Arval has reported a significant increase in terms of activity during 2011, which it says is as a result of a winning growth strategy, the healthy state of Arval’s most recently established subsidiaries, and backing from owners BNP Paribas.

In 2012, the company said it will continue in France and abroad to focus on the quality of its service and the added value it strives to bring to customers.

Despite difficult economic conditions, especially in Europe, Arval’s leased fleet of 687,000 vehicles continued to progress in 2011 (3% up from 2010), supported by the thriving activity of its recently established subsidiaries.

Vehicle purchases slightly exceeded the previous record achieved in 2008, with 210,700 units. The number of vehicles sold (191,000) showed strong growth, up 28% compared to the previous year.

“Despite economic upheavals in Europe, the impact of the tsunami and the Fukushima disaster in Japan on the delivery times of new vehicles in particular, as well as the significant slowdown in prices on the second-hand car market in the last quarter, Arval met its goals in terms of growth as well as profitability,” said Arval CEO Philippe Bismut.

In May 2011, Arval Germany’s purchase of Commerz Real Autoleasing GmbH, the former full-service leasing subsidiary of Commerz Real Mobilienleasing GmbH, brought the leased fleet up to a total of 30,283 vehicles, up 44% from 2010.

In addition, recently established subsidiaries now contribute significantly to the growth of Arval’s fleet, adding more than 6,000 vehicles to the company’s overall fleet in 2011. Leased fleets for instance increased by 36% in both Brazil and India, and 50% in Turkey.

Last year was a particularly active year for all French full-service leasers. The market experienced a significant increase in vehicle returns, due to the extended duration of leasing contracts signed in 2008 and 2009 by all stakeholders.

As far as Arval France was concerned, vehicle returns were up 10.5% in the first quarter of 2011, causing a decrease in the leased fleet. In the second half of the year, the leased fleet stabilised at 209,717 vehicles.

Arval France nevertheless confirms its leadership among multi-brand leasers with a 17.5% market share. “With a 12% increase in vehicles put on the road, 2011 was a good year for Arval despite the economic crisis,” said François-Xavier Castille, general manager of Arval France.

Arval is continuing its international development policy. In January, the group announced the opening of a subsidiary in Denmark. The first step in a broader plan to get established in Scandinavian countries, this consolidates and reinforces Arval’s global presence in Europe, with Denmark becoming Arval’s 19th subsidiary on the continent.

“I am happy to announce that our presence in Scandinavia will be reinforced by a subsidiary in Finland, which will be operational within the next few months,” explained Bismut.

“Of course, Arval will also continue to consolidate its new subsidiaries particularly in BRIT (Brazil, Russia, India and Turkey), where full-service leasing is currently booming.”

Arval also wants to expand its market frontiers by strengthening its arrangement for small and medium-sized enterprises (SMEs) in Europe by means of a multichannel offer that associates car manufacturers, brokers, dealers and retail banking networks, in particular those of BNP Paribas.

“In 2012, we want first of all to consolidate our bases, focus on our customers, and continue to bring them more service quality. We do not want to be just a ‘corporate vehicle provider in full-service leasing,” added Bismut.

“Our service, our consulting capacity and our expert knowledge of the market mean that each of our customers knows what added value they can expect from working with Arval.”


 

More articles on: