LeasePlan fleet grows to 1.7 million
Refashioning itself as a world-leading 'Car-as-a-Service company', LeasePlan published its 2017 annual report and announced an important appointment to its Supervisory Board.
As of 2017, LeasePlan has 1.7 million vehicles under management in 32 countries. As its core businesses, the company sees the Car-as-a-Service market (worth €68 billion) and - via its newly founded platform CarNext.com – the market for flexible used-car solutions (worth €65 billion).
Ownership to usership
The company's strategy is to “lead the megatrend from ownership to usership taking place in both these markets”, the report says. “Our mission is to provide What's next in mobility via an 'any car, anytime, anywhere' service – so our customers can focus on What's next for them”.
Some highlights from the report:
- LeasePlan generates 89% of its revenue (€8.3 billion) in Europe, where its serviced fleet numbers 1.3 million units. It generates 11% (€1.1 billion) in the rest of the world, with a serviced fleet of more than 400,000 units.
- The total fleet grew by 5.5% to more than 1.7 million. The underlying net result increased by 17%, from €455 million in 2016 to €532 million last year.
- Streamlining effort 'The Power of One LeasePlan' was credited with €130 million in savings.
- In terms of total value, corporates make up 80% of LeasePlan's customer base, followed by SMEs (17%) and private individuals (3%). Private vehicles make up 77% of the total funded fleet book value, LCVs 21%.
- Geographically, LeasePlan's main markets are the UK (12%), the Netherlands (11%), Italy, the U.S. and Germany (8% each), France (7%) and Spain (6%). The other 40% is spread out over LeasePlan's other 25 markets.
- Brand-wise, LeasePlan's fleet is very diverse, with VW and Ford each representing 13%, followed by Audi and BMW (9% each), Mercedes (7%), Renault (6%), Peugeot (5%) and Volvo (4%). Other brands make up the remaining 34%.
- CarNext.com already is the leading reseller of high-quality 3-4-year-old used cars in Europe. In 2018, the number of experience and delivery stores will grow from 18 in 10 European countries to 50 stores in 21 countries.
- Currently only reselling LeasePlan's own vehicles at the end of their CaaS use cycle, CarNext.com will eventually extend its services to third-party suppliers. Its ultimate aim is to “disrupt the large, yet historically inefficient used-car market in Europe”.
As LeasePlan CEO Tex Gunning (pictured ) said, “2017 was one of the most exciting years for LeasePlan: we made a step change in performance, successfully launched our Power of One LeasePlan operational excellence programme, and started to prepare our company to play a leading role in the future of mobility”.
“Other key developments include the launch of CarNext.com, a market platform for high-quality used cars; the implementation of our Digital LeasePlan strategy, bringing us from the analogue world into the digital age; and our new commitment to achieve net zero emissions from our total fleet, leading the transition to alternative powertrains”.
Chief Risk Officer
In other news, Allegra van Hövell-Patrizi (44) joined LeasePlan's Supervisory Board on 21 March. Since January 2016, she has been Chief Risk Officer at Aegon NV. Previously, she held executive posts at McKinsey, F&C Investment and Prudential Plc.
At LeasePlan, Ms Van Hövell-Patrizi, who holds dual Belgian and Italian citizenship, succeeds Stefan Orlowski, a Polish national. She will also chair LeasePlan's Risk Committee.