LCV operations with geographical input across Europe

ERICSSON

MANUFACTURERSInnovation in product & services

07PANEL VANSTailor-made solutions for professionals

18NILFISK-ADVANCE When LCV Management englobes driver competition

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ERICSSON LCV operations with geographical input across Europe

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EDIT

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There’s a lot going on in the LCV market. The revival of the global economy hasled to a natural increase in LCV sales on an international level. Sales that in thefuture will be increasingly green. Not only is there the European directive thatrequires manufacturers to reduce the CO2 emissions of their range to amaximum of 175 g/km by 2017, but companies are also keen to purchasedelivery vans with low CO2 emissions and to implement a certain downsizing.What’s more, many companies are carefully monitoring the introduction of thefirst electric vans.

In this issue of Van Europe you can read how some fleet-owners are organisingtheir fleet policy, in respect of basic issues such as cost management, safety,green technology and integrated telematics. There is no doubt that sustainabilityand telematics are playing an increasingly prominent role in professionalmobility. In order to provide you today with relevant answers to the technologicalchallenges of tomorrow, we invite you to come to the first Fleet EuropeTechnology & New Powertrains Event, that will take place on 7 June 2011 inBrussels (Belgium). Go to http://www.fleeteurope.com/newpowertrain/ to seethe programme and to register. See you there!

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MANAGEMENT

06 LCV Market: sales is getting back on track

07 Manufacturers: innovation in product & services

10 Ericsson: being mobile with dry & wet vans

14 Nilfisk-Advance: respect for country differences

MARKET

16 LCV Bodywork: lack of harmonisation because of too few pragmatists

18 Panels vans: partners for the real professionals

21 Engine downsizing: reducing CO2 through fewer cc’s

22 Emerging markets: different LCV design but same pricing

“To provide you todaywith relevant answers

to the technologicalchallenges of

tomorrow, we inviteyou to the Fleet

Europe Technology &New Powertrains

Event.”Steven Schoefs

Chief Editor

MMM BUSINESS MEDIA sa/nvComplexe Arrobas Parc Artisanal 11-13 4671 BLEGNY-Barchon (Belgium)Phone: 00 32 (0)4 387 87 87 Fax: 00 32 (0)4 387 90 87 info@mmm.be www.mmm-businessmedia.com

EDITORIAL TEAMEditor in chief: Steven Schoefs (sschoefs@mmm.be) Team: Julie Widart (Final Editor), Tim Harrup, Stijn PhlixExperts: Professor Peter Cooke (University of Buckingham), Vincent Rupied (Leaseurope & CVO), Bart Vanham (Fleet&DriverCare)

SALES & MARKETING TEAMSales Director: Marleen Neukermans (mneukermans@mmm.be)Key Account Manager: David Baudeweyns (dbaudeweyns@mmm.be)Sales assistants: Patricia Lavergne (plavergne@mmm.be), Romina De Gregorio (rdegregorio@mmm.be)

Marketing: Kathleen Hubert (khubert@mmm.be)

PRODUCTIONHead: Sonia Counet

EDITORDevelopement Director: Caroline ThonnonManaging Director: Thierry DegivesEditor/CEO: Jean-Marie Becker

© Reproduction rights (texts, advertisements, pictures) reserved for all

countries. Received documents will not be returned. By submitting them,

the author implicitly authorizes their publication.

3VAN EuropeEdito

The technologicalevolution continues

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Volkswagen Nutzfahrzeuge (utilityvehicles), the city of Hanover (capitalcity of Lower Saxony) and theStadtwerke Hannover AG, Enercity,Hannoverimpuls (the economicdevelopment company for Hanoverand its region), exhibition and fairorganising company Deutsche MesseAG, along with construction andhousing company Gesellschaft fürBauen und Wohnen Hannover (GBH),are beginning a collaboration with aview to sustainably developing theuse of light utility vehicles which donot emit any CO2. The method they have chosen is to test together, over a periodof two years, the electric version of the Volkswagen Caddy in the Hanover region.The Elektro-Caddy, which has a range of 110 km, a load volume of 4.2 m³ and500 kg, is a vehicle which can be used on a daily basis with no restrictions. �

G4S Cash Solutions, active in thetransport of cash and in protection,is to operate, in London, the first elec-tric vehicle in the world to be used forthe carrying of valuables. The vehi-cle’s battery will be recharged while itis driving via solar panels. The use ofelectricity makes these vehicles7 times more economic than tradi-tional transport. The Dutch branch ofG4S has also expressed its interest ina vehicle of this type. �

G4S launches a first electricvehicle forcarrying cash

Longer stowagedrawers fromModul-System

German car manufacturer Daimlerand automotive & technology specia -list Bosch plan to cooperate in thedevelopment and production of electricmotors for all-electric vehicles inEurope. The companies have signed aletter of intent and begun negotiationsto establish a new 50:50 joint venture.Both companies aim, by bundling theircompetencies, to accelerate develop-ment advances in electric motors aswell as to make accordant synergiesaccessible. It is envisioned that theelectric motors developed will be usedin Mercedes-Benz and smart electricvehicles from 2012. �

Daimler andBosch toestablish jointventure forelectric motors

Elektro-Caddy makes debut in Hanover

4 VAN Europe News

The charging points necessary for this project will beinstalled and supplied with green electricity obtainedfrom renewable sources by the enercity company.

The new system was launched at therecent Commercial Vehicle Show in

Birmingham in the UK.

According to their letterof intent, joint production

should start in 2012.

Mr Schultz van Haegen, the Dutchminister for the Environment, has allo-cated 2,6 million euros to subsidisegreen company vans. Commercialcompanies, water authorities andresearch institutes that acquire a com-pany vehicle running on ‘green’ gas,biogas, or higher blends of biofuel,are eligible for the subsidy. The grantmust be requested in advance, andonly applies for at least three new carsor vans per request. The grant willamount to 3,000 euros, with a maxi-mum of 100,000 euros per project. �

Netherlandssubsidisesgreen vans

The scheme will run from July 1st up until andincluding December 30th.

Modul-System, manufacturer of mo -dular racking systems for service vehi-cles with more than 35 years of expe-rience, is to offer a solution to provideextra storage space in vans. The com-pany’s new extendable drawer systemis designed to help van, pick-up andpassenger car operators carry heavierand bulkier loads. The new extra-longdrawers are compatible with the fullrange of systems from Modul-System.High strength steel and aluminiumare used in the construction of thisequipment. Drawers can hold up to80 kg and are fitted with a safety catchdevice to prevent them from closingwhen they are fully opened and in use.They have been developed in consul-tation with end users, and have under-gone testing including crash-testing.

