FleetDrive 21 February 2020 | Page 29

FLEETDRIVE CONNECTED COMMERCIALS More than 100 fleet and mobility professionals gathered in Brussels for a 24-hour power event focusing on connectivity and commercial fleets in January. Here are 4 lessons the attendees took home after this year’s event: 1. Plan your procurement to avoid unnecessary costs, but build in a flexible layer to absorb temporary needs. Choosing an appropriate vehicle should be determined by maintenance intervals, by tyre lifecycles and by other aspects that can have a direct influence on availability and costs. 2. The hardware is one thing, the human element another. Driver monitoring and coaching is key to keep variable costs at bay. 3. Collaboration is paramount. It’s what drives innovation, increases security and creates synergies. Opening up your platforms and APIs is not about giving away your competitive advantage, it’s about staying competitive and therefore to survive. 4. Telematics is crucial to go electric. It helps you to determine which vehicles in your fleet can be EVs, and it’s the only way to know where your vehicles are, how much range they have left and how long it will take to charge them. SALES SLUMP New-car sales in Russia this year are set to fall 2.1 percent to 1.72 million vehicles after a 2.3 percent drop last year to 1.76 million, the Association of European Businesses (AEB) said earlier this month. The forecast puts Russia’s car market on course for its second annual contraction in two years, despite sales in December rising 2.3 percent to 179,235 and recovering from a 6.4 percent drop the previous month, according to the AEB. “The year 2019 proved harder than expected,” said Joerg Schreiber, chairman of the AEB automobile manufacturers committee, which comprises the majority of automakers operating in Russia. The size of Russia’s auto market “remains small and lower than its potential,” he told reporters. Russia’s car market was given a much- needed boost in 2018 when it expanded by 13 percent. But falling real incomes have fueled a subsequent contraction. Russia’s biggest automaker, AvtoVAZ, which owns the Lada brand, also expects the car market to contract again in 2020, primarily due to depressed consumer incomes, a company executive said on Monday. PARAGUAY PARTNERSHIP Brazil and Paraguay this week signed an agreement to boost trade of autos and auto parts between the two countries. The agreement was announced during the most recent Mercosur Summit held in December 2019. Brazil had signed similar agreements with both Argentina and Uruguay before. The four countries are the four founding members of Mercosur, or the Southern Common Market. Under the agreement, Brazil will grant free trade treatment to Paraguayan automotive products immediately and Paraguay will allow Brazilian products to enter the country with lower taxes, which are of up to 2 percent and will gradually decrease until free trade conditions are met by 2022. According to the Brazilian government, the agreement does not have an expiration date and will be valid for an indeterminate length of time. The agreement is regarded as a positive signal for the Brazilian automotive sector, which has been suffering from an decrease of vehicle exports, mainly due to the prolonged economic crisis in Argentina, the sector’s main market. ISSUE 21 2020 / WWW.AFMA.ORG.AU 29