ALD has outlined a new five-year strategic plan – Move 2025 – with the aim of becoming a major mobility provider.
The leasing company aims to develop mobility products and services by growing its digital capabilities and developing new mobility partnerships, while growing its new and used vehicle leasing fleet.
Tim Albertsen (pictured), chief executive officer of ALD, explained: “Move 2025 is an ambitious plan which leverages the transformation that we started five years ago to seize growth opportunities that we see in the medium to long-term future.
“With this new strategic plan, ALD is positioning itself at the heart of the evolving mobility world and is strengthening its competitive edge to become a fully integrated sustainable mobility provider and the global leader in its industry."
FOUR STRATEGIC PILLARS
Based on four strategic pillars, which aim to strengthen the company’s competitive edge, ALD says it will focus on customers, growth, performance, growth and social responsibility.
It also highlighted what it described as significant growth potential in each of its four client segments: multinationals and large corporates, SMEs, corporate employees and private consumers.
The number of ‘total contracts’ managed by ALD is expected to reach some 2.3 million by 2025, including growth through bolt-on acquisitions.
Both direct and indirect channels are expected to contribute significantly to this growth, with a slightly faster rate of increase for the latter, it said.
The main other organic growth drivers will be private lease and new mobility products, which are expected to increase at some 15% CAGR over 2019-2025, especially in ALD Flex (units doubling to some 60,000 by 2025) and Used Car Lease (reaching about 125,000 units by 2025).
The future is multi-cycle and multi-channel, it says. Move 2025 aims to transform ALD’s business model to one where vehicles are leased for longer, in some cases for the entire lifespan of the vehicles, by building on an "opportunistic selection process" and "market-driven pricing strategy" for multi-cycle leasing, used car sales and multi-channel distribution.
ALD expects around 30% of its used vehicles to be sold or leased to retail customers by 2025 with Used Car Lease reaching a total of 125,000 vehicles. This evolution will bring strong growth and margin opportunities while simultaneously reducing residual value risk, it said.
ALD Carmarket for consumers, based on a Clicks ‘n Bricks approach, will be implemented in 25 countries to support these ambitions, including the UK, it said.
The share of electric vehicles (EVS) in new car deliveries is expected to rise to approximately 30% by 2025. By 2030, ALD is targeting half of all deliveries to be battery electric vehicles (BEVs).
As a result, average CO2 emissions per vehicle for new contracts in 2025 are expected to be at least 40% below those of 2019.