Fleet News

Alphabet limits new business and issues price warning

One of the country’s largest lease providers is limiting the amount of new business it takes on.

Alphabet has also warned that its pricing will increase.

The multi-marque lease company, which currently manages almost 45,000 cars, said it will “focus mainly on existing customers” until the debt capital markets show signs of a sustainable recovery.

Alphabet has enjoyed significant growth over the past 10 years, moving up from number 40 on the FN50 list in 1998, with 7,500 cars, to its present position at number 11, with 44,953 cars on its books.

However, with the latest move, it is unlikely to increase its fleet in 2009.

The order to review its new business practices came from parent company BMW, which said: “The turmoil in the financial markets is creating a difficult and volatile environment in which to do business.

"BMW Group has decided temporarily to limit its new business activities for Alphabet.

“Furthermore, the continued tensions on the financial markets – strong rise in refinancing costs – will affect pricing.”

Alphabet has confirmed that it will continue to supply vehicles for its existing customers and will not change its long-term growth strategy.
 

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