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Fleet industry in upbeat mood for 2011 as last year's woes subside

Date: 03 January 2011

Some of the biggest names in the fleet industry speak to Paul Barker about how their businesses fared in 2010 and what their predictions, hopes and expectations are for the coming 12-months.

BCA: Tony Gannon, director

Sum up your 2010

A more 'typical' year for our business following the fall of used values in 2008 and the recovery in 2009. There were elements of seasonality creeping back into the marketplace, which meant planning was a little easier than in the previous 24 months.

Issues of used-vehicle supply, condition and pricing strategy have emerged as fleets and leasing firms have extended cycles, and car dealers have seen new retail business volumes come under some pressure.

What are your hopes for 2011?

For the economy to continue to recover without further setbacks and then for the used market to remain steady; to see some confidence returning to the economy across a range of business sectors.

What are your fears for 2011?

The fear will always be over-supply combined with falling demand, although over-expectation can be pretty damaging as well. On the broader stage, any faltering in the economic recovery or dip in business and consumer confidence would be worrying. Long-term there could be issues regarding shortages of supply of younger used cars into the used car market and these will remain while new car sales remain in the doldrums."

What are your expectations for 2011?

Another year of steady recovery would be ideal. From a business perspective we have more important technology roll-outs planned.

What was your company's biggest achievement in 2010?

The launch of our new web platform in the UK, followed by the Bid Now and Buy Now platforms.

CAP: Ian Rendle, general manager

Sum up your 2010

This was the year in which any doubts about the role of supply in the residual value equation were finally eradicated. After the lessons of 2009, when low supply levels caused such a hike in used prices despite a dire economic situation, the easing of that shortage saw values falling again as more vehicles became available. Furthermore, analysis of underlying values also reveals that despite occasional large shifts upward or downward, the trajectory of values always returns to a fixed downward trend.

What are your hopes for 2011?

CAP hopes for beneficial conditions for its customers. The easing of money availability would be welcome, especially for smaller businesses.

What are your fears for 2011?

Our main fear is that credit restrictions continue to keep the brakes on growth.

What are your expectations for 2011?

CAP expects a slightly stronger year, in terms of used values performance, than 2010. Despite an inevitable reduction in demand for used cars, strong restrictions on supply will more than mitigate against this.

What was your company's biggest achievement in 2010?

The organisation's biggest achievements in 2010 revolve around continual improvement in terms of the robustness and integrity of its core processes. These will unlock important opportunities for the launch of new applications and data sources to benefit customers in next year.

Enterprise: Rob Ingram, Business Rental director

Sum up your 2010

We have seen the car rental market develop and begin to grow again after the challenges of 2009. For us, 2010 has been a year driven by innovation - we introduced a number of new products and services across the year.

What are your hopes for 2011?

I'm confident that the planned opening of a number of new branches over the next 12 months will further enhance the service we provide.

What are your fears for 2011?

Any concerns I have would be linked generally to the wider economy - we aren't out of the woods yet. With regards specifically to our industry, I hope that as public and private sector organisations are compelled to save money they don't rush to cut transport budgets without looking at the long-term effects.

What are your expectations for 2011?

We will continue to work with our corporate customers to help them meet their travel policy objectives.

What was your company's biggest achievement in 2010?

The first was our response to the snow and bad weather at the start of 2010. We took the decision to focus on our long-term business partnerships. The positive feedback we received from our long-standing customers convinced me we made the right decision. Secondly, Enterprise Rent-A-Car planted its five-millionth tree this year, as part of our global commitment to plant 50 million trees worldwide over 50 years. I am proud to say that tree was planted in the UK.

Ford: Kevin Griffin, fleet sales director

Sum up your 2010

Industry-wise, 2010 has been a challenge. The elimination of scrappage has seen volumes come down, particularly in the retail sector. Everybody is aware there is still excess manufacturing capacity in Europe so that pushed transaction prices into a difficult position.

From a Ford perspective, we made our decisions in fleet. We are the market leader and I think we will be at the end of the year.

What are your hopes for 2011?

That the C-max and Focus launches will be the best we've ever done.

What are your fears for 2011?

They really surround employment and any form of second recession. Anyone who has not got a job and is struggling has my enormous personal sympathy.

What are your expectations for 2011?

Anther brilliant year in the motor industry!

What was your company's biggest achievement in 2010?

It's difficult to describe - we call it Blue Tag and it's known as the realignment in prices, but it's actually more than that to us. Yes we have realigned prices but it's about the margins, ending up with a transaction price closer to list. We want to talk about what's on the car, not what's off the car - there's no point in bringing in a car with wonderful technology if all anyone is talking about it is the price. And we couldn't have done that without our dealer body - they offer great nationwide service but their understanding of how we do business has been key.

LeasePlan UK: David Brennan, MD

Sum up your 2010

Challenging but successful. More than ever, we have had to adapt to customers' pressures, challenging LeasePlan UK to innovate, something we've done by launching successful new products like SalaryPlan. Our strategy of prioritising customer satisfaction was vindicated by the number of client retentions and new wins.

What are your hopes for 2011?

Above all, I hope the economic recovery is sustained and that the coalition holds together. As the job market reactivates, I hope companies will begin to re-evaluate the role of the company vehicle as a powerful tool to attract and retain the best talent.

What are your fears for 2011?

The Eurozone sovereign debt crisis is the biggest worry. This could reduce both business and consumer confidence and as such slow down the UK recovery.

What are your expectations for 2011?

The economic recovery will remain fragile and the trading environment challenging. Of relevance to our industry, electric vehicles will gain momentum and I expect outsourcing and salary sacrifice to gather pace too.

What was your company's biggest achievement in 2010?

LeasePlan UK not only weathered the storm of the recession well, we are actually in better shape to serve our customers in 2011. The secret to our success has been long-term thinking and sticking to our customer-focussed strategy of continued investment in our brands.

Vauxhall: Steve Catlin, fleet marketing manager

Sum up your 2010

For Vauxhall, 2010 was a turning point. We were able to draw a line under the preceding 18 months of turbulence and plan for our future as a forward-looking, solid and sustainable business.

What are your hopes for 2011?

We will continue to talk about the key reasons to do business with Vauxhall Fleet: our industry-leading warranty, 'eco' brand, test-drive programme and customer service levels. Not to mention the build up to the launch of the ground-breaking Ampera and taking the opportunity to discuss the advantages of extended-range technology versus pure battery-powered vehicles.

What are your fears for 2011?

Any external events that might prevent us from achieving our hopes!

What are your expectations for 2011?

We expect a stable marketplace with a slight easing of access to funds available to customers; organic growth for Vauxhall within our 'true fleet' channels and a balanced level of short-cycle sales, matching supply and demand perfectly; continued profitability in 2011 with growing investment in new products and new technology.

What was your company's biggest achievement in 2010?

Launching an industry-leading warranty programme; making our Ecoflex brand the broadest and most popular eco range of vehicles available; and sustaining our industry-leading fleet test-drive programme.



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