Fleet Van BEST PRACTICE FOR BRITAIN’S LIGHT VAN OPERATORS July/August 2012 fleetnews.co.uk/fleetvan £5 where sold AUTOGLASS COSTS AT AN 11-YEAR LOW LEASEPLAN CUTS RISK FOR FLEETS Mark Lovett on reducing downtime and maximising efficiency Fleet manager Ged Raymond on how technology and pay-on-use maintenance saved £71,000 last year GREEN CREDENTIALS AT A PRICE Fuel savings, but Vivaro Ecoflex has £1,100 premium ARE YOU THE BEST IN FLEET? Fleet Van Awards 2012 will recognise top fleets, vans and suppliers – enter now
Transcript
FleetVanB E S T P R A C T I C E F O R B R I TA I N ’ S L I G H T VA N O P E R AT O R S July/August2012 fleetnews.co.uk/fleetvan £5wheresold
AUTOGLASS COSTS AT AN 11-YEAR LOW
LEASEPLAN CUTS RISK FOR FLEETS
Mark Lovett on reducing downtime and maximising efficiency
Fleet manager Ged Raymond on how technology and pay-on-use maintenance saved £71,000 last year
GREEN CREDENTIALS AT A PRICE Fuel savings, but Vivaro Ecoflex has £1,100 premium
ARE YOU THE BEST IN FLEET?Fleet Van Awards 2012 will recognise top fleets, vans and suppliers – enter now
4 I Best practice: Road risk management Keeping a log of collisions and near misses is important to effectively manage road risk.
6 I Fleet Van Awards Search begins to find the UK’s safest van fleets.
8 I Compliance: Van Excellence FTA initiative will improve efficiency and help van fleets achieve self-regulation.
10 I Risk: accidentsA change of mindset is needed to reduce the number of incidents involving your vehicles.
15 I Environment: Euro6 NOx emissions are at heart of new legislation which arrives in 2015.
16 I Remarketing: Specification and equipmentChoose the right added features to maximise value at de-fleeting time.
20 I Cover featureFleet case study:AutoglassSoftware, telematics and pay-on-use maintenance helps Ged Raymond keep operating costs low.
26 I Industry spotlight: LeasePlan Head of commercial vehicles Mark Lovett is looking to win van fleet business.
28 I Van testsCitroën Berlingo, Vauxhall Vivaro Ecoflex, Ford Transit long-termer.
NEXT ISSUE – SeptemberFirst driveMercedes-Benz Citan – a new city van rival
LegislationOperating weights – know your limits
RiskVehicle inspections – your driver checklist
B e n c h m a r k i n g b y t h e F T A R o a d r i s k m a n a g e m e n t
4 July/August 2012 fleetnews.co.uk/fleetvan
By Mark Cartwright, head of LCVs, FTA
ecently-released Government stati-stics revealed that, for the first time in nearly a decade, the number of deaths on UK roads increased last year, reinforcing the need for van
operators to have robust processes to manage their operational road risk.
It’s against this background that FTA’s Van Excellence programme sought the views of operators on how they minimised risk, what kind of changes they’d made and, crucially, what had produced the best results.
Not surprisingly, all respondents had pro-cesses to record their on-road collisions with most citing well-established procedures to capture the facts around the incident, including driver interviews.
Less encouragingly, however, was that only around 20% had processes to identify near misses and even then there was concern that the level of reporting was patchy.
Despite the large number of respondents admitting to having little knowl-edge of how many near misses their LCV fleet was involved in, there is wide acceptance that
the analysis of this information can be invaluable in identifying risk hot-spots whether these be specific geographical locations, types of journey or even individual drivers.
One fleet manager, who asked to remain anonymous, admitted: “In hindsight we should have identified an unsafe practice across a number of our drivers which, although poor road design contributed, could have averted a serious life-changing collision.”
Why is road risk management so important? The obvious (and correct) answer is that it is simply unacceptable to expose employees, colleagues and members of the public to the risk of death or injury as a result of your busi-
ness’s activities.And, if that wasn’t enough
on it’s own, the cost impact of collisions must surely get the attention of any busi-ness in these difficult times.
Last month’s article looked at the cost of having vans off the road for repair etc. and concluded that many businesses didn’t know the financial impact
or greatly under-estimated it. It would seem the same is true with the real cost of collisions.
Research by HSE during the 1990s identified
Measuring incidents is first step to cutting costs
that the below the water line ‘iceberg’ costs can be eight to 36 times greater than those visible ‘above the water’.
There has since been much debate about the reality of these figures, but even if the figure is ‘just’ three to four times more than the ‘above the water’ costs, it could have a significant effect on finances as these costs come straight off the bottom line.
Let’s say, for example, that your business’s return on sale is 5% and your real collision costs last year were £50,000.To recoup those costs you’d need to generate a further £1 million of sales. A few years ago, Nestle worked out that it needed to sell an extra 235 million Kit-Kats to cover its Europe-wide collision costs.
What can be done to better manage road risk?As always, the starting point is to measure and analyse. Look at your drivers’ working days and identify the areas of risk.
A major civil engineering company identified that the most dangerous thing its high-voltage jointers did was driving the van to and from the job, not working with 120,000 volts.
Requiring drivers to report accidents and, importantly, near misses is crucial. Several respondents talked about the benefits of creating a ‘blame-free’ culture to encourage a more open dialogue with drivers.
The use of schemes to reward drivers for good
“Requiring drivers to report
accidents and near-misses is
crucial”
A log of collisions and near misses is important to effectively manage road risk
Reporting near misses can prove invaluable in identifying risk hot-spots
R
t’s an impressive performance if a fleet can say that its operating costs are lower than they were 11 years ago, taking inflation into account.
That’s the position Autoglass is in.Obsessive poring over data
provided by software and telematics, tightly-monitored relationships with suppliers it can trust, plus a pay-as-you-use maintenance agreement, are ensuring the company keeps its fleet costs under control.
Fleet manager Ged Raymond has been in the job for 34 years, plenty of time, perhaps, to get in a comfort zone which can breed complacency. But he’s still making radical changes to the fleet, keeping ahead of the latest changes in technology which can boost efficiency and effectiveness.
When a company relies on its vans as heavily as Autoglass, this is essential. See p20 for more.
In this issue of Fleet Van we put the spotlight on cutting accidents.
We also look at how choosing the right options on your vans can make a real difference when it comes to selling them – it makes fascinating reading.
Your next issue of Fleet Van will be delivered with the September 27 issue of Fleet News.
n Correction Van drivers who receive free fuel pay an annual charge of £550, not £500 as stated in June’s Fleet Van.
Stephen Briers, editor, Fleet Van
EDITOR’S COLUMN
“Raymond is still making radical changes, even after 34 years”
fleetnews.co.uk/fleetvan July/August 2012 5
Do you measure risk incidents?On-the-road collisionsOn-the-road near missesOn-site collisionsOn-site near missesIncidents involving on-board equipment
88%21%
71%33%
17%
Are the number of incidents rising or falling? Rising Stay same FallingOn-the-road collisions 19% 33% 48%On-the-road near misses 0 83% 17%On-site collisions 6% 41% 53%On-site near misses 0 75% 25%Incidents involving on-board equipment 0 86% 14%
If you measure incidents, do you benchmark... Across your business Within your sector Across different sectorsYes 79% 35% 13%No, but we’d like to 5% 18% 25%No 16% 47% 63%
Do you use telematic/driver behaviour technology to aid with managing down risk?
YesSometimesNo
39%11%
50%
behaviours while penalising those involved with blameworthy incidents was also found to be helpful, provided systems were strong enough to identify non-reported incidents.
More and more operators are turning to telem-atics to help: more than half of our survey respondents are using the technology on at least part of their fleet.
Most were favourable when asked about their experience although the impact of data over-load and, as one respondent put it, the extra workload in discipli-naries were (sadly) an unfore-seen side effect.
Speed limiters, rev limiters, ‘Well Driven?’ (and similar) schemes and reversing sensors are all cost-effective measures, with speed and rev limiting also having significant fuel economy benefits.
