Sales up 10.4% at Kwik-Fit Fleet
A large part of Kwik-Fit Fleet's sales growth has been the result of companies running their fleet vehicles for longer, leading to increased demand for replacement parts, including tyres
The company also benefited as fleets increasingly turned to it for a range of services, notably mechanical work. Last year, Kwik-Fit Fleet achieved sales of £203.6 million, up from £184.4 millioin in 2008 – due to MoTs on company cars and vans increasing 89.7% year-on-year and fleet vehicle servicing rising 54.2%.
According to head of Kwik-Fit Fleet Mike Wise, the firm can deliver significant savings compared to using franchised dealers.
He said: 'While the cost of a service is commensurate with model-type and mileage, we estimate that the typical average cost is up to 20% less than at a franchise dealer. However, for some vehicles servicing costs can be up to 34% cheaper than at a franchise dealer.'
He continued: 'Our strategy in 2010 is to continue to grow our fast-fit business by offering businesses bundled services with MoTs and vehicle servicing to the fore. This will have the impact of driving down fleet operating costs and will also ensure convenience for drivers.
'Additionally, the decision of some of our competition to downsize the number of centres they operate across the UK will, we believe, further enhance Kwik-Fit's position as the number one fast-fit provider to the UK corporate sector. As the economy picks up through 2010 and into 2011 we remain optimistic that the Kwik-Fit Fleet business will continue to expand.'
Kwik-Fit Fleet has also kick-started 2010 with the securing of a major new three-year contract with ING Car Lease. The deal means that Kwik-Fit Fleet has become a supplier to the Bracknell-based vehicle leasing and fleet management organisation with more than 50,000 vehicles on its books for the first time.
Mr Wise added: 'We also anticipate that we will be able to announce further contract wins at the end of the first quarter of 2010.'