Volvo Trucks Acquires Interest in Petro Stopping Centers
30 July 1999
Volvo Trucks Acquires Interest in Petro Stopping Centers
GREENSBORO, N.C., July 29 -- Volvo Trucks North America, Inc.
announced today the acquisition of an ownership interest in Petro Stopping
Centers, L.P. The $30-million transaction makes Volvo the second largest
equity holder in the company.
Volvo and Petro together will now aggressively expand products and
services for customers at existing travel plazas and new facilities to be
completed over the next two years. Currently, Petro and its franchisees own
and operate 51 travel plazas in 29 states.
"Volvo and Petro will establish a new standard of driver services for
travel plazas," said Marc F. Gustafson, president and CEO of Volvo Trucks. "We
are moving ahead quickly to ensure Petro Stopping Centers remain the preferred
choice of professional drivers who require high levels of products and
services in a safe, clean and friendly environment."
Through the agreement, Volvo joins with Mobil Oil Corporation as partners
in Petro, which drivers rated as the most preferred full-service travel plaza
network in a recent study conducted for the TruckStop Travel Plaza magazine.
According to Jack Cardwell, chairman of the board and CEO of Petro, the
agreement with Volvo brings together three strong brands for the benefit of
all Petro customers. "Our customers benefit from our partnership with Mobil by
making available high quality lubricants and fuels," he said. "With Volvo
Trucks' partnership, we align ourselves with a company strongly focused on
quality and service. Customers will see additional enhancements throughout our
facilities in terms of improved maintenance services, new business offerings
and improved driver amenities."
Through the partnership, Volvo Trucks plans additional programs and
services. Among them are new- and used-vehicle sales, business-management
services and education, and unique leisure opportunities. Some of the enhanced
services will be provided by Volvo truck dealers in cooperation with Petro's
company-owned and franchised locations.
The agreement immediately expands Volvo's ability to provide customers
with additional maintenance services on a 24-hour a day, seven-day-a-week
basis. More than 225 Petro: Lube service bays will provide preventive
maintenance services and minor repairs. Petro: Lube was the innovator in the
express truck-maintenance industry and to date has performed over two million
oil changes.
Petro: Lube facilities will immediately become preferred vendors for Volvo
Action Service, Volvo Trucks' around-the-clock customer support center. Truck
drivers can call 800-52-VOLVO to receive on-the-road assistance, including
repair and maintenance services.
Petro: Lube facilities will complement Volvo's existing network of 208
full-service dealer facilities. Additionally, Petro: Lube facilities may refer
customers needing major repairs to nearby Volvo dealers. Volvo and Petro have
plans to expand Petro: Lube facilities at ten existing locations.
Under the agreement, qualified Volvo truck dealers may choose to become
new Petro: Lube franchisees. Volvo's dealers will also have the opportunity to
establish full-service sales and maintenance facilities adjacent to Petro
locations. In addition, Volvo dealers and Arrow Truck Sales will have
opportunities to market new and used vehicles at individual Petro travel
plazas.
Volvo Trucks North America, Inc. ( http://www.volvotrucks.com )
manufactures commercial trucks and tractors, including the VN Series,
Autocar(R) and Xpeditor(R). Since late 1996, more than 54,000 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. Volvo
Trucks also markets heavy-duty diesel engines and rear suspensions.
Headquartered in Greensboro, N.C., Volvo Trucks is an affiliate of Volvo Truck
Corporation, Gothenburg, Sweden.
Petro Stopping Centers ( http://www.petrotruckstops.com ) has 51 locations
in 29 states. Each location offers 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. Petro is based in El Paso, Texas.