The use of driver training and comprehensive risk assessments can be beneficial.
Kevin Shepherd runs more than 500 vans for Southern Water and reports “significant improve-ments in our road risk profile have been achieved by better understanding the work our drivers
undertake and then putting together the right driver training package”.
“We work in a high-risk industry,” says Steve Haigh, group transport manager at Lexia Solutions. “We understand the risks inherent in our demolition and asbestos removal businesses, but we also recognise the significant risks our drivers deal with each day getting too and from
their jobs. It’s important to us that we encourage the correct behav-iours and have found the use of driver training and risk assess-ments to be very useful.”
The impact of any collision can be life changing. It can have serious implications to your busi-ness’s finances and to its reputa-tion. The stress and mental anguish cannot be underplayed and, if culpable, the threat of legal proceedings can hang over indi-viduals for years.
There are many tried and tested ways of measuring, managing and reducing occupational road risk – can you afford not to take it seriously?n For more information on the FTA’s Van Excellence programme email [email protected] or turn to page 8 to get the fleet perspective.
235mKit Kat sales needed
to cover Nestle’s Euro-wide collision costs
20%of fleets had processes for
monitoring near misses
I
N e w s F l e e t V a n A w a r d s
6 July/August 2012 fleetnews.co.uk/fleetvan
Search begins for the UK’s safest van fleets
Categories
By Stephen Briershe Fleet Van Awards 2012 are open for entries.
Now in their fifth year, the Fleet Van Awards are the benchmark awards for the light commercial vehicle
industry, with trophies for manufacturers, fleet operators and suppliers.
The fleet awards focus on safety, awarding trophies to those van operators that display an obsession for keeping their drivers safe and their vehicles accident-free.
The van categories compare vehicles across a number of core fleet criteria, including payload, safety, technology, running costs, fuel efficiency/CO2 emissions, reliability, aftersales service and back-up offered by the dealer network.
They also include the driver appeal in terms of comfort and performance.
The four supplier categories are open to all companies supplying products and services to van fleets: they reward great service and innovation.
FLEET SAFETY CHAMPIONS Large public sector fleet (more than 500) Winner 2011: Environment Agency
Small public sector fleet (up to 500) Winner 2011: NHS Blood and Transplant
Large private sector fleet (more than 500) Winner 2011: Mitie Group
Small private sector fleet (up to 500) Winner 2011: Iron Mountain
Innovation in fleet safety Winner 2011: AAH Pharmaceuticals
Driver management initiative of the year Winner 2011: Bethell Construction
Fleet safety champion of the year (private) Winner 2011: Balfour Beatty Plant & Fleet Services
Fleet safety champion of the year (public) Winner 2011: South Central Ambulance Service
SUPPLIER CATEGORIESVan leasing and fleet management company of the year Winner 2011: Hitachi Capital Commercial Vehicle Services
Van rental company of the year Winner 2011: Europcar
Van supplier of the yearWinner 2011: ATS Euromaster
Van fleet safety award Winner 2011: Kwik-Fit Fleet
VANS CATEGORIESCity van of the year Winner 2011: Peugeot Bipper
Small van of the year Winner 2011: Volkswagen Caddy
Medium van of the year Winner 2011: Volkswagen Transporter
Large van of the year Winner 2011: Mercedes-Benz Sprinter
Pick-up of the year Winner 2011: Mitsubishi L200
Van of the yearWinner 2011: Volkswagen Transporter
MANUFACTURER CATEGORIESGreen manufacturer of the yearNew category
Fleet Van manufacturer of the year Winner 2011: Ford
T
ENTRY DEADLINESeptember 28 2012
For more details or an entry form (fleets and suppliers only), please contact Kate Howard on 01733 468146 or email [email protected]
FLEET SAFETY CHAMPIONSn Stephen Briers, Fleet News/Fleet Van editorn John Maslen, Sewells brand directorn Mark Cartwright, Freight Transport Association head of LCVs
MANUFACTURER CATEGORIESn Stephen Briersn Simon Harris, Fleet News/Fleet Van deputy editorn Trevor Gehlcken, Fleet Van associate editorn Alastair Houston, East Midlands Vehicle Hire managing directorn George Alexander, Glass’s chief commercial vehicle editorn Ken Brown, CAP LCV editorn Mark Lovett, LeasePlan head of commercial vehicles
SUPPLIER CATEGORIESn Judges tbc
Judging panel
Sponsored by
C o m p l i a n c e V a n E x c e l l e n c e
8 July/August 2012 fleetnews.co.uk/fleetvan
Raising the standardFTA initiative will improve efficiency and help van fleets achieve self-regulation
By Stephen Brierslmost 30 fleets have become members of the Freight Transport Association’s Van Excellence prog-ramme. Each has its own motives for undergoing the audit process
although one common theme exists: to prove they adhere to a benchmark standard of quality.
However, there are myriad benefits to being a Van Excellence fleet and it is important for the industry to back the initiative – it was, after all, set up by fleets for fleets and it has the support of transport minister Mike Penning.
At worst, it will provide best practice tips that will improve efficiency; at best it will persuade the Government not to impose the type of legislative requirements on the van sector as truck opera-tors face – principally CPC and O-Licence.
“It is a distinct possibility that legislation similar to that in place for HGVs could be implemented for vans,” AAH Pharmaceuticals head of corpo-rate services Geoff Wright told Fleet News last year. “If we don’t regulate then it will be regulated for us – and that might be in a way that is not economically sustainable or operationally viable for a lot of companies. We need self-regulation.”
Wright believes the basic Van Excellence audit will be sufficient to raise standards and improve most fleet operators’ businesses.
“The idea is to have a level of regulation that means something as a standard, but which is also achievable by smaller fleets,” he said.
“It’s about people signing up. We want operators
to do something about safety, legality and the environment. If they do, they will have a more economical fleet and we will create an envi-ronment where vans are seen in a far more posi-tive light.”
The biggest challenge most fleets, particularly the smaller ones, will face on the road to Van Excellence will be administration – keeping records up to date, accurate reporting, meeting servicing requirements and addressing defects.
Members of Van Excellence anticipate a number of benefits. In addition to better maintained vehi-cles and safer drivers, they expect to reduce accidents, lower insur-ance premiums, reduce fuel consumption and achieve higher re-sale values.
They also point out that the code offers positive PR (the Van Excel-lence ‘tick’ will be displayed on the back of vans) which could lead to business wins.
Wright added: “Van Excellence should be viewed as a benefit to the operator, not an overly arduous control mechanism. If you do it right, it will save you money.”
Mike Revell, group director of transport at Clancy Group, underlined the concerns of many
van fleets when he highlighted the lack of defined legislation regarding health and safety.
“We have strict maintenance programmes in place for our vans but for many the only checks
they have are when the vehicle has its MOT,” he said.
“The code is about educating fleets to increase their aware-ness and improve standards.”
Van Excellence has two streams: vehicle-related under-takings (roadworthiness, safety, working environment, standards) and driver-related undertakings (licensing, behaviour, compliance, competence and training).
Bigger fleets could play a signif-icant role in ensuring the code is implemented by smaller van operators, countering a concern that Van Excellence will only appeal to the larger, more profes-sionally-run companies.
“We can force their hand,” said Revell. “It is up to the companies that adopt the code to insist that their suppliers and contractors sign up as well.”
With an annual fee of £495, covering the admin and half-day audit, Wakefield Housing Association fleet manager Rick Young put the case best: “You don’t have to throw millions of pounds at this – it’s all achievable.”
A
The Van Excellence audit takes up to three hours to complete.
The first step is for the assessor to select a sample of vehicles and drivers from the records to check for compliance versus the systems
that the company has in place.The principle is to check that the
fleet is doing what its processes say it does. This includes areas such as verification of vehicle maintenance and driver training compliance.
It takes 20-30 minutes to go through the initial records, questioning the project manager
for evidence of the processes.Then it’s a case of going through
the Van Excellence report questions which includes topics like pre-use checking of vehicles, fault rectification, and maintenance cycles. It covers everything from vehicle (such as SMR, tyre maintenance, inspections and defect reporting)
to driver (including training and licence checks).
