Acknowledging that at the time we spoke, Collins was just weeks into this new role, we asked if he had already identified any further fleet opportunities for BMW and Mini.
He said: “It is lucky to have started the role three weeks after we revealed i5! I couldn’t ask for more really. It is obviously such an important car for corporate – the 5 Series in general, but the i5 in particular.
“I think the i5 is also cool because it helps continue our expansion, so now we’ve got three BEV SUVs, three BEV saloons, we’ve got the PHEVs, we’ve got the new derivatives, i4 35 and iX2 later in the year, plus an i5 Touring, and the next generation of MINI.
“What I also want to do, is to not become complacent outside of the product. There’s a far higher level of integration with the app, with the way our customers are ordering their cars, the way they are applying their replacement cycles and so on. I want to make sure we’re investing in those systems and that side of things as well.
“We’ve got Inside Edge as well, to reward our company car drivers. We’ve also got Corporate Certified, which we launched at the start of this year, which is about improving the retailer experience – the handover and collection experience for customers. What I want to make sure that we do, is that we look at the whole holistic approach for our fleet customers. We’ve got the right building blocks to do that, we just need to keep on developing it.
“One thing I’m particularly passionate about, is around sustainability, and not just in the context of hydrogen, but sustainability as a topic. From a fleet perspective, of course there are a lot of companies going net zero and they’ve got commitments – they’re reconfiguring their fleets, towards PHEVs and BEVs. There’s a lot of focus on tracking mileage and Co2 output, and consumption and so on.
“It is what we’ve called a ‘Vehicle Footprint.’ What we want to be able to give, is fleet customers the ability to track the CO2 emissions, and the environmental impact of our vehicles – all the way through. So, literally from digging the material out of the ground, through the manufacturing process, to the logistics and distribution, and then the ‘Use’ phase. Also, the post-use phase – recycling and what we can extract – what can we reuse?
That entire lifecycle is something that more customers in general, but fleet and corporate customers in particular, are starting to be asked questions themselves about.
“This Footprint is something we’re trailing in Europe with the i5, that launches in the UK in October and we’re looking to bring it to the UK as soon as possible after that – but we don’t have a timeline yet. We’ve involved some of our corporate customers in the development of it, so we can get their insight on what they would be looking for. We’ve also tried to factor in our customers’ requirements, and it won’t just be for i5 – it will be widened to the rest of the range.”
Collins goes on to tell us that BMW will keep evolving its relationships with fleet drivers. He says: “Inside Edge,’ is well-established and well-understood, but we’re looking at how we can refresh the reward portfolio. We’re asking our customers what they would like to see on there, and what they would find the most value – because tastes and requirements are changing. So, we will refresh that in an ongoing sense.
“Corporate Certified is exciting, as we only launched it in January this year, and it’s still effectively in its roll-out phase. We’ve already had a good uptake from the retailer network, good feedback from leasecos, and I think ultimately Corporate Certified is there to make sure the experience received is as good as the product you’re taking delivery of. We’re only seven months in, and we’ve already managed to achieve positive feedback from customers.
“I think the retailers are implementing it well, we’re seeing leasing companies that are asking who the Corporate Certified dealers are, as they want to do business with them. Ultimately, the customers, the actual drivers and end users have seen a difference. When they’ve gone into the dealer, they’ve been treated differently, they’ve felt a tangible difference, and that’s obviously great to hear, as the purpose of Corporate Certified is just to make sure that, even if you’re funding your car via a different company, leaseco, or large corporate, you’re still receiving the kind of experience you’d expect from the brand. We’ll continue to expand it, and really focus on driving Corporate Certified this year. We’ve already got some good ideas about changes and tweaks that we can make, we’re committed to investing in it and expanding the Certified network.
As you can imagine, Collins tells us that the iX1 has been doing very well in corporate and fleet. He says: “X1 as a product range is always popular. X1 ICE models continue to be sought-after, but now having that entry-level BEV SUV, I think it has almost performed above our expectations.
“We know that the smaller SUV segment has obviously got a lot of competition and electrification in that segment. That is also because there’s lots of demand, were seeing iX1 added into a lot of bandings, it’s a small SUV that’s electric but it’s also still a BMW and drives like one. It has got that strong combination for it to perform well, which it has done.
“With iX1 we’re very strongly forward sold, but what’s also exciting, is that towards the end of this year, we will start talking about iX2. This will be the EV equivalent of the X2, and performs as you’d expect, but it’s a sportier derivative – even on the ICE side. Early indications on that, are very positive. Although iX1 will be the dominant model in the fleet arena, but for those looking for something a bit different and sportier – but still BEV – it gives another choice.
“We’re really expanding out what we’ve got, to offer in all different bandings and choices. We’ve got the different derivatives, and I think more entry-level BEVs are always well-received. In i4, for example, the eDrive 35 has slightly less range, but has a lower entry point and we’ve seen a strong order bank on that in fleet – almost one-to-one with the eDrive 40! This is because it’s getting into more banding and giving more options. A lot of people are in 330e PHEVs, obviously if they want to go fully electric, it’s a four-door hatch option.
“Next year will be a huge year for Mini, with the next generation, it will further extend the BEV range – beyond the one model that we have now. We see that as an opportunity to grow the brand within fleet and corporate, with higher electric ranges as well.
“With the i5 I don’t think we should lose sight of the fact it’s a 5 Series, which is a major event in the world of BMW regardless of drivetrain. The fact it’s also an i5, I think makes it doubly exciting and Five Series is a majority corporate vehicle in the UK, so it’s naturally more relevant. Customers at that level, with that banding or that monthly payment, they’ve got an option that they will hopefully get excited about.
“We will also have an i5 Touring next year, and Touring is 15-20% of our fleet Five Series volume. So, there is a market there. Not everyone wants an SUV, some people still want an estate, so having an i5 Touring as well, I know there are a lot of people very
excited about that.”
Collins believes he has already identified a definite opportunity in the SME sector for BMW. He says: “We’ve got a broad range of models, some more entry-level products like iX1, obviously Mini, that’s a part of the market that I think we need to focus on. I also think that’s where Corporate Certified is most relevant, because it’s about a smaller fleet size, with more of a local relationship with the retailer, or the leaseco and where things like the app and ‘Inside Edge,’ are very relevant to SMEs. I also think the ‘Vehicle Footprint’ concept – although it’s designed to help large fleets, could be relevant to smaller organisations. As they might not have the infrastructure to review their sustainability credentials. If we can provide that, even for a smaller fleet of say five to 10 cars, I think that adds some value too – so it’s quite applicable.
“From an offer perspective, we’ve invested quite heavily in salary sacrifice, which is a growing opportunity for all brands right now and we’ve been very pleased with the positive reaction. We have a competitive offer in the marketplace – that’s becoming more popular – although maybe not so much for SMEs.”
