AutomotiveNow                                         Summer 2010  Value Chain Crash –  New Business Models  for the Autom...
Dear Readers,                               Flexible and mobile – that’s how we         We look beyond the European horizo...
Lead article                                  Contents                                                                    ...
4Automotive – Summer 2010                                                                                                 ...
T                                                                                                                         ...
prices. Car drivers are steered                long term. Car sales today are already    towards asking themselves: “How  ...
towards individualization, which has                                                                                      ...
their experience of car manufacturer       the US first, because the car still plays   But the change could be completed  ...
Rethinking                                                                                                                ...
“Whoever gets into gear here the                                                                                          ...
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
Automotive now oct-2010
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Automotive now oct-2010

  1. 1. AutomotiveNow Summer 2010 Value Chain Crash – New Business Models for the Automotive Industry Rethinking fleet management Exploring the trend towards environmentally- friendly mobility alternatives in travel management The US – the rise after the fall Automotive industry quickly adapts to the challenges of the new global economy
  2. 2. Dear Readers, Flexible and mobile – that’s how we We look beyond the European horizon describe the current spirit of the times and, with our articles on the develop- and the pressure to change it brings ment of the Chinese car trade and the with it – if you don’t move, you get left US’s comeback as a competitive inter- No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. behind. national production site, we also show © 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. that established structures in particu- In this issue we highlight the future lar offer more and more new opportu- changes in the automotive industry’s nities when seen from other perspec- value creation chain and focus our view tives. on the shaping of future business models in particular. Will mobility service pro- The foundation of an international viders with flexible usage and financing orientation must, however, be laid by packages meet the requirements of sustainable cash and corporate capital a younger target group better than management, because future challenges “traditional” car dealers in the future? can only be overcome with a sound Forward looking concepts and foresight and solid base. The magazine’s final on societal developments are now article shows the way to build that required. Anyone that is not caught up solid foundation. in their existing business model can score points where the readiness to be With this issue of AutomotiveNow we creative in competition was previously want to transparently, actively and lacking. insightfully inform you about current trends and events in the automotive Some of the discussion surrounding industry. the automotive value creation chain deals with the role of “brand manage- On that note then, I wish you an ment”. We took a look at Formula 1™ interesting and stimulating read, and and asked ourselves what role brand we hope this AutomotiveNow opens management might play in the future up new perspectives for you. for this business segment. Another area of focus: the requirements Sincerely, of corporate fleets of the future. What Dieter Becker are the future requirements for vehicle Global Head of Automotive, fleets? Should they become greener or KPMG in Germany. simply more efficient? In our country focus we discuss basic value creation chain changes in a global context.2 Automotive – Summer 2010
  3. 3. Lead article Contents 09 Rethinking fleet management In Q1 2010 almost one in three new motor vehicle registrations in Germany was a company car. 12 The US – the rise after the fall The world economy is starting to show signs of recovery, but the economic landscape has changed dramatically. 16 Fast lane or hard shoulder? There are contradictory views on the pros and cons of a commitment 04 09 to Formula 1™.No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 20 The future of China’s auto© 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. dealership market Last year was a great year for auto Business Models on sales in China, as it overtook the US the Test Stand to become the world’s biggest car Your car is no longer as important market by sales volume for the first as it once was as a status symbol – time. But, paradoxically, it was far in the saturated markets at least. from the best of years for the coun- Both young and urban drivers in par- try’s auto dealers. ticular now prefer time-limited use of 25 Sustainable cash and working a car to meet their mobility needs. capital management Mobility service providers have an It is an understatement to say that opportunity to capture the previously the credit crunch has had a major car manufacturer-dominated individ- ual mobility market. 12 impact on the automotive industry. 28 Current Studies 29 Contacts 20 Automotive – Summer 2010 3