�

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After the massive slump in 2009,the European panel van marketfinds itself back on a growth

trajectory. In the range up to 3.5 tonnestotal weight, sales figures in Europe(EU27 plus Norway and Switzerland)grew by almost 9% in 2010. In absolutefigures, nearly 1.42 million new vehicles were sold in 2009, around 1.54 million in 2010. Of course, this is still a long way from overcoming the more than 30% collapse in the

2008/2009 annual comparison: 2.04 mil-lion units had been sold in 2008.However, the trend at the beginning of 2011 supports the view that the reco -very will continue. Nearly 250,000 newcar registrations in January andFebruary represent a more than 14%increase over the same period last year. The volume markets demonstrate the greatest increases: Great Britain(+37.9%), Germany (+33.2%) and France (+11.1%).

Russia on trackThe crisis also appears to have beengradually overcome in the increasinglyimportant „neighbour market" of Russia.After the sale of light utility vehicles(2.8 to 6.0 tonnes of total weight; com-pared to Western Europe, small panelvans are virtually insignificant) droppedby 44% in the 2008/2009 annual com-parison, 2010 then saw a 32% rebound.That means 138,900 new vehicles sold in2010 compared to 105,500 in 2009.However, almost 70% of the market is in domestic hands: in 2010, Russian pro-ducers GAZ and Sollers (with the makeUAZ) accounted for around 71,100 and24,300 vehicles, respectively. Westernmanufacturers are hoping for somerelief on that front thanks to Russia'simpending entry into the WTO (WorldTrade Organization), and otherwise isrelying on co-operations on Russian ter-ritory. A prime example is the plannedmake-to-order production of Mercedesvans by GAZ.

Upward curveIn the enormous utility vehicle marketsin China (see boxed text) and India,where sales figure records are brokenyear after year, European van producersalso face a tough challenge compared tothe dominant local manufacturers. The situation looks substantially morepositive in Latin America, where WesternEuropean marks – in the volume mar-kets of Argentina, Mexico and Brazil,among others – enjoy a very powerfulpresence. Moreover, van sales in LatinAmerica in 2010 showed the strongestdevelopment worldwide with + 41%.Although the 9% gains in the USA andCanada may look rather modest in com-parison, the curve is nevertheless point-ing upwards around the globe.

Ralf Becker �

The rules of the game in the cyclical utility vehicle business are well-known: with an expanding economy the flow of goods increases, which in turn - over the medium term - lifts vehicle sales. Current developments on the van market are reflecting this picture.

LCV Market

Sales is getting back on track

6 VAN Europe Management

According to the international organization of motor vehicle manufacturers (OICA), nearlytwo million light utility vehicles rolled off the assembly lines in China in 2010, almostexactly the same number of units as in Western and Eastern Europe together. The nichesfor European panel van makes are thin on the ground, situated primarily in the interfacewith light trucks (where the Iveco Daily has found its well-deserved success) as well as forstation wagons and minibuses. As the leading manufacturer, Mercedes-Benz, has startedits own panel van production on site: the approximately 11,000 Mercedes vans built in 2010in Fuzhou will be followed by around 19,000 in 2011. While the European manufacturers’core markets will thus continue to be located in the EU, a certain change can be expectedover the medium term. Daimler, for example, is striving to shift the ratio between intra-and non-European sales figures from the current 70:30 to 50:50.

LCV production on the move to China

The state of the LCV marketis one of the most accuratebarometers for the health ofcountries’ local business.

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Manufacturers are not only developing their product offering in order to meet the needs of users, but also addingextra tailor-made services to provide mobility solutions while respecting the notion of sustainable development.

LCV Manufacturers’ Strategy 2011

Tailor made mobility is key

VAN EuropeIndustry

� Product Strategy2010 was a busy year for Opel/Vauxhall Commercial Vehicles with the launch of the all New Movano. 2011 is the first year where the full range of models is available, with Combiand L1 panel vans completing the line-up, which spans from 8 – 22m3 and including frontand rear wheel drive vans, passenger carriers, platform, chassis and crew cabs as well as a comprehensive range of factory-sourced specialist bodies such as Dropside, Tipper and Box bodies. Towards the end of the year, Vivaro will receive updated powertrains.

� International OrganizationOpel/Vauxhall has a specialized Commercial Vehicle dealer network with a total of 2,000 distributor sites across Europe. The Repairer net-work coverage in Europe of close to 500 sites. Opel/Vauxhall has several agreements at European and Global Level with international fleetclients where both passenger cars and LCVs are featured as Opel/Vauxhall focuses on covering all mobility and transportation needs.

� SustainabilityThe next three years will see the expansion of Opel/Vauxhall’s ecoFLEX models into the CV market, with the introduction of fuel saving technology such as start/stop, low rolling resistance tyres, aerodynamic kits etc., with further improvements to come as the Euro 6 emis-sions standard approaches.

� Opel’s advice for international fleet managers by Ian Hucker, Director - European Fleet, Remarketing & Used Vehicle Operations“Opel/Vauxhall as part of General Motors is one of the few OEM’s that can offer Pan-European and Global support and supply for its customers. Another of our advantages is that we own and work closely with all local Opel/Vauxhall subsidiaries in the European Countries.”

� Product StrategyHaving recently launched a number of new models, Peugeot van range is in the strongestposition ever to cover all market segments and customer needs. In 2011 Peugeot willlaunch the pending LCV range of Euro5 engines (Bipper, Partner, Expert, Boxer) from June2011. Peugeot will also have an all automatic gearbox on the Peugeot Exper. Also, e-HDIStop and Start technology has been launched on the Peugeot Expert, and will be cascadedonto other models. And last but not least Peugeot is currently developing sales on PeugeotPartner full Electric.

� International OrganizationPeugeot works with a team of qualified and experimented B2B experts which is the single point of contact in Peugeot for international customers everywhere in the world. Peugeot has signed over 200 international Fleet agreements in 2010 with large B2B International customers.

� SustainabilityPeugeot has been engaged for many years in developing vehicles and services as widely as possible allowing customers to lower their carbon footprint. Peugeot’s answer is not one technology; the answer depends on the needs of the customer. The 100% electric car iOn formajor cities, on industrial sites the electric Partner Venturi, for sales forces and long distances there is diesel hybrid technology, and for all customers Peugeot provides new technologies: E-Hdi (Stop and Start) and lower CO2 emissions (Euro-5 engines).

� Peugeot’s advice for international fleet managers by Pierre Garnier, Director Peugeot Professional International“Don’t think only about vehicles but think about the whole full service answer. Even if the answer to the daily technical need is important, the mobility of your teams and the services are also vital. You have to find an OEM partner, which is able to provide this full service offerwherever you are.”

