Ryder System Inc. (R) announced that it has opened a new used vehicle sales center in Montebello, California.
The facility spans approximately two acres of land and displays an array of over 90 vehicles, comprising panel vans, light- and heavy-duty straight trucks, and tractors. Each vehicle is Ryder Road Ready certified and comes with a 30-day warranty and complete vehicle maintenance history.
Ryder is a leading provider of integrated logistics and transportation solutions worldwide. It is currently focused on its used vehicle business in Southern California to cater to the customers’ growing demand. The company has almost doubled the size of the new facility compared to its earlier center to accommodate higher number of affordable and quality used vehicles.
Management believes that the value proposition for used vehicles is at a record high and therefore, the company seeks to capitalize on this lucrative opportunity. Ryder is looking forward to invest in this expanding market and provide its customers with affordable and well-maintained used vehicles to support their business needs.
Ryder’s Full Service Lease product line is a customized transportation solution that provides commercial vehicles for lease as well as various ancillary services, including emergency roadside assistance, preventive maintenance services, fueling, equipment evaluations and specification, fleet management reporting tools, administrative support and driver safety programs.
Ryder’s Commercial Rental product line provides customers with trucks rented on a short-term basis to meet their supplemental capacity needs, while Ryder’s Contract Maintenance product line provides maintenance for both Ryder’s Full Service Lease customers as well as other customers using Ryder’s network of facilities and technicians to maintain owned trucks.
Over the long term, Ryder plans to invest strategically in commercial rental vehicles, maintenance technology, rental fleets, sales and information technology initiatives. These investments are expected to propel revenue and earnings growth in future years. Additionally, a sound balance sheet would facilitate the company to expand its footprint through more acquisitions and gain more market share than competitors like Con-Way Inc. (CNW).
Currently, we maintain our long-term Outperform recommendation on Ryder. Besides, the company holds a Zacks #3 Rank, which translates into a Hold rating over the short term (1-3 months).
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