LEASEPLAN'S European fleet customers look set to benefit from a multi-million pound three-year tyre repair, replacement and management contract it has signed with Kwik-Fit.

The contract means that the fast-fit company becomes preferred supplier to LeasePlan in the Netherlands, France, Germany and the UK.

Previously, the companies had business relationships across Europe but at a country-by-country level.

The new agreement follows the establishment by leasing and fleet management company LeasePlan of LeasePlan Supply Services AG, Switzerland, whose role includes the negotiation and management of pan-European and global supply agreements with key partners.

Howard Thomas, managing director of LeasePlan Supply Services, Switzerland, and senior vice-president international operations and procurement for LeasePlan Corporation, said: 'Kwik-Fit has been a LeasePlan partner for many years in a number of markets. However, we have had no formal understanding with each other on a pan-European basis.

'The signing of the new agreement means that Kwik-Fit is a preferred partner of tyre supply and fitment and it will also enable us to work closer together to bring operational benefits to customers.'

He said benefits for customers would include improved communication and tyre service with pan-European service level agreements in place to benchmark service delivery.

Kwik-Fit sales director Mike Wise said: 'By working hand-in-hand with each other at a European level, we will be able to deliver significant operational benefits to clients by continuing to introduce new ideas.

'Tyres form an ever-increasing part of service, maintenance and repair costs within fleet budgets. By working together two major companies like Kwik-Fit and LeasePlan can innovate and take measures which will enable our mutual customers to keep fleet operating costs under control.'