Volvo pays $30 million for stake in truck stop chain

GREENSBORO, N.C. (July 30, 1999) — Volvo Trucks North America Inc. paid $30.0 million in cash yesterday to become an equity holder of Petro Shopping Centers LP, a travel plaza operator that services heavy-duty commercial trucks and drivers.

Volvo would not specify the extent of its equity position in Petro, except to say that it holds the second-largest stake. Mobil Oil Corp. is also a partner in the firm, which owns and operates 51 travel plazas in 29 U.S. states.

Four months ago, rival Freightliner Corp. purchased a stake in TravelCenters of America, an operator of travel plazas and service centers, for an undisclosed sum. Both Freightliner and Volvo plan to use their truck stop interests as satellite locations to sell and service their vehicles.

Service will focus on preventive maintenance and repairs through Petro’s Petro: Lube service bays, expanding Volvo’s ability to provide customers with additional maintenance services on a 24-hour a day, seven-day-a-week basis.

“Petro: Lube facilities will complement Volvo’s existing network of 208 full-service dealer facilities,” Volvo stated. “Additionally, Petro: Lube facilities may refer customers needing major repairs to nearby Volvo dealers.”

Qualified Volvo truck dealers may choose to become new Petro: Lube franchisees, Volvo said, and may 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.

Volvo also plans to provide on-site business-management services and education. Some of these services will be provided by Volvo truck dealers in co-operation with Petro’s company-owned and franchised locations, Volvo said.