together than makes telematics such a strong proposition”. (www.fleetaurope.com)
Private lease booming on the Netherlands
Dutch motorists are converting en masse to private lease. The phenomenon started in 2015 and has since taken on huge proportions, reports newspaper Trouw.
Private lease means drivers pay a fixed monthly fee, and in return get to drive a new vehicle, with a bundle of services included in the price: maintenance and repair, insurance, depreciation – just about everything except fuel.
The formula was introduced in the Netherlands in 2015, with great fanfare – one lease company even collaborating with MediaMarkt, a major electronics and appliances retailer, to offer a private lease solution. Private lease has since gained widespread popularity in the Netherlands not in the lease because providers are competing to offer the most attractive formulas – some with monthly rates below €200. Private lease has proven especially popular for the small-car segment, with the Opel Karl, Kia Picanto and Peugeot 108 as particular favourites. But the range of offers is broad enough to include Teslas and other expensive models.
But the formula’s popularity has created its own disadvantage, warn experts: the multitude of offers makes it hard to determine which ones are good deals, and which ones are bad. That’s why the sector, in collaboration with consumer organisations, has set up Keurmerk Private Lease, an independent quality mark offering consumers clarity and protection with regard to the private lease offers on the Dutch market.
Some pitfalls to consider: Can the contract be cancelled if the customer loses their job? In some cases, the answer is no. And: What are the mileage limits? Some contracts are quite restrictive and can thus turn out to be fairly expensive.
Experts see the popularity of private lease as definite proof that the shared economy is taking off – also beyond the Netherlands. They point to Lynk, Volvo’s Chinese sister brand, which has announced that the cars it will start building in Europe next year will be offered for sale, rent and lease. Polestar, an EV daughter of Volvo’s, offers a subscription model. Considering its popularity, private lease could prove the formula that weans us consumers off the habit of owning vehicles, opening up a brave new world or usership models. (www.fleeteurope.com)