Hitachi Capital Vehicle Solutions is using its 1,200-strong repairer network to offer contract hire to small to medium sized businesses.

It stopped using brokers earlier in the year after saying they “did not generate adequate returns” and now sees its repairer network as the ideal route into the SME sector after identifying it accounted for 40% of its business.

Mike MacDougall, head of commercial sales, explained the move made “commercial sense” for both Hitachi Capital and its repairers.

“A lot of their customers are postponing replacing vehicles because of the recession,” said MacDougall. “However, this initiative should put us in a strong position next year when they are back in the market.”

Repairers will be rewarded with commission for any new business, which MacDougall explained would be a “percentage of the capital cost”, in addition to ongoing maintenance contracts.

“Like many others in the automotive sector, repairers are having a tough time of it at the moment,” said MacDougall. “We see our network strategy as a means of helping them through the current economic times, and providing them with ongoing revenues over the coming years.”

Bracknell-based Ryan Fleet Services is looking to benefit from this new partnership and already has a couple of potential deals on the table.

“The relationship with our customers is based on loyalty and trust,” explained Jeremy Spencer, a director at Ryan Fleet Services. “They feel comfortable talking to us about sourcing vehicles in this way, because it bolts on to the other services we provide.”

Hitachi Capital’s complete fleet offering will be available through its repairer network, who will report back with any potential leads.

Anita Damron has been appointed business development manager for the leasing company’s network members to spearhead the programme.