- Having broken through the 1 million vehicle threshold in November, the Arval fleet of leased vehicles totalled 1,028,142 at the end of the year (up 8.4% on 2015 at constant perimeter and exchange rate)
- 326,150 vehicles were ordered by Arval in 2016 (24% more than in 2015), and the company sold 248,914 vehicles (up 27%)
- Arval UK grew by more than 8% to end the year with more than 160,000 vehicles leased
2016, a year of sustained organic growth for Arval
Organic growth of the Arval leased fleet worldwide was 8.4% for 2016, significantly outperforming the initial average growth target of 6%. A growth sustained both by Arval’s traditional markets of France, UK, Spain and Italy, with an overall increase of 7% in the leased fleet, and by double-figure growth in several other countries such as Austria (15%), Brazil (14%), Hungary (10%), Luxembourg (13%), Poland (15%) and Czech Republic (19%).
During the year, Arval also delivered the Europe-wide integration programme of GE Fleet Services, which was acquired by Arval at the end of 2015. Covering more than 160,000 vehicles in 12 countries, this programme continues its success. More than 900 employees have joined the company, and are now focusing their enthusiasm and talent on contributing to the development of Arval and delivering the first operational and commercial successes.
Increased cooperation with the BNP Paribas Group retail banking networks, International Business Office which handles the largest international clients, and SME Solutions, which serves self-employed and small company customers, were prime drivers of growth in 2016.
Arval is now present in 28 countries, following its acquisition of Relsa in Brazil and its alliance with the same group in Peru and Chile. With around 30,000 vehicles leased in these three countries, Arval is consolidating its position in Latin America. The Element-Arval Global Alliance – the cornerstone of the company’s international business – is itself expanding with the addition of a new member, RDA Renting, which operates in Argentina and Uruguay. The Alliance now covers 50 countries to offer international fleets a consistent level of high-quality service worldwide.
All of these led Arval to achieve the milestone of one million leased vehicles worldwide in November last year. This unprecedented performance consolidates Arval’s leadership in the European multibrand leasing market and its status as a key industry stakeholder at global level.
“2016 was a tremendous year for Arval“, says Arval CEO Philippe Bismut. “The millionth vehicle marked a clear turning point in the history of our company. It symbolises the success of our strategy and the unfailing commitment shown by our people”.
Arval UK: success driven by a focus on people and service
Arval strengthened its market position in the UK during 2016, delivering fleet growth of 8% to go beyond 160,000 leased vehicles for the first time and rank in the top 3 vehicle leasing companies (according to the FN50, 2016).
Growth spanned all segments, from large corporates with more than 1,000 vehicles through to SME’s with just 1. Significant business wins and outstanding retention performance bolstered the Corporate fleet, while SME continued to be an area of strength. Growth in the SME segments came through a combination of direct and indirect business, as broker, dealer and partnership channels all made an important contribution.
This was achieved alongside the integration of the GE Capital Fleet Services business. Throughout the year processes and products were aligned, systems migration allowed Arval to move customers and their drivers onto a single leasing platform, and all customers are now supported by Arval’s award-winning Account Team Structure.
At the heart of the strategy was a focus on customer service which boosted customer satisfaction, something that Arval measures through Net Promoter Score (NPS). Customers were also able to benefit from a number of unique products, including an insured lease vehicle package called Arval Total Care, Arval Active Link which is a bespoke telematics solution built by Arval, Mid-Term Rental which allows customers to flexibly meet vehicle requirements between 1 and 24 months, and a re-launched Accident Management solution.
Benoit Dilly, General Manager of Arval UK comments: “2016 was another very good year for Arval in the UK, mirroring the excellent performance of the Arval Group. We were able to successfully combine the integration of the GE Fleet business with strong organic growth across all segments and pleasing customer satisfaction scores. Our ongoing focus on supporting our customers by developing our employees and providing unique and effective products and services really paid off, cementing our position as a leading player within the UK.”
The 2017 target: to stay ahead of the market and demand
Quality of service, employee expertise and the simplicity of our solutions will support the equally high ambitions of Arval for 2017. “We will succeed by extracting maximum advantage from digital and communication technologies as the basis for seizing new opportunities, such as leasing for private individuals, car sharing and innovative fleet management solutions, linked to the evolution of our industry”, concludes Philippe Bismut.
