VAUXHALL is attempting to renegotiate a supply agreement with British School of Motoring (BSM) to force the UK’s biggest driving school to pay for cars it currently gets free of charge.
Vauxhall Corsa
The talks threaten to scupper a planned sale of BSM by its parent, Aviva, the insurance giant.
For several years the carmaker has supplied BSM with a 3,500-strong fleet for learners to practise in, believing such an approach was a good way to market its Corsa and Astra models to young drivers.
The school did not pay for the cars, and after they had been used for six months Vauxhall would sell them on the secondhand market.
The British marque, owned by the troubled US car giant General Motors, decided several months ago that this arrangement was no longer viable.
Vauxhall is now in talks with the driving school to get it to pay for the fleet. The change in policy is expected to cost BSM several million pounds.
BSM tried to find an alternative supplier, but other motor manufacturers were unwilling to take on the contract.
While Aviva has never confirmed that BSM is for sale, it has solicited a number of bids for the business but these talks are said to have stalled while the car-supply agreement is renegotiated.
However, a deal could also be delayed by the economic situation and the lack of credit to finance any bids.
Vauxhall and Aviva both declined to comment.
Source: The Times Online, by
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