RAC plc announces major contract with Ford Financial
24 December, 2003
RAC plc is pleased to announce that its contract hire business, Lex Vehicle Leasing, a joint venture with HBOS, has been awarded a 7-year contract with anticipated revenues of Ł1bn to provide outsourced contract hire services to Business Partner, the contract hire arm of Ford Financial.
Under the new contract, Lex will provide contract hire infrastructure services to the Ford family of brands (Ford, Jaguar, Land Rover, Mazda, Volvo and Aston Martin). All Sales and Marketing activities will continue to be owned by Ford Financial and marketed as Business Partner. Customers will continue to be maintained within this branded environment with Lex providing dedicated resource to support the delivery of the brand experience. Lex will fund and manage the existing fleet of approximately 20,000 vehicles.
Jon Walden, a Director of RAC plc and Lex Vehicle Leasing's Managing Director, said:-
"This is the largest ever contract won by Lex Vehicle Leasing, which builds on our industry-leading systems and customer service. Working together with Ford Financial we expect to grow the business substantially and we also believe this will prove an attractive model for other partner organisations.
"The contract award comes at the end of a very successful year for Lex Vehicle Leasing in which we have become the first contract hire company to achieve a fleet of 100,000 vehicles purely through organic growth."
Andy Harrison, Chief Executive of RAC plc, added:
"I am delighted that this contract with Ford Financial enables us to continue building our relationship with Ford, which already includes breakdown assistance, technical services and vehicle inspections. This contract is another example of our strength in managing large, complex vehicle fleets in high service environments. It comes immediately after winning preferred bidder status for the 15-year, Ł500m Ministry of Defence 'C' vehicle contract and the award of the 10-year, Ł230m British Airways Ground Fleet Services contract won earlier this year"
Mark Christelow, Director-European Fleet and Leasing of Ford Credit, said:-
"Ford Financial remains committed to providing quality Business Partner products to its customers, dealers and manufacturers. We are confident that the new partnership with Lex will deliver a much improved service and product offering for our customers and dealers."
Ends
For further information, please contact:
Jon Walden, Managing Director, Lex Vehicle Leasing 0870 112
5731
Niall Addison, Group Finance & Investor Relations, RAC plc 07764 624 701
Anita Scott / Kate Holgate, Brunswick 0207 404 5959