  4. 4. 4Automotive – Summer 2010 Business Models previously car manufacturer-dominated individual mobility market. in the saturated markets at least. Both young and urban drivers in on the Test Stand particular now prefer time-limited use of a car to meet their mobility needs. Mobility service providers have an opportunity to capture the Your car is no longer as important as it once was as a status symbol – © 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
  5. 5. T he car has been the symbol appropriately satisfy people’s mobility of mobility and indepen- requirements. On the whole this dence for more than a trend towards increased mobility will hundred years now. It gives continue – because, for example, us access from our front workers will always be asked to pro- door to a global road network. And vide more spatial flexibility. Technical the car is not merely a means of innovations do not solve problems, transportation – it also represents an even if micro-cars and the generally emotionally populated brand world. smaller electric cars can alleviate con- so to consumers in the emerging Every car driver that can afford it finds gestion and environmental impacts in markets. a suitable brand for their personality. cities. Nowadays it is far more about a Can a mobility service provider that Or at least that’s how it used to be! basic reorientation that sees the car as offers the customer a usage and Climate change, traffic problems in part of a complete solution for mobility, financing package satisfy mobility urban centers and new social values and also incorporates alternative requirements better than a car dealer? have changed the car’s image and modes of transport and new financing This kind of service menu could use. Having one’s own car no longer and usage concepts. This includes include the use of one or two city cars means that one has such an exclusive realignment of the car brands. during the week, a sports car at the claim to flexibly and cost-effectively A look beyond the scope of one’s weekend, and an SUV for vacations. meeting one’s own personal mobility own sector is always worthwhile in the The package would then also be sup- requirements. This applies in particu- search for solutions. Buyer behavior in plemented by combination optionsNo member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. lar in cities where traffic chaos and the mobile communications industry, with other modes of transport, such as© 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. parking problems turn many people for example, shows that in the bottom public transport, rail and air. Billing off driving. The German pollution to middle price segment at least, the would then be at a flat rate for the city, badge or London congestion charges complete package of mobile communi- fuel included, and a time tariff for the are the frontrunners of regulatory inter- cation services and device applications weekend. ventions to restrict car use in the is more important for the customer If these kinds of offers establish future. Paris is also planning a city toll, than a specific mobile phone model. A themselves on the market, this will and parking spaces for new commer- mobile phone or netbook contract with influence business models and estab- cial properties will only be approved flat rate, fast Internet access, Facebook lished automotive industry brands. there in exceptional cases. So can we networking and music subscription is As with mobile phone makers, manu- actually be more mobile in the future the new status symbol. To satisfy their facturers could lose their interface to without our own cars? communication requirements the cus- the customer to direct sales in the car “The car is no longer necessarily a tomer does not turn to the manufac- fleet business and the associated sale part of the family today, and nor is it a turer and their sales department – but via the car dealer. This of course has symbol of freedom and independence,” rather to a mobile service provider. effects on the manufacturers’ entire says Jörg Plathner, Automobile Division Is the automotive industry on the value creation chain. They could, how- Head at Motor Presse Stuttgart. Your threshold of a similar development? ever, position themselves as mobility first car has lost some of its significance A Vocatus survey of 500 car buyers service providers – with or without for personal development. The number from Germany, France, Italy, Spain and cooperation partners. Branding and of people that choose not to own a Sweden shows that the car brand is brand management are important suc- car is growing in northern Europe in replaceable for every second buyer. cess factors here. particular. In Stockholm it is consid- One in three said that the car’s func- The trend towards complete solu- ered chic not to do your driving test. tionality is more important to them tions for automobility was started by Martin Verrelli, Head of Remarketing than its appearance. Nonetheless, the manufacturers themselves – at VW: “The car is losing its hold on having one’s own car is still considered together with their internal finance ser- young people.” Experts believe the indispensable for flexibility reasons. vice providers. Financing and service future is in new mobility concepts, But this could change if there are packages, which, in addition to a leas- combined with new ing contract or technologies that draw »The car is no longer necessarily a part of car credit, also people away from car include usage ownership through the family today, and nor is it a symbol of services such classic financing freedom and independence« as mainte- options. In southern nance, insur- Europe, and in Asia’s emerging mar- attractive alternatives to car ownership. ance, damage management and refuel- kets in particular, your own car and Trend researcher Peter Wippermann: ing, have been on offer for many the car brand still play a more central “It is not the product as such, but years now. The private driver is offered role than in the mature markets of the rather its benefits for the ‘life feeling’ everything that is the norm in fleet industrial states. that determine our relationship with management. Manufacturers’ advertise- Car manufacturers and suppliers ownership.” This also applies to Japa- ments therefore frequently focus on must find new answers to continue to nese consumers, for example, but less monthly car costs instead of purchase Automotive – Summer 2010 5
