According to new reports, Vauxhall Motors has admitted that it is going to reduce the number of cars it sells to rental fleets. In fact, the company cut the number of cars it sells to rental agencies by 6,000 vehicle last year. However, this year the company plans to reduce this number even further. Vauxhall Motors said that it plans to reduce the number of cars they sell to rental fleets by 20,000.
James Taylor, who is the fleet director of Vauxhall Motors, said that they have planned for this reduction, and that is why they have confidence in this strategy. They company will not be pressured back into the rental market.
Mr. Taylor went on to say that his company has had a very different direction from the head of the organization, and that is why they have turned to this new strategy. They can cut volume without impacting production.
During all of this, General Motors Europe said that it was in discussions with its unions and staff about reducing costs and returning the Vauxhall Motor brand to profitability. Just last year, General Motors reported a global profit of about $8.3 billion. However, its European operations (Vauxhall and Opel) actually lost about $700 million.
A spokesman for General Motors said that they were, and have been, in regular talks with the government. Everyone wants to come up with a strategy go return the European Union back to profitability. Their staff and the public will be informed as they make decisions.