he Vehicle Engineering Division lost some business in 1999/2000 under a number of tenders by the former Provisional Regional and Urban Councils. However, all other clients have retained the division's services to ensure a safe and reliable fleet at all times.

The division responded promptly to the business loss by re-training and re-deploying staff to different job areas. Its two vehicle workshops have also been reorganised to enhance one-stop services.

Vehicle maintenance is an area of intense competition from the private sector. In the past year, the division made major progress in further price adjustments, staff training, re-training and re-deployment, investing in technology and equipment, and introducing high-quality OEM parts - all geared to produce more cost savings for clients without sacrificing quality.

In response to the trend towards more environment-friendly vehicles, the division has been providing staff with training in LPG vehicle maintenance. A new LPG vehicle maintenance workshop will be set up in Caroline Hill Depot in August this year. To improve vehicle emission controls, the division carried out retro-fitting work of diesel oxidation catalysts and particulate traps on more than 20 heavy diesel vehicles in the government vehicle fleet.

The demand for specialist know-how and service in vehicle body construction and modification work remains strong as customer needs for purpose-built vehicles grow steadily. During the year, customers also enjoyed a number of value-added benefits that helped boost internal efficiencies, such as free air-conditioning checks, hands free mobile phone installations to meet statutory requirements, and the pledge to complete routine servicing for general purpose vehicles within one day to improve client fleet availability.

The future is one of prudent optimism. The division is confident that the majority of its clients find that they are a reliable long-term partner, with specialised knowledge and a commitment to quality and environmental care.