Analysis
29 Jun 15

Acquisition of GE Capital Fleet Services makes Element-Arval Alliance truly global

Its full name already had a worldwide ring to it, but one could argue that the Element-Arval Global Alliance has now gone truly global, by acquiring GE Capital Fleet Services. Element will take over GE Capital's fleet management services in the U.S., Mexico, Australia and New Zealand; Arval will do the same across Europe.

The GE Capital Fleet Services fleets included in the deal totals around 740,000 managed vehicles, most of which are in the U.S. (450,000 units). Element will also add 100,000 vehicles in Australia and New Zealand and 30,000 in Mexico. Arval expands its portfolio with GE Capital's 160,000 managed vehicles across Europe.

The acquisition propels Element to by far the largest fleet management company in the U.S., with 37% market share. Element already was the market leader in Canada, with 47% (or 230,000 managed vehicles), thanks in part to the acquisition of GE Capital's Canadian fleet activities two years ago.

On the other side of the Atlantic, Arval will reinforce its market position across Europe, closing the gap with European market leaders ALD Automotive (1.062 million vehicles)* and LeasePlan (1.024 million vehicles)*. By adding GE's 160,000 vehicles to its own 700,000 units*, Arval will reach 860,000 managed vehicles. That greatly exceeds the target set by Arval CEO Philippe Bismut only a few months ago: at the company's annual press conference, he announced that it was Arval's goal to reach 800,000 vehicles by the end of 2015...

As for the Element-Arval Global Alliance's effective global reach, it will pass the three-million vehicle mark, with a presence in more than 40 countries and 14 preferred partnerships in countries where neither Element nor Arval have direct subsidiaries. 

View on the acquisition of Element- Arval and GE Capital Fleet

1. Managed cars in fleet for Countries/Continents involved in acquisition

 

Element

Arval

GE Capital Fleet

After acquisition

Canada

230,000

-

- (already acquired by Element two years ago)

230,000

US

420,000

-

450,000

870,000

Australia New Zealand

-

-

100,000

100,000

Mexico

-

-

30,000

30,000

Europe

-

700,000

160,000

860,000

Total

650,000

700,000

740,000

2,090,000


 

 

 

 

 

 

 

 

 

 

 

 

 2. Global Presence of Alliance Element-Arval after acquisition


 

*Figures from on Fleet Europe’s Car Leasing Survey 2015

Authored by: Steven Schoefs