What is your assessment of the first three quarters of 2022?
Guirec Grand-Clément - Despite the headwinds, we remain positive and autumn is looking good. Enterprise recorded a strong increase in business compared with last year and even 2019, before Covid, in its replacement vehicle and business rental businesses. On the other hand, the market remains more difficult in the leisure segment, with a summer marked by a shortage of vehicles. This situation is likely to persist in 2023, as car manufacturers are still struggling to supply vehiclesof all types. We have little visibility at this level but our fleet has nevertheless grown compared to 2019. To this end, we keep our vehicles longer before returning them and work more constructively and intelligently with manufacturers. Enterprise also buys vehicles locally in addition to its global purchases with the major car brands.
Has this pressure on the rental fleet had an impact on short-term rental rates?
Guirec Grand-Clément - A recovery in demand, rising costs and these supply tensions have had an impact on leisure rentals, which recorded rate increases from 25 to 35% in 2022 depending on the period and rental zone. On the other hand, the increase was more limited for business rentals because our company contracts are multiannual and Enterprise respects its commitments. This is also an effect of the competition which remains strong among rental companies.
How did you manage the fuel shortage?
Guirec Grand-Clément - We managed this blockage as best we could. Some branches have fuel tanks, particularly at airports, which we sometimes share with other hire companies. We have therefore moved vehicles to these sites in order to fill them up. The situation is gradually improving at service stations in France. It should be noted that this has not led to a drop in business rentals, unlike the leisure market, where renters have preferred to postpone their trips for fear of running out of fuel.
Has the absence of petrol benefited electric cars?
Guirec Grand-Clément - There was already less reticence due to the rise in petrol prices over the last few months. However, this shortage has in fact led to a very strong demand for electric vehiclesThis represents an increase of around 50% in October. This was an opportunity for business customers to discover this new motorisation. Everything went well, with very positive feedback and no one breaking down. We already have around ten branches equipped with charging points to make recharging easier.
How is the Enterprise branch network developing?
Guirec Grand-Clément - We celebrate ten years of Enterprise in France following the acquisition of Citer, and our network has grown significantly over the last decade to include 159 directly-operated branches in France. Four have recently been opened, in Athis-Mons, Roissy-en-France, Port-de-Bouc near Martigues and Colomiers near Toulouse airport. We also have an additional branch to open this year in Chambéry and three new towns to strengthen our network: Bourg-en-Bresse, Arras and Alès. Enterprise to keep up the pace in 2023 with 7 sites already under consideration.
What new services are available to business tenants?
Guirec Grand-Clément - Enterprise focuses on Car Shareits newBtoB car sharing which is being rolled out across France to meet the needs of our corporate customers. One of the first users has just added extra vehicles. Car Share enables companies to reduce their own fleet of company and company cars, in order to gain greater flexibility and optimise the use of shared vehicles. This service, which can be used via an application or an online platform, is undergoing rapid development. Discussions are underway with a number of major accounts. It can also be adapted to all types of vehicle, commercial or private, combustion, electric or rechargeable hybrid.
What are your other objectives for 2023 and beyond?
Guirec Grand-Clément - We must acquire more electric vehicles with manufacturers where possible. Today, Enterprise owns 7 to 8% of clean vehiclesThese are mainly hybrids and plug-in hybrids. This is an important issue, given the directives of the Lom law (Mobility Orientation Law), which imposes a rapid greening of vehicle fleets. Hire companies are green, with recent or green vehicles with low carbon emissions. In the future, this will be an advantage for our customers when it comes to entering and driving in the Low Emission Zones (ZFE) set up by the major conurbations as part of the Lom. Within Mobilians (formerly CNPA), which brings together mobility companies, the leasing companies are campaigning for short-term leasing to be included in the Lom reporting that companies with at least 100 vehicles must carry out, in the same way as vehicle purchases and long-term leasing. We are also working to stimulate demand from our customers for electric vehicles, and to ensure that we have enough charging points across the country to enable roaming. Even though they are working better and faster, the number of electric charging points is still below target, with around 70,000 public charging points at present, compared with 100,000 planned for 2021 under the government's announcements. There is also still work to be done on the transparency of top-up charges, which vary from one operator to another. All in all, I'm confident for Enterprise, a fast-growing company that is increasing its fleet, its branches and the number of its employees, with 800 new recruits in the last 12 months. Even if the economic climate becomes more difficult, we will continue to say 'yes' to serving and staying close to our customers.
