Arval passes symbolic 1 million milestone in successful 2016
Arval's global fleet passed the one-million mark last November, to hit 1,028,142 units at the end of the year, up 8.4% over the end of 2015. The symbolic milestone not only consolidates the company's leadership in multibrand leasing in Europe, but also as a key player worldwide. In its home market France, vehicle volume increased by more than 4% to 290,216 vehicles leased.
Arval's global growth rate outpaced its own target of 6% mainly by strong results in the company's traditional markets, i.e. France, the UK, Spain and Italy, where fleets grew by 7% on average; and by double-digit growth in a number of other markets: Austria (+15%), Brazil (+14%), Hungary (+10%), Luxembourg (+13%), Poland (+15%) and the Czech Republic (+19%).
The key drivers of growth last year were the increased cooperation with BNP Paribas Group's banking network; the roll-out of the International Business Office, dedicated to major international clients; and SME Solutions, aimed at small and medium enterprises.
While much of Arval's growth success is organic, part of the strong showing in 2016 was also due to the successful completion of the integration the European business of GE Fleet Services, acquired at the end of 2015. It has activities in 12 countries, totals more than 160,000 vehicles and employs well over 900 employees – all of which has now been added to Arval's assets.
With the acquisition of Relsa in Brazil and the alliance with that group in Peru and Chile, Arval is now present in 28 countries. And with nearly 30,000 lease vehicles in the three aforementioned countries, Arval consolidates its presence in Latin America.
The Element-Arval Alliance, the bedrock of the company's international activity, has also been strengthened with the integration of RDA Renting, a new member with a presence in Argentina and Uruguay. As a consequence, the Alliance now covers 50 countries, offering consistent service to international fleets across any of these markets.
"2016 was a great year for Arval", notes Philippe Bismut, pictured, CEO of Arval. "That one-millionth vehicle marked a turning point in our history: it is a symbol of the success of our strategy and the unwavering commitment of our staff".
In its home market France, Arval not only showed significant overall growth, but also established SME Solutions, with 15% fleet growth one of the key drivers of Arval France's success. SMEs, sole traders and the liberal professions are sectors with further growth potential. Another key growth factor were the enhanced digital tools offered to fleet managers, in particular:
- The Offre Globale Auto has made the lease option available to the private market, thanks in large part to BNP Paribas' expertise in retail finance.
- Arval Outsourcing Solutions, launched at the end of 2015, offers fleet managers the chance to offload a whole host of administration and management tasks, enabling them to focus on core tasks.
- Arval Moyenne Durée has increased by 35%, a token of the demand for flexibility in managing employee mobility, especially in relation to the varied duration of their engagement.
- Arval Active Link offers integrated telematics, enhanced with extra functionalities and enjoying a rising popularity.
"We are confidently predicting that Arval France's fleet of leased vehicles will grow by another 4% this year", says François-Xavier Castille, CEO of Arval France.
Image: Fleet Europe
