New Super Contract Hire Company To Change The Industry

Wednesday, 1. October 2008

Having been the first to break the news that the takeover of HBOS by Lloyds TSB would also result in the amalgamation of the two contract hire giants Lex and Autolease many are now reviewing what this could mean to the industry. Whilst the takeover still has to be approved by the FSA and needs shareholder approval both MD’s have said that in the meantime it is business as usual. As both companies are running very well independently they will probably be left alone for the time being as other more pressing issues within the group are tackled but obviously there are cost savings to be had by amalgamating the two businesses so it will have to be looked at reasonably quickly. Some have suggested that one of the businesses may be sold off but I feel that given the potential it is more likely they will be combined into a super leasing company. The economies of scale will be massive as will their improved purchasing power. The question is how will this affect customer service and support at driver level? Something that all customers, whether a consumer or major fleet operator needs to consider. As for my position, I do business with both companies and, as always, I will continue to search for great deals for my customers as long as the suppliers are considered by me to be worthy. By Graham Hill