Peugeot

Opel - Vauxhall

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8 VAN Europe Industry

� Product StrategyThe current launch of the complete range of the new Master will reinforce Renault’s leader-ship in Europe on the LCV market up to 3.5 tons. 2011 will be the first launch year of electricmodels of which one dedicated to LCV customers. Renault Kangoo Z.E. is intended primarilyfor fleet and business use. Ownership of the vehicle will be separate to that of the battery.Customers will be able to purchase or lease their ZE van and take out a subscription for thebattery. Renault will also propose a long version of Kangoo ZE : Kangoo Maxi ZE.

� International OrganizationThe Renault LCV fleet structure is suited to serving large international clients with 8 International Key Accounts Managers, over 100 nationalKey Account Managers and dedicated Fleet teams in the Renault network at a local level. Renault’s International Global Offer Coordinationsecures effective implementation of the single international corporate car policy, thereby contributing to reducing overall Total Cost ofOwnership.

� SustainabilityInnovation to reduce the environmental impact of vehicles is part of the objectives of the plan Renault 2016 – Drive The Change. This isfounded on Renault’s ambition to make sustainable mobility accessible to all, expressed in the brand tagline, “Drive the Change”. With itspartner Nissan, Renault aims to become the leader in zero-emission mobility, namely the first automaker to sell a complete range of electricpassenger cars and light commercial vehicles at an affordable price. This year will see the launch of Fluence Z.E., Kangoo Z.E. and Twizy, followed by ZOE in 2012.

� Renault’s advice for international fleet managers by Robert Boscari, Director, Fleet Sales & Marketing - Corporate Sales Division“Finding just the right company to manage the corporate fleet can be a challenge. • To select a structure allowing the customer to be fully supported in their own international development. • To select vehicle range highly competitive in terms of price, total cost of ownership and CO2 emissions. • Quality and safety items have to be taken into consideration in the car brands selection.”

Renault

� Product StrategyFiat Professional obtained the best results ever in terms of market share in 2010: 12.8% inEurope (EU27+EFTA) with a particularly good performance in Germany, Sweden, Belgium,the UK and Spain. For 2011 Fiat plans to reinforce its position and increase market share,targeting 13% in Europe. Among their models, the company expects growth with the newDoblò Cargo. 2011 will see the launch of the New Ducato with a complete new range ofEuro 5 engines, new interiors and improved features.

� International OrganizationFiat professional has based its strategy on customer relationships through its presence in 19 countries with specialized structures and dedicated resources. Fiat is also creating a team of International Key Accounts specialists for light commercial vehicles dedicated to international companies. In addition to teams in every individual market, FGA is offering one of the most substantial customer relationshipchannels, the Customer Services Centre, employing more than 400 people and serving 23 European countries; starting in 2011 they willlaunch a dedicated fleet customer service.

� SustainabilityFGA investments have focused on the reduction of the TCO, including the reduction of fuel consumption and service and maintenance costs.In addition, the group has strongly invested and developed in CNG fueled engines, an available alternative to traditional fuels. For example inthe case of the Ducato E5 the new 2.0 115 hp engine provides in average 15% fuel savings compared to previous versions. Fiat Group has alsodeveloped eco:Drive, a software programme that helps drivers to consume less fuel, reduce CO2 emissions and save money.

� Fiat’s advice for international fleet managers by Flavio Castelli, Marketing Director of Fiat Professional“Check if the product range of the LCV brand suits the needs and if this brand has the vehicles and the expertise to offer specific solutions.Check if the LCV brand offers hybrid models, e.g. vehicles powered with natural gas. Check if the CO² and consumption level of the dieselengines are in line or are better than the competition. Check if the European service network of the LCV brand is well developed.”

Fiat

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9VAN EuropeIndustry

� Product StrategySince 2009 Citroën has been one of the top 3 brands in Europe in LCV sales. The objective is to remain on the podium. In 2010, Citroën sold 175,000 LCVs, which represents a growthof over 6% compared with 2009 when 165,000 were sold. For 2011, Citroën plans to at least,maintain this same growth rate. Citroën plans to increase its presence in all markets, with a specific focus on France (the first LCV market for the brand) and Germany. In addition,Citroën plans to retain leadership positions in Spain and Belgium. Another important market is Russia where Citroën is launching B2B and LCV sales teams and in China where the company is developing an LCV plan with a second joint venture partner (PSA - CHANGAN: subject to final approval by ‘relevant authorities'). In 2011, Citroën is launching several new models, like the Citroën Berlingo First Electric, Citroën C4 LCV versions, Nemo EGS, Berlingo EGS6 and e-HDi as well as the complete Euro 5 range.

� SustainabilityThe strategy is to offer multiple solutions to environmental challenges facing the planet. Citroën has already begun to develop green technology, such as e-HDi micro-Hybrid technology. On top of this, Electric vehicles are a reality at Citroën with the launch of the Citroën Berlingo First Electric and C-ZERO in 2010. The company has sold 2000 units since the launch.

� Citroën’s advice for international fleet managers by David Staniforth, Director of Citroën Business International“Choose a partner for the long term with appealing state of the art technology, exciting products and a global presence. Your fleet partnermust be able to meet your fleet needs, now and tomorrow.”

Ian Hucker, Opel/Vauxhall :“CO2 legislation and Electrification of LCVs will have more and more coverage in the next period.”

Flavio Castelli, Fiat:"Our commitment is to continue to reduce CO2 and polluting emissions for light commercial vehicles too, working on theintroduction and development of a portfolio of technology solutions, to increase recoverability, recyclability and reusabilityand to improve product safety."

Robert Boscari, Renault : “Mobility offers and sustainable development policies adapted to fleet customers requirements based on TCO reduction arethe main key business values for the international fleet business. Renault, with the launch of the zero emission vehicles,will play an important role with LCV fleet customers in their desire to reduce costs, fuel consumption and CO2 emissions.”

David Staniforth, Citroën : “Citroën believes that the future will revolve around flexible mobility solutions, including a combination of state of the artcombustion engine vehicles, hybrid vehicles, and full electric vehicles.”

Pierre Garnier, Peugeot :“The next big thing will be probably the green policy to comply with coming CO2-emission standards for LCVs, following the new EU-regulation with an objective of 175g in 2017. 70% of the objectives must have been achieved for 2014. This means new technology development (Stop & Start, Hybrid, full electric vehicles) and new services (Eco-driving, LCV telematic tools…).”

What will be the next big thing in your LCV Business?

Julie Widart & Steven Schoefs �

Citroën

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There are four new regional group-ings for the purposes of organisingthe vehicle fleet within Ericsson:

Western & Central Europe, LatinAmerica, North America and theMediterranean. This structure wasestablished at the beginning of thespring, and Serge Ruytjens’ strategy forthe Ericsson vehicle fleets will now beimplemented globally by the company.

� Ericsson is a worldwide company. Howis it developing outside of your area, andhow are you organising the fleets?

