The new subsidiary, called the Business Customer Division, will replace its current small business arm, KeyFleets, and will be operational by January next year.
Clive Forsythe, managing director of the division, said: 'Our over-riding priority is to improve the service levels provided to customers. These developments will mean that we respond to customers' enquiries more quickly and effectively than ever before.'
Arval PHH is to create two new support centres as a result of the new division, located at Balsall Common, Coventry and Swindon.
The Business Customer Division will continue to provide local field-based sales and account management support through its core offices at Balsall Common, Man- chester and Swindon.
Forsythe added: 'During 2003 we have been working to improve our operational efficiency in order to provide a better service to our customers. Our customers will continue to enjoy dedicated points of contact within our organisation as we look to build on these long-standing relationships.'
Vincent St Claire, who headed up KeyFleets, is now heading up the firm's fleet division.