Automotive Resources International (ARI) recently purchased the assets of Auto Truck Inc. ARI is a Holman Enterprises company, which consists of more than 25 operating companies. Following the acquisition by ARI, Auto Truck Group LLC was formed from the merger of Fleet Body Equipment and Auto Truck's assets. Auto Truck Group President Jim Dondlinger and his management team were given the responsibility to run the new Auto Truck Group operation. 

In the following interview, Dondlinger discusses the history of ATG, the increase in capabilities to serve its customers, the broader base of opportunities for his group, and the state of the industry.

WT: What changes do you anticipate will result from the new ownership?

DONDLINGER: The management style of Holman Enterprises is to empower its proven management teams to run their businesses while providing financial control and necessary resources to grow the business. The Holman management approach proved to be very successful in the case of Fleet Body Equipment and will now empower the ATG management team to continue to operate and grow the combined operations in the same way. 

ATG's existing management structure will remain as is and will be in charge of running the new operation. The new structure will give us strong financial stability, systems, and technical support. The change gives us the opportunity to leverage our size, combined expertise, and facilities to better serve our customers. At the same time, the change gives our people the opportunity to grow along with us.

WT: How will the recent integration of Fleet Body Equipment improve Auto Truck Group's offerings?

DONDLINGER: Fleet Body Equipment has core competencies, really good people, and brings a knowledge base and new capabilities to our combined organization. In this situation, one plus one is going to equal much more than two. Fleet Body Equipment facilities in Kansas City, Mo., and Fort Worth, Texas, will give us the potential to improve relationships with the OEMs that produce vehicles in those areas. The locations will also allow us to better serve our fleet, niche, and local markets.

WT: Briefly explain the history of Auto Truck Group, including how and when the business grew.

DONDLINGER: The Auto Truck Group started as the Auto Truck Steel Body Company in 1918. It was purchased from the original owner by my grandfather in 1927. Over the next three decades, he ran the business until he passed away in 1962. My dad, who already was active in the business, took over until he retired in the mid-1980s, which was when I became president of the company.

From the 1920s through the mid-1970s, we had one facility in Chicago. In the early 1980s, we had outgrown this facility and built a new, much larger facility in Bensenville, Ill. By 1985, we had already outgrown that facility and added on to it.

In 1987, we recognized the fleet industry was looking for a way to handle vehicles coming from the manufacturers. General Motors built a plant in Fort Wayne, Ind., and we opened Fort Wayne Fleet Equipment Company there as well. We added a new building in 1991 in Chicago and expanded the Fort Wayne facility in 1995. In 1997, we bought out Layton Truck Equipment in Colorado Springs, Colo. In 1999, we added a Louisville, Ky., operation with Ford ship-through capability in response to the needs of our large fleet customers.

We also purchased Ledom-Hayes in Colorado Springs, which added to our capacity and market on the Front Range of the Rocky Mountains.

Today, ATG operates from seven locations. The three types of customers we serve are fleets, niche markets, and the local customers. Our fleet customers are in the energy, utility, pest control, and many other specialty businesses. 

An example of a niche market for us is the railroad market. The local customers include municipalities, police departments, construction contractors, and snow and ice equipment companies. Growth is part of our strategy and we believe it is necessary to support our customer base.

WT: How important to ATG is the interaction with fleet management companies (FMCs)? What should fleet managers look for in an upfitter?

DONDLINGER: Over the last 25 years, FMCs have become a core part of our business because they manage the fleets that require our services. Serving them well requires the ability to handle vehicles all the way up to Class 8 trucks and includes a wide range of applications from simple to very complex. We recognize that we have to serve our FMCs with integrity, the highest level of service, and the best possible pricing, so we continue to earn their trust in the future.

WT: What upfitting capabilities and services does ATG offer?

DONDLINGER: Our upfitting capabilities were put into place and tailored to serve the complexities of an FMC's customer base. We offer ship-thru pool, solid modeling, computer-aided design, fabrication, upfitting, field service, IT and data support, and the brick and mortar of seven locations.

WT: How has the industry changed in the past few years with respect to manufacturers, supply chain management, etc.?

DONDLINGER: There has been a consolidation in the industry and larger entities have evolved. You can't sit still to compete in the marketplace today -  you have to grow. Being bigger brings new opportunities. Opportunities are in many areas, not just upfitting. 

WT: Can you give us some insight into how these changes will improve or challenge the upfitting process and industry in the coming years?

DONDLINGER: When ATG first started, we could survive very well in just the local market. But to serve the FMCs, niche markets, and large fleets, you need to have capabilities in many areas. Not all players are capable of doing that.

There's also a growing need to transcend borders into Canada, Mexico, and beyond North America. Companies that are globalizing fleets are looking for upfitters with the capabilities to serve them. The market is going to continue to require sophistication and abilities such as data integration, engineering, and immediate information. We believe Auto Truck Group is now positioned to deliver on all accounts.