The 2015 Fleet News Awards marked a return to form for Ford. After failing to collect a single trophy in 2014, the company walked away with five in March, including the coveted reader-voted fleet manufacturer of the year.
Why the turnaround? It’s all down to timing. In the past year, Ford has launched the facelifted Focus and new Mondeo – two of its most important fleet cars, and both winners at the awards. And there is much, much more to come this year, with the new S-Max, revised C-Max, new Galaxy, Mondeo Vignale and, towards the end of the year, new Edge SUV.
No wonder newly-appointed fleet director Nick Themistocleous (who replaced Phil Hollins in February, just in time to make five visits to the Fleet News Awards stage) is in high spirits. But not, he is at pains to point out, complacent.
“This is a very competitive market, with good products in all segments,” he tells Fleet News in his first interview in the role.
“We have a lot going on this year and we will have to be consistent with fleets to manage the information they get – we can’t over-faze them.”
Fleet News: After a strong year in 2014, Ford’s true fleet sales have dipped a little this year (in Q1 they are down around 14%). Why is that?
Nick Themistocleous: Availability. The Mondeo has yet to catch up at the Valencia plant but it will be freed up as we move through the year. The Focus also had a refresh at the start of the year and that is also ramping up.
FN: So what are your expectations for 2015?
NT: We expect the market to be up in fleet and we expect our volume to be up as well, though not at the dramatic levels we are seeing in van. We have to touch all areas of fleet – rental, Motability, true fleet corporate and SME – but it’s all about balance. We have good balance in rental and we see that reflected in stable residual values and good wholelife costs.
FN: The van market has recovered well and Ford’s fleet sales are stronger than ever. Is this purely down to new product?
NT: Commercial vehicles have been phenomenal, with 40-50% growth. We set our sights on 30% and we are achieving a 50% increase in net fleet. The Custom and two-tonne-plus Transit – a new model in a new segment – are driving the growth. But it is also down to the dealer network with the Transit specialist network . They have increased the investment in facilities and people, with dedicated managers, which is a key part. We have always been strong in the corporate sector and we are now increasing sales in the SME sector where the van is both for work and a part of their lifestyle. Vans have all the safety and technology features of a car and we are seeing people replace their car and combine it with their van.
FN: What are your biggest challenges this year?
NT: Supply of product and taking a new product range and delivering sales growth in a competitive marketplace with a high level of customer service – that’s down to us and our dealers. We have moved the needle on our dealer offering which wasn’t hard to do: the strength of the product and customer reception brought them along. The UK market is always competitive; we don’t see that easing off, so it’s about the product and service levels.
FN: You have been away from fleet for a few years . Any surprises on your return?
NT: The market has got even more developed and sophisticated than it was before. We were always the most complex market in Europe and very professional in the way we ran cars. That has continued. I also see the leasing sector evolving and the support services around fleet. The whole industry is more sophisticated. The trend towards user-chooser fleet in the car sector continues but the slowdown due to tax and benefit-in-kind has settled down. The company car has stabilised.
FN: Do you see a point where telematics is commonplace in company vehicles?
NT: Yes, I think it will increase. Telematics is already taking off especially in commercial vehicles, where it delivers benefits on cost and insurance. We have launched a tracker in retail as part of the acquisition for younger drivers – it enhances safety without being a major imposition. We will see more of that with young drivers in companies, including cars. One reason why the company car sector was created was to give someone the tools to do their job rather than use their own car.
FN: How will your experience working elsewhere within Ford help you in fleet?
NT: Whatever part you are in, everything is interrelated. You have to appreciate all these elements to understand how your cog interrelates. For example, in fleet we are reliant on factory supply or the dealer network.
FN: What are the key attributes that you will bring to the fleet director role?
NT: Respect everyone and revere nobody. We have a strong culture at Ford, you have to be commercial, analytical and egalitarian – everyone has a view and a say. The danger with business today is information overload. We can lose touch with instinct which comes from experience. You have to strike the right balance between data and the feel for the real world. Time will tell if I’m successful.
Themistocleous cuts a relaxed figure during our two-hour meeting. He has adopted Ford’s existing fleet strategy, signed off by predecessor Phil Hollins, and is clearly confident he has the right products to deliver the figures.
“Fleet is a continuation of the current policy,” he says. “We have been reasonably successful and we will have to continue that.”
With six all-new or refreshed models due for launch in the second half of the year, including the new halo-car Mustang, his optimism appears well-founded.
Judges’ comments
“With four other Fleet News Awards wins under its belt this year, Ford justifiably takes the fleet manufacturer of the year. There are no weaknesses in its model range which, from supermini to full-size people carrier, offers something for every fleet requirement. Low running costs are a given, while Ford has a deserved reputation for making some of the best drivers’ cars on the market.”
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