Serge Ruytjens: “I am very happy to saythat other parts of the world are alsodeveloping rapidly. Russia is growing veryfast, and in Africa we expect to quadru-ple volumes over the next five years –not just our van fleet but our businesstoo! In general organisation terms forour fleets, from twenty three market unitswhich is how it was orga-nised before, wehave restructured down to ten largerregions. My territory includes three mar-ket units. These are the UK and Ireland,Western Europe, and then Central Europefrom Poland to Croatia.”

� Do you have different types of vans in your fleet?Serge Ruytjens: “During a recent workshop on this subject, we decidedto work on a certain segmentation. This depends on the type of activity to becarried out by the technicians. We alsolook at prevailing weather conditions,whether it is dry, or very rainy… maybethere is a lot of ice. And then we have to take into account whether the land-scape is mountainous, or rural. Thedifferent types are the small LCV’s ofcourse, and here we are concentratingon the Volkswagen Caddy at themoment, but there are also opportuni-ties for other brands. Then there arethe large LCV’s which are predominantlyfor transporting goods, but sometimesused for transporting people too. These are vehicles such as theVolkswagen Crafter, the Citroën Jumpy,the Renault Trafic… Alongside these twotypes of LCV, there is a significant pre-sence of 4-wheel drive vehicles,which are also necessary because ofcertain weather conditions. Normal 4-wheel drives and pick-ups representone segment. Around one third of our pick-ups are operational in the UK,the highest single concentration. This isbecause not only is the UK a rainy country, but our technicians need toservice electricity pylons which are often in the middle of fields, andthey have to get there and get back. Wealso use these vehicles in the USA,because they have to pull generatorsand things like that. The fourth seg-ment is what we refer to as MPV’s, andthese are also found in our ‘benefitcompany car’ list. These are vehiclessuch as the Skoda Octavia, Opel Astra,Ford Mondeo, but always in ‘break’ version. These are for technicians whoneed to carry small equipment but noheavy weights.”

Ericsson is in the process of reorganising its vehicle fleet operations across the world. Within this context, we asked Serge Ruytjens, Fleet Manager Western and Central Europe,to give us an insight into the thinking behind the LCV fleet. Segmentation is the key element.

Fleet-owner, Ericsson

Being mobile with dry & wet vans

10 VAN Europe Management

Ericsson has developped aninnovative fleet strategy

in Western and Central Europe.

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� For drivers using this last category,presumably these are their everydaycars, but what about vans, do thesehave to be left at the company premisesat night?Serge Ruytjens: “Yes, every night. Andour vehicles are on the road every day.Drivers are not allowed to take the vanshome at night, because otherwise this would have an impact on taxes andcontributions.”

� How do you identify the criteria forvehicles for ‘wet’ or ‘dry’ countries?Serge Ruytjens: “We are currently work-ing on a grid file which will include everypossible type of situation. We are takinginto account not only the terrain andweather conditions I have already men-tioned, but also health and safety regu-lations in every country. Safety is a veryimportant consideration for Ericsson,we want our people to take to the road inthe best possible conditions. Somethingwe are now doing with our new vans is tofit them so that there is storage space tocontain all of their equipment, making iteasier to work and ensuring that thereis some order within the vehicle. But Ishould point out in terms of van types,that in many cases the same vehiclescan be found in different types of coun-tries. For example, it may not be as wetin Spain as it is in the UK, but sometimesour Spanish operators need to pull gen-erators, and this cannot be done with asmall LCV – so here too you will findsome bigger 4-wheel drive trucks.”

� Do you use different types of tyres?Serge Ruytjens: “In general, and espe-cially for the 4-wheel drives, we use all-weather tyres. These are suitable forwinter and summer, for wet and dryconditions, in fact for all circumstances.”

� Do the drivers have any say in whattype of vehicles you select?Serge Ruytjens: “Yes, absolutely, the drivers and also the unions. Whenwe are deciding on vehicle types, we establish a short list of two or three types of vehicle per segment, taking all the elements I have mentionedinto account. We discuss this with the unions once we have a first proposal, and if necessary, if they have something extra they want

included, we will certainly take this into account. If their requests are well-founded and financially feasible,we will go and see whether we can mod-ify our proposal.”

� Your company works in the electricsfield. Have you thought about electricvans?Serge Ruytjens: “Well here, we havedecided at the moment not to integrateelectric vans. I should say that we havetried hybrid cars, but we don’t have aparticularly good experience with them,and here I am talking purely about cost.I made a cost study comparing hybridcars in our fleet with traditional carsfalling in the same segment, and thecosts turned out to be much higher forhybrids. So this has somewhat put us offelectric vehicles, and we will wait andsee how the market evolves over thenext four or five years. We no longerwish to bear the cost of being a pioneer.From a practical point of view, the li-mited range offered by current batteriesin electric vehicles means that our tech-nicians would not be able to carry outtheir work efficiently. They are not yetsuitable for our type of activity.”

� You have mentioned cost – do youmeasure the TCO of the van fleet separately from cars?Serge Ruytjens: “Yes, we really make adistinction between benefit and servicevehicles. For one thing, there are com-pletely different VAT regulations, com-pletely different CO2 tax regimes and soon. We see these fleets as two differentthings, and so it is a totally separateapproach. We use the same leasingcompanies for both in some cases, how-ever. Some of the major leasing compa-nies have different departments for thetwo types of fleets, but although thismight be convenient for us in certaincircumstances, it isn’t an absoluterequirement. Turning to brands, whenwe have optimised our lists for benefitcars, we will try to go in the same direc-tion for vans, where this is possible.”

Tim Harrup �

11VAN EuropeManagement

Ericsson was founded in 1876 in Sweden, and in 2001 it created a joint-venture with theJapanese manufacturer Sony, active in the communications field, with well-known prod-ucts including televisions and mobile telephones under the ‘Sony-Ericsson’ name.Ericsson employs over 75,000 across the world. Turnover in 2010 increased by 0.2% on2009 despite the continuing consumer confidence crisis, to just over 200 billion SwedishKroner, or around 22.5 billion Euros.

About Ericsson

Estate cars: 1,820Small LCV’s: 1,650Large LCV’s: 1504-wheel drives: 900

The Western and CentralEurope UV fleet

Serge Ruytjens, Fleet Manager

Western and Central Europe.

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Famous for cleaning equipment and services, Nilfisk-Advanceclearly has a need for utility

vehicles in its operations, and these are spread across Europe.

