Fleet News

Post service to outsource 40,000-vehicle fleet

CONSIGNIA, the group formerly known as the Post Office, has announced plans to outsource its 40,000-strong UK fleet, and will consider an outright sale of the operation.

The company aims to achieve significant cost savings and efficiencies in its £400 million annual fleet spend, and said the move is part of its drive to act more commercially by securing the best possible value from its business services.

Gerry Smith, Consignia's managing director Services Group, said: 'It will mean Consignia will benefit from the expertise and buying power of one or more of the key industry players. At the same time our fleet services operation will be freed up to operate in a more commercial way.'

The company will invite potential suppliers to bid for three main parts of its business - business cars, light commercial vehicles and heavy goods vehicles. Bidders must express an interest in tendering by October 10. Consignia would prefer to establish joint ventures with these suppliers, in which it retains a 51% share, although it is keeping all options open - including the prospect of an outright sale.

The company currently employs 1,700 people in vehicle leasing, fleet management and maintenance, and has its own workshops and depots at 180 sites throughout the UK, servicing 30,000 Royal Mail vehicles and 10,000 Parcelforce Worldwide vehicles. The fleet covers 600 million miles a year.

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