17.01.2005

Volvo rents signs up TE.CO in Italy

Volvo Rents has signed a franchising agreement with TE.CO the operator of the Italnolo rental franchises in Italy. There are currently 35 Italnolo outlets across northern Italy.

What is not yet decided is exactly how TE.CO will marry the Italnolo franchise brand with the Volvo Rents franchise brand. The initial plan is to offer existing franchisees the option to stay with Italnolo or dual brand their stores. New stores will have the options to dual brand or become full blown Volvo rent franchises.

The deal provides TE.CO with exclusivity to the Volvo rents franchise for all of Italy.

The Italnolo product range is typical general rental, ranging from Mobile scaffold towers, to Mini excavators to skid steer loaders to material hoists and compressors.

Chris Rees, President of Volvo Construction Equipment Europe, said, “We are very excited with the partnership. TE.CO has established an impressive track record with the successful development of the Italnolo rental franchise. TE.EO will bring a great deal of competence and entrepreneurial flair in developing the Volvo Rents brand and offering in Italy.”

Edmondo Colliva, the founder and President of TE.CO added, “Volvo is a very strong brand and we are looking forward to developing the Volvo Rents business in Italy.”

Vertikal Comment

Volvo CE Rents began its equipment franchise initiative in 2001 and after a slow start, 2004 saw the momentum really begin to build in North America where it now boasts 53 equipment rental centers. In Europe the progress has been exceptionally slow, with only four locations operational, two in Portugal and two in Spain.

Volvo, targeted Italy and Ireland early on in the process, and announced deals with three companies in Ireland back in October 2003 (See vertikal.Net News archive October/1/2003) which did not work out.

In Italy it has taken some time, but this deal could create a strong base in Europe from which to expand.

Italy is moving rapidly from a no go area for general rental to a major market, it is also unusual in that Italians are adopting the franchise rental concept as the preferred way to enter the market.

Even the specialized area of powered access rental has become a promising field, with Rent-Up a specialist access rental franchisor now running around a 1,000 aerial lifts on a national basis.