Fleet News

Perk cars in Labour's firing line, says Citroen

CITROEN is predicting that perk cars will be in the firing line when the Labour Government unveils its transport plans next spring. But the manufacturer believes an increasing trend towards downsizing will help it achieve a 7% share of the UK market by the year 2000.

The new Xsara, plus a rejuvenated van range and a revamped sales strategy implemented by former fleet chief Ken Forbes in his new role as sales director, will ramp volume up from 85,000 vehicles to 140,000 vehicles a year. Speaking at the fleet launch of the Xsara, national fleet sales manager David Coop said the new Government would accelerate the pace of change within the motor industry.

'With new Governments come new ideas; new plans; new policies - some of which may affect the fleet market,' Coop told fleet managers. 'The integrated transport policy aims to reduce the number of cars on the roads and one way of perhaps achieving this is to increase the current levels of taxation on all cars,' said Coop.

'I know that representatives from your associations have been consulted and I have no doubt that as far as fleet is concerned, these representatives will lobby hard as to the importance of the 'workhorse' company car to the economy of the country. However, the justification for the so-called perk car with free fuel may be a more difficult argument. This may create a new wave of down-sizing out of executive cars into upper medium sector cars and a move from upper medium sector to lower medium.'

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