  6. 6. prices. Car drivers are steered long term. Car sales today are already towards asking themselves: “How driven by discounts – at least in the much car do I want to allow myself mature markets. And the suppliers’ each month?” value creation and innovation share Mobility service providers such as has also been growing for some carsharing companies have ad- years now. With most vehicles it has dressed this trend. “Carsharing and already reached 75 percent, if not similar mobility concepts are becom- more. Suppliers develop into system ing more influential,” says brand providers; the step towards the com- expert Michael Trautmann. The im- plete car is no longer so great. proved offering in rail and air travel Magna International Inc.’s ambitions and public transport networks provides with Opel proved the point here. Car attractive alternatives to the car – for makers would evolve such that sup- specific mobility requirements at plier relations management became a least. German Automotive Industry core competency. Model and brand Association (VDA) President Matthias management and sales could shift Wissmann emphasizes: “There is no towards mobility service providers. longer any antagonism between the Similarly, mobile phone manufactur- “Mu” brand, Peugeot Motor Company car and public transport networks. ers have lost a degree of their impor- PLC, for example, uses authorized The car is still important, but net- tance in recent years. dealers as pick-up and drop-off sta- No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. working with other transport means With the introduction of electric tions. This could be supplemented by © 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. is also important.” cars the suppliers’ value creation additional cooperation partners to guar- The approaching electrification of potential increases significantly, as antee full-coverage mobility. Mu cus- road traffic, in which, for example, the electrics industry has a clear tomers can download “mobility electricity suppli- units” on the Internet ers, suppliers of and book a convertible big components »The car is still important, but networking with ride, a moving truck or a and mobile com- other transport means is also important« rooftop box for their munication vacations. operators Alternatively, companies invest, will competitive advantage over combus- could also realign their business mod- increase the tion engine manufacturers. Coopera- els and brands to become mobility competition tion projects with electricity suppliers service providers that offer their cus- pressure from and other infrastructure companies tomers comprehensive solutions as non-automo- will contest car makers’ business globally as possible. Car production tive industry interests. Ex-SAP Board Member would then no longer be a core activ- companies. Shai Agassi shows how this is done ity. Supplying complete systems, or With the elec- with the “Better Place” brand: The even final assembly, could be out- tric car in particular, the mobility service company provides a complete service sourced. The new business model’s consisting of car use, power supply for electro mobility. With the aid of core element is service quality – high and battery change is a key decision- sophisticated software the customer availability, flexibility and benefit- making criterion. High procurement only pays for kilometers traveled, a oriented prices for mobility offers costs mean that, at first, only very pricing model that is similar to mobile across and beyond all modes of few users will choose to buy an elec- phone contracts. And Renault pro- transport. And since cooperation proj- tric car. The car therefore becomes a vides the cars for this. ects are success-critical for mobility mobility carrier – similar to Amazon’s To offer mobility services in addi- offers, manufacturers could integrate Kindle reading device for books: it is tion to the existing value creation, car their existing expertise in managing about the content and the brand. makers must first expand their ser- supplier networks. The automotive industry’s tradi- vice expertise. Internal financing Car makers have practically no tional business model is therefore companies and brands such as the competition in today’s individual called into question at several points, Volkswagen Bank GmbH or BANQUE mobility brand world. They can easily and the manufacturers are faced with PSA FINANCE are good examples of transfer their brand strengths to new the challenge of repositioning. Should this. Their range of offers can be model families, or even to neighbor- they leave their current value creation beefed up with carsharing, short- ing product segments, such as bicy- chain untouched; should they extend term leasing and renting, as well as cles or car financing services. But them with mobility services; or must combi packages in cooperation with how will car brands assert them- they redefine their key competencies other modes of transport. The exist- selves in the new mobility services and adjust their branding policy? ing authorized dealers could possibly competition? They might very well In the first case the manufacturers’ come in as points of sale. With its see competition from new mobility value creation would shrink in the prepaid mobility offering with the brands and from service brands in6 Automotive – Summer 2010
