Company car cutbacks 'to continue'

22 March 2010

A new survey has shown company car cutbacks look set to continue even though the economy is slowly improving.

The poll carried out by GE Capital fleet services showed around 30% of fleet managers are worried cutbacks would continue this year and affect their business.

Of the major issues to be faced over the coming 12 months, 90% of fleet managers believe running costs will have a major impact.

And according to the poll 70% think driver and corporation taxation will affect their industry.

The survey showed 57% of fleet managers think the UK economy will improve further by the start of 2011, with 4% saying it will improve significantly.

Around a fifth (22%) believe it will get worse.

GE Capital's UK fleet commercial leader Gary Kileen said: "While it is encouraging to see that fleet managers anticipate the UK economy to strengthen this year, it is very telling that they do not consider that their own fleets will grow as a result of the improved economy.

"It is understandable that many of these managers are prioritising cost efficiency savings on the back of the recession, but it is interesting that the economic recovery is not linked to an increase in fleet size as businesses look to longer-term growth."

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