Representatives from leading credit hire/repair firms Auto Indemnity, Accident Assistance, Hallmarque, 3 Arrows, Helphire, National Car Rental and Ellen Group have set up a steering committee to establish a new trade association.

The Accident Management Association is expected to be operational within three months. Long-term it is likely to replace the sector's existing two trade groups: British Association for Accident Car Hire and the National Association of Credit Hire Operators.

The BAACH is expected to be wound up after the AMA's launch, but the NACHO has indicated that, for the present, it plans to continue operating.

Tony Baker, former deputy director general of the ABI, will become director general of the new association.

He said: "The two trade associations have performed useful functions for their members. Looking forward, a single new association will be better able to provide the representation and other services that the sector needs."