The asset finance division of the taxpayer owned bank, RBS, is to wind-down and exit from it's current leasing and contract hire operation Lombard Vehicle Management (LVM), with business transferring to ALD Automotive.

A proportion of the firm's contract hire and leasing business of over 80,000 vehicles is to be taken on by ALD Automotive, the UK operational leasing and fleet management division of Société Générale, the ALD Automotive group is the second largest vehicle leasing operation in Europe and manages over 877,000 vehicles across 37 countries worldwide.

Lombard is advising it's customers that existing contracts will not be affected by the change, and LVM intend to continue to manage them until contractual obligations are fulfilled, the LVM contract will then terminate unless an agreed an extension is in place. Customers will then be able to apply for contract hire and fleet management services through ALD Automotive, subject to its credit criteria and terms and conditions.

Talking about the move, ALD Automotive Managing Director, Keith Allen, said, "We're delighted that RBS and Lombard have chosen ALD to provide contract hire and fleet management solutions for Lombard. The new proposition will have access to all the vehicle leasing business generated through RBS banking and Lombard relationships, reinforcing the success of the multi-sales channel strategy we have adopted to grow our business and driving the business further forward to become a top three player within the UK leasing industry."