Peter Tatlock’s office could be on the rarefied top floor of the International Building, Birmingham, home to Masterlease.

Up there on the second floor are the offices of the various global heads of the GMAC brands, owners of Masterlease.

But you’ll find the UK managing director of Masterlease on the first floor, closer to the action.

We talk about the current economic climate.

“Residual values have gone off the edge,” says Peter. “No one could foresee this two to three years ago. But that’s the point of good financial management. You have to make provision for rainy days.

“I’ve been round the block a few times in my life, but I’ve never seen the financial services in such disarray. And where will it all end? Quite clearly, the next 12 to 18 months will be challenging.”

We then move on to the business end. The Masterlease fleet – why is it all going downhill? In 2004 the company had 107,000 vehicles on its books – by 2007 it was 77,000 representing almost a 30% drop in fleet size (and this was before the latest FN50 figures were released).

“In my mind this is fairly straightforward,” responds Peter, having agreed that the figure does sound high. But he’s obviously relaxed about it.

“We were playing in many markets where there was little return on the relationship – mainly short cycle volume where there’s no loyalty. So we’ve decided to make more effective use of our capital.

“Exiting these sectors does not affect our economies of scale. Is 77,000 comfortable? No, it isn’t. But there will be further decline because of the market we’re in.

"We’ve not lost clients. But some clients are in difficult market sectors right now and are having to right-size their businesses to cope.

“However, it gives us an opportunity to be more proactive, to identify where there are low CO2 opportunities in fleets, where we can pinpoint cost savings in the vehicle chain, and where there are lower tax opportunities, too.”

We talk further about the effect of plunging residual values and how it will impact on more costly lease rates in the future – “It would be foolhardy to price knowing you might have an issue at the end,” says Peter.

And then move on to the structure of Masterlease itself, which is a multi-marque leasing company. But it also has the Saab Contract Hire,Vauxhall Leasing and Chevrolet Leasing businesses.

These are dealer-based leasing brands for local business opportunities. In addition, there is GM UK Leasing which is for those fleets that lease from the GM range of brands. It provides a single point of contact for fleet managers.

Peter was in the navy for seven years before joining GMAC in 1979 basically as a debt collector and repo man. But what had those seven years in the navy taught Peter? What values did they bring to his current business?

He says there were three key elements that have never left him: strong leadership, accountability and teamwork.

So what does make a good leader, then?

“I think you have to be a good listener, you must be visible in the business, and you must challenge and be ready to be challenged and you should never be afraid to admit you got it wrong.

“Finally,” continues Peter, “you must lead by example. But, most importantly, you should treat people with respect.

“This is a principle that’s not just good for business. You take it into your private life and your social circle, too.”

CV

Following a seven-year career in the Royal Navy, Peter joined Masterlease parent company GMAC 26 years ago.

His global experience is wide-ranging. There have been leadership roles in Switzerland, Norway, Sweden and the UK.

Most recently, he spent four years as managing director of GMAC Australia, introducing a new IT platform for wholesale financing and focusing on growth.

He was also chairman of the AFC (Australian Finance Conference), the southern hemisphere’s equivalent of the BVRLA.

He was appointed to the post of UK managing director of Masterlease in March 2006.

Following a seven-year career in the Royal Navy, Peter joined Masterlease parent company GMAC 26 years ago.

His global experience is wide-ranging.

There have been leadership roles in Switzerland, Norway, Sweden and the UK.

Most recently, he spent four years as managing director of GMAC Australia, introducing a new IT platform for wholesale financing and focusing on growth.

He was also chairman of the AFC (Australian Finance Conference), the southern hemisphere’s equivalent of the BVRLA.

He was appointed to the post of UK managing director of Masterlease in March 2006.

Tips from the top

Golden rules for success

Everyone should go to work for a purpose. If you don’t get out of bed with one, don’t bother going to work.

The other golden rule is to celebrate your successes and mourn your losses.

When it’s all going wrong, who gets it first?

Me. I sit there and have a silent rant.

What is the best piece of advice you’ve been given?

Don’t eat yellow snow.

ECO or company car? What do you drive?

A BMW 5 Series Sport on an ECO scheme.

What’s your favourite sport? And which sportsman would you most like to be?

My favourite sport is golf. The sportsman I most admire is David Beckham. That man has done a tremendous job.

You’ve never heard him bad-mouth managers or make negative comments about his past clubs.

The other thing I admire about Beckham is that, despite his wealth, he’s very humble. I genuinely believe that he’s a family man, too.

He puts a lot into the sport and into charity. You know, wealth changes people. But he’s handled fame and wealth well.

10 ways to survive the economic turmoil

  • Review fleet policy and funding methodology. If you purchase, consider leasing. With used market volatility, residual asset values are getting harder to predict. Businesses might not want to use their capital to acquire vehicles now that access to funding is more challenging.
  • Review the value of cash allowances paid to employees in lieu of a company vehicle. Company car provision may be more economical. Duty-of-care responsibilities are also easier to meet within structured car schemes.
  • Review fleet make up. Ensure the majority of vehicles selected are sub-160g/km CO2. This comes with benefits in terms of writing down allowances (April 2009) and VED (now). Lower CO2 emissions usually mean vehicles are more fuel-efficient – and that impacts on fuel costs.
  • If you use multiple suppliers for vehicles or for funding/management services, consider if there’s greater cost effectiveness through reduced employee choice and fewer suppliers.
  • Consider using fuel cards to monitor and manage fuel expenditure. Employee expenses claims for fuel can make it more difficult to track overall fleet expenditure.
  • Encourage responsible employee re-fuelling and driving style behaviour.
  • Utilise mini-lease or short-term hire where appropriate to avoid long-term contractual commitments.
  • Help employees find alternatives to car/van travel. Could video/web conferencing replace some face-to-face meetings?
  • Organisations should take steps to understand the risks associated with employees driving on company business. Effective risk management can reduce unexpected costs or shocks.
  • When selecting new employees, why not review their driving history or driving behaviours as part of the recruitment process? In this way, accident and insurance costs can be reduced.