Fleet News

NCR remains confident after US attacks

THE UK's largest daily rental company, National Car Rental, has emphatically rejected speculation that it will be affected by the adverse trading conditions suffered by its parent company ANC Rental Corporation in the United States.

Last week ANC reached agreement with its lenders to defer a $70 million payment due on October 1 and to suspend certain financial covenants. The company has also appointed William Plamondon as chief restructuring officer, US corporate parlance for an executive tasked with turning around a business.

He will tackle the company's cash flow and liquidity needs that have been seriously damaged by the dramatic reduction in travel following the September 11 terrorist attacks in the US. The company's share price slipped from a 52 week high of $7 to $0.45, but at the time of going to press had risen to $0.52.

But in the UK, the ANC brands of National Car Rental, Alamo and Guy Salmon are trading solidly, insisted John Leigh, senior vice president and general manager, pan-Europe.

'We are separately funded and all our finance and asset finance is done locally in Europe. But as a consequence of the issues they have in the United States, and by mutual agreement, we are making our fire walls stronger so this will not even be an issue in future.'

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

Comments

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