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Arval swerves public sector fleet business
Date: 19 November 2013 | Author: Jack Carfrae
Public sector business is not on the cards for leasing giant Arval according to the firm's managing director.
Speaking to BusinessCar, Benoit Dilly described the company's volume of such business as "small" and expressed no desire to increase it.
He continued: "We don't understand the rationale of this business. That said, I don't mean it is impossible.
"We have plenty on our plate for now. we can't do everything. For now, that will stay the same."
Public sector organisations traditionally operate on a tender-based system for procuring their fleets, which is viewed by some as a more complicated than the private sector.
Dilly said he intended to concentrate on large corporate and SME business, which makes up the bulk of Arval's clients.
"You would find in our portfolio as many SMEs as corporates. More important than the percentage is that we want to be in those markets. The mix in itself is not important.
"SME is probably more challenging [than corporate] because it can be indirect sales through the broker market, internet or direct sales, so it's completely different. You don't go to a large corporate the same way. But we're perfectly happy strategically with both."
