VOLKSWAGEN has signed a semi-solus deal with Sun Life Assurance Society which previously operated a free choice policy across its 550-strong fleet. Many of the new cars are expected to be the recently launched Passat which independent wholelife cost figures from TopCalc and residual value figures from CAP Monitor reveal to be significantly ahead of Ford Mondeo and Vauxhall Vectra values over three years/60,000 miles.

Under the Sun Life deal 85% of company car drivers will have Volkswagens with the benchmark car being the Passat 1.8 SE with air conditioning, although drivers can trade up and down within the policy. The remaining 15% of cars are driven by company directors who will continue to have a free choice.

Following the signing of the three year contract Michael Baker, Sun Life's general manager human resources, said: 'We are always keen to get good value. Our task was to save cost and deliver positive benefits to our employees. This we have done by minimising depreciation through buying a quality marque while offering a mix of product.'