� How do you manage the fleet? How do the countries report to the head office?Søren Danig: “The fleet is managedlocally based on a group vehicles policyspecifying the framework and the different elements of operation. The definition of company vehicle relatedmatters is a joint responsibility betweenGroup Human Resources and GroupSourcing. All vehicles are leased fromapproved suppliers on a fixed interest

rate contract. If suppliers other than approved suppliers are requested,such requests need written approvalfrom Group Sourcing. As is also the case for company cars, vans will beselected from approved models and TCO limits within the individual countries’ ‘Car Policy Parameters’ file.Based on quotes from the leasing companies on the companies predefi -ned “Standard Vehicles” and HR car policy intelligence reports a maximumTCO limit has been specified taking fuel cost, insurance etc. into considera-tion.”

� What are you relationships with yoursuppliers?

Søren Danig: “Nilfisk-Advance has adual supplier set-up with two interna-tional leasing companies, LeasePlanand ALD and/or local suppliers in somestrong local markets. The next stepwithin the development of the fleet areamay be to look at OEM agreements, andwe are already having initial talks withmanufacturers. In addition to the above,in Germany and UK we use fleet mana -gement companies.”

� Is there a green aspect to the fleet,and if so, please what you have done tomake it green?Søren Danig: “We are pushing on the‘green’ aspect, but at the moment thismostly involves personal vehicles.

Today Nilfisk-Advance operates worldwide with Sales Entities in 43 countries, distributors in more than 70 – andProduction Units in Asia, Americas and Europe. Nilfisk-Advance has 5,000 employees. Worldwide, Nilfisk-Advancemanages a fleet of 1.500 vehicles of which roughly 1/3 is in LCV’s. Category Manager Søren Danig, based inDenmark, explained some of the elements which make up the company’s successful fleet policy for vans.

Fleet-owner, Nilfisk-Advance

Respect for countrydifferences

14 VAN Europe Management

Nilfisk-Advance employs 5,000 people globally and markets hundreds of different models of professionalfloor cleaning equipment and high pressure washers through its international network.

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As part of our awareness campaign inthis area, in December 2010 we had aDrive Smart campaign where driversworldwide participated in a 4 weekmeasurement of their fuel consump-tion. I would add, however, that all newvans (along with all new cars) alreadyhave to comply with Euro-5 emissionnorms, and this will evolve to becomeEuro-6.”

� Tell us a little bit more about the‘Drive Smart’ competition.Søren Danig: “We gave away iPads asprizes, some in a lottery, but two in particular to drivers who achieved thebest results over the period of the com-petition. Before the competition, weadvised drivers how to achieve the bestresults. We recommended keeping tyreswell inflated, which can save 2% in fuel as well as increasingtyre life, and driving smoothly, avoidingsharp acceleration and braking. We also advised changing gear at lowerrevs, removing unnecessary weight from the vehicle, planning the routeahead of time, and switching off equip-ment such as air conditioning – and eventhe engine – when these were notrequired.”

� What is your relationship with your drivers, do you measure individualperformance, do you give eco-trainingetc..?Søren Danig: “This is locally based.We always look at the various diffe rencesthat exist in fleet practices from onecountry to another, and it is therefore

reasonable to expect that the way in which each country interacts with its drivers will not be the same. With the introduction of the Nilfisk-Advance Car policy we have increasedthe transparency in our different costelements, this also brings more localfocus on the individual drivers’ per-formance and in the major countries

they are following the fuel consumptionclosely.”

� Do your van drivers take their vehicles home with them at night or do they have to leave them at companypremises?Søren Danig: “This depends on thecountry in question, but mainly they takethem home with them. This means thatthey also use them for transport to andfrom different workplaces, but not forother personal use. This also depends tosome degree on the different taxregimes and other regulations in differ-ent countries. In our home country ofDenmark, for example, drivers cannotuse the vans for private purposes of anykind, otherwise they would be taxed foruse of a company car. But there aresome countries where they may beallowed to use the van for purposes suchas picking up their children from theday-care centre.”

� You measure the TCO of your vans.How does the fitting out of the cargospace come into this?Søren Danig: “The cost of the vans iscalculated without the cargo space fit-out. This is considered to be a separateinvestment from the investment in thevehicle itself. This differs slightly fromthe calculation for cars, in that the tow-bar fitted to some passenger cars formspart of the monthly budget allocation.Staying with extra equipment, in no cir-cumstances do we allow the tuning ofengines, or the fitting of radar detec-tors. Mandatory extra equipment in vehi-

cles where this is not standard, includeswinter tyres where applicable, a mobilephone kit and air conditioning. Mobilephone use has to be in line with localregulations.”

Tim Harrup �

15VAN EuropeManagement

The founder of Nilfisk-AdvanceP.A.Fisker was trained as an electricalengineer and loved electrical motors. Hefounded his company in 1906 and startedto produce motors to drive coffeegrinders, machine tools, fans and drills.P.A. Fisker´s vision was from the begin-ning to have an international companyselling goods to the whole world. Thereal break through came when heinvented a ground breaking vacuumcleaner weighing only 17,5 kilos whichcould be operated by only one person! Ina time where other cleaning machineswere huge and needing 4 or more opera-tors, the Nilfisk C1 was a revolution.

History of Nilfisk-Advance

Austria 7Belgium 15Czech Rep. 12France 55Germany 100Holland 20Hungary 10Italy 8Poland 3Portugal 8Scandinavia 62Spain 25Switzerland 8UK 44

The van fleet in Europe

“In December 2010 we had a Drive Smart campaignwhere drivers worldwide participated in a 4 weekmeasurement of their fuel consumption.”

Søeren Danig, Category Manager at Nilfisk-Advance.

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One of the magic words much usedover the past few years in theautomotive sector, including the

commercial sector, is the expression“One-Stop-Shopping“. Carrier vehicle,structure and accessories come directlyfrom the dealer, with a single invoicecovering all the items. It only works,however, as long as the bodywork iseither technically not too complicatedor demanded in sufficient quantities by

craftspeople or medium-sized serviceproviders.

Level of integrationVirtually all suppliers had a simple andeasily adaptable flatbed body in their ex-works price lists. Even the three-sidedtipper on the transporter chassis presents a minor challenge. Iveco was theonly real lorry professional to succeedin offering its Daily as a tipper model

as well, right from the start. A ladderchassis similar to a lorry and power take-off possibilities on the transmission fa ci -litated the adaptation of hydraulic func-tions in a highly professional manner.For manufacturers who are blessed withneither robust lorry chassis made of steelprofiles nor on-board hydraulic connec-tions – and apart from Iveco (on the Daily)and a few light trucks from the Far East(Renault Maxity, Nissan Cabstar) thatmeans virtually all of them – things arenot so easy. On such vehicles, hydraulicequipment functions only via an electri-cally driven pump: this has to be fitted insomewhere beneath or on the chassis,along with the oil tank and electrical con-nections. This structure requires morepowerful batteries.Insulated bodies for refrigerated andchilled transport units require a consi -derably higher level of integration. Forthe electrical and electronic connection tothe basic vehicle it is fairly irrelevantwhether additions are made to a finishedpanel van or whether a chassis is fittedwith an insulated box body. While top manu facturers such as Mercedes,Volkswagen, or even PSA and Renaultalready take care to prepare special“transfer points“, at least for the rela-tively simple light functions, connection tothe ever more widely used Can Bus sys-tems proves somewhat more difficult. The data from the "Controller AreaNetwork" (CAN) are very practical, whenit is a matter of providing for more com-plex functions such as central locking,door control or air conditioning in thebodywork. Mercedes responded here withthe new version of the Sprinter and intro-duced the first “parameterable“ specialmodule (albeit only as an optional extra).This unwieldy expression refers to a com-pact box that is usually placed under

With Directive 2007/46 the European Union aims to harmonise the type testing rules. What manufacturersand body-builders want most is less bureaucracy. Technology works without the EU, too.

