Fleet News

Ford holds firm on rental reduction plan

Ford has “systematically reduced” its rental registrations from almost 40% of its fleet business in 2006 to just over 20% in 2014 and will make further reductions this year as it focuses on maintaining residual values.

Last year rental fell to 43,491 units, a decrease of 3,874 units or 8.2% on 2013.

Mark Ovenden (pictured), Ford of Britain chairman and managing director, said his priority for 2015 was to “hold ground” on retail and exploit a “big opportunity” to grow share in the net fleet sector, particularly with the Focus and Mondeo.

“Rental is getting close to where we want it to be. Ideally we’d like a 15% share – we’d want to be identical in every channel,” Ovenden said. “You can’t get that, but we do want a reasonably balanced business so we won’t oversupply the market.

“It takes discipline when you are under pressure to hit numbers but you can’t default into short cycle.”

He added: “We have opportunities in fleet across the board but especially in contract hire with the increases in residual values and reductions in short cycle. We also see Motability as a growth target.”


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