AA and HBOS joint venture under threat

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The future of the Automobile Association’s (AA) joint venture with Halifax Bank of Scotland (HBOS) is in doubt following a dramatic purge of senior management, who were all on the board of the jointly owned company.

The joint venture provides car loans, sourced from HBOS, and these have been a significant income source for the AA. Much of the AA’s marketing activity has been focused on providing car finance.

The AA’s new chief executive, Tim Parker, has axed the roles of AA Financial Services managing director Clare Salmon and AA marketing director Emma Kenny. He has also abolished its customer services and its marketing and business strategy departments. The move was announced last Friday by the AA’s new owners, venture capitalists CVC and Permira.

The cull means that only one AA executive – Neale Phillips, interim director of Insurance – is left on the AA/HBOS joint venture board.

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