Fleet LatAm Expert Meeting Sao Paulo takeaways
Fleet LatAm held an expert meeting focused on the internationalisation of fleet management in Latin America. It took place during the Welcome Tomorrow mobility conference coordinated by Instituto PARAR in the city of São Paulo on Tuesday (Oct 30).
Following a Session 1 which involved a description of the new Fleet Latam platform by Fleet LatAm editor Daniel Bland and an introduction to the Fleet LatAm advisory board by board president Pascal Serres, four more sessions were conducted throughout the four-hour event and here are some of the quotes worth noting.
In terms of acquisitions, “although vehicle leasing is increasing throughout the region, the outright purchasing of vehicles is still quite strong, especially in Mexico,” said Guira Barretto who is a Senior Consultant for international consultancy firm Frost & Sullivan.
According to Serres, new car registrations are on the rise. “Approximately 6.2 million new cars were registered in 2017, up 7% year-over-year” Serres said, explaining that the trend is continuing in most of South America this year. The Fleet LatAm advisory board president is also the founder of international mobility solutions company Moby-D.
Fleet Latam advisory board president Pascal Serres gives attendees an overview of the Latam leasing market (Source: Fleet Latam)
Fernando Cammarota, who is the chairman of international traffic accident control company CEPA safe drive, stressed the importance of reducing the cases of vehicle accidents. “In Brazil alone, 433,000 accidents occur every year, equivalent to one every 12 minutes,” said Cammarota.
Ernesto Pesochinsky followed by saying that 94% of the traffic accidents in the country are caused by human error, 22% of traffic deaths are pedestrians, and the cost of accidents is equivalent to some 3% of Brazil’s GDP.
Pesochinsky is Latam Director for Mobileye, the Advanced Driver Assistance systems (ADAS) subsidiary of Intel.
One way to improve fleet efficiency as well as safety is by implementing telematics, according to Latam VP for multinational telematics company Geotab, Kevin Woolley. “Geotab monitors vehicle location, acceleration, and engine data through the use of peripheral sensors and driver logs,” the executive explained.
Finally, Gabriel Andrade who is the Marketing & Sales manager of Brazilian vehicle fleet management and rental agency Localiza, ended the session with a success story related to safety.
A roundtable discussion addressing the internationalization of fleet management was also organized with the contribution of executives from automakers Volvo and General Motors as well as international vehicle leasing and fleet management companies ALD Automotive and Arval.
In terms of acquiring cars, “some of the key things that potential clients look for are adequate energy efficiency, minimum safety standards, and ease of vehicle maintenance, said João Oliveira who is the Volvo sales director of Brazil.
“Yes. All these affect TCO. But, I’d like to highlight that clients also seek suppliers that have an ample network of dealerships to support vehicle maintenance needs. You don’t want your workers traveling 300-400km for car repairs,” said GM South America senior manager Marcelo Tezoto.
When it comes to building a regional team, a company needs to really believe in the project, according to ALD regional key account director Sergio Lecue Gomez.
“Some companies say they have a regional structure but it’s not really the case. It is absolutely fundamental to implement common policies across the region and this really requires a sponsor,” said Gomez.
Moreover, really knowing the culture is key to closing deals and not just the language, the speakers added.
Finally, regarding opportunities, Arval Latam business development director Ricardo de Bolle highlighted that less than 10% of the vehicle fleet in Latin America is outsourced.
“Whether it be for funding, professionalization of the sector, or something else, there is immense opportunity,” said de Bolle.
The evening ended with executives from Argentina-based vehicle leasing and fleet management companies Auto Corp and RDA Renting & Management.
“To deal with the high inflation and interest rates in Argentina right now, besides outsourcing fleet management, fleet managers should focus on harmonizing services to international standards and joining the digitalization revolution,” said Auto Corp CEO Alberto Velez.
A long-term strategy is needed. One that builds strong alliances and considers innovation such as e-commerce, car-sharing, and mobility as a service (MAAS),” added RDA Operations Director Joaquim Lizarralde.
Fleet Latam, Instituto PARAR partner up: Daniel Bland, Daniel Savigny Cleber Kouyomdijian, Pascal Serres, César Urnhani (Source: PARAR)
The next Fleet LatAm expert meeting will take place on November 26 just ahead of the Fleet Europe Summit in Barcelona. This will be followed by a 3-day conference in Mexico in the Spring of 2019. Hope to see you there!
Thank you to the sponsors of the Fleet LatAm Sao Paulo event: ALD Automotive, Wheels Inc., Chevrolet, Geotab, Localiza, Mobileye, and Volvo, as well as Instituto PARAR.