VOLKSWAGEN is to reduce its daily rental business in 1997 although the company admits it increased daily rental volumes last year after a last minute deal with Europcar, which it part owns.

Volkswagen refuted figures published in Fleet News that it sold an extra 4,224 daily rental vehicles last year over 1995. Fleet marketing manager Bernard Bradley said: 'We increased daily rental volumes in 1996 but the increase was a result of an eleventh hour deal with Europcar which was undertaken on a Europe-wide basis. Volkswagen UK had already agreed 1996 volumes which were unchanged over 1995 excluding the vehicles supplied to Europcar in the UK.'

He says the Europcar deal was 'significantly below' 4,224 vehicles and added: 'Volkswagen has realigned its daily rental business to take account of Europcar. 1997 daily rental business will drop compared with 1996 and will bring us back to our planned levels.'