become worried about the scope of the credit crunch. The National
Syndicate for Long Term Vehicle Rental (SNLVLD), the French trade
association for vehicle rental companies, expressed concern about
refinancing costs in particular.
stable. Today, their increase and volatility have led them to
become a real constraint,” said Vincent Rupied, a board member of
the SNLVLD and director of corporate relations at Arval.
Three-year refinancing costs have increased by 200 basis points,
and the situation is aggravated
by a slowdown in business, said the SNLVLD.
Bank-owned leasing companies, such as Arval, part of BNP Paribas
Lease Group, and ALD, owned by Société Générale, appear to be in a
better position than their independent counterparts, which are less
able to deal with the increasing costs.
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“Pressure on equity has never been so high,” added Rupied. “That
said, the industry still benefits from a long expertise in
overseeing assets and liabilities and managing risk.”
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