Uncertainty over Volvo's future has not impacted on Swedish marque's fleet sales, which have been boosted by its DrivE eco-branded cars.

In some models, such as S40 and V50, DrivE accounts for almost 50% of sales to end user fleets and leasing companies.

On the back of a relatively stable 2009 – in a market that fell by more than a quarter Volvo’s market share slipped only 0.1% to 1.7% – Volvo is forecasting growth this year.

Fleet uncertainty over Volvo's parent company - it was sold recently by Ford to Chinese carmaker Geely - has not made them wary of writing business, according to John Wallace, Volvo national corporate strategy and development manager.

 

Geely agreed terms to buy the company from Ford, but Wallace said: “We are a going concern.

"We have had a strong year, our dealers are profitable and our residuals are strong.

"There’s confidence in the brand.”

Volvo's fleet targets for this year include public sector (where sales doubled last year) and small fleets.

Volvo’s 2010 order bank has already bagged 20% of its target, with DrivE again prominent.

“We originally thought DrivE would account for 15-20% of range sales for fleets, but it has been more than double that,” said Wallace.

Almost half of DrivE models are sold in the top two trims – DE or SE Lux – which gives Volvo a good spread of cars to return to the market.

It believes this is helping to improve residual values.

Volvo sales have also been underpinned by the company’s Personal Contract Hire scheme, which provides an attractive option for cash entitlement company drivers.

Launched in 2008, it now represents 40% of Volvo’s Business Partner sales to fleets, which is managed through Lex Autolease via the Volvo Business Partnership brand.

“PCH is engineered so the barrier to entry is low,” said Wallace.

“Most contract hire requires three months in advance; our initial payment is just one month in advance.”

However, the usual credit and employer checks and restrictions apply.

The one note of caution is the prevalence of fleets writing longer contracts.

Wallace has seen the contract average extend from 36 months to 39-40 months.

“If fleets are moving fro three to four years, it has implications for manufacturers’ planning,” he says.