Which also trims margin on resale potential

Discreet on their results in France, the major long period rental so-called "independent", subsidiaries of financial groups, with the exception of Lease Plan, which came a few years into the orbit of the Volkswagen Group, admit most today that "their accounts are much less good" or that "profitability has declined. Contraction of margins is first to the slowdown in their main market. "After years of double-digit growth, the French market for longstay (ull) stabilized a level of 4 to 5 growth in recent years", said Aymar Hénin, Director of GE Fleet Services France. According to some sources, the contraction would be high on the segment of the more mature market, piétinerait of large accounts growing 2 from 5 to 8 for the TPE and SMEs. At large tenders, competition is therefore naturally vive and Jean-François Chanal, Director of ALD Automotive, admits that the niche of renewal where businesses are placed in a position of reducing costs, "the margins are narrow." "But we need the effect volume of large fleets to amortize the development of tools and profitable technical platforms", he said. According to Bart Beckers, its Director, Lease Plan France eliminated from its portfolio a few accounts more than 1,000 vehicles deemed uneconomic. "However, it is not possible to deprive himself of this segment of the market because of its effects of scale, to purchasing power it brings", weighs.

Collapse of the opportunity

To compensate, other segments are not easy to conquer. One of the "fleet management" (vehicles with a rest owner client management) that is linked to public sector contracts tramples underfoot. The difficulty is the same for the TPE with the market potential is huge and better margins, this nearly that commercial customers research costs is much higher. Besides the slowdown of traditional outlets and the difficulty to find new, rental margins suffered in 2005 and 2006 a shock very important that has been the collapse of the market opportunities. However, a good part of their financial results are on the resale of end rental vehicles. "The potential of these resales margin was threatened", said Françis Chastanet, responsible for major accounts of the cabinet of Council Fleet Logistics.

Race services

Many other factors are added to the slowdown of the market and the heckling of resale values. The fight against fuel costs thus prompted fleet managers reduce the mileage of drivers and to extend their contracts with long rental duration. Which also trims margin on resale potential. Moreover, levels of recent years have left traces, as in Lease Plan, which has time to digest its merger with Dial. Same problem with the arrival of IFRS that have led to a rental approach accounting more precautionary. On the other hand, rear margins which manufacturers willing to hirers on volumes of registrations at the end escape more and more to the benefit of their clients. Finally, the consultants, conducting substantive work to produce savings on great parks, are perceived as the "altérateurs of margins.

Before all these threats, most of the independents responded by a "race to innovation in services" providing highest added value. Aymar Hénin, at GE Fleet Services, CITES, for example "photo expertise" to solve the problems of return of vehicles or dashboards online very sophisticated. ALD evokes the insurance and claims management while Director of Arval France "sell" his consulting activity that contributes to compress the customers budget. Journey, a "small" rental, puts forward "ability to make retail near services expected." Sixt long duration, which arrived on the niche, offers an option that includes days of short rental period in a contract of LLD. Xavier Bénard of Aon France points out that the rents in France levels are still very far from those of the Netherlands, "where companies are accustomed to the"full service"." "This weakness represents a true French rental market potential," he concludes.