Paperjam: So, tell us about this major brand change.

: We need to go back in history a bit. ALD has already gone through a number of stages and name changes since 1985. The ALD group decided to acquire Leaseplan in 2022. The European competition authorities accepted the operation, with the exception of six countries where the integration could not take place, these being Luxembourg, the Czech Republic, Finland, Portugal, Norway and Iceland. It was decided that, in three countries, the ALD entity would be retained, while in the other three it would be Leaseplan, so that there would be just one player at the international level. Here [in Luxembourg], Leaseplan’s activities have been sold to Leasys while ALD Luxembourg is becoming Ayvens.

Would Leaseplan and ALD have accounted for too much market share in Luxembourg?

Yes. In the event of an acquisition, the new player would have represented a market share of more than 45%. After a complex analysis, the European competition authorities considered that this operation would reduce the scope for competition, so we had to find an alternative so that the operation could be completed at a global level.

Since you had to leave Leaseplan to the competition, what do you gain in Luxembourg by making all these changes?

The group decided to make this major acquisition, which involves several countries. The size of the group offers solid opportunities in terms of synergies, value creation and innovation, as well as the ability to invest more in new solutions and digital technologies. As a local entity, we will be able to benefit from all this. Although there will be a change of brand, the people we deal with will remain the same, and nothing will change in terms of management. Our commitment to offering value to the market and guaranteeing a high-level customer experience remains unchanged.

What do you represent in Luxembourg?

We have a fleet of around 20,300 cars to date and employ 130 people, which represents 30-33% of the market. I don’t think we can call ourselves a leader because of our size alone--I prefer to think of us as a market leader because we offer an above-standard customer experience and a wider range of products and services. We’ve innovated a lot in recent years to ensure that our offering is as closely aligned as possible with our customers’ needs and expectations. What also interests me is the consistency of our commitments and the loyalty of our customers, as well as the quality of our relationships with our partners.

What makes you different from the others?

I think we really stand out in terms of customer experience. We have the image of a rental company that listens, understands the customer’s problems and offers solutions. We’ve been around since 1985. In the early years, we were a very small team and we already had this sense of customer service, which was recognised. Fortunately, despite our growth and the fact that we’re part of a large group, we’ve retained our local culture, and we continue to serve our customers with a great deal of attention and the flexibility they need.

How are you positioning yourself in what has become a highly competitive market?

In Luxembourg, competition has always been fierce, and we have always sought to differentiate ourselves through innovation. We were quick to come up with specific leasing solutions such as “ALD switch,” which offers the possibility of having a main vehicle and a secondary vehicle for specific needs, all integrated into the same lease. We developed flexible leasing and today we have more than 1,600 vehicles of all types available for hire, from one day to 24 months. We’re the only company to offer this. We were the first to rent bicycles and scooters, and we’re probably the most dynamic in private leasing. There have been other initiatives such as car-sharing, which is now taking off.

Has innovation always been synonymous with success?

Innovation requires courage and perseverance. Sometimes we’ve been a bit ahead of the game, but it’s hard to come up with solutions when you’re the only one on the market offering them. The number of times I’ve presented ALD switch, only for people to say: “That’s absolutely brilliant”--and then not subscribe…! Today it’s a success, however, because it’s a product that reassures people when they switch to an electric vehicle. But it took time.

What are the challenges currently facing the local market in terms of mobility?

Today, everyone is talking about electromobility, and the government’s strategy is clearly moving in that direction. The real challenge is to enable everyone to migrate to electromobility, and to succeed in planning their daily lives around this new motorisation. Public recharging networks are very well developed throughout the country, but in reality only account for 10-15% of users’ recharging needs. The real difficulty is to be able to instal suitable recharging infrastructures in businesses and also at home, which is sometimes very complicated.

For businesses, one of the other challenges is to continue to make company cars an attractive part of salary packages, at a time when the future of “clever fueren” bonuses is uncertain and taxation is getting much tougher. The government is pushing for the electrification of fleets, but in return is increasing taxation on electric vehicles from 2025, by doubling the rates of benefits in kind.

In the same vein, to encourage the use of electric cars, the rate of benefits in kind for other cars will become prohibitive, even though it’s already the highest in Europe!

This goes to the heart of Luxembourg’s appeal, no?

Mobility is obviously at the heart of the country’s attractiveness, and when it’s difficult to get to work, it can put off many people. Cars are still the preferred means of transport. However, we firmly believe that mobility is not just a question of cars. We need to be able to offer as many alternatives as possible so that everyone can decide on their own mobility package. Luxembourg companies are finding it increasingly difficult to recruit and must redouble their efforts to continue to attract, motivate and retain talent. At a time when tax on salaries is no longer an advantage and the possibilities for non-statutory benefits are limited, negotiations are focusing on salaries, and it is companies’ competitiveness that is suffering.

What are the prospects for mobility in the future?

The needs and expectations of our customers and users have changed. In terms of mobility, this translates into tailor-made solutions, or the ability to choose and compose one’s mobility, or to change the type of mobility according to the needs of the moment. I sincerely believe that, as a major player in mobility, we have our share of responsibility, and that we must propose innovations that meet new needs.

What are you banking on for tomorrow’s mobility?

We’re interested in everything to do with mobility. The group’s new strategy is to be even more open to the mobility of tomorrow. There are a number of major changes taking place in the automotive industry and in mobility in general. We can see that mobility is being positively affected by teleworking, but this is fairly limited for cross-border commuters. There is free public transport, but the offer is not yet of sufficient quality to encourage people to leave their cars and take public transport, for example. In short, we are banking on a combination of means of mobility and alternative forms of mobility such as car-sharing or flexible hire. We also think that the mobility budget could be an interesting solution, which we could manage.

In practical terms, what are the right decisions to take?

A return to a sensible tax system for company cars, and continued financial support for electric cars, whether new or second-hand. The leasing sector is a key player in the decarbonisation of mobility, and we need to take this into account. On the other hand, there probably needs to be more flexibility with teleworking. Make appropriate infrastructure investments and deploy them quickly enough. Define a “mobility budget” approach and link it to the appropriate tax system.

For our part, to provide mobility as a service [often written “MaaS”; editor’s note], we have applications that allow you to choose the best solution for each journey, and to link this facility with a financing solution. The government has sponsored a car-sharing solution, which is also a good starting point, and it should maintain this kind of initiative over time and promote it effectively.

So what role would Ayvens play in this changed market?

Ayvens is a facilitator, aggregating solutions. Our job is to facilitate mobility, integrate services and cover vehicle-related risks, while enabling companies to control their budgets in this area. We believe that there is a place for a mobility budget that is managed via a platform that we have within the group. We would like to see a legal and fiscal framework for this type of initiative. Ayvens will be a driving force for better mobility for all!

This article in Paperjam. It has been translated and edited for Delano.