SPECIAL REPORT: Kenworth to deepen footprint in the East

SAINT JOHN — It’s not often someone in this industry waits 35 years to make his riskiest business move. But that’s exactly what one of Atlantic Canada’s most well-known and respected International dealers did last month when he decided to bat for a rival truckmaker.

It wasn’t an easy choice for Mike Nagle of Bayview Trucks and Equipment to take his two New Brunswick dealerships and two parts centers and put a Kenworth Truck Co. banner across the top of their front doors. Still, it was an offer Nagle says he simply couldn’t refuse.

Sure, that’s an old song that’s been sung by businessmen since the beginning of economic times. But there’s no other way for Nagle to explain his reasons for leaving a brand he built his name with. Nothing personal. But with Kenworth having little stake in the Maritimes (just one facility in New Glasgow, N.S.), this was an opportunity that couldn’t be ignored.

“Kenworth had an open market down here where they didn’t have any dealer representation. We were talking for quite some time, and decided it was the right thing to do because of the opportunities this presented me and my staff,” Nagle tells TodaysTrucking.com in an interview. “Just about everyone wants to own or drive Kenworth trucks — they’re engineered to handle the rigors of over-the-road and vocational applications, particularly here in New Brunswick.”

Kenworth has conquered the western market, now
it’s trying to do the same in eastern Canada.

He tells us that he believes the Atlantic Canada market was becoming oversaturated with International dealers to the point that it was very difficult to grow his business. “They may have had more dealers than they need in this region.”

Kelly Kennedy, Kenworth Canadian region manager, says the truckmaker had been exploring expansion in Atlantic Canada for a while. It was just a matter of finding the right man for the job.

“Kenworth continually works with our dealer distribution network to expand the number of service points either by upgrading facilities or establishing new facilities,” he tells us. “In New Brunswick, the partnership is complementary. It’s turnkey from a Kenworth perspective where we can gain access to the marketplace with a respected and talented dealer right away.”

Bayview Kenworth, as the franchise is now called, is operating two full-service Kenworth dealerships in Saint John and Fredericton, and parts-only facilities in Sussex and St. Stephen, which will still service just about every type of truck, says Nagle. The company, he adds, is also on the verge of opening a Moncton dealership.

Plus, now that Nagle has the support of Paccar Financial and PACCAR Leasing (PacLease), he can offer customers leasing and financing options that weren’t available before.

As for the task of advancing a brand that up until now has had minimum presence in this region, Nagle says he plans to draw on the experience of his sales force and established customer loyalty. He says he’s pretty confident he can convert a large percentage of customers to the new nameplate.

“Yes, I think so. We’ve been in business since 1972, and we have a strong following of customers, which I think we can continue,” he says.

In Western Canada, Kenworth has undoubtedly conquered the owner-op, logging, and heavy-duty oilfield sectors. Kennedy says the company is poised to grow in a variety of segments in Eastern Canada, especially in resource-based sectors and a burgeoning construction market.

Kenworth’s decision to expand its network comes at a time of stagnant class 8 sales as fleets trim capacity in response to a weakened U.S. market and a dwindling pool of professional drivers. Kennedy, though, is far from concerned with the amount of fruit the Canadian market will bear going forward.

“The big picture is we still live in very good times in Canada. It’s true it’s not like how it was last year because of the artificial stimulation to buy trucks because of EPA emissions rules. What’s also complicating lives right now is our currency, which obviously affects exports and trucking companies that run north-south. So there’s less activity in those lanes,” he explains. “But as far as the domestic market goes, there still quite a bit going on. And in Eastern Canada, there’s still a healthy demand for trucks.”

That’ll likely become even more evident in the coming months as carriers who previously chose to stay away from ’07 engines now begin turning over their fleets. So far, customers who are running the new engines are pretty comfortable with them, says Kennedy.

“It’s a little early … but overall I think it’s a pretty successful transition.”