Terex Trucks stays with dealers
No shift for dealers despite Volvo CE buy-out
Terex Trucks has announced its plans for business following its purchase by Volvo Construction Equipment, with its managing director Paul Douglas saying that with a new name and a new commitment to customers, the company remains committed to the long-haul.
Newly-named as Terex Trucks, the brand, which manufactures rigid and articulated hauler trucks, was purchased by Volvo CE for $160 millon, in a deal that was completed on June 1st.
In the first announcement following the deal, Douglas has said that Terex Trucks will continue to operate as an independent business while at the same time drawing on the resources and expertise of its parent company.
“Our new ‘owned but independent’ status gives us the best of both worlds,” said Douglas. “We retain our lean and agile organisational structure, our entrepreneurial spirit, customer focus and speed of execution – but with the added benefits that being part of a global leader in the construction equipment industry brings with it.”
Douglas said he was using the announcement to make “clear statements” about the future of the company.
“The Terex Trucks name will remain for the long term and we remain fully committed to our entire customer base and product range. That means both rigid and articulated haulers will play important roles in the company’s future, and we will continue to support the entire field population with parts and service.
“We are also committed to retaining our dealer partners, our existing production footprint and our skilled and committed workforce. With a clear leadership strategy within the construction and mining equipment segments, Volvo CE is proving to be the perfect partner for us. At Terex Trucks it’s business as usual – but with added muscle.”
Separately the company confirmed for CMME that the Terex Trucks would continue its association with the current dealers in the Middle East region.
For its part, Volvo CE says its will only apply a ‘light touch’ to the running of Terex Trucks, with Andrew Knight, VP Strategy and Business Development at the Swedish equipment maker calling the acquisition “a lean, agile and well-run organisation”.
“Volvo CE has made no secret of its longstanding wish to offer customers a rigid hauler option,” said Knight. “Terex Trucks products are well respected in the market and there is a large field population to support its parts business. Both rigids and articulated haulers provide a strong complement to Volvo CE’s product range, and since the deal closed we have had greater insight into the strengths of the business – reinforcing our view that Terex Trucks is a good strategic fit.”
However Volvo CE is also prepared to invest anew in the brand, said Knight. ‘We acquired this business with a very clear vision for the future with a strong desire to grow the business. As such we will be providing strong support in terms of resources and investment wherever it is required”.
With the major buyers of the Terex Truck product being mining companies, a sector that is currently depressed, Douglas said that the timing of the agreement bodes well in terms of the market outlook.
“The benefits of our new investment and cooperation relationship with Volvo CE looks set to coincide with the cyclical upswing of the segment, further strengthening the acquisition rationale. Terex Trucks as part of Volvo CE provides a mutually beneficial best of both worlds for both companies – we are stronger together,” concluded the brand’s MD.
