RBS agrees deal with ALD to manage existing customers
FIRST Stephen Hester, boss of RBS, loses his bonus; and now RBS has followed that by losing its leasing and contract hire division, Lombard Vehicle Management.
In fact, the majority tax-payer owned Royal Bank of Scotland has decided the leasing company is not so much lost, as it’s a lost cause. And so has cast it adrift from its Lombard asset finance division.
In fact Lombard had been touting around its vehicle leasing business for many years, and at one stage last year it was reported the GE’s fleet division was close to buying the 58,000 business cars and business vans on the company’s books. But it never happened.
So now Lombard Vehicle Management, effectively declared unsaleable, has agreed with ALD Automotive to provide a white label service, while LVM runs out its existing contracts.
A Lombard spokesperson added: “We are also announcing that we will be commencing an orderly wind-down and exit of our current leasing and contract hire operation Lombard Vehicle Management who, with immediate effect, will not be taking on new customers.”
ALD already manages over 73,000 vehicles in the UK, and will continue to provide a full fleet management and contract hire service to existing customers.
The new ALD service is expected to commence within the next couple of months.
ALD has experience of handling white label contract hire programmes, with car manufacturers such as Hyundai and Kia.
A note to Lombard Vehicle Management’s customers stated that existing contracts would not be affected by the launch of the new service: “We intend to continue to manage them until contractual obligations are fulfilled: your Lombard Vehicle Management contract will then terminate unless you have agreed an extension. Once the new service is launched, you can apply for contract hire and fleet management services through ALD Automotive, subject to its credit criteria and terms and conditions.”
If your business leases its cars or vans through Lombard Vehicle Management, the company has a dedicated number to call to discuss any issues you may have.
The number is 0870 330 0330.
