Vauxhall is currently is discussions with British School of Motoring (BSM) in order to renegotiate of its supply agreement to the UK’s largest driving school to pay for cars it currently gets free of charge.
The talks threaten to thwart the planned sale of BSM by its parent company Aviva. Although Aviva has never confirmed BSM is for sale it has solicited a number of bids for the business which have now stalled while the car supply agreement is renegotiated.
For several years Vauxhall has supplied BSM with a 3500 fleet of the Corsa and Astra models for learners to practise in order to market them to young drivers. The driving school didn’t pay for the cars and after six months they would be sold onto the second hand market. Vauxhalls owners, the struggling US car giant General Motors decided several months ago that this arrangement was no longer viable and are now trying to get BSM to pay for the fleet costing several million pounds.
BSM have tried to find an alternative supplier, but other motor manufacturers are unwilling to take on the contract.
It will be interesting to see how this affects the dominance of BSM in the future and questionable as to whether this form of marketing was ever as successful as Vauxhall hoped with a view to encouraging young customers to the brand.
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