US firm gains hefty truck presence that includes Stillwell Trucks premises
US-based Velocity Vehicle Group (VVG) is poised to become Australia’s newest truck dealers through a deal signed with Eagers Automotive.
Eager reveals in a stock market advisory that, in a deal said to be worth A$108 million, it has signed an agreement to divest its 15 Daimler Trucks dealerships and the Stillwell Trucks premises in Sydney’s Milperra.
“The divestment of our Daimler truck operations represents another key step in the ongoing simplification of our automotive retail business,” Eagers CEO and MD Martin Ward says of the move.
“VVG will be a great home for the Daimler truck business and offers an exciting future.”
Daimler Truck and Bus president and CEO Daniel Whitehead thanks Eagers for its partnership during a time of growth for Daimler commercial vehicles.
“We have achieved a lot together and I wish them all the best for the future,” he says.
Daimler points out that, as with its US operation, VVG’s Australian network will only sell and service commercial vehicles, with a focus on the needs of truck and bus customers.
It will also exclusively represent Daimler brands Mercedes-Benz, Freightliner and Fuso.
“We are extremely pleased to work with a group that has such an incredible track record with Daimler Trucks in the United States which consistently delivers on a core commitment to commercial vehicle customers,” Whitehead says.
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A privately owned operator of 36 commercial truck dealerships focused on California, Arizona and Nevada, VVG deals in Freightliner, Western Star, Isuzu, Hino and Fuso brands Great Dane trailers.
“VVG is one of the key global partners with Daimler Truck and Bus and provides customers with a complete line-up of commercial vehicles and services including leasing, rentals, equipment financing, parts, service, specialty fabrication and collision repairs,” Eagers notes.
“Eagers will continue to own and operate its existing Webster Truck and Isuzu Truck businesses, which are currently part of the automotive retail division.
“Following completion of the transaction, the Hino and Iveco operations will be incorporated into the automotive retail division, removing the requirement for a standalone National Trucks division.”
VVG indicates the move will see a relationship with Eagers continue.
“We could not be more excited to have the Australian Daimler dealerships of Eagers Automotive join the Velocity team,” VVG co-presidents Brad Fauvre and Conan Barker state.
“We have seen the dedication of everyone at each dealership, and we know that together with their US VVG colleagues, we will be able to deliver world-class service to the Australian truck market.
“We look forward to getting to know every customer and employee as we execute on our mission of ‘Speed, Value and Trust’ for all of our Australian customers.”
Daimler Truck and Bus Australia aftersales and network operations director Greg Lovrich says the significant investment of Velocity Vehicle Group represents a big step forward.
“We have long admired the Velocity Vehicle Group as a shining example of a best-practice commercial vehicle dealership network in a market where Daimler is number one and excellent customer service is critical to doing business,” Lovrich adds.
“Velocity Vehicle Group knows what it takes to provide the kind of service that truck and bus customers expect from Daimler and we are thrilled about the commitment it is making to the Australian market.”
Daimler Truck and Bus Australia is represented by 55 sales and service dealerships across Australia.