Today's Front Page
January 16, 1996
Daily Trucking and Transportation News
Wabash and Fruehauf Form Alliance
LAFAYETTE, Ind. -- Two of the biggest names in the trailer business announced a strategic alliance last week. The alliance brings together industry leader Wabash National Corp., Lafayette, Ind., and financially ailing Fruehauf Trailer Corp., Indianapolis, the oldest and best-known trailer make.
Under the agreement, Wabash will make composite plate and refrigerated trailers, using Fruehauf components, for sale by Fruehauf under its nameplate and through its dealer system. Fruehauf makes its own line of axles, suspensions and landing gear.
The companies also will cooperate in used trailer sales and will jointly supply aftermarket parts to each other.
Aftermarket parts are one of the most profitable areas of the trailer business, worth an estimated $110 million total to the two companies, with 75% of that going to Fruehauf, according to estimates from market analysts.
And through Fruehauf's national network, Wabash now has an avenue for selling its growing fleet of used trailers. Other aftermarket and used trailer programs will be developed, the companies said.
--Jim McNamara
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