A MAJOR shake-up is taking place in the RAC's business-to-business division, designed to complete the transformation of the former mutual organisation into 'a lean and mean' commercial operation. A four-month review of the division by managing director Richard Glover is nearing completion and within the next 'two to three weeks', according to a spokesman, that review will be completed and a new structure in place.

Under the new regime, which will continue to be headed by Glover, some directors and senior managers will have to apply for new jobs. The future role of Penny Hadfield, director of fleet and accident services, had yet to be defined, said the spokesman. Redundancies are expected as a result of the reshuffle, which is primarily designed to transform the division into a 'one-stop shop' for corporate customers with sales staff selling all products and services including roadside recovery, warranty cover, insurance and driver training.

The shake-up follows a roller-coaster 15-months for the RAC and particularly its business-to-business, membership and operations divisions. That period is set to culminate next month with the expected finalisation of the £437 million sale of RAC Holdings, which comprises the three divisions, to Lex Service.