The 1970s style company car is making a comeback thanks to the recession, says GE’s Gary Killeen.

ARE we seeing a return to those company car schemes of the 1970s?

They appear to be making something of a comeback thanks to the recession.

Our quarterly Company Car Trends survey suggests employers are starting to restrict company car choice.

There is now more emphasis on the company car as a cost-driven business tool – rather than a salary benefit.

For example, the number of companies allowing drivers to choose any car has fallen by 8.0% in the last 12 months.

While the percentage of employers allocatating cars from just a single manufacturer has increased by 3.7% over the same period.

Also, when asked to name what factors would have the greatest effect on company car decisions over the next 12 months, the top five were all cost-related.

These ranged from fuel prices to taxation. And ignored Human Resource concerns that have been high on big company agendas in recent years.

For those of you who don’t recall what it was like in the seventies, company car schemes saw employees given pretty much identical vehicles. It was common to see car parks outside factories and offices full of nothing but Ford Cortinas or Vauxhall Vivas.

While we are not yet moving towards quite that situation, we are certainly seeing a reversal of the last decade’s trends.

During that time, human resources departments have pushed for ever-wider vehicle choice. And ever-higher specifications in order to attract and retain the best staff.

In the current economic climate, that strategy has had to change. Employers are starting to look at the company car again as a cost effective business tool. And car choice is being restricted.

The dominance of the company car as the travel tool of choice for UK businesses does not appear to be in question.

But what we will see during 2009 are cost-driven changes in the types of vehicles being driven.

Further reading on the company car

Read the Editor’s Blog on Christmas and company cars