Europcar warns car rentals face challenges as 1Car1 goes into administration
Released on: March 26, 2009, 4:52 am
Europcar, the UK's leading vehicle rental business, has
warned that the vehicle rental sector will face challenges as 1Car1,
one of Europcar's competitors, goes into administration.
The vehicle rental sector as a whole is facing serious challenges in terms of fleet
supply and cost, cut backs in business travel and the general downturn in the
economy. It's a tough time for the sector and really only the fittest will survive.
Catriona Lougher Marketing Director for Europcar UK Group said: "Our customers tell
us that they want a company that delivers on its promises and we at Europcar are
able to do just this in the current economic climate."
"At Europcar we were able to anticipate some of these challenges", confirmed
Catriona Lougher. "We recognised the impact a downturn in corporate business would
have on our income and began remodelling ourselves to become much more consumer
focused - in fact we have a clear objective to become the UK's most consumer
focused rental business."
A recent YouGov survey conducted by Europcar revealed that over 1 in 5 people (23%)
have either used or are considering using car hire or
car clubs as an alternative to car ownership. 1 in 3 drivers (34%) now think that
people are trapped into car ownership by their location, work and family
commitments. And, around 1 in 4 thinks that the cost of ownership outweighs the
benefits. These figures are reinforced by additional responses from Europcar
customers who reported that 27% were worried about the reliability of their car, 21%
because their own car has broken down and 24% needed a vehicle bigger than their
usual car. A further 23% reported renting because in the current climate they don't
even own a car themselves.
With holiday budgets tight, and families reducing costs on car maintenance and even
downscaling their car to a more economical vehicle Europcar looks to be perfectly
positioned to capitalise on the rise of the 'stay-cation' and the demand for
flexible, no nonsense car and van hire to help consumers manage their motoring costs.
"2008 saw a resurgence of the UK holiday which led to a real uplift in rentals and
it looks set for this trend to continue in 2009 as households try to cut costs but
not at the expense of safety or comfort", Catriona concluded.
Owned by French private equity firm Eurazeo, Europcar is the European leader in
passenger car and light utility vehicle rentals, offering short and long term car
company serves business and leisure customers throughout Europe, Africa, the Middle
East, Latin America and Asia-Pacific. Excluding franchise operations, in 2007
Europcar signed more than 10 million rental contracts, with 7,700 employees and a
fleet exceeding 215,000 vehicles. In September 2008, Europcar and U.S. market leader
Enterprise Rent a Car joined forces in a strategic alliance to form the world's
largest car rental network, with more than 1.2 million vehicles and 13,000 locations
in 162 countries and offering a number of car hire deals.
Brand Marketing Manager
Europcar UK Group
07833 481 921