11 Oct 19
News

Toyota Fleet Mobility buys major UK leasing firm

Toyota Fleet Mobility has confirmed plans to buy one of the UK’s largest full service leasing companies, Inchcape Fleet Solutions (IFS), for £100 million (€113.5 million).

The acquisition continues Toyota’s strategy to develop from a vehicle maker to a mobility provider. Toyota Fleet Mobility was created in 2018 as a joint venture between Toyota Financial Services Corporation and Toyota Motor Europe to develop full service leasing products for customers in Europe. Prior to this acquisition it had subsidiaries in France, Italy and Spain.

Tom Fux, CEO Toyota Fleet Mobility Europe, said: “The acquisition of IFS is an important milestone for TFM in the European market. As Toyota transitions from being a car manufacturer to a mobility company, it will help us meet the increasing shift in customer preferences away from traditional vehicle ownership to new mobility opportunities.”

IFS was the 13th largest vehicle leasing company in the UK last year, according to the FN50, with a lease fleet of 20,415 cars and vans. In 2018 it generated revenues of £60m (€68m) and a trading profit of £9m (€10.2m) for its owner, Inchcape plc, one of the UK’s largest dealer groups. IFS assets were valued at £78m (€88.6m) as of 30 June 2019.

James Brearley, CEO Inchcape UK, said: “This agreement aligns with our strategy of focusing on our core business as an automotive retailer in the UK market.”

The transaction is expected to be completed before the end of 2019.

 

Authored by: Jonathan Manning