US dealer group to acquire Daimler-aligned Eagers network for $108M

A leading United States Daimler Trucks dealership group will partner with Daimler Truck and Bus the truck manufacturer has announced.

Velocity Vehicle Group is set to acquire all 15 Daimler Truck and Bus service dealerships currently operated by the Eagers Automotive group, pending completion of formal approval processes, across Australia.

Completion of the acquisition is targeted for the first half of 2021.

The deal, which combines the truck business and property in Sydney, is reportedly worth $108 million.

Eagers Automotive has pursued an ongoing simplification of its automotive and retail business which will incorporate Hino and IVECO sales activities following the divestment.

Last week Eagers shares reached a high point of $14.15 a new record for the company who employs 650 staff in Melbourne, Brisbane, Sydney, Newcastle, Adelaide and Perth.

Daimler Truck and Bus President and CEO, Daniel Whitehead, thanked Eagers Automotive 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,” said Whitehead.

Just like its US operation, Velocity Vehicle Group’s Australian network will only sell and service commercial vehicles, with a firm focus on the unique 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 said.

“Daimler currently has the best and most advanced cab-over and conventional trucks in Australia, and they will now be sold and supported by a strengthened dealership network of equal calibre,” he added.

In a statement Velocity Vehicle Group Co-Presidents Brad Fauvre and Conan Barker said they were excited by the prospective of having the Australian Daimler dealerships of Eagers Automotive join the Velocity team.

“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,” they said.

The Velocity Vehicle Group move follows a raft of Daimler Truck and Bus Australia network improvements including the addition of RGM Maintenance and Tristar Truck and Bus groups, the expansion of the Mavin Truck Centre network footprint and the Elite Support initiative further boosting customer satisfaction at several dealerships.

According to Daimler Truck and Bus Australia Aftersales and Network Operations Director, Greg Lovrich, the announcement represents a significant investment of Velocity Vehicle Group.

“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,” he said.

“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,” said Lovrich.

Daimler Truck and Bus Australia is represented by 55 sales and service dealerships across Australia.

It is solely focused on trucks and buses as a stand-alone entity, having separated from the local Daimler passenger car and van business in 2017.

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