Cullum, who retires at the end of this month, has spent the past two decades with ARVAL PHH. When he steps down, he can look back on a series of dramatic changes in the company that have turned it from a small firm with just 90 employees to one of the biggest fleet suppliers in the country.
He joined ARVAL PHH as vice-president of finance in 1982 when its customer portfolio amounted to 45,000 managed vehicles and about 30,000 fuel cards. Today, almost 2,000 people in Swindon, Bristol and Manchester have responsibility for looking after more than one and a half million fuel card customers and 386,000 vehicles.
In the 2001 FN50, the comprehensive analysis of the UK contract hire market, which lists companies according to their fleet size, the firm was placed as the fifth largest in the country, with 75,000 funded vehicles. New divisions allied to it include KeyFleets, a specialist division focused on the needs of fleets up to 100 vehicles, and ClaimsPlus, an outsourced claims management firm serving motor insurers and brokers, and providing accident management for its fleet customers.
Cullum said: 'I have thoroughly enjoyed my 20 years with ARVAL PHH. It has been a time of dynamic change in the market and in the company, and every day has been full of challenge, interest and reward.
'I have had the unique pleasure of working with a talented team to grow the business to its current size and stature.'
Cullum's career in the motor industry started at the Ford Motor Company, which he joined shortly after the successful marketing and development of the first true fleet car, the Ford Cortina.
He joined Ford fresh from completing an MA in Psychology and Economics and although he intended to go into personnel, he was asked to move to the finance department, which included becoming fully qualified in accounting skills.
He spent 14 years working in finance with Ford, including roles in pricing and financial analysis, overseas sales and a spell in Detroit, before taking on a directorship.
Cullum said: 'The level of training from Ford gave a perfect grounding for working in the industry. It is a past master in training graduates.'
His contacts led him to join PHH, an ideal move into a relatively small company.
He said: 'It was a company I could grow with. When I joined, we all helped open the post and it has seen a huge increase in business over the past 20 years, along with several takeovers.
'When I joined the firm, we had just taken over the fuel card business, which some critics in the firm thought was an albatross.
'But through our commitment to this sector, we have probably become unique in the market as a multi-service provider, pioneering the 'one-stop shop' approach to business. Another milestone for us was getting into accident management.'
The latest change for the firm came in 2000, with the creation of ARVAL PHH, in a joint venture between Avis Group Holdings and the BNP Paribas Group, valuing the company at $1 billion, subsequently to become a fully-owned subsidiary of the French bank.
Cullum said: 'We have been very lucky with changes of ownership, as companies taking us over were focused on our industry. When buying a company in this sector, the people are so important. It is all about the goodwill of people, so they were very keen to keep us all on.'
With such a long career in the motor industry, Cullum has seen the face of fleet change, as models and manufacturers have been transformed to meet changing market conditions.
He said: 'When I came into the industry, it was just after the birth of the Ford Cortina. Change in the industry since then has had a lot to do with significantly wider choice of fleet vehicle.
'It is no longer a case of choosing between Ford and Vauxhall, because labour supply could be influenced by which car you offer. At the same time, there has been consolidation in the market, particularly in fuel provision. There used to be about 20 oil companies supplying the market and more than 20,000 fuel stations. Despite the growth in traffic, this has dramatically reduced to four fuel suppliers and about 12,000 fuel stations. The same has happened in areas like tyre distribution.'
As companies have grown, ARVAL PHH has seen new trends in customer demands, such as pan-European services, added Cullum.
'In the large to medium fleet arena, a lot of our clients are seeing their growth overseas in European markets. They are therefore looking for pan-European provision of services.
'If they can go to one service provider as their own fleet grows, that can mean consolidation in the market. There is still room for smaller providers, but once a supplier's fleet size reaches about 5,000 vehicles, there is a significant increase in their investment requirements. The law of economics means there will be further consolidation, although there will be a number of niche service providers in the market.'
Despite the threat to smaller leasing companies from the growth of a leasing superleague, Cullum believes the largest players can still learn valuable service lessons from their smallest rivals.
He said: 'The big challenge is to retain the local touch, which is where smaller firms keep the big boys on their toes.
'Technology helps provide a more personal service, by allowing for more sophisticated reporting for individual customers. It also drives costs down and helps productivity.'
With the announcement of his retirement, Cullum is not planning to put his feet up, admitting: 'After 30 years in the motor industry, it is in your blood, so I will be working on a few projects which are related to the industry.
My aim is that my future business interests will enable me to continue to play a part in a business that has kept me enthralled for the past two decades.'
Cullum will continue as chairman of the Wiltshire and Swindon Economic Partnership, as a member of the CBI Council and serving as a non-executive board member of various companies.
In these roles he will actively look for opportunities to promote ARVAL PHH as well as business in the south west.
He added: 'I will stay in business, but at a different pace.' John Cullum fact file
First car: Morris Minor
Current car: Mercedes 430CLK
Favourite book: Darkness at Noon by Arthur Koestler
Favourite holiday destination: Sardinia
Best business decision: Supporting the retention and development of the AllStar Fuel Card business
Funniest business decision: Sponsoring Swindon Town FC – bless them!
One fleet wish: Less regulation and greater recognition of the value-added service to businesses from Government
Your epitaph: He was actually trying to do his best ...
Career Highlights
1968-1982: Ford Motor Company
1982: Joined PHH in November, eight years as finance director followed by promotion to managing director and thereafter to president and CEO.
Login to comment
Comments
No comments have been made yet.