US vehicle logistics services provider MetroGistics is joining up operations and customers with trucking provider Precision Motor Transport Group (PMTG) and less-than-truckload service provider, McNutt Automotive Logistics. Both MetroGistics and McNutt will eventually merge to become a single company.
The agreement will produce a mixed transport asset heavy and light model: ‘asset medium’, according to the three companies, which share the same private equity investor, Corinthian Capital Group. MetroGistics and McNutt, both based in Missouri, act as brokers for moving vehicles across the US; PMTG, meanwhile, is an asset-heavy car-haul company, based in Michigan, that transports vehicles via 300-plus covered and uncovered trucks.
Together, the three companies will serve customers that include new car manufacturers, the used car market, new and used car dealerships, remarketing companies, auctions, and personal vehicle transport. According to Scott Naz, co-owner of MetroGistics, the partnership would lead to a higher level of transport flexibility and services, particularly at a time of increased vehicle sales and limited trucking capacity in the US.
“It’s going to increase our operational reach tremendously,” Naz explained to Automotive Logistics. “Before we didn’t have access to company-owned trucks, but now we have access to PMTG’s 330 trucks that we can work with every day. It’s a very exciting move for us, and for them.”
MetroGistics works with more than 2,500 carriers in its brokerage network that will now be available to PMTG, which could help the company overcome capacity bottlenecks as well as carry out smaller transport moves, said Naz. “PMTG will be able to increase their operational reach too. Before perhaps they may have struggled to do a single move, but now they have access to us,” he said.
“For example, one of PMTG’s customers had overflow opportunities, but PMTG was basically at capacity, so couldn’t service a one-off move their customer needed,” explained Naz. “However, they now have access to over 2,500 carriers, all across the country, and will be able to utilise our services to help expand their reach, take on more opportunities, and handle one off moves.”
“We are very excited about working with the MetroGistics team and their professional blend of technology and logistics services to reduce lead times with our customers and empty miles on our trucks,” said Dallas Knepp, COO of PMTG, in a statement.
For MetroGistics, the partnership offers ready access to capacity, and the possibility to secure longer-term contracts. “We have 330 trucks behind us that we can start projects with, try to sell more long-term deals, and go after more contract opportunities,” Naz said.
McNutt and MetroGistics will combine under one entity, eventually becoming a single company, working closely and using the same technology, according to Naz. PMTG will be under the same umbrella as Corinthian Capital, but will remain as a standalone company with its own systems and processes. MetroGistics will have access to PMTG’s trucks, and PMTG will have access to MetroGistics’ and McNutt’s carrier network.
With the announcements of the partnerships, the three companies are also combining their customer focus. PMTG was solely focused on the new car side and non-domestic end of the new car segment, MetroGistics focused on the new car side, but had 40% of its business on the used and remarketed side, and McNutt focused on the dealer side.
“We’re bringing everything together and it’s pretty powerful,” Naz said.