LCV Bodywork

Lack of harmonisation because of too few pragmatists

16 VAN Europe Market

Whether it’s on a staking truck, a wheel loader or a flower lorry: the more complicated it is to connect the bodywork to the carrier vehicle, the more bureaucracy is involved in type testing.

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the driver’s seatwhere it is easilyaccessible. It givesthe body-builder access to oneof up to three independent CanBus systems (engine, comfort,accessories).The prerequisite for this is that the ma -nu facturer releases the bus protocols,which are often defined in house, for thebody-builder. And some commercial vehi-cle constructors have a problem here.This is a sensitive area, which the body-builders are only slowly winning over.

One-stop-shopping problemComplete vehicles, which can be madeavailable through the one-stop-shopping trade, are therefore currentlyonly equipped with straightforward tech-nology. Customers who purchase a com-plete vehicle also want to have the servicing and repair work for the upgradetaken care of with their dealer, or with areliable contractual partner in the vicinity. Companies such as Peugeot, forinstance, have greatly expanded theirrange of complete vehicles in the pastcouple of years. However, this had to beaccompanied by the guarantee ofprompt repairs, Saturday service in theworkshop and the offer to provide acourtesy vehicle. This professionalisationis not easy for the service support points,as scarcely any dealers have more thanone tipper, cooler or box on the fore-court. And they are not at all able toprovide courtesy vehicles. So virtually everything is technically fea-sible. The only question is, what aboutthe quality? Let us take the example ofthe box body. Owing to the disastrousEU regulations on drivers‘ licences, itis well known that holders of drivinglicences for vehicles between 3.5 and7.5 tonnes are gradually dying out, andwith them the “heavy“ haulier segment.The reaction is for vehicle constructorsto focus on vans with a maximum total

weight of 3.5 tonnes. Any member ofstaff can drive them, but their loadcapacity is limited: a maximum of 1.5 tonnes for normal panel vans is con-fronted with load capacities of just 800 kilos with a tipper with steel bridges.This dilemma sometimes leads to nothing less than festivals of lightweightconstruction. Here lightweight boxes areput together which have difficulty in coping with possible distortions fromthe chassis. But the manufacturer’schassis should also be particularly light,which is very often to the detriment ofthe general robustness. The conse-quences of this are lightweight vehiclesthat no longer bear any relation to therobustness of a 5- or 6-tonner andrespond with corresponding sensitivity to overloading, torsion and vibration.Constructors can deal with many ofthese disadvantages by using modernand high-quality materials but the effortfor so little load capacity is huge.

The impression remains that the cope -ration between body-builders and vehi-cle manufacturers is improving moreand more, even without harmonisingregulations. On the other hand, CordWahlers, representing his colleagues inthe bodybuilding and upgrading sectors,sees a real need for harmonisation in theEuropean type testing bureaucracy.Authorisation procedures could bequickly simplified and quality improvedat the same time. But: "there are obvi-ously no pragmatists on the commit-tees", says Wahlers, "they would justhave to ask we vehicle makers..."

Robert Domina �

17

Cord Wahlers is Sales Director at the German vehicle manufacturer and body-builderSchutz in Kirchlinteln.

Cord Wahlers, Schutz Nerve-rackingbodywork

VAN EuropeMarket

3 Questions to...

1.For you as a body-builder, whatannoys you the most about

type testing in Europe?Cord Wahlers: “We still have almost stifling bureaucracy and to someextent positively arbitrary approvalprocedures. That’s the case for someof our neighbouring countries andeven in some of the federal states inGermany, where in some cases wehave to cope with widely differing typetesting procedures. It often takes alot of time and is even harder on the nerves.”

2.How are things as regards the technical standards?

C. Wahlers: “That’s the least of our problems. For example, it’s not too difficult to find components with the“E” label and build them in properly.The documentation is worse: We have to document each individualcomponent in detail in the type testingpapers. That holds us up a lot.”

3.How is the communication and data exchange between

body-builder and vehicle manufac-turer?C. Wahlers: “It depends who we’re working with. Major partners likeDaimler set up a number of portals forbody-builders years ago. We are givenaccess, and this provides all the infor-mation we need. That’s ideal, ofcourse. Other manufacturers, suchas Fiat and PSA, are on the right lineshere, too.”

Robert Domina �

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For transporting large volumes offreight in a closed panel van, theoffers in Western Europe are

limited to ten manufacturers. In recentyears that number has been furtherreduced because vehicle manufactu rerssuch as LDV Maxus have disappearedand the Eastern European manufactu -rers do not offer their products here(such as GAZ, Lublin, Nysa). In thisoverview we cover only panel vans witha GVW of 3500 kg (B-driving licence) ormore (C-driving licence).

Introduction of Euro-6Moreover, there is also an interestingalternative to the closed panel van, andthat is the chassis-cab with load plat-form, and then vehicles such as the

Nissan Cabstar and Atleon, the IsuzuN-series, the Renault Maxity, ToyotaDyna and the Mitsubishi Fuso Canteralso come into consideration.Striking for the remaining palette arethe cooperation agreements betweenthe major manufacturers. Citroën, Fiatand Peugeot have joined forces on thislevel in the Sevel group and are buildingthe Jumper, Boxer and Ducato together.The Nissan NV 400, the Opel Movanoand the Renault Master are also basedon a single underlying design, and thesame applies for the Mercedes-BenzSprinter and the Volkswagen Crafter.Nevertheless, the cooperation betweenMercedes-Benz and Volkswagen is coming to an end in the near future, andVolkswagen might be developing a

new series of commercial vehicles forthis class together with truck manufac-turer MAN.Another important element is theimpending introduction of the Euro-6emission standards for this category ofvehicles. By 2017 the European Unionwants to impose a maximum emission of1975 g/km on panel van manufactu rers.In the meantime, alternatives for theconventional panel van with dieselengine are already being offered in theform of electrical drive, a hybrid drive-train or gas engines. In the longer term,solutions as fuel cells also come intoconsideration.

