Contract Hire and User-Chooser Fleet Business Reaches Record Levels to Drive Buoyant Mazda Forward In 2009

DARTFORD, United Kingdom – January 26, 2009: Demand from UK contract hire and leasing companies and user-chooser fleets for Mazda company cars rocketed by two-thirds in 2008 putting the marque and its recently appointed Fleet and Remarketing Director Peter Allibon in buoyant mood for the year ahead.

A strategic reverse from short-term daily rental business was offset by the rise in ‘true’ fleet sales to leasing and end-user fleets, which accelerated from almost 4,000 in 2007 to a record 6,000 units last year. With a revised Mazda6 now entering showrooms, which also sees the arrival of 2.2 litre diesel engine derivatives for the first time, realigned specification on the Mazda2 and the all-new Mazda3 among new models scheduled for 2009, Mr Allibon is optimistic that, despite tough economic conditions, significant fleet demand will remain.

Mazda has bucked the overall double-digit decline in new car sales and enters 2009 with the Mazda2 having secured ‘tremendous success’ among retail customers and public sector fleets last year. In addition, a new initiative aimed at encouraging driving schools to acquire the supermini has also been successful.

For the third year in succession Mazda chalked up new car sales of more than 50,000 units in 2008 with market share steady at 2.4 percent. Although, Mazda’s new car sales dipped 2.2 percent overall last year, that reduction was significantly below a market decline of 11 percent with some carmakers seeing business slow to a crawl towards the end of the year.

While Mazda’s overall fleet sales dropped by around 2,000 units last year that was entirely due to the planned cutback in rental and other short-cycle business. In 2009, Mazda expects fleet registrations to account for 35-40 percent of total sales as in previous years.

Mr Allibon, who took charge of the fleet department at the end of last year following the appointment of James Hopkins to the new post of Director, European Fleet Operations, Mazda Motor Europe, said: “Mazda6 put the company on the fleet map and continues to be a hugely successful model for the company.

“Mazda2 outperformed our expectations month after month in 2008 in both the retail and corporate markets due to drivers downsizing, strong residual values and affordability. Those two cars were the lynchpin of our sales success in 2008. With the arrival of the new Mazda3 in May coupled with the changes we are making to Mazda2 and Mazda6, the company is in a strong position to make further inroads into the corporate sector.

“The remarkable rise in our contract hire and user-chooser sales last year is evidence that our strategy is working and we see that trend increasing next year.”

With the corporate focus on cost management, Mazda expects its reputation for delivering cars with very competitive wholelife costs, strong residual value, low benefit-in-kind tax bills and class-leading specifications to increasingly appeal to fleet operators and company car drivers alike.

Mr Allibon said: “In the economic climate some fleets are shunning prestige brands because they don’t want to be seen to be ostentatious. Mazda models are understated but deliver in terms of cost and performance. The next 12-18 months could provide a major opportunity for Mazda to further increase its ‘pure’ fleet market share.”

This month sees the arrival of a 2.2-litre diesel engine with a choice of three power outputs (185ps, 163ps and 125ps) available in saloon, five-door hatchback and estate body styles. A further development that makes the revised Mazda6 standout from the upper medium sector pack is the availability as standard on 15 models, from TS2 upwards, of the company’s safety-first lane-change ‘Rear Vehicle Monitoring System’.

Mazda 2 will be given a ‘freshening up’ in the spring and that will be followed by the arrival of the all‑new Mazda3, which will include the debut of a 1.6-litre 110ps diesel engine emitting just 119 g/km of CO2 and the same 2.2-litre diesel engine as the new Mazda6, which puts it below the all-important 160 g/km capital allowance threshold, which comes into place in April. Further 2009 model changes include an upgraded Mazda MX-5 in May.

Mr Allibon added: “Mazda6 built on the company’s reputation for superb sports cars. Last year the phenomenal success of Mazda2 further increased the prominence of the brand and we will further grow Mazda2 in 2009, while leveraging our growing leasing and user-chooser success with Mazda3.

“With downsizing and demand for cost-effective low emission diesel and petrol models increasing, 2009 is the perfect time to be launching a new lower medium sector car.”

Meanwhile, Mazda will be continuing to work closely with its fleet specialist dealers to capitalise on small fleet business.

Mr Allibon said: “Mazda has worked tirelessly to encourage dealers to develop this business in recent years. The foundations to secure local corporate business have been laid with a lot of dealers and they are starting to reap success. We will continue to work with them, while also encouraging more dealers to engage with corporate customers on their doorstep.”