The Globe and Mail reports in its Tuesday edition that when the pandemic hit North America in March, Element Fleet Management was doing well. The Globe's Andrew Willis writes that chief executive officer Jay Forbes had just completed a two-year repair job on the balance sheet. Element saves money by buying in bulk, doing maintenance efficiently and getting the best slots from auction houses when selling used vehicles. Mr. Forbes says clients found their business models disrupted with COVID-19, but they were still doing business. He says: "The majority of our clients offer essential services, like telecom and delivery. They still need mission-critical vehicles." COVID-19 brings a game-changing opportunity to buy and lease back vehicles owned by government entities dealing with unexpected deficits, including municipalities that own police cars, sewer repair trucks and millions of other vehicles. Mr. Forbes says, "We can buy an entire fleet, write a sizable cheque, cut future costs and improve vehicle performance." Last week, RBC said Element has the most promising postpandemic growth prospects of any Canadian financial services company because it can acquire "government, self-managed and/or megafleet customers."
© 2020 Canjex Publishing Ltd. All rights reserved.