Contract hire for Scania
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• Scania is raising its profile in the contract-hire market with the formation of a Scaliaowned stand alone contracthire and finance company which will operate as two divisions — Finance and Contracts.
Contracts general manager Charles Rabbidge insists that the move will not alienate Scania from some of its customers who are themselves in the contract-hire business. "Most manufacturers are doing this so companies can't say they won't buy from them all. It's a risk but we're sitting down and talking to them." But contract hire giant Ryder, whose fleet comprises 20% Scania vehicles, is angered by the decision. Group operations director Alan White calls the scheme "DIY contract hire — the customer will still have to do a lot of the work".
Ryder says it will not be buying any more Scanias unless customers specify them: "It prejudices us against putting Scanias in our fleet. But we've got to provide what our customers want."
Ryder admits "our back is up against the wall" when manufacturers move into contract hire as truck sales drop, but believes the trend is only temporary: "If the business isn't there in seling trucks, it's not going to grow in contract hire. This is short-term only — when the market picks up they won't be diluting their efforts in contract hire."
But Rabbidge disagrees: "Leasing and contract hire represent about 20% of total sales, split about half and half, and the trend is upwards. It will become a more significant percentage."