  7. 7. towards individualization, which has even taken hold in Asia, may also produce a wide variety of mobility brands. The challenge will be to bundle sub-brands into strong brand families. The manufacturer brand has brand features: the customer joins in, a lighthouse function here. uses the car as long as they want, These features are decision-critical and returns it at any parking space in for the long term, as shown by the the business district. The provider iPhone success. takes care of refueling and cleaning. New drivers are the first important Unlike classic carsharing there are target group. Favorable introductory neither basic charges nor membership prices and environmentally friendly contributions. Billing is per minute – means of transport are important mileage, fuel and insurance are in- brand features. In Ulm every third cluded. The Smart models used are driver’s license holder between 18 especially low in emissions, which is and 35 is already a car2go customer – why car2go 2009 won the ÖkoGlobe the users identify with the brand other transport areas, and less so for mobility projects and visions. image. Combination offers of driver’s from the suppliers. Even the brands CEO Robert Henrich intends to ex- license and mobility are conceivableNo member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. of major system integrators such as pand after the successful test phase to stimulate reluctant car users such© 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. Robert Bosch GmbH, Continental AG in Ulm: “Market launch in other coun- as those in Stockholm. The Swedish or Magna have, so far, represented tries is the next logical step.” automobile association, Motorbran- technology more so than mobility. If expectations on the mobility mar- schens Riksförbund, is already con- Car rental agencies, rail companies ket are met and an image change can sidering a subsidy program for driver’s and airlines or automobile clubs have be introduced in parallel, many manu- licenses. a significant head start here. facturers won’t have to do without A premium brand in this respect But car makers excels with optimum must also realign »High technical quality and good design are availability, best pos- their brand manage- sible flexibility and ment, which has so part for the course today and products can first-class service. far mostly been therefore be replaced, with one exception: Included is the use of based on technical specific road sections, differentiation. High the ‘Green’ factor ...« such as in the US or technical quality and even in big cities such good design are par for the course strong car brands in their mobility as Bangkok, convenient parking today and products can therefore be offers. In the growth phase it is options and waiting lounges at mobil- replaced, with one exception: the about occupying market segments ity interfaces. Furthermore, the vehicle ‘Green’ factor or the vehicles’ envi- and securing your position for future must provide comfort, but in special ronmental friendliness, which is cross-selling offers with a strong situations the requirements can be totally different, at least for now. In brand. The specific mobility features better met by small models. Individu- the future, services, especially mobil- are success-critical, as demonstrated alization options, such as seat set- ity services, will be far more image- by the incredibly successful iPhone: tings, air con and infotainment sys- building than technology. A combina- design, operability and innovation tem, for example, are a matter of tion of sustainability and service were the driving forces during its course – and can be easily retrieved quality is provided to attractively market launch and growth phase. via electronic customer cards. Sus- boost brands. For many manufactur- “Apps” will mostly ensure sales with tainability can be added as a further ers this means a new beginning, increasing market saturation. Apple ®’s element – with its “Efficient Dynam- especially when they cooperate with crystal clear branding is the driving ics” BMW AG (BMW) has created a other companies. The introduction of success factor in both product lifecy- platform from which suitable mobility a new mobility brand reduces the risk cle phases. services can be built up, such as of diluting the resident brand or of The model families and the associ- flights with low emission planes, a damages with the offer’s failure; can- ated brand features play a pivotal role feeder service for an electric vehicle nibalizing the existing car sales. with manufacturers‘ mobility offer and points of sale with modern, effi- Daimler AG is testing a mobility features. The organization of new cient building technology, for example. offering under its Mercedes-Benz services must be adjusted to this Corporate customers will be the label with the Smart in Ulm and in branding – sustainability, premium, most important growth drivers when Austin,Texas but under the new driving fun, sportiness, family-friendli- mobility applications are running reli- brand, car2go. Environmental friendli- ness, discounts and combinations of ably. These customers are already ness and service are the load-bearing these, for example. The social trend familiar with fleet management from Automotive – Summer 2010 7
