LEX Vehicle Leasing is fighting to avoid a predicted fall in fleet size which could threaten its position as Britain's largest contract hire company. Meanwhile, there were renewed claims this week that amid the residual value crisis being faced by the contract hire industry, some companies 'had given up and were for sale at knockdown prices'.

LVL managing director Jon Walden issued a call to arms to staff to win new contracts following the severance of links between Lombard and Lex. First, Lombard North Central sold its half share in LVL to Lex Service, and then Lombard sold its dealer finance operation, Lombard Motor Finance, to First National Bank. Lombard Motor Finance used to supply LVL with a steady stream of new contract hire business generated by dealers, but those leads are now passing to First National Vehicle Contracts.

LVL operates 94,000 vehicles, according to last year's 'FN 50', down 2,000 on its size a year ago. It remains 3,000 ahead of second-placed GE Capital Fleet Services, which also lost fleet numbers between 1998 and 1999, according to September's Fleet News FN50. Disposal losses saw pre-tax profits of Lex fall 42% in the first six months of 1999 following the downturn in used car prices. Interim results showed turnover up at £207 million for the six months to June 31, 1999 (1998: £201 million), but profit down at £12.4 million (£21.3 million).

An action plan is in place with the roll-out of System 2000, a £10.5 million computer system, incentive schemes which encourage the staff to search out new leads through the business division of the Halifax, which bought a 50% stake in LVL last year 1998) and a European initiative is also being considered. Walden urged staff to concentrate on three areas this year - selling, systems and customer service.