Penske takes over MTU Detroit Diesel in Oz

Penske continues expansion in Australia with the acquisition of MTU-DDA, including the distribution of Allison transmissions

Penske takes over MTU Detroit Diesel in Oz
Penske Automotive chairman Roger Penske.


Penske Automotive Group, the US-based international transportation services company, has announced it has signed an agreement to acquire MTU Detroit Diesel Australia.

The deal includes local distribution of the automatic truck transmissions built by publicly-owned US-based company Allison.

MTU-DDA distributes and supports diesel and gas engines and power systems in Australia, New Zealand and the Pacific.

The company operates in a wide range of on-highway and off-highway markets including trucking, rail, mining, power generation, industrial, marine, agriculture and defence.

Penske has bought MTU-DDA from its two main distribution partners, Daimler AG – the largest truck maker in the world – and MTU Friedrichshafen, which is an affiliate of Rolls-Royce Power Systems.

Penske says the acquisition will bring added scale and complement its existing commercial vehicle business in Australia, which includes distributing and supporting Western Star and MAN trucks.

"MTU Detroit Diesel Australia represents some of the most innovative and well-respected brands in the industry, including MTU, Detroit Diesel, Mercedes-Benz Industrial, Allison Transmission and MTU Onsite Energy," Penske Automotive chairman Roger Penske says.

"As we considered opportunities to grow and enhance our business in Australia, New Zealand and the Pacific, coupling engine and power systems with our existing Western Star, MAN Truck and Bus and Dennis Eagle truck distribution business provided an opportunity to scale our existing operations in an efficient manner."

Penske Automotive says it expects to complete the transaction in the final quarter of this year, after which MTU-DDA is expected to contribute an estimated $225-$250 million in annual revenue.

The MTU-DDA distribution deal follows another big Penkse announcement last month, the launch of Penske Truck Rental, with an initial fleet of 20 high-spec MAN and Western Star prime movers based in Brisbane.

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