The Canon Group has signed a major pan-European fleet deal with GE Capital Fleet Services for the majority of its 5,600 vehicle fleet.

The contract, which will include more than 1,500 company cars in the UK, aims to save the group more than £1.2 million over the next three years.

GE Capital Fleet Services will supply full service leasing, finance lease, fleet management, accident management and full driver contact for the fleet. The deal replaces Canon's previous arrangement involving a number of smaller suppliers.

The first stage of the contract covers almost half of the company's total fleet in Europe - vehicles in the UK, Germany and Holland - over a three-year period.

Henk Scheffer, general manager for shared services at Canon Europa in Amstelveen, in the Netherlands, said: 'Canon wants to manage the car fleet on total cost of ownership. In the long run we do not believe this is achieved by obtaining the lowest quote for each individual car.'

Paul Walters, director of international corporate accounts at GE Capital Fleet Services, said: 'We propose to save Canon more than £1.2 million in all areas of its fleet operation as a result of lower acquisition costs, reduced financing costs, lower maintenance and administration costs and the promise of improved re-marketing values on vehicles sold.'

The transition to a wholly pan-European arrangement with GE Capital will be implemented by starting a process of sale and leaseback of vehicles, and the fleet management by GE Capital Fleet Services of Canon's existing agreements, GE Capital added.