Northgate continues to invest as rivals cutback
Northgate Vehicle Hire, Britain’s largest vehicle hire company is continuing to invest in new vehicles with nearly 20,000 new vehicles purchased in 2010 and delivery of 2,400 new ‘60’ plate vehicles taken in September; whilst some of its rivals are cutting back on their progressive supply of cars and vans.
Additionally, with a UK-wide hire fleet of some 60,000 vehicles and with a utilisation rate of more than 90%, it means that at anyone time Northgate Vehicle Hire normally has 5,000 to 6,000 cars and vans available for hire.
Northgate Vehicle Hire customers have access at any given time to thousands of the latest fuel and environmentally efficient vehicles, which are also equipped with the most technologically advanced safety features and are the lowest average aged vehicles within a vehicle hire sector fleet.
Northgate Vehicle Hire Sales and Marketing Director Gareth Jones said: “There is turmoil in the marketplace with many of our competitors scaling back their operations and not buying new vehicles.
“We are not only buying new cars and vans but have available an immediate supply of vehicles most of which are under three years in age to meet the ongoing demand from existing and new customers.
“We recognise that vehicle demand from public sector and private sector fleets changes regularly and that often the unplanned is a more common occurrence than the planned. But continuity of vehicle supply and service is crucial and Northgate Vehicle Hire provides access to a modern fleet of vehicles, when organisations need them.
“Business is tough enough for them without having to worry about vehicles and whether they will have access to them. They need sustainability in terms of their transport and distribution requirements which Northgate Vehicle Hire can deliver.”
In the build up to the festive season many organisations, traditionally home delivery organisations, letter and parcel delivery firms and courier fleets will be expanding their fleets and therefore demand for short-term vehicle hire will increase.
But, said Mr Jones: “Many of our competitors’ were chasing business at levels that were unsustainable in a bid to grow volume and market share prior to the recession. That strategy has not worked because those very same competitors are now finding it difficult to compete in the market. Their business model is unsustainable with no investment in new vehicles and vehicle supply, in some cases, this has become extremely limited.”
He added: “Northgate Vehicle Hire has proved itself to be stronger financially through the recession as the company has always quoted a fair price for its vehicles and the service delivered.”
Northgate Vehicle Hire has also continued with its infrastructure investment programme and continues to market its additional routes, Van Monster and Trade Vans Direct, which have both proven to be successful in terms of selling vehicles at the end of their rental life.
“With a very considered approach through vehicle acquisition, vehicle hire operation and vehicle disposal Northgate Vehicle Hire is in a strong position and has the funding in place to move forward. Northgate is a sustainable business and master of its own destiny,” said Mr Jones.
“In these challenging economic times it is of paramount importance that we maintain an edge over our competitors because as market leaders our customers expect and demand us to be better, faster and more able to react at a moments notice to their ever-changing vehicle demands as a result of the uncertainties caused by the current economic situation.”
See also:
No comments yet
