Fleet Management 2010
The vehicle and asset finance Wes Bank with the automotive and logistics group Imperial forces to create a new business form. Each of the companies will be R100 million seed capital in a joint venture investing. This wills both companies’ position in the fleet market a boost. Under the agreement, announced in early March, the new company as Imperial Fleet Management is known, a division of Wes bank and car rental services to corporate fleet customers. It is intended to provide a comprehensive range of fleet management products and services to potential fleet owners available. It’s a one stop addressed involve consultation with, hire products with full maintenance, fuel cards and value-added products and services such as roadside assistance. Imperial, the vehicles and full maintenance through its dealer network, while Wes Bank for funding to be responsible because he has access to “competitive funding” them.
Wes bank’s experience of more than 40 years in fleet financing and its competitive commercial vehicle repairs, and Imperial’s status as the largest brand of car retailing in SA, with more than 250 retailers and all major car brands are represented, should provide an ideal partnership to ensure . “The two companies share a culture of service, performance and entrepreneurship,” said Hubert Brody, CEO of Imperial. Brian Riley, CEO of Wes bank, added that Wes Bank currently in a “groeimodus” traffic and business potential for strong growth in the fleet management market, which he now saw only a small share. Imperial also has its fleet business as of strategic importance identified. Brody count 40% of the total vehicle market include naval, government and car rental business, and its markets with great potential. Although not new Imperial capital in the retail business, which includes institutions and businesses without a distributor, he wants in logistics, tourism and business investment components. Since Astra unbundled in 2008, has no Imperial rental option for fleet customers had not.
Brody said the company should have a few years to profitability and an annual income of more than R1 billion earned. To achieve this target, says Brody, the alliance a modest book of 10 000 vehicles per year to build, with a combined value of R1 billion to R2 billion. Riley said he hopes within the first 12 months of business about 5000 units to manage. He pointed out that the new company at least 10,000 units to drive the company pays them. “We will be very happy if we figure that by the second year can be achieved,” he said. “Being in the current economic climate is relevant and accessible to our clients remains a challenge. Through our successful strategy of partnering with leading South African car manufacturers offer, however, we still have a lasting value offering to our customers. The new alliance is consistent with our partnership model and provides a unique growth opportunity for both companies. “
