Partnership AVIS / ARVAL on used car sales Laurent SCULIER & Jean-Luc CHAPUT

Partnership AVIS / ARVAL
on
used car sales
Laurent SCULIER & Jean-Luc CHAPUT
23-24 January 2012, VO SUMMIT
Agenda
■ Introduction
■ Partners presentation
■ Why the partnership
■ Key benefits
■ MotorTrade key features
■ MotorTrade development at Avis
■ Conclusion
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Agenda
■ Introduction
■ Partners presentation
■ Why the partnership
■ Key benefits
■ MotorTrade key features
■ MotorTrade development at Avis
■ Conclusion
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From crisis management to discipline and innovation:
■ Reinforce our investment into remarketing operations, as a strategic
tool
■ Reduce holding periods to maximise residual values while reducing
maintenance costs
■ Adding value to our relationship with key OEM’s (buyback)
■ Develop B2B online remarketing tool to enlarge customer base and
maximise resale values
■ Diversification :
■ Geographical distribution of used cars sales
■ Diversify profile of material
■ Expend remarketing channels
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We aim to sell 70% of the used cars through our own
remarketing B2B on line tool
■ Stage 1 – Harmonize fleet data
■ Stage 2 – implement Group wide remarketing platform
to be defined
to be defined
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Agenda
■ Introduction
■ Partners presentation
■ Why the partnership
■ Key benefits
■ MotorTrade key features
■ MotorTrade development at Avis
■ Conclusion
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Who are the partners?
Arval is number 2 in Europe in full service vehicle leasing:
■ Part of BNP Paribas Group
■ With a total leased fleet of 676,100* vehicles
■ With a presence in 22 countries
■ With 4,400 employees
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* (end of June 2011)
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Avis Group (pre-acquisition)
Avis Europe plc
Avis Budget
Group
<5,000 locations
Europe
Africa
Americas
Middle East
Australasia
Asia
166 countries
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Agenda
■ Introduction
■ Partners presentation
■ Why the partnership
■ Key benefits
■ MotorTrade key features
■ MotorTrade development at Avis
■ Conclusion
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Why the partnership?
■ Avis sells 30,000 used cars (at risk) per year
■ From 9 to 24 months old and in average 30,000 km
■ With a significant part of petrol vehicle
■ Mainly cars
■ Arval sells 200,000 used cars per year
■ From 24 to 60 months old and in average 100,000 km
■ Mainly diesel vehicles
■ Private and light commercial vehicles
Together they can offer to their customers a very
complementary mix of cars, in complementary
geographies
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Agenda
■ Introduction
■ Partners presentation
■ Why the partnership
■ Key benefits
■ MotorTrade key features
■ MotorTrade development at Avis
■ Conclusion
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Objectives and benefits of the partnership
The collaboration between Avis & Arval in Remarketing…
… is NOT simply an opportunity to share costs
■ although the scenario must make economic sense for both parties
… is based on observation that product ranges do not overlap: Arval and
Avis do not compete in the Remarketing space
■ Brands
■ Profile Age & mileage
… results from convergence of strategic views
■ Avoid third party aggregators in order to defend a competitive advantage in
remarketing.
■ Offer an extended mix of vehicles in order to attract buyers
■ Sides benefits in joined procurement (damage assessments, parking fees,
transportation)
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Objectives and benefits of the partnership
■ We have the same view to develop direct business with used
car dealers
■ For Avis a tool ready to use
■ Already operational
■ Develop with real business expertise
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Agenda
■ Introduction
■ Partners presentation
■ Why the partnership
■ Key benefits
■ MotorTrade key features
■ MotorTrade development at Avis
■ Conclusion
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What is doing MotorTrade?
■ MotorTrade is an internet platform self developed by Arval
■ To facilitate direct sales to car dealers (immediate purchase or
submission of bids)
■ Already used in more than 10 countries and 20 before the end of the year
■ 7,000 vehicles are sold each month (more than 100,000 since the launch)
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Screenshot example (Branding in progress)
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Screenshot example (Branding in progress)
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Agenda
■ Introduction
■ Partners presentation
■ Why the partnership
■ Key benefits
■ MotorTrade key features
■ MotorTrade development at Avis
■ Conclusion
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Development of MotorTrade at Avis, 3 countries live by May 2012
• France is now fully rolled out:
• Damage and picture process fully automated
• Number of active buyers is 117 (total number of buyers is 529) and is growing by
10 to 15 a week
• 1 sale per week
• 149 cars sold (30% conversion rate)
• Sales performance “in line” with market – environment is challenging
• Spain is on its way:
• Strong buy-in from local teams
• Benefit from FR experience with great support from Corporate entities
• Implementation will start in February – objective is being operational in April
• Italy kick off meeting early February, local meeting already took place:
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Agenda
■ Introduction
■ Partners presentation
■ Why the partnership
■ Key benefits
■ MotorTrade key features
■ MotorTrade development at Avis
■ Conclusion
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Conclusion
• Very resilient model due to larger customers base and global approach
•Supports better discipline and transparency in remarketing processes,
including in cross border trading
•Great adding value for potential and existing customers
•Support residual values improvements by matching demand and supply at
the best price possible
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Thank you for your attention!