Firms reducing company car choice

The number of executives being able to choose any company car has decreased as firms look for ways to save money during the credit crunch.

According to a survey by GE Capital Solutions Fleet Services, the proportion of firms allowing workers who require a car for work to pick any car has fallen from 20% to just 12.2% in the past year.

At the same time the number of companies that allocate cars from one single manufacturer has increased by 3.7%, leaving some workers with a limited choice of vehicle.

According to the survey, the top five factors used when making decisions on company car management were all based on cost, ranging from fuel prices to taxation.

Gary Killeen, commercial leader at GE Capital Solutions Fleet Services, said: "We are certainly seeing a reversal of the trends of the last decade. During that time, human resources departments have pushed for ever-wider vehicle choice and ever-higher specifications in order to attract and retain the best staff.

"The dominance of the company car as the travel tool of choice for UK businesses does not appear to be in question but what we will see during 2009 are cost-driven changes in the types of vehicles being driven."

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