Bosses fear cuts to company cars

Back

Around one in three firms believe their provision of company cars will be cut despite the widespread impression that the worst of the recession is over, GE Capital's fleet services business has said.

A survey suggested that 57% of fleet managers think the UK economy will grow at the start of 2011 - 4% said they believe this growth will be significant this year. Around one in five said the recession has still to get worse.

Most fleet managers (90%) said their running costs will be the main influence on any decisions they make in the next year, and about seven in 10 insist that driver and corporate taxation will be a major decider.

GE Capital's UK fleet commercial leader Gary Kileen said: "While it is encouraging to see that fleet managers anticipate the UK economy to strengthen this year, it is very telling that they do not consider that their own fleets will grow as a result of the improved economy. It is understandable that many of these managers are prioritising cost efficiency savings on the back of the recession, but it is interesting that the economic recovery is not linked to an increase in fleet size as businesses look to longer-term growth."

Copyright © Press Association 2010

Get a car insurance or home insurance quote now.