The world’s largest provider of integrated logistics and transportation solutions, Ryder System Inc. (R) announced the opening of its new used vehicle sales center in Orlando, Florida.
The centre is located on approximately three acres of land to display an array of over 75 commercial vehicles, including light-duty and heavy-duty straight trucks, tractors and trailers. The new facility is well positioned near Ryder’s full service lease and maintenance centre.
Management believes that the value proposition for used vehicles is at record high and therefore, the company expects to capitalize on this lucrative opportunity. Ryder is looking forward to invest in the marketplace and provide its customers with affordable and well maintained used vehicles to support their business needs.
Ryder is currently concentrating its used vehicle business in the Orlando market as it believes the target market there is growing. It will display a host of high quality used vehicles for sale including a complete maintenance history and a 30-day Powertrain Warranty. Additionally, the company is also planning to provide customers at this new facility with flexible financing options for business solutions.
Ryder’s Full Service Lease product line is a customized transportation solution that provides commercial vehicles for lease and a various ancillary services, including emergency roadside assistance, preventive maintenance services, fueling, equipment evaluations and specification, fleet management reporting tools, administrative support as well as driver safety programs.
Ryder’s Commercial Rental product line provides customers with rental trucks on a short-term basis to meet their needs for supplemental capacity, while Ryder’s Contract Maintenance product line provides maintenance to both Ryder’s Full Service Lease customers as well as other customers who use 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 with a Zacks #3 Rank (Hold).
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