Hitachi purchases contracts from collapsed Newton
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dorninic.perrylarbi.co.uk THE CONTRACT HIRE and leasing market has been shaken up this week with two big acquisitions as the sector continues to rebalance following the recession.
Hitachi Capital Vehicle Solutions has bought contracts and around 7,000 vehicles from collapsed rival Newtown Vehicle Rentals, which went into administration on 2 December.
Jon Lawes, MD of Hitachi Capital Commercial Vehicle Services, which is responsible for the bulk of the new assets, says the acquisition is part of the firm's strategy to take on the bigger players in the sector, such as Ryder and Fraikin.
One of the main attractions of Newtown's portfolio, says Lawes, was its close similarity, both in terms of fleet and customers, the majority of which are in the utility and construction sectors, to Hitachi's existing operation.
Hitachi will grow sustainably and profitably, he says. "It's all about adding value to the customers."
The other big deal this week sees the contract hire operations of Birmingham LCV rental lirm Masterlease managed by Woking
ham, Berks-based Leasedrive Velo Group after the division was bought by Investec.
The deals come during a turbulent period in the LCV rental sector: on 2 December Glasgow
based Leaseway Vehicle Rental entered administration and, on 15 November, GE Capital confirmed that TLS Vehicle Rental will close by the end of the year.
Lawes believes that part of the problem has been unrealistic pricing in the flexible rental sector. He adds: "It's been too low for a long time; it's been cheaper than contract hire and that shouldn't be the case."
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