At the end of the process, the fleet is given the decision – pass or fail. This is confirmed a few days later through a full report.
If the company failed the initial audit, the report would also detail the areas that require further action.
Pass or fail? The audit trail which can lead to Van Excellence
“If we don’t regulate, then
it will be regulated
for us” Geoff Wright, head of
corporate services, AAH Pharmaceuticals
R i s k V a n a c c i d e n t s
Reducing accidents
By Trevor Gehlckenespite the admirable work over the years by safety groups such as RoSPA and RoadSafe, evidence points to the fact
that for many van fleet operators, road accidents are accepted as an unavoidable part of life.
In fact, we have first-hand knowl-edge of this. Not long ago, the brother of a Fleet News staff member was given a van driving job at a delivery company and – despite never having driven a commercial vehicle before – he was handed the keys to a brand new Vauxhall Vivaro.
Sure enough within a month he had pranged the van and was then threatened with the sack for having done so. The firm concerned didn’t seem to accept any kind of respon-sibility for the accident.
When the cost of accidents is put into perspective it makes for some frightening statistics.
Across Europe, 35,000 people a year are killed on the roads and for each death, four people are perma-nently disabled and 10 people injured. The cost of accidents is reckoned to be £110 billion per year.
An accident isn’t simply a prang – there are invariably a number of additional consequences. For starters a delivery may be late and valuable business lost.
The van itself will have to be repaired, which means it won’t be working for you and earning its keep. If your vans have specialist
equipment in them, you can’t just phone up a rental firm for a replace-ment either.
Then if a staff member is injured, he or she will be off work recovering and costing your business money while you hire other (probably inex-perienced) staff.
If your accident involves injury to third parties and their vehicles, another whole world of problems opens as you and your insurance company deal with claims against you.
Lastly, have you considered that your injured staff member may sue you and your company for failing to ensure their safety?
If an ambulance-chasing lawyer came knocking and asked why you hadn’t offered your driver a training session, or why you had failed to maintain your vehicles correctly, or declined to fit optional safety extras such as electronic stability control, could you provide suitable justifica-tion? Probably not.
Launching a new safety strategy in a bid to reduce accidents means a change of mindset first of all.
Thinking safety in every aspect of van fleet management will auto-matically lead on to a number of ideas that will help.
For example if you have a yard, just look at it and make a mental note of the number of areas where an acci-dent could take place – a dodgy pile of crates that could fall on someone, a patch of oil that could slip someone up and cause a back injury.
10 July/August 2012 fleetnews.co.uk/fleetvan
A change of mindset is needed if you are to reduce the risk of an accident involving your staff and vehicles
Bulkheads Ensure that your vans have them fitted to stop cargo in the rear flying forwards and hurting driver and passen-gers in the event of an accident.
Most panel vans nowadays have bulkheads fitted as standard, but many smaller vehicles have them as a paid-for option which should not be skimped upon.Parking sensors For around £200 per vehicle they will help avoid the problem of minor knocks and scrapes and will undoubtedly pay for them-selves over and over again during the life of the vehicle.
It is worth reminding drivers though that they only work at ground level and won’t detect such objects as overhanging garage doors.ESC By far the most important option to choose in the view of Fleet Van is electronic stability control (ESC).
This system has been dubbed the most important safety invention since the seatbelt and despite the fact that it will become law on all vans from 2014, most manufacturers still list it as a paid-for option.
Ford, Mercedes-Benz, Volk-swagen and Iveco include it as standard.
If you buy from other manu-facturers we recommend strongly that you negotiate to get it included.
The wonderful thing about ESC – a system which works to correct sideways skids – is that it works without any input whatsoever from the driver.
We’d also recommend sending your drivers on a course to learn how to use ABS brakes, for anecdotal evidence suggests that most drivers don’t understand what they do and how they should be used in an emergency.
Across Europe, 35,000 people a year are killed on the roads and for each death, four are permanently disabled and 10 people are injured.
Better safety = fewer accidents:Key areas to consider
The problem with added extras that improve safety is that you will never be able to quantify them. For example if you pay £400 extra for ESC on a vehicle and it prevents a driver from having an accident that would have cost £2,000, you are effectively saving £1,600. But a driver is hardly likely to rush in and tell you that he nearly pranged his vehicle. Therefore it is important before embarking on a new accident reduction strategy to actually measure your fleet’s crash rates before taking measures.
If you are saving money when the bigger picture emerges a year or two later, you can confidently answer any questions from top management about why the unit cost of vehicles is apparently more it used to be.
Optional extras – to buy or not to buy?
D
Bulkheads are key to driver safety and should
not be skimped on
fleetnews.co.uk/fleetvan July/August 2012 11
LoadingAccidents not only occur on the roads, but in yards and other delivery points too. If drivers injure themselves while loading their vans, they could be off work for weeks, leaving you short of staff.
The maximum recommended weight for anyone to carry at work is 25kg for a male and 15kg for a woman. If your business involves heavier loads, then consider fitting a hoist, such as those offered by Penny Hydraulics. These are bolted on to the vehicle and fold away neatly when not in use
MaintenanceWith service intervals nudging 25,000 miles in some cases, there has never been a more important time to focus on van maintenance. While servicing schedules may be this long, crucial safety items such as brakes are likely to need atten-tion before then.
With some vans being used by several people, the tendency is for drivers to assume someone else will check on safety items so it’s important that every driver completes a ‘walk-round’ safety check before getting in the van. Get them to complete a form and carry out spot checks to ensure the inspections are being done.
Tyres should be given a visual
check every day and a proper infla-tion check each week as under-inflation could make the vehicle unstable and so cause a crash.
Brakes should also be given a visual check weekly and any prob-lems reported to the fleet manager for attention.
TrainingDriver training sessions such as those offered under the SAFED scheme are invaluable, but don’t expect miracles. Although the one-day courses will teach your drivers to operate more safely and more fuel-efficiently, you need to change your drivers’ mindset for complete success – and that won’t
happen after just one training session. Consider regular follow-up courses and tackle driver culture through elearning and coaching.
Obeying the lawThe obvious way to reduce acci-dents is by making sure that your drivers stick to the law and don’t indulge in such practices as speeding and talking on mobile phones while on the road.
As you can’t actually see your drivers most of the time, this may be easier said than done, but at the very least you should produce a drivers’ handbook outlining what you expect from your drivers and the consequences of failing to come up to your expectations.
One way of incentivising staff is by making a chart showing which drivers suffer the fewest accidents. At the end of the year there should be a prize or prizes so that they have a goal to aim for.
If that prize is big enough, just watch your accident rates fall.
TelematicsIf you have problems with erratic and dangerous drivers on your
fleet, one good way of tackling the issue is by installing a telematics system. There are many different ones on the market which will give you any amount of information about your staff when they are out on the roads and will pick up speed-ing, excessive cornering and heavy braking.
If drivers baulk at having a ‘spy in the cab’, you may point out to them that it is your duty to protect them on the roads. And the vans are a company asset that need to be lookd after. Involve drivers from the start and they will accept it.
Evidence from telematics firms suggests that fleets which use telematics will see massive savings in costs through having fewer accidents.
Drink and drugsIf you are over 50 you probably count drink-driving as a bigger problem than drug-driving, but drugs is a growing problem in the workplace among younger people.
Cannabis, amphetamines and cocaine are increasingly used and stay in the blood-stream to affect driving performance days after they were
Ensure that your vans are maintained properly for maximum safety
Training courses can be invaluable – but don’t expect miracles
Installing a telematics system in your vans will help control dangerous
driving by employees
Drug driving is becoming a big problem – make sure it doesn’t affect your staff
R i s k V a n a c c i d e n t s
fleetnews.co.uk/fleetvan July/August 2012 13
taken. Whatever drug has been used, all are illegal and can cause accidents in
exactly the same way as alcohol – and efforts must be made to clamp down on such practices.
An RAC survey of more than 1,000 people found a rise from 5% to 9% among 17-24 year olds who admitted to driving under the influ-ence of illegal drugs during the last year. The research follows hot on the heels of a Government announcement that drug driving will be tackled and police will be given roadside “drugalysers”.