  8. 8. their experience of car manufacturer the US first, because the car still plays But the change could be completed service offers, and generally have a greater role as a status symbol in rather quickly due to the acute traffic extensive mobility requirements the Asian and South American mar- problems in the big cities. Public across and beyond all modes of trans- kets. The German Institut für Automo- transport networks with electro mobil- port. The range of offers must, how- bilwirtschaft (Institute for Automotive ity, for example, are probably a lot ever, be expanded significantly. Research), for example, expects China closer to reality in China than many The mobility service market’s focus to be the biggest consumer of pre- western experts think. The massive will probably be Europe, Japan and mium brand vehicles up to 2015. support by the Chinese Government has generated a head start. “In five years,” says Shai Agassi, “the Chi- nese will no longer be accepting cars »The organization of new services must be with combustion engines.” And it is in adjusted to this branding – sustainability, premium, the emerging markets in particular that manufacturers have the opportu- driving fun, sportiness, family, discounts and nity to experiment with new mobility combinations of these, for example.« concepts – and quickly produce major scale effects. By Eric Czotscher, Head of the “Branchen- und Managementdienste” department of the F.A.Z. Institute No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. © 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. Comment Automotive industry at the crossroads T here can be no doubt that the automotive industry has reached a water- shed point. Increasing vehicle electrification and drastic changes in con- sumer behavior in the saturated markets will result in a redistribution of the automotive value creation chain. Exactly what this will look like – whether OEMs will be the mobility providers of the future or whether suppliers in the module sector will develop into mass providers as part of a concentration wave, and what business model will be the most successful in the future – all remains to be seen. One thing, however, is already clear today: whoever welcomes these changes as an opportunity and positions themselves early on, will push to the fore in the long term. The ability of the automotive indus- try to learn from other industries that have already undergone similar changes will be critical to its success. Direction could be taken, for example, by busi- ness models from the IT or tele- communications industries, which have already shown how success- Dieter Becker is Global Head of Automotive, ful brand management boosts KPMG in Germany. leadership in a highly developed technological market.8 Automotive – Summer 2010
  9. 9. Rethinking fleet management In Q1 2010 almost one in three new motor vehicle registrationsNo member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.© 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. in Germany was a company car. Within the medium to luxury classes, every second car was registered by a company. Incor- porating green strategies in corporate vehicle fleet management therefore poses new challenges for the automotive industry. I n Germany the company car is Audi AG (Audi), this is an invaluable regarded as a problem in 2006 and still an important status symbol benefit for high-end vehicle manufac- 2007 against the backdrop of explod- used to attract employees to turers. The situation is most compara- ing fuel costs as the price of regular higher positions. Ultimately the ble in Belgium; whilst in other Euro- gas rose to EUR 1.40 per litre. “This company car provides indisput- pean countries the company car is far allowed cost reduction measures to able benefits for both employer and less widespread due to lower social be nicely ‘green’ packaged. Over the employee. Employers save on their security contributions for salaries and course of the financial crisis the vehi- labor costs and the associated high luxury taxes on high-end vehicles. cle downsizing issue was tackled, social security contributions, and at “Germany is the manufacturing coun- without company-internal discussions,” the same time also secure a powerful try with the largest premium seg- says Thilo von Ulmenstein, Managing price leader into the bargain. The ment, which is why the employee’s Director of FleetCompany GmbH, a employees save on taxes and social image is so closely connected with TÜV SÜD subsidiary, which presents security contributions – and can also their company car. In other European the annual ‘Green Fleet Award’ to use their company cars for private countries such as the Netherlands or companies with especially ecofriendly purposes. France, the car is far less image- vehicle fleet management. bound than it is in Germany,” says A large-scale changeover of com- The car – truly a German Marketing Manager Bettina Heinen pany fleets to vehicles with alternative status symbol from LeasePlan Deutschland GmbH. drives is, however, still a long way off. The figures are impressive proof of “Of the approx. 87,000 vehicles that the real incentive of a company car for How “green” will fleets become? we provide to companies, only 37 of many employees – it allows them to “The climate change debate won’t them are natural gas, and a couple are drive a car that they couldn’t normally spare the so highly valued company electric vehicles,” says Bettina Heinen afford in their private life. In a country car in the long run,” says a quite con- from LeasePlan. To date practicality in that is primarily defined by its premium vinced Bettina Heinen. Vehicle fleet daily use is still the main missing ele- brands, Mercedes-Benz, BMW and consumption in companies was first ment. “Alternative drives can only be Automotive – Summer 2010 9
