Volkswagen Group Leasing (VGL), the Contract Hire and leasing arm of VW Financial Services, is planning to double the size of its contract hire fleet within the next two years.

VGL currently has 9000 contract hire assets and wants the volume to be 20,000 by 2008. If the strategy is successful, it would make VGL large than the Toomey Group and similar in size to Renault Financial Services and Peugeot Contract Hire.

"In the last two months, the volume of contracts written would support our expansion agenda," commented Graham Wheeler, managing director, VGL. Wheeler confirmed the company had recruited four extra sales staff and was searching for a fifth.

Although VGL operates an all-makes policy-split 94/6% VW/all makes-Wheeler said VGL's primary role was to help customers afford group products. 

"I expect Volkswagen and Audi to delivery the majority of our growth because their potential in the market is so strong. Our pricing policy reflects this: its aggressive across the whole package.(see table)" 

Volkswagen Passat 2.0 SE FSI

Volkswagen Passat 2.0 SE TDi

Quotations above based on 36 month/75,000 mile contract hire rental with maintenance. Source: VGL

Although VW owns 50% of Leaseplan, Wheeler said both companies would compete for customers. "The independence of Leaseplan is critical. There will be no attempt to 'VW-ise' it," confirmed Wheeler.

VGL, along with VW Insurance and VW bank, owns assets valued at £2.4bn in the UK. Apart from its contract hire customers, VGL has 190,000 retail customers along with service and maintenance contracts on 55,000 vehicles. 

Wheeler said VGL would continue to underwrite its own assets. There are no plans to integrate VGL and Leaseplan back office.