Western Star Trucks Holdings Ltd. has completed the the sale of its UK truck subsidiary, ERF (Holdings) plc to MAN Aktiengesellschaft (MAN). It has also completed the purchase of MAN's Australian subsidiary, MAN Automotive (Australia) Pty. Limited.
Western Star announced the sale earlier in the year. Transferring ownership to MAN will allow ERF to benefit from increased asset utilization and cost synergies and will give it better access to European markets. In return, Western Star gets MAN's import operations in Australia and New Zealand, including a network of 42 parts and service dealers in the two countries.
Recent Class 8 trade volumes have been lower than predicted, which means pricing has been more stable than expected for used trucks, according to J.D. Power & Associates.