The drugalyser works by analysing a saliva sample. Drivers who fail the initial roadside test will be taken to a police station and tested with a more sophisticated machine. Penalties include up to six months in prison and fines up to £5,000.
Tackling drug-driving at work is a difficult problem as most staff would baulk at being given a swab test before being allowed behind the wheel of their vehicles.
Some fleets introduced a drugs amnesty allowing drivers to come forward for help without fear of reprisals. After that period, anyone found using drugs faces discipli-nary action.
Your drugs policy should be outlined in the driver’s handbook. You can choose to either offer support to those caught using drugs or take immediate discipli-nary action.
Keep a general watch for the demeanour of staff.
Anyone abusing drugs or alcohol will probably show negative signs at work.
If you suspect a driver, a friendly private chat is the best way of finding out the truth.
Hoists like this one from Penny Hydraulics will help
prevent drivers from suffering back strain
Fleet Van awardsDon’t forget we give a safety award each year at the Fleet Van Awards, so feel free to enter. Visit www.fleetnews.co.uk/fleetvan
E n v i r o n m e n t E m i s s i o n s r e g u l a t i o n s
fleetnews.co.uk/fleetvan July/August 2012 15
Time to plan for arrival of Euro6NOx emissions are at heart of new legislation which arrives in 2015
By Alisdair Suttiemissions regulations can be an exhausting topic, long before you get down to what comes out of the tail pipe. Unravelling EU legislation governing emissions, both present and future,
takes some work, but understanding it is vital to van operators’ planning.
The first thing to note is that Euro emissions legislation does not include CO2 emissions in its calculations. While CO2 is an important consid-eration for governments and van users alike, it’s the other harmful chemicals that are measured.
From the outset of Euro1 in 1992, the measure-ments have covered oxides of nitrogen (NOx), hydrocarbons (HC), carbon monoxide (CO) and particulate matter (PM). Particulates are commonly referred to as soot and vans have wrongly shouldered much of the burden of disap-proval of the stereotypical belching diesel exhaust. As vans registered from 1 October 2006 have had
to meet Euro 4 standards, they have been much cleaner, especially when you consider it takes 35 Euro 4-compliant vans to produce the same volume of particulates as one pre-Euro1 vehicle.
Every van registered from October 2009 onwards has had to meet the current Euro5 standard which states the max-imum limits of NOx that are permissible. This is set to change for Class 1 vans in September 2015 with the Euro6 standard. Class 2 and 3 vans have an extra 12 months’ grace before they have to comply with new NOx limits that are more than half the present limits.
Particulates and hydrocarbon limits will remain the same for Euro6 as they are for Euro5. While this offers some solace for van manufacturers, it still means finding solutions to lower NOx exhaust
emissions. There is also the incentive of financial benefits from some governments for early adop-ters of cleaner vans to fleets.
Engineering a whole new engine is not practical for many van manufacturers, so we’re likely to see wider adoption of Ad Blue, also known as Diesel Exhaust Fluid (DEF), which works by Selec-tive Catalytic Reduction. This process injects the DEF into the hot exhaust where ammonia in the liquid reacts with the harmful NOx to form nitrogen and water vapour that are safe to leave the exhaust.
This form of catalytic treat-ment is common in large trucks and some passenger cars. However, Simon Chapman, Chief Economist for the Freight Transport Association, warns: “Manufacturers are still likely to be in the development phase for these vehicles. However, if the FTA’s experience with trucks is anything to go by the solution of greater use of exhaust gas recir-culation and selective catalytic reduction will result in higher vehicle purchase costs.’
For many van operators, the cost of ignoring impending Euro6 legislation will be too great to leave to chance. The London Low Emissions Zone (LEZ), which covers almost the whole of the capital within the M25, already charges a penalty of £250 per day for any vehicle that does not meet its emis-sions standards, which was set at Euro4 from January this year. The fine doubles if not settled within 14 days. It applies to all vans with a weight between 1.205 tonnes unladen and 3.5 tonnes gross vehicle weight.
Van owners must register their vehicle as being compliant. Compliant vehicles not registered with Transport for London will be fined.
While getting to grips with Euro emissions legislation can be difficult, it’s a subject worth grappling with as it affects all van operators and will have an ever larger part to play in how much it costs to buy and run a van.
E “For many the cost of ignoring
Euro6 legislation will be too great
to leave to chance”
Compliant vans which aren’t registered with Transport for
London face a fine of £250
16 July/August 2012 fleetnews.co.uk/fleetvan
R e m a r k e t i n g S p e c i f i c a t i o n a n d e q u i p m e n t
By Trevor Gehlckenhen it comes to buying new vehi-cles, most van fleet operators, unsur-prisingly, opt for
base spec models. After all, with money tight it seems the most cost-effective way of running a commer-cial vehicle fleet.
But what seems cost-effective at buying time is not necessarily cost-effective at selling time as anyone who attends one of the many UK van auctions will attest.
As vehicles come into the halls, eager buyers will be looking to purchase vehicles that will sell easily to second users. And increasingly those second-users are expecting comforts such as air-conditioning, a good quality sound system and even built-in sat-nav.
It’s all a matter of assessing wholelife costs when buying new vans – and fleet operators would do
well to heed the words of the auction experts or risk losing a fair chunk of money in a vehicle’s lifetime.
When it comes to looking at added extras in detail, some curious anomalies start to appear.
Take metallic paint for example. Few, if any, fleet operators would choose this option, which nor-mally costs around £300. But according to the experts, a van with metallic paint will fetch up to £500 more than a flat-finished van at auction.
As ever with number-crunching exercises, the equation is not quite that simple. If your van with metallic paint is scraped and scuffed, which
is quite probable, it will cost more to have resprayed with a metallic finish, so this will have to be factored in.
A problem also arises when looking at rear parking sensors, which appear as an option on just about all van price lists. (Fleet Van believes they should be standard fit).
Parking sensors will add around £200 to the cost of your van new and will, according to the experts, add about £50 to the value at auction – making a net loss of £150. But those
sensors will probably save you hundreds of pounds in damage repair costs over the fleet life of the vehicle.
The problem here is if you are asked by your bosses to justify the expense of adding parking sensors. Their benefits are nigh on impos-sible to quantify: your drivers are unlikely to tell you about their near misses.
Sadly, safety extras do not seem to add value to used vans, whereas cosmetic options such as alloys wheels and metallic paint do.
Duncan Ward, BCA’s UK business development manager – commer-cial vehicles, said: “When you are offering upwards of 400 vans, you really notice how the buyers gravi-tate towards the best presented, well-specified vehicles.
“If you are a professional buyer for retail, you know that certain vehicles will stand out in adverts and on the forecourt and you want those on your shopping list. In a sim-ilar fashion, end-users buying at auction will seek out the best
Choose the right equipment to maximise resale valuesBut age and condition of vans will affect how much is retained by added features
W
In-built sat-navs are important when it
comes to selling a van
Vehicles that will
benefit most from spec
are the more ‘lifestyle’
vansAlex Wright , Shoreham
Vehicle Auctions
Europe’s No.1 vehicle remarketing companylog on to www.british-car-auctions.co.uk or call 0844 875 3480
Average used LCV values in June fell to their lowest point since last August. Month-on-month values fell across the board by £199 (4.5%) to £4,171,
with average age rising slightly and mileage falling. There were value falls in all three main sectors of fleet and lease, part-exchange and nearly-new and CAP performance declined by half a point to 97.7%.
Year-on-year, June 2012 was ahead by £31 (less than 1%) compared to the same month in 2011, despite the average age climbing by over six months (up 13%) and average mileage increasing by 7,500 (up 11%). Performance against CAP slipped year-on-year, but only by a quarter of a point.
Duncan Ward, BCA’s general manager – commercial vehicles, commented: “The market tends to slow down in the early summer and we have also had a short-term hangover from the Jubilee double bank holiday.
“In fact, June brought a much-needed reality check to the used commercial sector. There was almost an expectation from vendors that dealers will continue to pay ever higher prices for older, higher mileage vans because stock is short in supply.
