Fleet News

Vauxhall's stand against big discount deals pays off

ABANDONING big discount fast-churn fleet deals helped Vauxhall more than double pre-tax profits to £24 million last year. As the manufacturer prepares to launch the all-new Astra, chairman and managing director Nick Reilly said Vauxhall had sold more cars, more profitably in a fiercely competitive market.

UK sales increased 3.7% to 294,550 units, with profits up £13.9 million on the previous year. Output remained steady at around 277,000 units, but exports increased by more than a fifth as worldwide demand for the Vectra estate escalated

'Moving away from high discount fleet deals has definitely contributed to our improved profitability,' said Reilly. 'We could have got some more market share, but a sensible approach to fleet deals has helped our profitability this year.' He predicted tough market conditions ahead with the potential for dumping in the UK as far eastern manufacturers looked for export markets in which to unload excess capacity, but was optimistic about the new Astra's prospects.

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