CCP dropping contract care
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• Seddon Atkinson and Foden are considering setting up inhouse contract maintenance schemes because the company which handles their existing schemes is pulling out.
Commercial Care Plan says it is losing almost £500,000 a year on its CV contract maintenance scheme, Contract Care Plan. At the end of this year it will stop taking on new contracts from Seddon Atkinson, Foden and AWD. CCP is already refusing work for other manufacturers, says managing director Michael Kyle, and has laid off four of its 35 staff, but all existing contracts will be honoured.
"If we kept the contract maintenance scheme running for three to four years we think it would have made money," says Kyle, "but we could not sustain the losses in the climate of recession."
CCP, part of Car Care Plan, was taken over from a subsidiary of General Motors Acceptance Corporation last month. It will continue to offer its mechanical breakdown insurance schemes including Commercial Care Plan, About 7,500 CVs use the company's breakdown warranty schemes, compared with 700 on contract maintenance. These include 120 Seddon Atkinsons, 80 Fodens and 80 vehicles in the Esso fleet.
Seddon and Foden say they will investigate CCP's competitors: they are committed to offering contract maintenance.
"We have about 50 customers on contract maintenance, which equals 5% to 10% of our customers," says Seddon Atkinson. "It is therefore a favourable asset in selling vehicles."