Vauxhall targets top spot in true fleet sector

Vauxhall has outlined plans to become the biggest-selling manufacturer in the true fleet sector within three years, overhauling Ford and Volkswagen.

Last year its true fleet sales dropped year-on-year, although in the final quarter the company says a number of corporate deals came through which saw it temporarily take the lead in this sector.

James Taylor (pictured), Vauxhall fleet sales director, told Fleet News: “We want to be number one for the calendar year. That’s our vision, within three years when some of our core product is replaced.”

Vauxhall has been working hard to improve its wholelife costs, reducing tyre widths and speed ratings on the Astra and Insignia and lowering brake costs on the Insignia. It will announce further actions this year to increase its appeal to fleets. Over three years/60,000 miles, Taylor says Insignia costs have been reduced by more than £300.

“Critically, SMR is on the agenda for future products – they are being designed with SMR in mind,” he added.

The wholelife costs strategy is closely linked with Vauxhall’s move to reduce registrations to the rental sector, which started in mid-2011.

Despite market pressures from a stagnant fleet sector, Vauxhall ended 2012 with the strategy largely intact, after removing 15,000 units year-on-year (on top of the 6,000 removed in 2011). However, that was slightly down on Taylor’s original 20,000 target.

With total sales to the rental sector rising by around 15,000 last year, he points out that other manufacturers have mopped up 30,000 additional registrations to car hire firms.

Among those picking up market share include all four main Volkswagen Group brands – Audi, Seat, Skoda and Volkswagen – and the Korean twins, Hyundai and Kia. “We are in a good position to continue our residual values growth plan,” said

Taylor. “We will have fewer vehicles to sell into the used market in 2013 and most manufacturers will have more, so our prices versus the competition will improve.”

Vauxhall’s short-cycle residuals, those up to a year, have “improved significantly”, he added.

The focus this year is to get those increases reflected in the two- to four-year-old residuals.

“Some have increased already. For example, the Astra has increased by £400 for a three-year-old model year-on-year in CAP Monitor,” he said.

“People have to see this strategy for a sustained period of time to have confidence to improve their forecasts for future values.

“This is key for true fleet customers because it will improve our lease rates.”

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