ALD Automotive, the operational leasing arm of BRD-Groupe Societe Generale, expects its turnover to double next year in the wake of the steady expansion of the fleets of the major companies operating in Romania.
"The market has a very high growth potential due to the fact that Romanian companies, too, have started resorting to car fleet management outsourcing. We estimate our turnover will surge by 110% in 2007 against this year, so that we will come to manage 3,000 units," says Philip Valigny, a general manager with ALD Automotive.
At present, the company manages a fleet of 1,000 delivered cars, with another 400 units to be added shortly.
The first car fleets that ALD got to handle after its operations started in 2005 were fleets belonging to multinationals, which were used to resorting to such services abroad.
"Our first customers were companies that had been using such services for a long time, which were aware this is cheaper and more efficient. We had to educate Romanian customers and make them understand this practice is much more cost efficient," says ALD manager.
The company now plans to gain major domestic customers. The French financial group's unit provides operational leasing with included car fleet management outsourcing services for any vehicle weighing less than 3,5 tonnes. Fleet management contracts are sealed over a previously agreed period of time and preset number of kilometres travelled, with no advance payment, and customers pay a fixed monthly instalment for which they receive a single invoice.
Contracts have duration of between 12 and 45 months (or 75% of the normal life duration of cars).
At present, competition on the domestic market is quite low, Valigny believes, since there's no market specialisation yet.
"There are only two other companies providing such financing in Romania, unlike the
