Automotive Fleet

OCT 2013

Magazine for the car and truck fleet and leasing industry

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50TH ANNIVERSARY are continually looking to become better at what we do. I value competition. It keeps us sharp. We never think that being the biggest makes us the best. So, I never say we are the best, but I always say we are in a strong position. FE: In what way does LeasePlan differentiate from its competitors? CRIADO: Trough a combination of global experience, local expertise, and on-theground service support as well as our broad ofering of harmonized services and our experience with global cost-savings initiatives. FE: You are currently managing around 1.35 million vehicles — are there plans for more? DAEMI: Some markets in Europe, such as Spain and Greece, have been shrinking, but LeasePlan has either maintained or increased market share. Our overall numbers may be smaller, but the market share is bigger. I do not believe the market is going to return to where it was quickly, but there are signs of recovery. Companies are ordering new vehicles again and there are other, less mature markets that ofer potential. But, this does not mean that our product will remain the same. Future generations will be looking for mobility solutions rather than car leasing. FE: LeasePlan has always been at the forefront of innovation. How do you see this evolving further? DAEMI: I see car leasing as a service, and there is always room to improve service and make it more efcient. Product innovation comes from trying to serve the customer better. We deal with everything in a customer's mobility — payroll, fnes, and even a single card for all mobility including bus, metro, etc., in the Netherlands. FE: What is your opinion on bundled services in operational leasing? DAEMI: Some customers have gone down 58 AUTOMOTIVE FLEET I OCTOBER 2013 the unbundling route and have found it can lead to difculties when integrating services. Te minute there is a problem, everybody blames everybody else. I believe in benchmarking the total solution. Customers want to know they are getting the most cost-efective solution. FE: Some in the industry say LeasePlan's open calculation model has led to customers demanding even more transparency? DAEMI: Possibly, but why worry about this? Transparency is important. Nobody is proposing that suppliers should operate at a loss. If a customer sees that a new supplier is operating at a loss, trying to gain new business, they will start asking how this business will be fnanced. Our industry should embrace transparency, not shy away from it. FE: How do you see the future success of full-service leasing? CRIADO: Tere is a move toward centralization, global feet management, and outsourcing. Tis trend requires fexible end-toend service solutions that allow companies to focus on their own core business, while securing the maximum beneft of their core suppliers' expertise. Next to that, there is a need to provide the right level of control and transparency, and to deliver a consistent service experience across diferent countries or business entities. Given these requirements, it's no surprise that we see an increasing development of full service leasing solutions, including our open calculation ofering. "More and more companies are looking to centralize global feet management whilst reducing their own involvement," said Jose Luis Criado, managing director of LeasePlan International. FE: What do you see as the 'next big thing in feet'? DAEMI: Car usage is going to be more important than car ownership. We are seeing the SME market embrace this. Mobility, including car-sharing, is developing. Change will happen slowly, as will the integration of electric cars. Looking a very long way ahead, the focus will be on the individual, not the vehicle. Tis will be a fundamental change. Te service will be provided to the driver rather than the company. So the contract may no longer be linked directly to the company but to the employee. CRIADO: Telematics and efcient reporting systems are gaining momentum, particularly with large international feets. Clients have greater visibility. Fleets' value will advance from a commodity pricing focus, to one on overall value and service. Tere will be a move away from transactional relationships to strategic partnerships." AF About the Author FE: You have just moved into the Russian market — what's next? Steven Shoefs is the editor of Fleet Europe magazine, which is published by Nexus Communication. He can be reached at sschoefs@nexuscom- DAEMI: We are looking at the Asian and Bobit Business Media, publisher of South American markets. With China it is a matter of timing. We moved into India early, and the business is running very well now. In South America we are in Brazil and in Central America we are in Mexico, and we are looking to further build our presence. Automotive Fleet, and Nexus Communication have partnered in producing the Global Fleet Management Conference, held in Phoenix, Ariz., in 2013, and will be held in Brussels, Belgium, in 2014.

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