“However, buyer confidence in the wholesale market is quite fragile and there is an increasing reluctance to buy poorer condition or excessively travelled vans because of the investment required to get these vehicles ready for retail.
“In many ways the trade buyer is being squeezed from above and below. Competition for stock has forced prices up, while the retail customer – the small business or sole trader – wants even more van for their money when they walk on to a forecourt.
“The dearth of stock has kept values high as economic confidence is still reported to be flatlining. According to the CBI, retail activity is subdued and uncertainty over the economic outlook is putting a brake on spending across the whole consumer sector.
“Small businesses are being particularly hard hit as they have no excess to trim back, so cost-cutting often takes the form of deferring expenditure – and if a replacement van was on the agenda for 2012, maybe that will be reviewed and postponed for another 12 months.”
Ward added: “We have been advising our sellers for some time to review their remarketing activity to ensure their vans are presented in the most saleable condition.
“Vehicles must be appraised sensibly and methodically and valued in line with market sentiment. Pre-sale preparation and presentation is important and all the documentation and service histories should be present when vans are sold.”
Fleet and leaseUnsurprisingly, values in the fleet and lease LCV sector declined from May’s 24-month high, falling by £148 (2.9%) to £4,965.
Performance against CAP dropped by around a quarter of a point to 97.8% over the month, while retained value against manufacturer recommended price over 44 months and 70,000 miles was 31.68%, down a point on last month.
The year-on-year figures again highlight the value growth across the fleet and lease sector. June 2012 was £352 (7.6%) ahead of the same month last year – despite the average van being two months older and 7,000 miles higher this year.
BCA is advising sellers to review their remarketing activity to ensure their vans are presented in the most saleable condition
‘There is an increasing reluctance to buy poor condition or excessively travelled vans’Duncan Ward, BCA
Fleet & lease used values 2010-2012 Source: BCA
£6,000
£5,000
£4,000
£3,000
£2,000
May Ju
n Jul
Aug Se
p
Oct
Nov
Dec Jan
Feb
Mar
Apl
May Ju
n Jul
Aug Se
p
Oct
Nov
Dec Jan
Feb
Mar
Apl
May
June
vehicles they can buy with the budget they’ve got – and if a van with twin side loading
doors, a bulkhead and air-con is on offer, that will be the one they bid for if the alternatives are basic models.”
According to BCA, the best long-term value extra is interior ply-lining – used buyers expect it and it protects against ‘inside-out’ damage.
All sizes of vans benefit from this ‘extra’. In terms of added value, ply-lining might add only £100 or so, but the real benefit is that the van is much more likely to be in a more saleable condition after three or four years’ hard work. An otherwise clean van valued at £5,000 could easily lose up to £1,500 if its side panels are exten-sively blemished from inside-out damage.
BCA also sugg-ests that side-loading doors are as essential for the smaller car-sized vans as they are for 3.5-tonne vans.
Alex Wright, managing director of Shoreham Vehicle Auctions, said speccing a vehicle correctly will help it sell more quickly, and keeping the age of the vehicle and the target audience in mind are key when deciding what will increase its value at the point of sale.
The age of a vehicle will often determine whether it is worth spec-cing or not. While spec works well on newer vehicles, it can be detri-mental to older vehicles, as the replacement, repair and mainte-nance of new technologies can cost more than the vehicle is worth.
Wright said: “Additional spec on white vans over six years old is not generally necessary.
“Younger vans will sell better with spec. Sub five-year-old large panel vans should always be fitted with electric wing mirrors, as these are much sought after.
“Air conditioning will increase the value of smaller vans, especially if they are dark in colour and are fitted with a bulkhead, but can be more of a burden in large white vans with no bulkhead, as the system has to work hard to cool a large space, conse-quently eating precious fuel.”
Vehicles that benefit most from spec, according to Wright, are the high ‘lifestyle’ vans such as the Volk-swagen Transporter, Mercedes-Benz Vito and Renault Trafic.
Reversing sensors, air-condi-tioning, colour-coded bumpers and cruise control all change their value.
Wright said: “Whether alloy wheels add value to a van is down to personal taste. Quality alloys can
look good and reduce the weight of a van, which for a commercial operator means they can carry a heavier load.
On the downside, damaged alloys can be expensive
to repair. Another consideration is steel wheels, which can look just as smart with wheel trims, but are more practical to repair and replace.”
Metallic paint sells better on younger, sub four-year-old vans with little wear and tear, according to Wright, but it can make repairs more costly.
He said: “Someone looking to buy an eight-year-old Ford Transit with a damaged panel will favour the white over the silver van, as the cost of repairing or replacing the panel will be more than the van is worth. On a three-year-old Renault Kangoo, however, the buyer is more likely to favour the silver over the white van.
“Built-in sat-navs and in-cab phone charge points are important, but operators looking to maximise the value of their vehicles when selling them on should also look at in-built docking stations or adaptive cradles for a range of communica-tion equipment.”
An integral communications solution needs to be the next piece of technology adopted as standard by van makers.
Manufacturers who ignore operators’ growing appetite to communicate with drivers and their customers directly from the vehicle could suffer from reduced sales
and residual values in the long term. More and more van operators are looking to install
communications equipment into the van cabins to help them run their business while on the move.
Offering integrated satellite navigation or an in-cab phone charge point is not enough. Van operators need technology like in-built docking stations or adaptive cradles for a range of communication equipment that adhere to stringent manufacturer safety guidelines.
iPhones, for example, are used for so much more than just making calls – they double up as a sat-nav system, as GPS positioning devices, as well as enabling the driver to safely make calls and stay in touch with the office via email. When 4G hits these shores it is anticipated that smart phones will become an ever more integral part of a van driver’s day-to-day working kit.
Offering a more flexible factory-built solution to accommodate these communication devices will immediately translate into additional sales. Vans with these options tend to make more money when it comes to selling them used in three or four years’ time.
Vans fitted with sat-nav systems have commanded a slight increase in used values, but nothing that meets the initial investment. Some manufacturers, such as Nissan, are now providing sat-nav as standard, but to future proof their vehicles on all levels, van makers must look at operator requirements in a far broader fashion.
Many operators purchase the base vehicle and then fit their own communications kit, often involving extra cost and time before a van goes into operation, as well as new wiring and installations being added to the vehicle’s factory-fitted finish. At the end of the vehicle’s life the kit has to be taken out at a further cost. An integral dash mounted comms system would address these issues.
Van technology now has to move on and we are confident that operators would work with the industry to help make this a reality. Anything a manufacturer can implement to make an operator’s life easier and help develop their business without incurring huge costs will certainly put them at an advantage.
Alex Wright, MD of Shoreham Vehicle Auctions
UNDER THE HAMMER
R e m a r k e t i n g S p e c i f i c a t i o n a n d e q u i p m e n t
18 July/August 2012 fleetnews.co.uk/fleetvan
“Smart phones will become an ever more integral part of a van driver’s working kit”
Ply-lining is said to be the best added-value extra
“Younger vans will sell better
with spec”Alex Wright, Shoreham
Vehicle Auctions
Ged Raymond: ‘Our vehicle maintenance costs are
reducing and that is amazing’
F l e e t c a s e s t u d y A u t o g l a s s
MAINTENANCE COSTS FALL TO 11-YEAR LOW
fleetnews.co.uk/fleetvan July/August 2012 21
Software, telematics and a pay-on-use contract help Ged Raymond’s...
By John Charlesed Raymond has seen many radical changes in the industry during his 34 years as fleet manager at Autoglass, but throughout that time his management principles for operating an efficient, safe and economic fleet remain the same.
Minimising cost and limiting vehicle downtime are critical for Autoglass, the UK’s leading vehicle glass repair and replacement company serving more than 1.1 million motorists each year – 24 hours a day, seven days a week, 365 days a year.
When Raymond moved into the fleet manager hot seat in 1978, Autoglass operated a UK fleet of 315 vehicles.
Today the fleet numbers more than 1,800 light commercial vehicles and 200 company cars.
