New car sales to some sectors of the business market are expected to grow this year, according to research for leasing giant Arval, despite current overall fleet sales levels running down on 2011.
The firm’s annual Corporate Vehicle Observatory (CVO) report claims it is interesting that UK fleet professionals expect the size of their vehicle fleet to grow throughout 2012, a view most prominent with fleet professionals at companies with 100-plus employees. This demonstrates a focus on managing and reducing fleet costs, but not by cutting the number of vehicles.

Continuing challenging economic conditions mean that fleets are both extending existing company car contracts and taking out new leases for longer periods of time, according to data from fleet management firm Ogilvie Fleet.

Statistics from Ogilvie Fleet reveal businesses are extending the period of time they operate company cars by both extending existing contracts and taking out new contracts for a longer period of time.

Data seen exclusively by Auto Retail Agenda has revealed that despite evidence consumers are looking to save money on their motoring bills, 4x4s and coupes (cars not noted for their frugality) performed well last year.

The detailed figures also revealed the extent to which car manufacturers relied on fleet to support the market.

The retail car sales figures show the only sectors to perform better than the overall retail sales drop of 12.8% were; off-roaders (including luxury 4x4s and soft-roaders) and coupes.

Fleet sales, which have driven much of the volume in new car registrations in the second half of this year, are set to tail off in 2012, according to David Raistrick, UK manufacturing industry leader for Deloitte.

Mr Raistrick says the pent-up demand which from fleets which had previously delayed their replacement cycles has been largely satisfied.

Renault UK is to scrap its separate fleet and commercial vehicle operations department and create a single car and van sales division. The company will merge its current fleet and commercial vehicle operations into its commercial operations department.

Lord Sterling, chairman of Motability, on Friday moved to slash the choice of models on the state-funded charity’s price list by around half. The cuts affect mostly high-end models costing over £25,000 and those from prestige brands.

The action comes as Motability is put under increasing pressure to cut the £1.5bn it spent last year on vehicles. Iain Duncan Smith, the Work and Pensions Secretary has pledged to end what he calls ‘the abuse of free cars’ as he moves to reduce the UK’s annual £192bn benefits budget.

Manchester-based Easi-Drive, which provides replacement vehicles for motorists involved in accidents, has invested £400,000 to increase its fleet of cars.

It recently took delivery of more than 150 new Vauxhalls, Audis, Fiats and Minis after securing funding from Lombard, the asset finance arm of The Royal Bank of Scotland. Founded in 2001, Easi-Drive has developed into a £22m turnover operation with 150 staff and a fleet of almost 1,000 vehicles.
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Crossroads Nissan Light Commercial Vehicles in Birstall, West Yorskshire is to supply a 15-strong fleet to cleaning and support services company NIC Services Group.

NIC required the NV200 vans after it won a tender to maintain Metro’s bus stops in West Yorkshire. Nissan LCV will manage the fleet, which will be co-branded with the NIC and Metro logos.
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Mazda retailers belonging to the manufacturer’s business development programme are being given access to its “fleet vehicle sold order pot” system, which will enable them to meet fleet orders within 10-14 days of placement.

The business development programme is designed to increase corporate sales to the SME sector and involves almost 40 Mazda retailers. These retailers will now be able to use its fleet order system.

 The government intends to buy its vehicles direct from the manufacturer in order to cut costs, reports the Sunday Times.

The government’s new head of procurement John Collington wants to deal direct with carmakers to reduce its annual £260m fleet bill. The move is part of an overall centralisation of government procurement. Collington is focusing on nine categories including department travel budgets and energy bills.