Draft:Motability Operations
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| Formerly | Motability Finance Ltd |
|---|---|
| Founded | 1978 |
| Headquarters | London |
Area served | United Kingdom |
Key people | Andrew Miller (CEO) |
| Services | Operating the Motability Scheme on behalf of the Motability Foundation |
| Revenue | £4.2 billion |
| £130 million (2016) | |
Number of employees | ~800 |
| Parent | Motability Operations Group PLC, owned by:
• Barclays • Lloyds Banking Group • HSBC • NatWest Group |
| Website | mo |
Motability Operations Ltd is a UK-based car leasing services company that administers the Motability Scheme, overseen by the Motability Foundation. It operates the largest car leasing scheme in the United Kingdom, with over 800,000 vehicles.
About
[edit]Headquartered in London with offices in Bristol, Edinburgh, and Coalville, Motability Operations Ltd delivers the Motability Scheme. This programme enables disabled people, their families, and carers to lease a new car, powered wheelchair, or scooter using their disability benefits.
The Motability Foundation governs Motability Operations, setting the scheme's strategic direction and overseeing performance. Owned by Barclays, Lloyds Banking Group, HSBC, and NatWest Group, Motability Operations aims for a modest return on its assets to ensure affordable vehicle leasing. It does not pay dividends to shareholders. Surplus income is reinvested in the scheme or donated to the Foundation[1]
The Chairman of the Board is Stephen O’Brien (joined 1 April 2019), and the Chief Executive is Andrew Miller (joined January 2021).
History
[edit]Motability Operations Ltd (formerly Motability Finance Ltd) was established in 1978, a year after the Motability Foundation (then simply Motability) was founded by Lord Sterling of Plaistow and the late Lord Goodman. Initially, the Motability Scheme targeted motorists aged 16–19, processing around 220 applications at its inception. Participating manufacturers included British Leyland (Rover Company), Chrysler (Peugeot), Ford Motor Company, and Vauxhall Motors.[2][3]
By 1997, 21 manufacturers provided vehicles for the scheme, including Citroën, Fiat, Mazda, Nissan, Peugeot, and Renault.
In 2005, the Good Condition Payment initiative began.[4] Customers returning well-maintained, claim-free cars received a one-off discretionary payment.
Motability Operations took over the Powered Wheelchair and Scooter Scheme in 2010, offering customers the same leasing package as the Car Scheme. The first fully electric vehicle, the Nissan Leaf, became available through the scheme in 2013. By 2023, the number of customers with electric vehicles increased to 30,000, with over 20,000 home chargepoints installed across the UK.[5]
Operations and services
[edit]Motability Operations holds the exclusive contract to administer the Motability Scheme. It manages various aspects of the leasing process, including quarterly vehicle price negotiations with manufacturers and setting service standards for the dealer network, adaptation suppliers, breakdown services (RAC plc), and insurance providers (Direct Line Motability).[6][7][8]
The lease includes insurance, routine servicing and maintenance, breakdown assistance, and tyre and windscreen replacement. As of September 2023, Direct Line Motability provides insurance for the scheme.[9][10][11] Direct Line's Motability division has specific driver requirements. Accredited independent specialists supply and fit adaptations, and customers apply via accredited main car dealerships.
Criticism and controversies
[edit]In 2018, the National Audit Office scrutinised Motability Operations' profit levels, executive remuneration, and financial reserves.[12] Concerns were raised about the size of the company's reserves and executive compensation packages. A parliamentary committee deemed the former CEO's £1.7 million salary "totally unacceptable."[13] Following the controversy, the CEO resigned, and Motability Operations committed to improving governance and financial transparency.
Partnerships and initiatives
[edit]Motability Operations collaborates with various partners, including vehicle manufacturers, insurers, and repair services, to provide a mobility service for disabled people.[14] It also works with organisations like Purple Space and Team BRIT to promote disability inclusion and awareness.
References
[edit]- ^ "Briefing 1: Motability Foundation, Motability Operations and the Motability Scheme" (PDF). Motability Foundation. Archived from the original (PDF) on 2024-04-26. Retrieved 2024-04-26.
- ^ "A short history of the Motability Scheme". MotaClarity. Retrieved 2024-03-09.
- ^ "Short History of Motability Scheme". Automotive Group. 10 August 2017. Retrieved 2024-03-09.
- ^ "Motability Good Condition Payment". MotaClarity. Retrieved 2024-03-09.
- ^ "Motability offers record number of electric vehicles to disabled drivers". Fleet News. Retrieved 2024-03-09.
- ^ "Motability FAQs". Group 1 Automotive. Retrieved 2024-03-09.
- ^ "Help for disabled travellers". Citizens Advice. Retrieved 2024-03-09.
- ^ "What is Motability?". Buyacar. Retrieved 2024-03-09.
- ^ "A guide to the latest Motability insurance updates". Vertu Motors. Retrieved 2024-03-09.
- ^ "What's new with Motability insurance? Your latest update". Bristol Street Motors. Retrieved 2024-03-09.
- ^ "Vospers Guides - Motability Insurance moving to Direct Line DLM". Vospers. 11 August 2023. Retrieved 2024-03-09.
- ^ "The Motability Scheme". National Audit Office. 7 December 2018. Retrieved 2024-03-09.
- ^ "Motability "badly needs a new roadmap" for its finances". UK Parliament. Retrieved 2024-03-09.
- ^ "Motability Operations - Our partners". Motability Operations. Retrieved 2024-03-09.
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