Fleet News

European fleets set to seek better deals

A NEW survey has found that just 20% of European fleets plan to seek out better deals and change their suppliers between now and 2007.

Business information company Datamonitor surveyed 650 fleet managers in Europe and said its findings still represented a key opportunity for a number of suppliers, particularly vehicle manufacturers which have been developing their presence in Europe over the last five years in an effort to gain significantly more penetration of the leasing market.

Datamonitor's Fleet Procurement Survey 2003 shows the focus on cost cutting is likely to benefit car manufacturers as the lower the number of marques operated in a fleet, he says, the greater the savings in vehicle acquisition.

According to the survey, nearly 70% of fleet managers operated four marques or less and 15% operated just one marque in their fleet. The company expects the trend towards fewer marques to continue for the next few years.

The survey found that about 45% of respondents were planning to review their choice of marques within the next two years with value of money of key importance.

Datamonitor automotive analyst and report author Zafar Currimbhoy said: 'There has never been a better time for vehicle manufacturers to develop their share of this market, especially if their offering can convey a strong, value for money proposition.'

But Datamonitor warns manufacturers that the European fleet market presents several challenges, with 70% of respondents suggesting they would turn to a leasing company as sole supplier.

Currimbhoy added: 'The fleet marketplace has developed into a highly competitive environment, especially in the UK, France and Germany, three of the largest company car markets in Europe.

'Therefore, it is moving swiftly towards an environment where price and innovation are the key differentiating factors, as a high quality of service is already assumed.

'Hence, regardless of the type of fleet company utilised, if the price is right the chances for gaining business is high, especially given the considerable focus on cost-cutting that has swept across corporate Europe in the last few years.'

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