Arval and Emil Frey France enter into a strategic partnership
Emil Frey France, France's leading car distribution group, and Arval, France's leading full service leasing company, have entered into a strategic partnership to create a full service leasing business for customers of the 250 dealerships of the Emil Frey France Group. This partnership also provides an opportunity to develop long-term synergies.
Two major players
The Emil Frey France group, the leading distribution group in France with 223,000 new and used vehicles sold in 2020, relies on its national network autosphere of 250 dealerships representing 29 brands. The group also offers other services such as the distribution of spare parts, financial and insurance products, and the reconditioning of used vehicles through industrial centres.
Arval France is the French leader in multi-brand vehicle leasing and a specialist in mobility solutions. At the end of December 2020, the leased fleet reached almost 340,000 vehicles in France. The Group is rolling out its Arval Beyond strategic plan, which has three objectives for France by 2025:
• to exceed 400,000 leased vehicles, including 100,000 electrified vehicles,
• to strengthen the deployment of Mid Term Rental mobility solutions, car-sharing, bicycle renting, etc.
• and to join forces with leading partners in the energy (EDF, Engie, NewMotion), insurance (Matmut, Generali), automotive (Hyundai) and transport (Klaxit, the French leader in commuting) sectors.
A strategic partnership
A partnership agreement between these two leading players in the automotive and mobility sector is a strong lever for their development and offers numerous future synergies. Indeed, the capacity for innovation and complementary nature of the two groups’ business expertise - leasing company and distributor - provide a major opportunity for creating and proposing offers and services suited to the new needs of customers. The size of Emil Frey France's national network positions it very close to its customers, while Arval brings its perfect mastery of long-term full service leasing and mobility solutions. Guided by customer satisfaction, their aim is to offer the best possible quality of service.
First activity: launch of Autosphere Lease
Under the Autosphere Lease brand, the autosphere network is going to market a Long Term Leasing and Mid-term Rental offer in association with Arval. Autosphere Lease is aimed at professional and corporate customers. This global partnership will start on 1st February 2022. Emil Frey France will market this offer in its 250 dealerships as well as on the autosphere.fr website, and directly through a dedicated sales team. Arval will be in charge of implementing contract management operations, through a dedicated Middle and Back Office platform.
Scope of intervention and ambitions
- A complete range of long-term leasing and Mid Term Rental financing (3 to 72 months) for professionals and companies, with no limit on fleet size.
Complementary activities to be developed
Numerous possible synergies are already being studied to address new targets and new services. Arval and
Emil Frey France are considering how to implement synergies in their businesses:
- buying and selling used vehicles,
- reconditioning used vehicles,
- After Sales,
- and creating new mobility services.
"The announcement of this major strategic partnership is great news for our customers and for the employees of both groups. Autosphere Lease brings together the best of both worlds between the leading French car retailer and the leading French leasing company, backed by the leading French bank. At a time when customers are looking for high value-added services combining advice, proximity and innovation, Autosphere Lease will be able to meet their expectations," says Hervé Miralles, President of Emil Frey France.
"Beyond the long-term leasing white label, Autosphere Lease, there will be real cooperation between our two groups, consistent with our Arval Beyond strategic plan presented last year. Other developments are also being discussed in the used car and after-sales sectors. Arval France has entered into a new strategic partnership with France's leading car distributor," adds Ferréol Mayoly, General Manager of Arval France.