Hendrik De Spiegelaere �

On the Western European market there are still ten manufacturers who offer closed panel vansin the highest class, i.e. 3500 kg GVW and above. That is important, because a GVW of more than3500 kg also immediately brings one into the category requiring a C driving licence.

Panel vans

Partners for the real profession a

18 VAN Europe Industry

The design of the Jumper is still fairly recent and completely up-to-date.Weight classes: 3500 – 4000 kgUseful load capacity: 1300 – 1900 kgWheelbase: 3000 – 3450 – 3800 – 4035 mmLoad volumes: 8 to 17 m3

Engine versions: 2.2 HDi 100 (74 kW/100 hp – 250 Nm), 2.2 HDi 120 (88 kW/120 hp –320 Nm), 3.0 HDi 160 (115 kW/157 hp – 400 Nm)

Citroën Jumper

Like the Citroën Jumper, this is a recent design that is offered in many versions, includingone using natural gas.Weight classes: 3500 – 4000 kgUseful load capacity: 1100 – 2000 kgWheelbase: 3000 – 3450 – 4035 mmLoad volumes: 8 to 17 m3

Engine versions: 100 Multijet (74 kW/100 hp – 250 Nm), 120 Multijet (88 kW/120 hp –320 Nm), 140 Natural Power (100 kW/136 hp – 350 Nm), 160 Multijet Power (115 kW/157 hp– 400 Nm)

Fiat Ducato

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19

n als

VAN EuropeIndustry

Ford builds the popular Transit in countless versions in a modern plant in Turkey. One striking aspect of the Transit is the existence of versions with front-wheel drive and rear-wheel drive.Weight classes: 3500 – 4600 kgUseful load capacity: 1555 – 2251 kgWheelbase: 2933 – 3300 – 3750 mmLoad volumes: 7.7 to 14.2 m3

Engine versions: 2.2 TDCI (63 kW/85 hp – 250 Nm; 85 kW/115 hp – 300 Nm; 103 kW/140 hp– 350 Nm), 2.4 TDCI (74 kW/100 hp – 285 Nm, 85 kW/115 hp – 310 Nm; 103 kW/140 hp –375 Nm), 3.2 TDCI (147 kW/200 hp – 470 Nm)

Ford Transit

The technical basis of the Iveco Daily is clearly inspired by this manufacturer´s experience in building trucks with a sturdy chassis. Iveco offers a wide range ofenvironmentally-friendly versions (EEV or CNG).Weight classes: 3500 – 4200 – 5200 – 7000 kgUseful load capacity: 1500 – 4140 kgWheelbase: 3000 – 3300 – 3950 mmLoad volumes: 7.3 to 17.2 m3

Engine versions: 2.3.11 HPI (78 kW/106 hp – 270 Nm), 2.3.13 HPI (93 kW/126 hp – 290 Nm),2.3.14 HPT (100 kW/136 hp – 320 Nm), 3.0.14 (103 kW/136 hp – 350 Nm), 3.0.17(125 kW/170 hp – 400 Nm), 3.0.18 (130 kW/176 hp – 400 Nm)

Iveco Daily

The most recent changes to the Sprinter relate primarily to technical elements such asEuro-5 engines, new gearboxes and a start/stop system. There are also hybrid engines and engines using natural gas or LPG.Weight classes: 3500 – 4600 – 5000 kgUseful load capacity: 1520 – 2679 kgWheelbase: 3250 – 3665 – 4325 mmLoad volumes: 7.5 to 17 m3

Engine versions: 10CDI (70 kW/95 hp – 250 Nm), 13CDI (95 kW/129 hp – 305 Nm), 16CDI (120 kW/163 hp – 360 Nm), 19CDI (140 kW/190 hp – 440 Nm), 16 (115 kW/156 hp – 240 Nm), 24 (190 kW/258 hp – 340 Nm), 16NGT or 16LGT (115 kW/156 hp – 240 Nm)

Mercedes-Benz Sprinter

This is the superman among the large panel vans and also the oldest concept. The Vario still has a real ladder chassis like a truck and belongs in the heaviest category.Weight classes: 5990 – 7490 kgUseful load capacity: 2400 – 3900 kgWheelbase: 3300 – 3700 – 4250 mmLoad volumes: 10.4 to 17.4 m3

Engine versions: OM904 (95 kW/129 hp – 500 Nm)

Mercedes-Benz Vario

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20 VAN Europe Industry

The Interstar was succeeded by the NV 400 and offers a better weight/load capacity ratio than its predecessor. The technology was also thoroughly revamped.Weight classes: 3500 – 4600 kgUseful load capacity: 1600 – 2500 kgWheelbase: 3182 – 3682 – 4332 mmLoad volumes: 8 to 17 m3

Engine versions: 2.3CDTI (74 kW/100 hp – 285 Nm; 92 kW/125 hp – 310 Nm –107 kW/146 hp – 350 Nm)

Nissan NV 400

Just like the Nissan and Renault versions of the same design, the Movano was radicallymodernised recently. The Movano can also be delivered with front or rear-wheel drive.Weight classes: 3500 – 4600 kgUseful load capacity: 1600 – 2500 kgWheelbase: 3182 – 3682 – 4332 mmLoad volumes: 8 to 17 m3

Engine versions: 2.3CDTI (74 kW/100 hp – 285 Nm; 92 kW/125 hp – 310 Nm –107 kW/146 hp – 350 Nm)

Opel Movano

Peugeot has an iron-clad reputation with the Boxer, whose design in its basic form dates from 2006.Weight classes: 3500 – 4000 kgUseful load capacity: 1300 – 1900 kgWheelbase: 3000 – 3450 – 3800 – 4035 mmLoad volumes: 8 to 17 m3

Engine versions: 2.2 HDi 100 (74 kW/100 hp – 250 Nm), 2.2 HDi 120 (88 kW/120 hp –320 Nm), 3.0 HDi 160 (115 kW/157 hp – 400 Nm)

Peugeot Boxer

The new Master does an even better job than its predecessor in fulfilling all expectations in terms of power, performances, load capacity and load volume. The new engines are also striking.Weight classes: 3500 – 4600 kgUseful load capacity: 1600 – 2500 kgWheelbase: 3182 – 3682 – 4332 mmLoad volumes: 8 to 17 m3

Engine versions: 2.3CDTI (74 kW/100 hp – 285 Nm; 92 kW/125 hp – 310 Nm – 107 kW/146 hp – 350 Nm)

