Integration of Navistar Dealerships
Rush Enterprises plans to incorporate its recently acquired Navistar dealerships into its operations and culture over the upcoming year, according to Chairman and CEO Rusty Rush.
Expansion and Acquisition Efforts
In 2013, Rush Enterprises focused on growth by acquiring 34 Navistar International dealerships across six states. This year, the company is preparing to integrate these new locations and their employees into its existing business framework, which Rusty Rush refers to as the company’s “culture.” He stated, “This year was an acquisition stage. Next year and beyond will be about integration,” emphasizing that this will be a significant undertaking.
Investment in Technology
The company is speeding up the implementation of a $50 million business system, which includes new computer hardware and software. Contractors will install this equipment in both existing and new stores—referred to as locations by Rush—and the project is expected to be finished by March 2015.
Employee Growth and Operations
By completing these acquisitions, Rush Enterprises anticipates adding around 1,500 employees to its current workforce of 5,400, which spans sales, service, parts, body repair, management, and administrative roles. Rush highlighted the importance of the parts and service sectors in supporting customer trucks, stating, “It’s all about uptime.” He illustrated how maintaining high uptime offers a competitive edge in revenue generation.
Market Position and Strategy
Prior to the recession, Rush Enterprises operated approximately 35 to 40 locations, primarily with Peterbilt franchises. With limited opportunities to acquire more Peterbilt dealerships, the company shifted its focus to Navistar franchises, acquiring locations in various states including Utah, North Carolina, and Georgia. Rusty Rush noted, however, that he ensured he paid fair prices for these properties, despite Navistar’s recent engine challenges.
Team Spirit and Company Culture
In line with the company’s culture, Rush emphasizes team spirit and camaraderie, as evidenced by its sponsorship of NASCAR driver Tony Stewart. This connection not only builds morale among employees but also strengthens customer relationships through exclusive event invitations.
Business Growth and Future Plans
In 2012, Rush Truck Centers sold over 23,000 trucks, achieving $3.1 billion in revenue through various services. With the economy showing improvement, the company has seen sales growth surpassing its target of 10% for the year. Looking ahead, Rusty Rush mentioned the potential for further expansion into midrange truck markets, but acknowledged that the primary focus is now on successfully integrating the new acquisitions.
