ALD's total fleet up 7% in 2019
ALD started the year with a new new corporate identity but there’s no reason to throw out the company’s old strategy, as evidenced by the strong results for 2019 which have just been published. The total fleet grew by 7% with some segments like electric vehicles and private lease showing even stronger growth.
Powertrain evolution
In all, ALD managed 1.76 million vehicles worldwide at the end of the year, including more than 150,000 electric and hybrid vehicles - a 7% growth on the previous year.
“In line with our objective to promote sustainable growth, we are leading the market in the energy transition,” said Mike Masterson (pictured), ALD CEO, who will be succeeded by Tim Albertsen at the end of March. “The rebalancing of the powertrain mix of our fleet has accelerated again in 2019.”
From 2017 onwards, ALD has encouraged clients to switch out of diesel vehicles whenever possible. This policy has borne fruit: the share of diesel in passenger car deliveries reached 43% at the end of 2019, well below the 72% level seen at the end of 2016.
Today, green powertrains represent 13% of ALD’s passenger car deliveries and even 2% more in Europe. By 2020, this share is expected to hit 20%.
Market performance
All geographical regions contributed to ALD’s performance, with 6.0% growth in Western Europe, 9.6% in Northern Europe, 5.7% in Central and Eastern Europe and 4.4% in South America, Africa and Asia.
Sales via partnerships in particular grew strongly, by 12.1%, contributing to overall fleet growth. Recently, ALD signed distribution agreements with Amazon, Polestar and Tesla. A spokesperson for ALD said his company's more than 160 agreements continue to be a key differentiator with the competition.
Private lease
For the first time, ALD’s private lease fleet passed the 150,000 mark at the end of the year, surpassing the target. This client segment was up by 36% and counted for 8.6% of the total fleet. More than half of this growth was sourced through partnerships.
Financial results
In 2019, ALD’s Gross Operating Income rose to €1,371. million, up 2.1% compared to 2018. The contribution from Car Sales Result reached €75 million, down from €102.5 in the previous year but still in line with expectations.
Leasing contract and services margins were up 4.5% and the average sales margin for the year on used vehicles came in at €254 per unit, down from €362 in 2018.
The continued control of Operating Expenses led to an improvement in the Cost/Income (excluding Car Sales Result) ratio to 49% in 2019, hitting the objective set at the start of the year.
Outlook on 2020
In 2020, ALD became Tesla’s preferred operational leasing provider in Europe. The company also announced a partnership with Polestar, Volvo’s sister brand for electric performance cars.
On the French domestic market, ALD announced the launch of ALD Demain, aimed at combining ALD France and Parcours to consolidate its leading position on the French market.
At the end of 2020, ALD wants to reach a total fleet growth of 5 to 7% and a Cost/Income (excluding Car Sales Result) ratio to improve by at least 0.5 percentage point.
Image: Mike Masterson, CEO, ALD Automotive
