We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time
The start point for the best source of fleet information |
Some of the UK's biggest leasing companies have moved into contingency mode after their glass supplier Auto Windscreens went into administration last week.
The companies have shifted contracts to a number of other suppliers while they wait to see if the UK's number two glass firm has a future. Lex Autolease, Alphabet, ING Car Lease and fleet management firm FMG?Support are among those that have moved their business to a range of rival companies.
"We've had a plan for quite a while. We've been aware of the situation with Auto Windscreens and to be fair they've been open and honest with us," said Lex Autolease supplier network manager Steve Chandler.
If a buyer can't be found for Auto Windscreens, Lex will enter into a new tendering process for the contract, which was only awarded to Auto Windscreens in February 2010 on a three-year agreement.
Alphabet has switched the majority of its work to Autoglass as an interim solution, although customers can still ring the same helpline number. The firm will also look to re-tender if a buyer can't be found. Alphabet confirmed it had Autoglass back-up in place after Auto Windscreens warned of the potential problems.
ING Car Lease only signed its supplier contract with Auto Windscreens last September. "Due to declining service levels, we had already begun to divert jobs from Auto Windscreens to our secondary suppliers Nationwide Windscreen Services and AA Auto Windshields," said head of technical services Alan Lilley. "As such, while a small minority of customers have been affected, the vast majority will see little impact."
Administrators Deloitte were appointed on Monday 14 February, and immediately suspended all operations, sending around 1100 staff home as there was no money to continue trading. Deloitte was called in after Auto Windscreens received a winding up petition from HMRC over unpaid bills and insurance giant Aviva cancelled its glass contract before Christmas. Aviva refused to comment on why it terminated the contract, and has now confirmed a deal with Autoglass.
Deloitte said Auto Windscreens had been implementing "a major operational improvement plan", but delays with the IT system coupled with lower than expected revenues in the last quarter of 2010 led to cash flow pressures. It had been in the process of refinancing the business, but failed to secure an agreement before the HMRC and Aviva developments sealed its fate.
"We are now in urgent discussions with the key stakeholders and interested parties in an attempt to save the business," said Deloitte joint administrator Matt Cowlishaw.
Follow BusinessCar on TWITTER
BusinessCar magazine ©2019
Business Car Magazine © 2020 | Business Car is part of NS Media Group.
