Author: Vitaliy Dadalyan

Tag, Lonestar Merge for Large Freightliner, Western Star Truck Dealership

TNTX will represent over $700 million in annual sales and employees around 1,000 employees in 23 locations. Image via Daimler

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Tag Truck Centers and the Lonestar Truck Group have merged into a new company called TNTX, creating one of the largest Freightliner and Western Star dealers in the country, according to Daimler Trucks North America.

The companies will continue to operate separately in the interim, but when the merger is complete, TNTX will represent over $700 million in annual sales and employ around 1,000 employees in 23 locations.

“This merger is unique in that there is no change in reporting responsibilities,” said Gary Dodson, CEO of TNTX. “This will make the transition angst-free for employees and customers. Customers will see no difference in operating philosophies or policies, as our ownership group was closely aligned and worked together for many years prior to this merger.”

Tag recently opened a new 190,000-square-foot Freightliner dealership in Memphis, Tennessee. The expansion moves all of Tag's Memphis operaitons to one location that was designed and built with a focus on customer experience and operational efficiency.

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Tag's new 190,000-square-foot Freightliner dealership in Memphis, Tennesee, features a new and used truck sales center, a parts and service center, a parts distribution center, a full body shop, and the Tag Technical Institute. Photo: Daimler

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Included on the 40-acre site is a dedicated technician training facility. There are 175 full-time employees working at the new site.

“Investing in a facility designed around uptime proves that we are committed to keeping our customers' trucks on the road,” said Tommy Earl, president of Tag Truck Center.

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ELD Mandate Pushes Fleets to Order Record Number of Trailers

Tightening capacity, partially attributed to effects from the ELD Mandate, December 2017 was the best month for trailer orders ever, according to FTR. Photo: Stoughton 

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Trailer orders in the U.S. hit are expected to hit an all-time high of 47,000 units to end the year, the highest total yet recorded by the analysts at FTR, who recently released the preliminary numbers for December.

When December's order numbers are finalized, the total is expected to exceed the previous high of 45,800 reached in October 2014. At 47,000 units, trailer orders are up 10% over November's numbers and up 38% in year-over-year comparisons.

Fleets are ordering thousands of dry van trailers to deal with tightening trucking capacity that FTR attributes to the ELD mandate that went into effect last month. Freight has continued to grow without enough equipment to haul it, and carriers are resorting to more drop-and-hook to compensate for the lack of drivers, according to FTR. The extra trailers are needed to manage the increasing demand.

Economic growth has also kept trailer demand strong in other segments. Refrigerated freight has remained robust, while the flatbed market surged due to construction and manufacturing growth. Trank trailer demand has also increased with higher crude oil prices.

“December was just an awesome month for trailer orders,” said Don Ake, FTR vice president of commercial vehicles. “We have seen pressure build on equipment markets for several months, and this shows Q1 is going to be hectic as fleets scramble to keep up with freight demand.”

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