MotorVac Nabs Penske Chain as Clients

MotorVac Technologies Inc. says it has signed the Penske Auto Centers chain to an exclusive agreement to use MotorVac’s proprietary Transtech automatic transmission fluid exchange system in its North American locations.

The Transtech system was developed by Santa Ana-based MotorVac and is distributed by Snap-On Tools, which so far has sold 750 of the transmission fluid exchangers to Penske.

The Transtech system enables technicians to use a single machine to drain and refill automatic transmissions on almost all makes of cars and trucks, MotorVac President Lee Melody said.

Melody said he is barred by confidentiality agreements from disclosing the value of the deal, but added that the Transtech machines have a retail price of $3,200 each. A wholesale discount of 50% to 60% would put the deal in the range of $960,000 to $1.2 million.

The main value of the agreement, Melody says, is that its puts Penske’s seal of approval on the system, “and that should help boost sales to other customers.”

MotorVac designs, develops, assembles and markets specialty chemicals and shop equipment for servicing fuel systems and transmission systems. The company says its products are distributed in more than 70 countries.

The publicly traded company’s major product is the Carbon Clean system for cleaning auto and truck fuel systems.