ASHEVILLE, N.C. — Volvo Construction Equipment North America will establish a chain of franchised construction equipment rental outlets initially focusing on compact equipment over the next three to four years.
VCENA president and CEO J. P. Roszell called the rental strategy “essential for the distribution of compact equipment, a significant segment of both the market and our own product line.”
Volvo's line of compact excavators and compact wheel loaders will be the staple of the new rental program.
Industry veteran Michael Farley, who most recently served as president of Brambles Equipment Services, was named senior executive for the rental operation and global product line, and will be based in Brussels, Belgium. Del Keffer was named vice president, rental business line manager North America, and Barry Natwick, global fleet manager for rental. Keffer and Natwick are based in Asheville, N.C.
‘To achieve our goal for the new venture — total market coverage within the time frame of three to four years — we will make full use of our existing dealer network, which will be an integral part of the distribution channel.’
— J. P. Roszell,
CEO Volvo Construction Equipment
“To achieve our goal for the new venture — total market coverage within the time frame of three to four years — we will make full use of our existing dealer network, which will be an integral part of the distribution channel,” Roszell said. “We will encourage separate and dedicated branches [that will function as] ‘stand-alone’ from existing equipment sales branches. New outlets and compact/rental focused ‘franchisees’ will also be required to meet our market objectives.”
Roszell said that current Volvo dealers will have the first option to cover their present territories using existing and new branches. For areas not acquired by a dealer, Volvo will establish compact equipment focused franchisees to completely cover the territory. Dealers will support rental outlets other than their own with parts, service and warranty fulfillment in return for revenue sharing on Volvo products purchased and sold by franchise owners, and for parts and major service repairs on equipment owned by the franchisee.
Volvo will support the development and expansion of the rental operation for both dealers and franchise owners with business plan assistance, special financing for Volvo compact products, group purchasing plans of non-Volvo products at competitive prices, facilities design and personnel training at the start-up of the outlets, computer operating systems, brand management and support advertising.