Renault Master

In 2010 the Crafter received a completely new drivetrain with a lower consumption and above all cleaner exhaust gases, thanks to the application of AdBlue exhaust gaspurification. Volkswagen offers a robotised gearbox for the Crafter.Weight classes: 3500 – 5000 kgUseful load capacity: 1324 – 2730 kgWheelbase: 3250 – 3665 – 4325 mmLoad volumes: 7.5 to 17 m3

Engine versions: 2.5 Tdi (65 kW/89 hp – 220 Nm; 80 kW/109 hp – 280 Nm; 100 kW/136 hp –300 Nm; 120 kW/163 hp – 350 Nm)

Volkswagen Crafter

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Over the past decade, the per-formance of light utility vehicleshas made much progress, to the

point where they offer top speeds which

are illegal in most European countrieson vehicles which are sometimes blithelyheavier than 3.5 tonnes. Fuel economy isthe order of the day now… but not at theexpense of performance. These savingscan be obtained via improvements in thefunctioning principles of the engine (less friction), by lengthening gear ratios,

but also by reducing the cylindricalcapacity itself. In order to

provide equivalent ser vi -ce, a vehicle with a

small engine

operates more in high load zones, where efficiency is at its maximum. This,however, requires supercharging.

Renault as an exampleIn the domain of the passenger car, newengines are offering astonishing per-formance. The Fiat Twin Air (85 bhp from900 cc) and the 1.4 litre TSi fromVolkswagen (168 bhp) are two goodexamples. But what is the situation withLUV’s? According to Dutch institute TNO, itwould be possible to reduce the averagecapacity of light utility engines by 31%,which would lead to fuel savings of 16%.This is admittedly a purely theoreticalcalculation (other specialists estimate amaximum gain of 5% for a dieselengine), but several recent examplesare showing the way ahead. Renault hasrecently launched two new engines forthe Renault-Nissan alliance: a 1.6 dCicalled R9M which replaces the previous1.9 dCi. This engine will develop 130 bhplike the previous 1.9 litre, but will emit30 fewer grams de CO2. The newRenault Master is also fitted with a new2.3 dCi (M9T) providing 100 to 150 bhpwhich replaces the 2.5 litre unit and oneof 3 litres of the former generation.Renault promises a reduction of 10 % inCO2 emissions. Mercedes, by contrast, has not followedthe trend with its new OM651 engine,destined for the Sprinter. The Germanbrand has preferred to work on higherinjection pressures (up to 1,800 bars)and on a two-stage supercharging toobtain extra power and torque at lowrevs… and a reduction of fuel consump-tion of 0.5 to 1 litre per 100 km.

Claude Yvens �

Well before compulsory limits on CO2 emissions are applied to light utility vehicles,several manufacturers are reducing the displacement of their engines in order todecrease vehicle fuel consumption. Downsizing is no passing trend.

Engine downsizing

Reducing CO2through fewer cc’s

TNO has also calculated the potentialimpact of engine downsizing on thetotal cost of operation. It shows thesavings to attain a minimum of2% and a maximum of 12%, a widevariation which is explained by thenumerous factors allied to the waythe vehicle is used, and thus to thedriver’s own driving behaviour. The driver clearly has a very highimpact on consumption, as well as on maintenance costs, which can move from 2 to 3 cents per kilometre.

21VAN EuropeTrends

Purchase of vehicle

Maintenance and repair

Circulation taxes

Registration tax

Fuel and lubricants

Low estimate High estimate

10

5

0

-5

-10

-15

Difference in impact on TCO

For the sameperformance levels, an engine with a smallercubic capacity reducesthe operating costs of a light utility vehicle by 2 to 12%.

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ALCV can be used for personal trans-port as well as for business pur-poses – it’s much harder to stack a

car 4m high, with a load of chickens, tim-ber or bags of cement than it is to put thesame goods in an LCV – a pickup.Passengers, while they might be lesscomfortable in an LCV can at least travelin the back! In many countries comfort issecondary compared with mobility.What might be the implications of thisshift in demand for LCVs? From aEuropean point of view they are probablytwofold.On the one hand design and productionwill increasingly be focused on China,India and South East Asia. That couldmean global players as well as emergingautomotive manufacturers will increas-ingly design for those markets where the key will be ‘increased utility’ – betterfuel consumption, more robust vehicles,perhaps designed for Asian ergonomicsinstead of the rather larger Europeandriver.

At the same time, far Eastern marketshave different pricing structures – couldthat mean cheaper units in Europe?Probably not. OEMs seek to differentiatepricing as far as possible between mar-kets and it is unlikely that there wouldbe significant reductions in terms of stan-dard vehicles. Equally, the European LCVuser has come to expect the creaturecomforts of the passenger car – com-fortable seats, air conditioning, ICE sys-tems and a host of other creature com-forts. OEMs generate significant marginsfrom additional specifications so one mustexpect such enhanced specifications willcontinue to be provided – at least forEurope and North America.

Design & development rethinkHowever, any significant change in mar-ket mix in Europe could attract emergingFar Eastern manufacturers looking toexport to the most prestigious – andpotentially more profitable markets andthey may seek initially to buy marketshare through aggressive pricing.

Such a market penetration strategy could,in turn, put pressure on European LCVproducers to cut costs and price moreaggressively. One has to ask if the massivegrowth of the LCV market – and associ-ated production – of LCVs in China, Indiaand the other Asian tiger economies willcreate a rethink of European LCV design,development and marketing?Indeed, could the LCV industry be enter-ing a period similar to that nearly fortyyears ago when ‘cheap Japanese cars’first hit the European markets? – Andlook how they have developed in the inter-vening period! Any change in structureand product with LCVs will have the addedcomplications of true globalisation,increased communication and awarenessand of course, over the next few years,South America and Russia entering theLCV fray as well.From a positive viewpoint the shift in LCVfocus towards China and India in parti-cular may mean lower cost of produc-tion although that will be mitigated tosome extent by the higher logistics costs.If new players outsource Asian domesticdesigned product manufacture to Europe,extended supply chain issues may ariseas the car OEMs are finding postJapanese. On a more positive note however, a true globalisation of the LCV may force new economies into the system and for the international fleet operator it may mean standard prod-ucts will become more widely available.But these are early days.How do you expect the markets and prod-ucts to change? I’m not sure even theexperts are all agreed in their predictionsbeyond a ‘period of changing dynamics’.

Professor Peter N C CookeUniversity of Buckingham �

LCVs are an important but too often under researched and reported sector of the automotive industry. The carindustry is migrating from Europe and North America to China, India, Brazil and Russia – so is the LCV industry.That may well mean future design and planning will be oriented towards these new markets rather than Europe.While some production will move east the increasing cost of logistics could support continued European production.

Emerging Markets

Different LCV design, but same pricing

22 VAN Europe Industry

A globalisation ofthe LCV may meanstandard productswill become more

widely available.

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