Fleet News

Fleets to be targeted on lifting of 'gentlemen's agreement'

FLEETS will be targeted with a much wider range of models from some Japanese manufacturers in the new millennium following the end of the 'gentlemen's agreement' to restrict the volume of imports they can bring into the UK. Suzuki, Mazda and Subaru are among companies which are predicting the end of the agreement will spark a surge in the sales and the type of products they supply.

But the end of the restriction has been labelled a non-event by car makers which have established production in the UK or Europe, including Nissan, allowing models to be exempt from quota restrictions. The quota, which is removed at the end of next year, limits the import of Japanese-built cars to 7% of the UK market.

A spokesman for Nissan, which sold 102,000 cars last year, said: 'For us it will be a complete non-event. We have a quota for cars coming into the UK, but that only applies to our niche models.' However, the sales volumes built up by manufacturers such as Nissan and Honda will come under pressure from rival Japanese firms which see the removal of the restrictions as their first opportunity to show their full potential in the UK market.

Mazda is strengthening its corporate sales team and expanding its dealer network in preparation for it to grab a 2% share of the market in the new millennium, pushing up sales from a limited 32,000 to more than 40,000. The need to protect used car values dominates thinking at Subaru, but it predicts the British market can support a doubling of sales, from 10,000 to more than 20,000.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee