Penske Automotive Group Inc. (PAG) announced that it has launched its truck rental service in Australia. The company will provide the service under the brand name Penske Truck Rental in collaboration with its Brisbane, Australia-based wholly-owned subsidiary Penske Commercial Vehicles.
Penske Commercial Vehicles operates the Brisbane Truck Centre. It has exclusive distribution rights for MAN and Western Star Trucks in Australia and New Zealand. Under the new venture, the expertise of Penske Truck Leasing fleet operations will be combined with Penske Commercial Vehicles’ market knowledge.
The rental service will initially offer a 20-truck fleet including high-specification MAN and Western Star prime movers. Additionally, the company plans to expand the rental service to other areas to cater to a larger customer base.
The trucks offered by Penske Truck Rental are MAN TGS 6x4 which is powered by 540 horsepower MAN turbo diesel and 12-speed Tipmatic transmission, and Western Star 4864 FS2 and Western Star 4864 FXC prime movers. The FS2 is equipped with a day cab, while the FXC has a sleeper cab. Both the trucks are powered with 560 horsepower DD15 turbo diesel and Eaton Corporation plc’s (ETN) UltraShift Plus transmission. In addition, the trucks are equipped with toll transponders, GPS units and have full fuel tanks to ensure productivity.
One of the leading truck rental and leasing brands in North America, Penske boasts a fleet of more than 200,000 trucks. Currently, the stock carries a Zacks Rank #3 (Hold).
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Some better-ranked stocks that are worth considering in the auto sector include Lithia Motors Inc. (LAD) and Asbury Automotive Group, Inc. (ABG). Lithia Motors sports a Zacks Rank #1 (Strong Buy), while Asbury Automotive has a Zacks Rank #2 (Buy).