DAH Chong Motor has launched a service for corporate vehicles after striking a deal to manage Hongkong Telecommunications' fleet.
Under the agreement, wholly owned subsidiary Dah Chong (Motor Leasing) has made a wholesale purchase of Hongkong Telecom's 770 vehicles, maintenance equipment and spare parts.
More than $35 million has been invested in the initial stage.
In return, Hongkong Telecom will pay a monthly fee to Dah Chong, which will be responsible for day-to-day maintenance, supply of all spare parts, and arranging for annual inspections required by the Transport Department.
The fee is based on finance costs, maintenance and depreciation. It ranges from $4,000 to $30,000, depending on the type and make as well as the life-span of each vehicle.
Operations and technical director Donald Yip Mon-ton said the new service would guarantee the group earnings from maintenance and sales.
''Every time the client wants to replace or change a vehicle in the fleet, he must buy one from our group in order to have the maintenance service,'' Mr Yip said.
