Alberto Vélez, Auto Corp: Challenges and Accomplishments in Argentina

As Argentina emerges from its economic downturn, facing challenges has not been uncommon for Buenos Aires based vehicle rental and fleet management services firm Auto Corp, according to CEO Alberto Vélez. 

Global Fleet talks with the executive about some of these challenges as well as current accomplishments.

What is Auto Corp's main coverage area and the key services it offers?

Auto Corp is based in Buenos Aires and is present nationwide through an extensive network of service centers and repair shops. Our core services are Vehicle Renting (full operational leasing), Monthly Rentals, and Fleet Management.

What is the key to success in your line of business?

The key to success in our market is maintaining a high standard of service by paying attention to detail and really looking after clients. For us, this means maintaining good communication and being transparent in all of our processes, as well as controlling cost and other aspects of fleet management.

More importantly, I'd like to mention that we always seek to establish long-term relationships with every person associated with our business, whether they are shareholders, suppliers, clients, employees, or partners.

As you've been Auto Corp's CEO for more than five years, what have been some of the largest challenges you have faced?

I would say that surviving the exposure to high inflation, high interest rates, and abrupt changes in the estimated residual value of used cars have been the largest challenges. This, along with the radical taxation legislation which occurred without any prior notice.

These factors, however, have strengthened our practices and fined tuned our abilities in dealing with this type of business environment in a more feasible manner.  

And what is the main accomplishment the company has realized during your tenure as CEO?

Besides coming out of the economic slump even stronger than before, I'd say that putting together a portfolio of international companies that actually trust us with their needs are considerable accomplishments.

Furthermore, our long standing relationship with clients, being 10 years or more, is something that has given us a good reputation in the market.

The use of telemetry is expected to increase significantly in the coming years. What is Auto Corp doing in terms of telemetry today?

Through telemetry, we are working very hard to monitor, assess and measure driving behavior, fuel cost deviations, and other fleet management aspects. By combining the latest telemetry innovations with other services such as integrated fuel cards, we can better manage TCO for our clients. Overall, we are investing heavily in software technology.

To improve safety, Auto Corp is working hand in hand with Canada's AlertDriving. What does this partnership involve?

First of all, telemetry gives us data that helps us establish a benchmark in the market. Once this is defined, AlertDriving supports us by developing a tailor made driver training course that helps cut costs and, more importantly, reduces the risk of accidents.

It is worth mentioning that we are currently ISO 9001 (version 2015) certified, giving us an international service standard rating.

Finally, could you give me an idea of the company's performance this year, and what are you expecting for next year?

We have had an outstanding performance this year, surpassing both sales and profit forecasts as well as experiencing strong capitalization. For next year, we expect growth in fleet management and renting, and are projecting a significant increase in the temporary rentals business.