GE Capital Transportation Finance, an operating unit of General Electric Company (GE - Analyst Report), recently raised the credit facility ceiling of Rush Enterprises, Inc. (RUSHA - Snapshot Report) to $759 million from $650 million. The increase in credit facility will facilitate Rush to expand its geographical footprint by extending its product inventory.
Headquartered in New Braunfels, Texas, Rush operates the largest network of commercial vehicle dealerships in North America under the Rush Truck Centers name. It offers new and used commercial vehicles, spare parts, service and repair, financing, leasing, and rental services, as well as property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance to its commercial vehicle customers.
Most of these dealer shops are strategically located in high-traffic areas across the country in close proximity to highways. Currently, Rush is on an expansion spree in North Carolina, Ohio, Kansas, Missouri and Virginia. Once completed, this will increase the tally of Rush Truck Centers to 88 across 18 states.
Rush sells multiple brands of heavy-duty Class 8 trucks as well as medium-duty Class 4-7 equipment and light-duty vehicles manufactured by Peterbilt, International, Hino, Ford Motor Co. (F - Analyst Report), Isuzu, Mitsubishi Fuso, IC Bus, or Blue Bird. Rush will utilize the funds from increased General Electric credit facility to purchase new and used truck inventory to support its growth initiatives. On the other hand, an association with one of the leading players in the U.S. trucking industry is likely to help General Electric to further strengthen its market position.
General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products, the company serves over 100 million customers worldwide.
Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. With over 35 years of experience, GE Capital Transportation Finance has provided the commercial trucking industry with customized financing programs that enable dealers to stock products according to individual requirements.
General Electric currently has a Zacks Rank #3 (Hold). ITT Corporation (ITT - Analyst Report), which retains a Zacks Rank #2 (Buy), is a notable company in the industry that is worth investing.