For more information on Champion Motor Graders, contact: Woody Ferrell, Vice President Sales & Marketing 8844 Mount Holly Road Charlotte, North Carolina, 28214 Telephone: 704-392-1038 Fax: 704-394-0802

FOR IMMEDIATE RELEASE
September 2004

CHAMPION MOTOR GRADERS, A NAME FAMILIAR TO THE
CONSTRUCTION INDUSTRY IS BACK IN THE NEWS

Gary Abernathy (r), President of Champion Motor Graders, stands with Bryan Abernathy, Vice-President, Sales and Marketing in front of a new Champion C80 B Series Motor Grader.

Charlotte, NC - On July 1, 2004, one door closed and another door opened. That is the day Volvo Compact Motor Graders was acquired by Champion Industries LLC. “We had always hoped that if Champion or Volvo decided to divest itself of this line that they would talk to us first,” said Gary Abernathy, President of the new Champion Motor Grader organization. “We are very excited by this turn of events. To once again be affiliated with the Champion name as it relates to motor graders is something that we feel very strongly about.”

Abernathy's original compact motor graders business became part of the Champion Motor Graders line in 1993, which was then acquired by Volvo Construction Equipment in 1997. When Volvo recently decided to divest the compact graders, and retain only its full-size graders, Champion Industries was formed to take over the line.
According to Gary Abernathy, the Champion line got its start as a family owned company as did his own organization and he considers it a real privilege to be able to put the Champion name and gear logo on their machines.

“With so much at stake, I am sure that if Volvo did not feel we could properly represent the name and the built-in brand equity, we would not have been given the opportunity.”

Being Part of a Worldwide Organization
“From a manufacturer’s perspective, it was wonderful to be part of two of the greatest names in the history of the construction equipment industry - Volvo and Champion,” said Bryan Abernathy, Vice President of Marketing & Sales. “Today, the new Champion Motor Graders are better as a result of our association. You don’t spend that long with some of the greatest construction equipment engineers in the industry without learning lots.”

Some of the changes and product improvements that have been incorporated into both the C-60/66 B and the C-80/86 B Motor Graders include a new pedestal, incorporating industry standard controls, and an isolated cab, which dramatically reduced sound levels while improving operator comfort and productivity. Other benefits of being part of the world’s leading manufacturer of construction equipment is that in 2002, the Charlotte operation and home of the Compact Graders received its 9001 ISO Certification and this year received its 9000:2000 Certification.

“Having ISO Certification means that our employees know how to build a compact grader,” said Bryan Abernathy. “This certainly differentiates us from some of the other niche manufacturers who may not always follow a disciplined procedure during the build or engineering portions of the job.”

"The certification process was very gratifying for us," he continues. "We have always had a strong quality discipline. With help from Volvo, we were able to document our existing procedures and meet the ISO guidelines without needing any real changes to the way we build. We just had to get it written down according to form."
Bryan feels that ISO certification, along with the fact that Champion makes the only compact graders with EPA Tier 2-compliant turbo engines, differentiates them from the other players who have not achieved this level of excellence. “This should give us a distinct advantage on governmental bids where meeting EPA standards will soon become part of the bid spec.”

Right Machine for the Job
Gary Abernathy pointed out that other markets where the machine has success include municipalities and State DOTs. In the case of the municipalities, city workers are using it for patchwork on roads or ditching. In the case of the State Department of Transportation, with the price of fuel and labor rising in direct disproportion to budgets available, some of the DOTs are choosing the compact graders for many of the same reasons contractors have been using them for years – easy to get to the job site, more convenient and they do not need a certified grader operator for the machine.

The Growth of the Compact Market
According to industry reports, the compact equipment sector is still growing. Some of this is driven by subdivision projects, where homes that are being built closer together. The end result for grading contractors is the need for maneuverability. “The contractor still has to get onto the site, complete his work and get off the site. This makes the new Champion Motor Grader the right machine for the job.

“Contractors have always liked the machine because they have been able to maneuver it around. As well, they like it because of the versatility it offers and the attachments that are available. For some of them it is almost like a tool carrier,” said Bryan Abernathy. (See sidebar story on grader attachments)

“As well, there is a significant price differential between the compact grader and a regular-sized grader. If all you need is a 15,000 lb. grader,” continued Gary, “then our C80 B will do the job. Governments and contractors do not want to spend the money to bring a 30,000+lb. machine to the job site when a smaller more efficient one will do.” Abernathy noted that machine weight can be a critical factor. With the state of today’s bridges in many parts of the world, road profiles can restrict certain large pieces of equipment from the job site. If the load limit on the bridge is 20,000 lbs., then sending a 33,000 lbs. machine to do the job is not an option.

Next Steps
Both Gary and Bryan are looking forward to the challenges ahead of them including building a dealer base. However, they know that with the equipment that they are offering, the experience that they both bring to the operation and the team that they have been working with for the last 11 years, the new operation is ready for those challenges. “We made a lot of good friends in the Volvo organization and we plan to stay in touch with them.”

Champion Motor Graders, the newest company in the construction equipment industry with a long and successful history, has their head office and manufacturing facility in Charlotte, NC. At this plant, they manufacture motor graders with an operating weight of 12,000 to 15,500 lbs.