Around 1,600 are driven by Autoglass employees with the remainder used by staff employed at sister companies Autostore, which offers same-day vehicle repairs, and replacement glass distribution company Laddaw.
In addition to being in charge of the UK fleet, Raymond has a second role as the group fleet manager for Autoglass parent company Belron, which has its global headquarters in Egham, Surrey.
Last year in that role he negotiated a global three-year deal with Ford for near-exclusive supply of vans, with an option to extend to five years.
During the first three years of the contract Belron, which is the world’s leading vehicle glass repair and replacement company and operates in 34 countries, including much of Europe, North America, Russia and China, will acquire 12,000 new vans.
In the UK, Autoglass already operates a 90% solus Ford van fleet covering Transit 260 and 280 models, Transit Connect 230 models and Fiesta vans. Additionally, due to the requirement for some specialist vehicles, a few Mercedes-Benz, Renault and Vauxhall vans are also on the fleet.
Reducing maintenance costsAll vehicles are on contract hire and are replaced after four years/110,000 miles. Pay-on-use maintenance is outsourced to long-time partners Arval and Fleet Support Group (FSG), with the latter responsible for an increasing share of the fleet over an 18-year partnership.
More than 50% of the light commercial vehicle fleet is maintained by FSG and pence per mile data reveals that operating costs are 2.57ppm per van today compared with 2.46ppm in July 2001 when the fleet management specialist began recording information in its current format.
Taking inflation at 2.5% per annum into account, it equates to a total saving last year of £71,316 in maintenance costs on the 900 Autoglass vans currently on FSG’s books.
“FSG figures show that our vehicle maintenance costs are reducing if inflation is taken into account and that is amazing,” says Raymond. “Pence per mile figures are the most accurate mechanism for monitoring individual vehicle costs.”
A future development could see ARI (Automotive Resources International), which acquired FSG late last year, working with Belron outside the UK.
“We are interested to hear what it has to offer,” he admits.While Raymond acknowledges that the most significant change during his
fleet manager career has been improved vehicle quality and reliability, he says technology has played a key role in enabling him and his three fleet department colleagues to minimise cost and downtime.
“We used to keep a ledger recording all details of the fleet with some information recorded in pen and some in pencil. It was very difficult to keep track of vehicles.
“We have been computerised for the past 20 years and we know absolutely everything about every vehicle, driver, journey and operating costs.”
Telematics programme“I don’t know how we did it before, but we coped. However, we couldn’t have such a system today,” he adds. “We record the same information, but everything is much quicker, checks can be carried out much more efficiently and we have access to an instant audit trail of information that ensures our duty of care compliance responsibilities are met and the focus on cost is maintained.”
The company is currently embarking on a major telematics programme that, by the end of the year, will see every driver/vehicle equipped with a PDA (personal
digital assistant or palmtop computer). It will communicate to technicians details of their next job and location and
provide navigation assistance. Additionally, customers will sign the PDA to acknowledge completion of work.
Autoglass has also – in partnership with a specialist supplier ‘Ecodrive’ - developed in-vehicle technology that is being fitted to vans to both record vehicle data and impart best practice driving advice to employees.
“Our vans are already restricted to 70mph, but the technology will verbally tell drivers, for example, when to change gear, and advise them what speed they are travelling,” says Raymond.
“The information recorded will help reduce service, maintenance and repair (SMR) bills as well as fuel costs because we will know how each vehicle is being driven and can then act on the data.”
Such technology will further help Raymond to ensure he achieves his number one objective of operating an ‘efficient, safe and economic fleet’.
He says: “Vehicle must be fit-for-purpose, safe as far as
G“We have been computerised for 20 years
and we know everything
about every vehicle”
Ged Raymond Autoglass fleet manager
F l e e t c a s e s t u d y A u t o g l a s s
22 July/August 2012 fleetnews.co.uk/fleetvan
our drivers and the general public are concerned, efficient and easy to repair at sensible cost.”
With cost minimisation at the forefront of his mind, Raymond believes it is crucial to keep contract hire and maintenance
charges separate.“Fleets that lease with maintenance are paying
a fixed rate for work from day one when vehicles are new and servicing and repairs should not be required. Opting for pay-on-use maintenance means that we only pay for work when it is required,” he says.
Minimising SMR costs at de-fleetRaymond is particularly conscious that SMR costs are kept to an absolute minimum when vehicles are close to de-fleet time.
“Some organisations will fit an expensive battery with a five-year warranty when the vehicle is going to be de-fleeted in three months time. We only want a battery with a one-year warranty, which will save us money,” he says.
“We go through all invoices to make sure we are happy with what we are paying for. In real terms our costs are coming down and that is due to improved vehicle quality and reliability, the level of information that we have on each vehicle enabling tight cost management by ourselves and suppliers and the trust we have in place with FSG as well as Arval.”
Illustrating his point that vehicle downtime is also minimised, he says: “If a van has a damaged bumper it can still operate. It doesn’t need to be off the road for a week with all the additional administration and costs relating to a
replacement vehicle when the repair takes perhaps two or three hours. That is how knowledge and experience can be used.”
Raymond celebrates his 65th birthday in August, but intends to continue to run the fleet for at least another couple of years. In the meantime, Sebas-tian Sharpe has been learning the business as assistant fleet manager having
been recruited four years ago. The Autoglass fleet department is completed by Richard Willmoth and Julie Miller.
Planning for the futurePerhaps not surprisingly Raymond has strong views on the job of the fleet manager and believes organisations running 300 or more vehicles need a specialist in the role.
He says: “The role of the fleet manager could be under-valued. Too many employers are outsourcing fleet-related functions and believe that will take away problems.
“But outsourcing costs money and someone in-house with a certain amount of fleet knowledge is required to manage suppliers. The role of the
fleet manager in any business is an important one and that is why we are planning for the future.
“We are saving money each day in association with our suppliers because we tap into their knowledge and expertise and leverage their business rela-tionships, but we also monitor exactly what is going on so we pay the right price for the right product and the work carried out. Handing the fleet over to a third party is more expensive, so the Autoglass fleet department exists to save money and ensure the business operates a safe and efficient fleet.”
The Autoglass fleet team (from left): Sebastian Sharpe, Richard Willmoth, Julie Miller and Ged Raymond
Fact FileCompany: AutoglassFleet manager: Ged RaymondTime in role: 34 yearsFleet size: 2,000 (1,800 LCVs, 200 cars)LCV brands on fleets: Ford, Mercedes-Benz, Renault, VauxhallVan replacement cycle: four years/ 110,000 miles
I n d u s t r y s p o t l i g h t L e a s e P l a n
CUTTING THE RISK FOR FLEET OPERATORSHow long have you been in your current job?Eighteen months.
What does your work involve?The development of LeasePlan’s commercial vehicle strategy, heading up our specialist commercial vehicle team, and through improving our customer service propositions, growing our funded commercial vehicle fleet.
What are the benefits of leasing vans over outright purchase?There is less risk to the operator – leasing vehicles means off balance sheet funding and a known fixed monthly cost of van fleet operations. Leasing also minimises the amount of administrative burdens that running a van fleet requires. There is also the support and reliability that leasing offers and the ability for operators to use their cash for other business critical investments while the cost of the vans on a monthly lease doesn’t eat into those funds.
Why do more than half the UK van operators still buy vehicles outright?Many (particularly smaller) van operators are unaware of the advantages of leasing and don’t believe it’s a viable option for operators other than large corporate fleets. Others see leasing as hire purchase and don’t think it’s suitable for their business. Where the benefits of leasing are not sold correctly, operators have a perception that there is a high risk of end-of-contract damage charges, and hold the view that it’s better to own their van, and ‘run it into the ground’ which is a false economy!
You launched a new product at the CV Show. How much does it cost and what are its potential savings?UPtime is our innovative product for commercial vehicle fleets. It maximises vehicle uptime, reducing downtime and costs associated with downtime. Dependent on fleet size and profile, UPtime is available for less than £30 per month.
