Fleet News

RAC/AA war of words

A BITTER war of words has started between the UK's two largest motoring organisations concerning the proposed £450 million takeover of RAC Motoring Services by Cendant Corporation. In a series of full page advertisements in the national press, the AA made great play of its mutual status, contrasting this with the RAC's proposed future ownership by a publicly limited company.

'Our priority is to deliver excellent service to AA members at the roadside. AA membership subscriptions are used exclusively for our members' benefit - not to pay dividends to shareholders,' said the AA. 'The 12,000 full members of the RAC's exclusive Pall Mall club are in line for windfalls of about £35,000 each. If you're an ordinary member of RAC Motoring Services you appear to be in line for £00,000.'

The RAC, however, has disclosed that the three sons of AA director general John Maxwell are themselves each in line for the £35,000 windfall through their membership of the RAC Club, and speculation has arisen that Maxwell himself could receive the bonus through his honorary membership of the club.

The AA described the disclosure that Maxwell's three sons would collect £105,000 between them as part of a dirty tricks campaign, breaching the family's privacy, and said its director general would seek an apology from the RAC.

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