Northgate grows as rivals pull out of rental sector

Date: Monday, December 6, 2010

Van rental giant Northgate claims it has strengthened its grip on the market as the result of key competitors withdrawing from the sector.

Within the last two weeks GE Capital has announced it is to close down its vehicle rental arm TLS while Leaseway has called in the administrators due to financial difficulties, shortly after entering into consultation with staff about the possible closure of its branches in Birmingham and London.

The developments have come in the busy pre-Christmas period with many fleets requiring additional vans to meet the spike in demand.

Northgate said it is already in talks with more than 300 TLS customers about taking on their business on an ongoing basis.

Marketing chief Gareth Jones said: “Fleets want stability and sustainability. The upheaval taking place has been predicted for several months, which is why Northgate has ensured it has in place a wide range of vehicles for hire.”

Jones said the developments at TLS and Leaseway would cause disruption in the market but that Northgate was able to offer fleets continuity of supply and service.

In 2011 Northgate is set to continue the replacement programme that has seen it purchase 20,000 vehicles this year.

  



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