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Ford set to disappoint daily rental firms

Date: 25 June 2007   |   Author: Rupert Saunders

Ford Mondeo estate

Ford is holding a series of meetings with daily rental companies to tell them there will be "no wavering" on restricting volumes of the new Mondeo to fast-churn fleets. The rental firms are likely to come away disappointed with "less than 75%" of the allocation they are looking for, according to senior Ford management.

Behind the decision is Ford's determination to move the Mondeo into the long-cycle, contract hire sector by protecting RVs and securing low monthly rentals. Particular attention has been paid to reducing option prices and getting low BIK tax bands to ensure the car is attractive to user choosers.

As a result, the Mondeo is being launched with very aggressive contract hire rates, around £50 a month cheaper than the equivalent Passat and £90 a month cheaper than Vectra, according to Lex which supports Ford's Business Partner programme.

Daily rental companies are especially keen to get their hands on the Mondeo because of its unique Easyfuel system that prevents misfuelling of the car.

This is a major issue for daily rental, particularly with incoming tourists who may not be used to having diesel engines. Easyfuel will allow the firms to put the diesel Mondeo on rental at airports where, until now, only petrol-engined medium saloons have been available.



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