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RV boss calls for unity to beat September sales flop

Date: 11 September 2008   |   Author: Rupert Saunders

The fleet industry needs to work closely with car manufacturers and dealers to support residual values and ensure there is an 'orderly' September market, according to Kevin Gaskell, CEO of pan-European valuation provider, EurotaxGlass's.

His warning follows two successive monthly 5% drops in Glass's Guide 'book values' for used cars, which have left many fleet and leasing firms nursing negative equity on vehicle disposals. Monthly lease rentals are expected to rise as a consequence.

At the same time, lack of demand from private buyers in the new car market is leading to fears that carmakers will push extra volumes through short-term rental and courtesy cars. Some industry observers are predicting the all-important September plate-change will flop and volumes could be down by 15% to 20%.

"I think many car makers are hoping the fleet industry will rescue them," warned Gaskell. "Right now the dose of economic reality has not permeated through and manufacturers, in general, are not taking a realistic view.

"If you ask me how many pre-registered cars are going to be out there by the end of the month, I reckon there's going to be a pile of them. The used market is over-fed right now and yet there's a lot of pressure to get more cars out there."

Speaking exclusively to BusinessCar at yesterday's GE Capital Solutions Future of Fleet conference, Gaskell called for a more "collaborative and long-term approach" to the problem that has plagued the industry for many years.

"Manufacturers, dealers and business car operators should work together," he said. "Obviously not on volumes and pricing, which would be anti-competitive, but on sharing data and information to understand the real dynamics of the market place."



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