What makes this product different from others?Where UPtime differentiates LeasePlan from our competitors is in the way that it provides a genuine and credible pro-active approach to VOR (vehicle off road) management. Using telematics data, we capture the vehicle mileage every 24 hours and then plan each service, inspection or other scheduled event around the operator’s working patterns. Using UPtime, our service repairer network that supports the product applies an HGV approach to LCV maintenance; examples being the ability to book a vehicle in for repairs for hourly slots rather than losing a vehicle for a whole day. From the moment a vehicle arrives in the workshop, it is progress chased until completion and
all service documentation is electronically stored. With UPtime, the van fleet operator no longer needs to worry about when a vehicle’s next service or scheduled event is due, they don’t have to book vehicles in and they don’t need to chase to find out when the vehicle will be ready.
Many fleets are now looking to leasing companies as business advisers. Why is this happening and what type of advice and support is being sought?Running a fleet of commercial vehicles is a complex task and becoming even more so, particularly in the light of increasing legislation, duty-of-care obliga-tions and compliance management. For many operators, van fleet manage-ment is something that has to be done as a result of using their vans as business tools. In recent years, the role of a traditional fleet manager has disappeared in many large companies. Consequently, we’ve seen more HR managers and procurement teams becoming responsible for van fleets, but it is not their core business activity, whereas it is ours. So the leasing providers are being tasked with providing these companies with all the information needed to run an efficient and compliant van fleet.
How many vans does LeasePlan hope to have?We have more than 34,000 vans on our fleet, and a Business Plan to significantly grow that volume over the next three years.
It looks as though the double dip recession is going to go on for a while. During the first dip we saw companies extending replacing cycles – what impact do you expect this second dip to have?As the economy remains unpredictable we are seeing that many van fleets have to do something to keep their vehicles reliable
and able to do the required job. Ongoing contract extension isn’t necessarily the viable option if the vehicle contract has already been previously extended. This is where a leasing provider can become a true trusted adviser and provide expertise on the most cost-effective solution. We are also seeing some customers, who have survived the first wave of recession, investing in their vehicle fleet, recog-nising that their business model has been strong enough to survive the harshest of economic times and now ready to grow their business.
Some fleets operate five- or six-year replacement cycles which they say reduces costs, but others replace every three years to take advantage of tech-nology advances on safety and fuel efficiency. What advice do you give on how long to keep vans?Part of the LeasePlan consultative sales approach is to fully qualify our clients’ and prospects’ van fleet needs. As a result of such detailed qualification, we consider the type of use and fleet profile, in order to come up with the most cost-effective solution for a business application. In some instances and markets, a five- or six-year replacement cycle would be recom-mended, in others, a three- or four-year cycle would be most efficient. Our current average contract term on commercial vehicles is just under four years.
What is your own opinion of electric vans as fleet alterna-tives, how many does LeasePlan have on its books and what do you think their future in fleet will be?We currently have a small number of electric vans on our fleet (and some electric cars too). Of late, we’ve seen the Renault
26 July/August 2012 fleetnews.co.uk/fleetvan
“Owning a van and running it
into the ground is a false economy”
Head of commercial vehicles Mark Lovett is looking to win van fleet business
Fact FileName: Mark LovettJob title: Head of commercial vehiclesBrief career description: Commercial vehicle director – Lex Corporate/Lex Autolease (2008-2010)Commercial vehicle sales & marketing manager – Nissan Motor GB Ltd (2006-2008)Commercial vehicle fleet sales manager – Renault UK Ltd (2003-2006)Brand Manager, commercial vehicles – Renault UK Ltd (2000-2003)LCV roles and sales roles – Renault UK Ltd (1988-2000)Dealership sales roles (1984-1988)Favourite film: Educating RitaFavourite book: Not Dead EnoughFavourite holiday destination: Greek Islands
at play, including of course, government grants, taxes and infrastructure that to predict the long term future is very subjective!
How do you see the van leasing sector in 10 years’ time?We see van leasing continuing to be a viable method of vehicle acquisition and management. We predict that the market will develop further as more van fleet operators are educated on the advantages of leasing. We envisage less leasing companies as more are bought out or merged with others. We believe that the leasing provider of choice will be the one that demonstrates its understanding of the van fleet being a true commercial vehicle fleet and offering customer service propositions such as UPtime to respond to those operator’s challenges. With the right understanding of the van fleet market, leasing will become a more attractive offering to the van operator.
CUTTING THE RISK FOR FLEET OPERATORS
fleetnews.co.uk/fleetvan July/August 2012 27
Kangoo van rise in popularity as an electric option. We always ensure that an operator’s vehicle usage is thoroughly qualified before recommending an electric vehicle. Many fleets initially express an interest in running electric vans as an answer to reducing their carbon footprint, reducing fuel costs and ticking certain corporate ‘green boxes’. However, we always stress that an electric vehicle may look good on paper, but the full practicalities of running them, especially the infrastructure support have to be considered before committing to them on the fleet.
Where, then, do you see the future of commercial vehicles lying?In the short term, I see the future fuel of choice for the majority of van fleet operators will remain diesel. Some smaller vans are reverting to petrol of course, but as for true alternative fuels, there are so many external factors
Mark Lovett: sees fewer leasing companies in the future as a
result of buy-outs and mergers
F i r s t d r i v e V a u x h a l l V i v a r o E c o f l e x
By Trevor Gehlckenhey’ve been commonplace on cars for a few years, but the eco badge has only recently started to migrate across to vans.
Vauxhall is the latest with the Vivaro Ecoflex, which is just one of a string of cars
and vans from the company now bearing this moniker.The Vivaro Ecoflex comes with a variety of gadgets to
enhance fuel economy, including a light on the dash informing the driver when to change up or down gears at the most fuel-efficient moment.
Curiously, though, it doesn’t include a stop-start device, which is an obvious way to cut fuel use and CO2 emissions. In urban driving situations, stop-start is reckoned to save around 16% on fuel.
Our van didn’t have rear parking sensors either, which I really miss after getting used to them on the Ford Transit which I have on a long-term loan (see our comparison on the opposite page).
These gripes apart, the Vivaro Ecoflex is an impres-sive performer, offering a fuel economy figure of 40.9mpg and CO2 emissions of 180g/km.
Based on the short-wheelbase standard-roof model, it has subtle specification changes that Vauxhall reckons could lead to fuel savings of more than £800 over a three-year operating cycle, and £1,100 over four
This van originally appeared as the Renault Trafic way back in 2001 so you could be forgiven for thinking it’s getting long in the tooth. Don’t believe a bit of it.
It’s a tribute to the designers that, at 11 years of age, it still looks and drives as well against the opposition as it did on day one.
The Vivaro is among the best vans to drive because its seats are supportive and comfortable, its road manners impeccable and its driving dynamics superb.
And now it has the additional appeal of improved fuel efficiency.
The Vivaro has guaranteed its place as one of my all-time favourites.
Our test van had two single seats rather than the usual bench affair, which went down very well with my passenger, who often complains about the state of those hard benches.
The 2.0-litre diesel powerplant fires up smoothly while the van really does excel with its smooth gearchanges, nicely-weighted power steering and slick handling.
With just 90bhp on tap, the Ecoflex takes a while to get going at lower speeds but, then again, if you want power above frugality, you aren’t going to choose this van in the first place.
There will invariably be a price to pay for maximum fuel economy – and that price here is a rather lazy progress up the road.
Rowing around the gears doesn’t really help either, so eventually I gave up trying to squeeze out an extra drop of power and instead sat back to enjoy the driving experience in the knowledge that I was both helping to save the planet and saving myself some cash at the same time.
Mind you, once wound up to motorway speeds the Ecoflex is an effortless cruiser.
years, compared to the 198g/km/37.6mpg standard version. With a 90-litre fuel tank, the van is capable of more than 800 miles on one tank of fuel.
Changes from the standard model also include exhaust gas recirculation cooling and optimised gear ratios, justifying the Ecoflex tag. It also features improved thermal management, low rolling resistance tyres and an aerodynamic kit.
