Ford Van Results

Ford Van Results

Ford Van Results

With the great news a few days ago that Vauxhall was continuing production at its Luton plant the industry has received further good news. Ford the global motoring giant has reported that its commercial vehicle sales since the start of 2011 have been very strong. This is great news not only for the company but for the UK economy.

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So why is this great news for the UK as a whole. Simple, high purchases of commercial vehicles means that there are people out there that need to use them. Clearly you don't use a commercial vehicle for popping out on day trips so the companies buying them have work on the go. It actually goes deeper than that. Companies seem to be renewing their fleets which in 2010 you would have thought would be the last thing on the agenda.

Renewing a fleet is a big assets purchase, and it is one that can be put off. Over the previous few years I have known many companies holding on to vehicles for a year or two longer than they would have. This is because at the end of an initial contract you can hold on to older vehicles for a reduced lease cost. So going back to a new three year lease is a big investment.

Fords managing director said that he expected the commercial vehicle sales in 2011 to be higher than the predictions from 2010. It is also thought that those who have held on to old vehicles will be forced to part with them in the next twelve months as servicing costs will start to rise.

Historically companies were always quite aggressive with their fleets whilst trying to keep costs to a minimum. When you think about it many commercial vehicles are an advertising tool and deliver the first image of a company's brand to a client. So they would be kept looking the best they could and replaced regularly.

Ford announced that sales of their Transit model which dominates the midsized market was up by 59%. Sales in their light vehicles were up 24% and heavy vehicles up 45% which to have a complete rise across the board is an amazing result.

Another reason for companies looking to replace vehicles is because with age comes inefficiency and higher fuel costs. As the technology in economically and environmentally sound vehicles is improving constantly upgrading a fleet can negate some of the rise in fuel prices. So to end this article we want to say congratulations and well done to Ford, keep up the hard work.

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