Company car cutbacks likely - study

Although the economy is reviving from the recession, a significant count of fleet managers believe that firms will reduce the number of cars in use, a study showed.

The survey by GE Capital's fleet services business found that as many as 30% of fleet managers anticipate a decrease in the size of their fleets.

While 4% of fleet managers think that the country's economy will improve significantly this year, nearly six in 10 (57%) believe that recovery is not possible before the beginning of 2011.

Also, almost 90% of fleet managers think that their decisions over the next 12 months will be largely affected by running costs, while 70% said that driver and corporate taxation will also be major issues.

GE Capital's UK fleet commercial leader Gary Kileen said: "While it is encouraging to see that fleet managers anticipate the UK economy to strengthen this year, it is very telling that they do not consider that their own fleets will grow as a result of the improved economy.

"It is understandable that many of these managers are prioritising cost efficiency savings on the back of the recession, but it is interesting that the economic recovery is not linked to an increase in fleet size as businesses look to longer-term growth."

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