Volvo, Petro Finalize Deal
August 1, 1999
Volvo Trucks North America announced the acquisition of an ownership interest in Petro Stopping Centers, a deal first announced in March.
The $30-million transaction makes Volvo the second largest equity holder in the company.
Volvo and Petro together will 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.
"Customers will see additional enhancements throughout our facilities in terms of improved maintenance services, new business offerings and improved driver amenities," says Jack Cardwell, chairman of the board and CEO of Petro.
Through the partnership, Volvo Trucks plans additional programs and services, including 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 facilities will immediately become preferred vendors for Volvo Action Service, Volvo Trucks' around-the-clock customer support center.
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 10 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.
For more information, visit http://www.volvotrucks.com and http://www.petrotruckstops.com.