OEMs Buying Into Truck Stops

Related Stories Volvo to purchase stake in Petro. (March 22) Freightliner acquires interest in TA. (March 4) (Note: To return to this story, click the "Back" button on your browser.)

LOUISVILLE, Ky. — Volvo Trucks North America is extending service to drivers on the road by purchasing a stake in a major owner of truck stops — much as one of its biggest competitors, Freightliner Corp., is doing.

Volvo plans to acquire an interest in Petro Stopping Centers, while Freightliner is buying part ownership of TravelCenters of America.

The leaders of the two truck manufacturers discussed their plans for the enterprises during the Mid-America Trucking Show in March.

Marc Gustafson, chief executive officer of Volvo, said the acquisition will give Volvo truck owners access to 214 service bays at 50 locations across the United States. He also said Volvo dealers would also have the opportunity to establish satellite showrooms at Petro locations.

Petro’s service facilities would be tied to Volvo Action Service, an around-the-clock customer support center, and would complement Volvo’s existing network of 208 full-service dealer facilities, Gustafson said.

The company plans to add maintenance bays to facilities for performing on-site warranty work and minor repairs on Volvo trucks. Major repairs will be handled by local Volvo dealers, said Larry Zine, president of Petro, based in El Paso, Texas.

“What’s behind this whole mission is that we recognize that many of the buying decisions are formed in travel centers,” Gustafson said. “We’re seeing a convergence of business and lifestyles occurring, so we’re extending our business through our dealers, to the travel centers and really getting closer to our customers.”

Volvo Trucks parent company — Volvo AB of Sweden — is flushed with cash after selling its car division to Ford Motor Co. for $6.5 billion.

The TA deal is the latest in a series of deals for Freightliner, which has bought Thomas Built Buses, American LaFrance Co. and the renamed Ford Heavy Truck unit in the past year.

TA, based in Westlake, Ohio, has also been expanding. In March, it announced plans to acquire Travel Ports of America. The $40.5 million deal with Travel Ports of Rochester, N.Y., will give TA a total of 162 outlets in 40 states. In 1998, TA gained 17 stations in a buyout of Burns Bros. Travel Stops.

James Hebe, chief executive officer of Freightliner, said the TravelCenters partnership will augment the company’s network of 300-plus Freightliner dealers. He said the company’s independent dealer network will “remain the front line of service for Freightliner trucks. TravelCenters of America will focus on express service and light repair jobs.”