Fleet News

VW signs new contract with Motability

VOLKSWAGEN has signed a new contract with Motability which will allow it to continue to supply the disabled motoring scheme. The manufacturer had been one of four companies - the others are Ford, Peugeot and Rover - to delay signing the new contract.

The others continue to oppose proposals which will see Motability Finance Limited, the charity's operational arm, take residual value risk on all cars which join the scheme after March 1, 1999. Vincent Kinner, Volkswagen's head of fleet, said the company's involvement in Motability was limited, and that it would continue to discuss with MFL how it planned to remarket end of contract cars.

Meanwhile, a Ford spokesman said: 'We are sticking to our guns. As of the beginning of January it will be very difficult to obtain a Ford through Motability because the vehicle cannot be processed before March 1.' Last week Ford asked Motability to defer for six months the plan for MFL to take residual value responsibility for its 370,000-strong fleet.

But this plan has been dismissed by Noel Muddiman, director of Motability, who said: 'A six-month deferral is out of the question. We can't allow Ford to dictate to us and upset the other 19 manufacturers who are quite happy to continue with Motability.' Muddiman added that he had written to Rover to try to understand why it was looking at withdrawing from the Motability scheme.

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