The starting price is £19,948 ex-VAT against £18,843 for the entry-level standard van. However, our test model was fitted with electronic stability control which comes at an extra £400, air-con at £630 and other extras, which took the price to £21,873.
n Exhaust gas recirculationn Low rolling resistance tyresn Aerodynamic kit
VerdictA great van with impressive green credentials. The Ecoflex costs £1,100 more than its standard brother, although this is mitigated by the potential fuel savings over four years.
Green credentials come at a price
Impressive performer, but Vivaro Ecoflex is £1,100 extra
T
28 July/August 2012 fleetnews.co.uk/fleetvan
The Vivaro Ecoflex comes with a variety of fuel-enhancing gadgets
A light on the dash tells the driver when to change gear
L o n g - t e r m t e s t F o r d Tr a n s i t E c o n e t i c
By Trevor Gehlckenhe arrival of a direct competitor to our long-term Ford Transit gave me an opportunity to put them head-to-head.
And Ford will be pleased to hear that after a good deal of head-scratching, number-crunching and general searching through press packs, the Transit Econetic stands up pretty well against this rival – the Vauxhall Vivaro Ecoflex.
Direct compari-sons are often nigh on impossible between two vans. You have to weigh up standard speci-fication on each vehicle against its price. And, as each has a list of options as long as your arm, it’s a difficult job. Then there is the comparison of different engine power, cargo volumes and payloads.
And, of course, what we can’t factor into the equation are any discounts you, the fleet buyer, may be able to negotiate.
But I think I’ve got it pretty much
weighed up and our Transit comes out a clear winner.
Both vehicles weigh in at 2.8 tonnes gross vehicle weight but while Vivaro and Transit have the same payload (around 1,100kg), Transit beats Vivaro on load volume (6.5 cubic metres against 5.3). The Vauxhall offers 90bhp to the Transit’s 100bhp, but the price of the Vivaro at £19,100 undercuts
the Transit at £19,445 (ex-VAT).
Turning to stan-dard specification, things start to get interesting.
Despite a slightly higher price, the Transit has elec-tronic stability con-trol as standard which immedi-ately puts it higher in my estimation. It’s a £400 option on the Vauxhall.
It’s a must-have accessory for any safety-conscious fleet oper-ator and I don’t understand why manufacturers don’t all follow Ford’s lead and make it standard across the industry. It will be a legal requirement in Britain from October 2014, but apart from
Ford, Mercedes-Benz, Volks-wagen and Iveco, all the other manufacturers charge for ESC on certain models.
The other item my Transit has that the Vivaro doesn’t is a standard stop-start device which cuts the engine when idling at traffic lights and roadworks. If you drive your vans round town, Ford reckons fuel savings of up to 16% are possible.
Other noticeable gaps in the Vivaro proposition include a passenger airbag and rear parking sensors. These are avail-able as options at £250 and £200 respectively.
When it comes to fuel economy, the Transit notches up another win. The Vivaro’s official combined figure is 40.9mpg while the Transit returns 43.3mpg. It might not sound a lot on paper, but it equates to an extra 109 gallons of fuel over 80,000 miles. At current prices that’s an additional cost of £700 per van. The Transit’s CO2 figure is lower than the Vivavo’s too – 170g/km to 180g/km.
However, the Vivaro’s driver’s seat is more comfortable than the Transit’s and the Vivaro nudges ahead on general ride and handling.
Transit wins hands downWe pitch the Econetic against Vauxhall’s new Vivaro Ecoflex rival
TTransit has a
standard stop-start
device; Ford reckons fuel savings of up
to 16% are possible
The Vivaro has more space in the cab area generally, with noticeably more legroom.
So, while drivers may edge towards the Vivaro, if it’s figures alone you are crunching, the Transit wins hands down.
And talking of figures, our Tran-sit’s fuel economy is gradually nudging up as the miles pile on and the engine loosens up. The official figure of 43.9mpg is still a little way off but we have managed to top 40mpg in the past month.
The van has been with us now for six months and so far we haven’t had to add a single drop of oil, a puff of air in the tyres or even a squirt of liquid in the radiator or windscreen washer bottle. That’s not a bad tally in 6,000 miles of hard driving.
The figures stack up on our long-term
Transit Econetic
fleetnews.co.uk/fleetvan July/August 2012 29
F i r s t d r i v e C i t r o ë n B e r l i n g o e - H D I A i r d r e a m L 1 6 2 5 L X
By Trevor Gehlckenhe Citroën Berlingo broke the small van mould in 1995, being the first small LCV to be built from scratch as a commercial vehicle. Other rivals at the time were cars with van bodies added.
Since then this van has sold by the bucketload and has metamorphosed over the years into the handsome beast pictured on this page.
The arrival of the smaller Nemo in 2008 saw the Berlingo grow in size and now this van has two unique features – it is the only small van to offer three seats in the front (along with its twin, the Peugeot Partner) and the only vehicle in the sector to offer a free Traf-ficmaster sat-nav and stolen tracking system. Now another set of tweaks has further improved the cost-effectiveness and stylishness of the Berlingo.
The underbonnet changes are the items in which fleet managers will be most interested. New Euro V- compliant engines offer better fuel economy and lower CO2 emissions and the model on test here, the e-HDI, returns a healthy 57.6mpg on the urban cycle while emitting 129g/km of CO2.
The e-HDI moniker means that this model features fuel-saving devices such as stop-start, which uses a micro-hybrid starter-generator for smooth restarting
Can there ever have been a more ubiquitous van than the Berlingo? You can hardly go down any street in the UK without meeting one.
Of course, the model on test here is a very different animal from the original one (which you still see out and about quite a bit) and we all really like its styling and practicality.
Despite the Berlingo boasting an official fuel economy figure of 57.6mpg, the reading on the dash never went above 49.5mpg during our test week. Mind you, this is probably because most of our driving was on major roads and motorways, so the useful (and fuel-efficient) stop-start system hardly ever cut in – as it would in the official mpg test.
When it did, what a smooth start-up it achieves, especially against rivals which simply use the starter motor. On a couple of occasions in traffic I mistakenly thought it hadn’t fired up at all.
General ride and handling are superb, with nicely weighted power steering. The 90bhp 1.6-litre diesel powerplant feels lively in the extreme as max torque comes at a very low 1,500rpm.
One problem for me, though was a lack of legroom in the cab, caused by the mesh bulkhead being placed a little too near the front.
The metal mesh as opposed to solid metal also allows quite a bit of noise from the rear to intrude into the cab.
Citroën deserve praise for giving away the Trafficmaster system. It works easily and brilliantly and acts as much more than a sat-nav unit.
It warns of speed cameras ahead, acts as a stolen vehicle tracking system and, by hitting an icon on the touchscreen, you can actually talk to someone live at Trafficmaster HQ in Oxfordshire and ask for anything from help in an accident to the location of your nearest Indian takeaway!
What’s new? and a regenerative braking system which recovers and stores energy that would otherwise be lost.
Our short-wheelbase version offers 3.3 cubic metres of space but the test model had one of those clever fold-down passengers seats that increases the volume to 3.7 cubic metres, a standard fitting on LX models. Other standard goodies include ABS brakes, remote central locking and electric/heated mirrors.
Sadly only on the options list, unlike its rival the Ford Transit Connect, is electronic stability control, which adds £250 to the standard £13,465 (ex-VAT).
Other options include air-con at £600, rear parking sensors at £190 and metallic paint at £315.
n Standard stop-start systemn Improved fuel efficiencyn Micro-hybrid starter-generator
VerdictThe Citroën Berlingo was already a cracking little van and is now even better with all these fuel-savings extras, which can only further enhance its fleet credentials.
New version is better than ever
The stylish Berlingo is now even more cost-effective
T
30 July/August 2012 fleetnews.co.uk/fleetvan
The only vehicle in the sector to offer free
sat-nav and vehicle tracking
LEFT: The only small van to offer three seats in the front
To register your interest please email [email protected] or call 01733 468123.
Grey FleetManagement
• Understand the cost and risk of your grey fleet - and whatyou need to do about it
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Tuesday 16 October 2012Heritage Motor Centre, Gaydon
Duty of Care
• How a duty of care solution can reduce the number andseverity of accidents
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