FLEETS, fleet management companies, contract hire firms and the insurance industry are being warned that they could be shooting themselves in the foot in the constant drive to hammer down repair costs to 'suicidal' levels.

Repairers associations are warning that the never-ending pressure to cut costs means there is no money available for investment in training or in ensuring that quality staff are employed - a situation that could lead to poor workmanship and hit residual values on repaired vehicles.

The Vehicle Builder and Repairers Association has hit out at the 'suicidal terms' being offered to repairers and says they are forcing companies out of business. It also criticises body repairers that are accepting these terms. They are, it says, damaging the hard work of trade bodies trying to ensure that repairers are not driven out of business.

Ron Nicholson, director general of the VBRA, said: 'We are looking for an ideal level and for survival. The poor terms being agreed by trade bodies and some insurance companies are clearly suicidal and the repairers need to be fully aware that these terms could put them out of business.' He added that fleets were not the main culprits but the warning applied just as much to them as any other work providers.