More than 200 of the 700 job cuts announced
yesterday by Lloyds Banking Group (LBG) will come from within the
group’s asset finance division, which includes Black Horse Motor
Finance and Lex Autolease.

The majority of cuts will come from LBG’s
Cardiff offices, although these will number less than 200 within
asset finance. Beyond this, there will be some asset finance roles
removed from the division’s headquarters in Edinburgh.

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Nevertheless, the sales operation of Black
Horse Motor Finance is understood to have seen very little impact
from the change, with no reduction in business to be expected as a
result of the cuts. 

Roles affected are within the back-office
resource partially shared by Black Horse Consumer Finance
(incorporating both Black Horse Motor Finance and Black Horse
Personal Finance division, which began winding down in December
2010) and separate fleet business Lex Autolease.

A spokersperson for LBG said: “These changes will not affect the
high level of service our customers receive from us and we remain
fully committed to maintaining our strong position in the motor
point of sale and vehicle contract hire businesses.”

Specifically, collections and administration will be the
functions affected.

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As a whole, the 700 cuts come within the
15,000 announced ahead of time by the group last June, as part of
widespread “simplification” measures.

Black Horse has experienced a
quicker-than-expected decline in default rates and bad debt, and it
is understood that the company expects to be able to handle current
levels with the new level of resource in collections and admin.

Where possible, staff affected by the current
round of role reductions will be redeployed elsewhere in the
group.

Timeline of Black Horse and LBG restructure

May 2008:
HBOS take over Lloyds-TSB, Bank of Scotland Dealer Finance to
be combined with Black Horse Motor Finance; Chris Sutton confirms
Lloyds-TSB-owned finance house has seen
“single-digit” fall in business

April 2009:
Lloyds Banking Group announce 985 jobs, 200 in Speke, 340 in
Chester, to go over two-year period

May 2009: Black Horse
to be sole brand of LBG point of sale dealer finance
operation

Early 2010:
57 jobs to be lost in Black Horse point of
sale business, Black Horse also ceasing to take business
from broker channel

November 2010: Lloyds Banking Group announces
personal finance arm to go, 50 jobs expected to be lost

December 2010:
Personal finance department to be wound down, 310 jobs in
Edinburgh and Cardiff expected to go

April 2011: Four of Black Horse’s regions are

consolidated into two

fred.crawley@vrlfinancialnews.com