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VCES’s Merger Expands Service Area in California

Wed February 25, 2009 - West Edition
Construction Equipment Guide

Volvo Construction Equipment-owned dealer, Mathews Machinery Inc., Lakeside, Calif., officially merged its business operations with Volvo CE’s company-owned dealership Volvo Construction Equipment & Services (VCES) in California on Jan. 4. At the time of the merger, VCES appointed Tom Younger, former president of Mathews Machinery, as the new president of VCES.

“The two Volvo Construction Equipment dealers decided to come together to better serve their customers in California by leveraging the strength of their distribution and the outstanding customer service that both companies have always offered,” Younger said. “The merger creates more one-stop retail locations for Volvo products and services, as well as the other complementary brands that we carry.

“By merging, Mathews, now VCES, increases distribution, the number of customers it can serve, and the number of service trucks in the field, thereby serving more customers, Younger said.

“VCES and Mathews now are stronger and even more customer-focused.”

VCES’s success in this industry is based heavily on its relationships with its customers. Younger emphasized that Mathews Machinery customers can expect to continue dealing with their familiar sales reps and product support people.

“Relationships are the heart of this business,” he said. “Knowing how important the relationships are to this business and our customers, we have retained our personnel from both companies.”

Younger confirmed that VCES has retained Mathews’s management teams.

“Our management design in California allows for decisions to be made at ground level,” Younger said.

As a result, both Dave and Mike Mathews, former owners of Mathews Machinery, will continue to hold decision-making positions. Mike Mathews has been appointed vice president of Southern California and will team up with Al Fernandez, vice president of Northern California. Fernandez has been with Ingersoll Rand/VCES Northern California for 20 years.

“The key is that both are empowered to manage their business enterprises making decisions which best fit their customers,” Younger said. “VCES has a strong commitment to communication and dedication to managing the business at the local branch level.”

In 2007, Volvo acquired Doosan’s Road Machinery business and also acquired the company-owned distribution, Ingersoll Rand & Services (IRES).

“Volvo proudly changed the name to VCES to reflect the new product line,” Younger said. “Now, with the Mathews merger, VCES has eight branches in California and 20 nationwide.”

Mathews Machinery was the authorized dealer for Volvo CE in California since 2002 and was acquired by Volvo CE in early 2008.

The VCES dealer operation was established by Volvo CE in 2007. This newly-organized Volvo CE dealer network in California will operate under the VCES name with eight strategically-placed branches in Los Angeles, San Diego, the San Francisco bay area, Fresno, Livermore, Bakersfield, Corona, and Sacramento.

“Mathews has been a successful Volvo dealer since it was purchased in 2002,” Younger said. “They have established positive relationships with their customers in California and are known for their outstanding customer service. I think Mathews is a great fit for VCES.”

“To provide our customers with easier access to our locations and an overall better customer experience, VCES is consolidating the two Sacramento facilities and relocating in San Diego,” Younger added. “The VCES branch in Sacramento is moving out of their Bell St. facility and into the former Mathews branch at 8594 Fruitridge Road. The 25,000 sq. ft. facility was remodeled recently and is larger and very efficient.”

Both of the San Diego area facilities — El Cajon and Lakeside — have closed and the combined team just moved into a new 24,000 sq. ft. facility at 12345 Mapleview in Lakeside, Calif.

“We look to retain the customers of both companies, continuing with the close relationships we have all built over the years,” Younger said. “Before this merger, VCES only had four locations from which customers could order parts and send units in for repair and Mathews only had six. The merger gives the new organization, in effect, a larger parts inventory and more service capacity at each location.”

With eight branches in California and 20 nationally, customers have expanded locations where they can pick up parts and more service trucks in the extended area. VCES also is implementing a new dealer operating system to promote better customer service.

Additionally, VCES will continue the network of distribution facilities in California that are stocked to meet our customer’s daily needs.

“We absolutely offer preventative maintenance solutions which are flexible and can be tailored to the specific needs of our customers,” Younger said. “As part of our routine service calls, we provide free inspections. These inspections, performed by our trained technicians, are maintenance made easy and the best way to ensure that our customer’s machines are always up and running properly.”

He added that the benefits of PM agreements and care inspections are extended machine life, increased uptime and a higher resale value. PMs and inspections can be performed in VCES shops or in the field. The company also has a fleet of lube trucks for on-the-job maintenance.

Every VCES branch in California will carry the full Volvo product line, which includes Volvo wheel loaders, motorgraders, excavators, compaction, artic haulers, compact equipment and Volvo-Blaw Knox pavers.

“We are also an authorized dealer for Doosan’s Ingersoll Rand branded portable power equipment,” Younger added.

Each location also carries Stanley-LaBounty attachments, Dressta crawler dozers, Champion mini graders and Zieman trailers.

Younger explained that the decision to change directions was not an easy one. He said the company wanted to make sure customers wouldn’t lose out when dealing with a big company.”

“We thought long and hard about merging the two companies and changing the name,” Younger said. “Even though we believed that that these changes would enable us to better serve our customers, we were concerned as to how our customers would view the change. In the end, we decided that our customers are smart and will understand the changes and see how they benefit.”

He explained that the merger brings together and leverages the positives of each side.

“The whole is greater than the sums of its parts so to speak,” Younger said. “Obviously, having Volvo as our owner gives us financial stability and flexibility, which builds confidence in the customer. Through Volvo, we have the capital to maintain our personnel and facilities in the down cycle and to grow in the future. Volvo has already approved capital for improvements in 2009.”

Younger said he thinks contractors should buy equipment right now because, in California, CARB has requirements to reduce emissions and particulates. He added customer fleets must meet horsepower requirements.

“New equipment reduces operating cost, lowers fuel consumption, and extends uptime,” Younger said.

“What really distinguishes us is our own unique blend of products, parts, services and people,” Younger concluded.

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