Volvo Trucks to Acquire Stake in Petro Stopping Centers
18 March 1999
Volvo Trucks to Acquire Stake in Petro Stopping Centers
GREENSBORO, N.C.--March 18, 1999--Volvo Trucks North America, Inc. announced today that it has agreed in principle to acquire an ownership interest in Petro Stopping Centers, L.P. Details of the agreement, which brings together the industry's maker of top-rated on-highway tractors and Petro, the top-rated travel plaza chain, were not announced.The agreement with Petro is another step in Volvo Trucks' ongoing efforts to enhance the total ownership experience for its customers by developing a comprehensive range of new services. In cooperation with Volvo truck dealers, new programs and services will be introduced to provide new- and used-vehicle purchases, rapid in-transit maintenance, business-management services and education, and unique leisure opportunities.
"By joining with Petro, Volvo is aligning the highest quality trucks on the road with the travel plaza operator rated best by drivers and owner-operators," said Marc F. Gustafson, president and CEO. "Through our joint efforts, we will significantly improve the business operations and lifestyles of truckers."
In a recent study by MarketRuler Corporation for the TruckStop Travel Plaza newsletter, drivers and owner-operators rated Petro the most preferred full-service travel plaza network. Similarly, a 1998 study conducted by Louis Harris & Associates revealed that the Volvo VN Series was the most preferred new truck introduced since 1996.
According to Jack Cardwell, chairman of the board and CEO of Petro, this will be an ideal partnership. "Petro is already aligned with Mobil Corporation and has benefited from the association with its quality products and services," he said.
"The addition of another quality partner such as Volvo is an outstanding fit for Petro and its extensive customer base."
The Volvo Trucks-Petro partnership will immediately enhance Volvo's ability to provide quality maintenance service to its customers on a 24-hour a day, seven-day-a-week basis. Volvo owners will gain access to 214 Petro: Lube service bays operated at 50 Petro locations, complementing Volvo's existing network of 208 full-service dealer facilities. Petro: Lube was the innovator in the express truck maintenance industry and to date has performed over two million oil changes.
Petro's service facilities will be tied to Volvo customers through Volvo Action Service, an around-the-clock customer support center staffed by Volvo employees.
The Volvo Trucks-Petro alliance will also leverage the sales activities of the truck maker's dealer network through enhanced recognition of the Volvo brand. It will offer Volvo truck dealers the opportunity to establish satellite "showrooms" at certain Petro locations for truck sales and specialized maintenance and repair services.
In connection with the new agreement, Volvo will partner with Mobil in the Mobil Delvac Dream Lease Sweepstakes. The contest, which awards a two-year, unlimited-mileage lease, begins May 2 and is open to CDL holders in the U.S. and Canada, 18 years of age and older. The grand prize will be a Volvo 770.
The partnership with Petro is the latest in a series of moves made by Volvo Trucks to establish the industry's most advanced product and service infrastructure. Recently, Volvo Trucks acquired an interest in Arrow Truck Sales, the nation's largest independent retailer of pre-owned trucks and trailers. That move coupled with investments in Volvo Action Service and its own dealer network enables Volvo to manage the entire ownership experience for customers.
In the future, Volvo will establish programs for customers who wish to pay only for the utilization of trucks, rather than choosing the more traditional approach to outright purchase or lease.
Volvo Trucks North America, Inc. manufactures commercial trucks and tractors, including the VN Series, Autocar(R) and Xpeditor(R). Since late 1996, more than 40,000 Volvo VN Series trucks have been ordered and sold, half of which have come from new accounts.
The company leads the heavy-truck industry in the areas of safety research and development, quality manufacturing processes and environmental care. The company also markets Volvo heavy-duty diesel engines and rear suspensions. Headquartered in Greensboro, N.C., the company is an affiliate of Volvo Truck Corporation, Gothenburg, Sweden.
Petro has 51 locations in 29 states. Petro Stopping Centers are one-stop, multi-service facilities featuring separate diesel and gasoline fueling facilities, Iron Skillet restaurants, travel and convenience stores and Petro: Lube preventive maintenance centers.