  10. 10. “Whoever gets into gear here the quickest will be able to achieve real competitive benefits,” says Bettina Heinen. “Employees will also attach more importance to the fun and image factor connected with choosing the company car than they will to environ- mental protection. Companies will restrict the selection with appropriate CO 2 limit values to match their hierar- chy. Those who want to stay in the running must be able to offer the right kind of vehicles.” A review of the changes in new company car registrations between Q1 2009 and Q1 2010 shows who the current winners and losers are. While used on a large scale by companies Fuel is provided by a local supplier upper medium class and luxury class when the right maintenance and filling who extracts biodiesel from various new registrations remained stable, the station network has been put in place. waste sources from within the three bottom segments (mini, small No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. And of course alternative drives are region. The fleet’s CO 2 emissions car and compact class) enjoyed signifi- © 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. mostly installed in small cars, and not were consequently reduced by more cant increases in places of up to 30 in the higher vehicle class model than 50 percent from 910 to 435 percent. SUV new registrations also series that are most attractive to tons between 2006 and 2008. A goal increased by 17.2 percent. Large vans employees.” of saving 75 percent of CO 2 for the and medium class cars, on the other entire company over 3 years by the hand, both fell by 13 percent. Sustainability grows in importance end of 2010 was announced, of To date very few companies are which 57 percent has already been A market for mobility providers? changing over their vehicle fleets achieved. “Total Cost of Ownership” – the total because of a clear sustainability strat- purchase price and running costs over egy, instead of purely economical rea- Challenges for manufacturers the entire service life – remains the sons. One example is the global US These two examples clearly show key sales argument for manufacturers chemical group, DuPont™, which that sustainable strategies are not when selling company cars. And yet it made its name back in the day with about new materials in car manufac- is precisely here that lower gas con- products such as nylon and Teflon ®, turing – it is actually about reducing sumption and therefore lower costs and now intends to improve its image CO 2 emissions with thriftier models and reduced CO 2 emissions go hand- with a green vehicle fleet. With its and alternative drives. “A growing in-hand. In addition to downsizing ‘Fleet Fuel Efficiency Program’, the number of companies with a highly engines, technical advances are there- group has obliged itself to change all developed CSR are implementing fore especially important for sales in of its vehicles to leading technologies sustainability in their fleets, too. And this area. “Employees are loath to with combustion motors and alterna- with absolute conviction! Companies accept reductions in their vehicle’s tive drives by 2015. This will help sup- are therefore increasingly setting performance, but on the other hand port the right kind of innovations, CO 2 upper limits for their vehicles,” must make their contribution to meet- while reducing the fleet’s consump- says Thilo von Ulmenstein. And this ing the company’s climate protection tion levels. has effects on model ranges. targets, it really is all about being able The English office furniture manu- “Manufacturers in particular have to to provide lower consumption vehicles facturer, ‘The Commercial Group’ in adapt their range of models towards with the same performance,” says Cheltenham near Gloucester, has also achieving CO 2 reduction due to this Alexander Bilgeri, BMW Group Busi- introduced a series of measures with changing behavior patterns of fleet ness and Financial Communications. its vehicle fleet to achieve the compa- operators. This is already in full The trend towards more environmen- ny’s ambitious climate protection swing, and is very necessary, tal friendliness within fleet manage- objectives. An elaborate system con- because the trend towards sustain- ment at companies is matched at stantly monitors the company fleet’s ability is currently being spearheaded BMW, as the Munich-based manufac- mileage and gas consumption. by big companies and is emanating turer has a good sales pitch for fleet Drivers and employees are also outwards more and more all the managers with its ‘Efficient Dynamics trained how to drive more economi- time. Without alterations manufac- Program’. “In some companies cally, which results in gas savings of turers will no longer be able to place employees are rewarded by a bonus up to 20 percent. Various options entire model series in company scheme when they contribute to were tested before the decision was fleets, where the most important achieving the company’s climate pro- made in favor of biodiesel vehicles. sales market is right now.” tection objectives and stay below the10 Automotive – Summer 2010

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