Hitachi took on 6300 vans from Newtown but had to dispose of the 2300 that had been used for flexible hire business, such as daily rental.
Hitachi’s commercial vehicle boss Jon Lawes said the company, which focuses on longer term contract hire and leasing management business, wound up the inherited flexible hire division within six months.
Following a period of heavy discounting, which damaged stability in the market, Lawes said: “Daily rental has got more realistic with pricing, it should be more expensive than contract hire.”
He said Hitachi Capital Commercial grew deliveries by 40% to 2900 in the year to February 2012, during which it also took on 400 vans from GE Capital, the former owner of TLS Vehicle Rental, which collapsed in December 2010.
Lawes revealed that the business has received approval from its Japanese parent company to relocate to larger premises close to its current base in Trowbridge, Wiltshire. The move is set to take place within the next two years.
In December 2011 Hitachi Capital signed a contract hire deal to supply 400 vans to delivery firm DHL Express.
DHL has specified that the vans should be fitted with telematics to improve driver behaviour and cut fuel costs and emissions.
Lawes said: “The technology is making a noticeable return in the fleet industry. This contract demonstrates the requirements for telematics perfectly.”
Hitachi Capital grows CV business
Hitachi Capital Commercial Vehicle Services has claimed 2011 was its most successful year following the integration of Newtown Vehicle Rentals, which it bought from administrators in December 2010.