Automotive Fleet
MenuMENU
SearchSEARCH

Mighty Merger of Leasing Giants: McCullagh and Commercial Credit Company

Well known leasing company Commercial Credit Company merged its Commercial Credit industrial Corporation subsidiary with McCullagh Leasing, Inc.

by Staff
February 1, 1971
5 min to read


To casual observers, the hundreds of mergers affecting national companies during the past decade seem to mesh together as smoothly as shifting into high gear while driving a well synchronized sports car. The fact that this is just the impression that consolidating  companies what to convey is often the result of months of pre-planning strategies that coordinate operations, personnel and marketing functions.

But how can a new public image be acquired? How can present customer loyalty be maintained and future customers wooed so that the increased capabilities of this consolidated company can be realized to its fullest potential? These problems faced two well known leasing companies in the fall of 1970 when Commercial Credit Company decided to merge its Commercial Credit industrial Corporation subsidiary with McCullagh Leasing, Inc. To find the answers, managements of both companies pooled their thinking in order to develop an effective, combined marketing strategy. Here are some highlights of that plan.

Ad Loading...

The Situation

Both firms were well established subsidiaries of Commercial Credit Company with significant histories of success in leasing and allied fields. Commercial Credit industrial Corp. was formed in 1964, seven years after its parent organization entered the field. Since this time it has concentrated on national accounts whose fleets of vehicles numbered of least 25 units. It also leases or finances computers, capital equipment and machinery to manufacturers, wholesalers, retailers and other commercial firms throughout the United States.

McCullagh's history goes back to 1949 when Don McCullagh decided that there was a profitable market in the Detroit area for leasing individual cars to executives. He had developed this service over a period of several years as owner of a large Chevrolet franchise. After establishing McCullagh Leasing program on a national scale and subsequently added fleet leasing for commercial and industrial organizations. In 1966, he merged his company into the Commercial Credit organization. It was apparent that the two subsidiaries shared common services, yet each one had particular strengths that the other lacked. Furthermore their degrees of market penetration in geographical areas and for product lines tended to supplement rather than duplicate one another.

Don McCullah, former President of McCullagh leasing, Inc. heads the consolidated firm as Chairman and, serving as President, is CCIC President John A. Blessing. Top officials from the original McCullagh organization include T. Jack McCullagh, Executive Vice President- Marketing; Thomas W. Roberts, Vice President-Financial Management; William W. Wise, Vice President-Individual and Small Fleet Sales; and Roger V. Mulier, Vice President-Personal and Administration. Former CCIC officers filling top posts are Tucker Grinnan, Vice President-Operations; William P. Keenan, Vice President-National Account Sales; and John J. Stewart, Vice President-Credit and Collection.

Marketing Strategy and Goals

Ad Loading...

The consolidated company began business with 25 field offices; its total number of vehicles under lease made it the country's third largest firm handling this type of business. To solidify this position in the vehicle leasing field, it was decided to concentrate all vehicle leasing plans-both fleet and individual-under McCullagh's existing programs. This strategy capitalizes on McCullagh's fleet leasing successes in Detroit and other territories by programming concerted sales efforts in 20 metropolitan areas within the next five years.

The sales campaign promises significant results. As lessor, McCullagh can exercise complete control over the important function of prepping new cars prior to delivery. Complete control means customer satisfaction, and McCullagh will utilize its recently completed garage prepping facility at its administrative headquarters in suburban Detroit for this purpose (see Sept. '70 A.F.). The garage has 15 boys, seven with hoists, so that even fairly large fleets of automobiles can be processed effectively within a short period of time. In addition, supplemental prepping centers are being established in eight zone locations throughout the country.

Shortly after the two companies merged, the new organization's national sales and service forces were primed to present details of individual and fleet leasing programs to clients and prospects. As in the past, these programs can be custom-tailored to particular can be custom tailored to particular needs the company is equipped administratively and operationally to supporting its policy of adjusting leasing plans to fit individual requirements.

McCullagh's core of 25 field offices will serve as a nucleus for strengthening its sales and service. Of these, eight are or have been expanded as complete zone locations which are staffed with a manger, credit manger, national sales manager, sales representative for both individual and fleet sales, and a prepping center. The remaining seventeen offices will serve as sales and service centers.

Future Outlook

Ad Loading...

The company's short range plan is, of course, to become firmly established in major marketing areas within the United States. In addition, it has already begun work on longer range plans which call for expansion to overseas operations.

For several years, McCullagh Leasing has had representatives servicing clients' needs in 15 foreign countries. Market analysis shows that leasing services are badly needed there, that leasing programs can be operated effectively and profitably in foreign countries and it realizes that additional profits can be realized by building its overseas operations into full scale, full service facilities.

What goes into a business merger? A lot of long hours, sweat and frustration during the planning stage. But if these plans represent the collective thinking of the best minds of both companies, it will mean smooth following a merger during the long range program. But the key to all of this work is market planning. It's a mandatory methodology for any mighty merger.


Subscribe to Our Newsletter

More Operations

A shot of a Volvo electric vehicle with a man charging it in front of a residence.
SponsoredAugust 1, 2026

Top 50 Executive Fleets

It is that time of year again! Time for the 2026 list of the Top 50 Executive Fleets, presented by Automotive Fleet and Volvo as part of its annual Fleet 500. Download now to see this year's list of companies!

Read More →
Gary Van Orden Retirement
Operationsby Jeanny AbrahamJuly 31, 2026

Gary Van Orden Retires After Nearly Four Decades in Commercial Fleet

From answering customer calls at Ford Motor Company to leading fleet sales across multiple OEMs and a fleet management company, Gary Van Orden's career reflects nearly four decades of leadership in commercial fleet.

Read More →
an Automotive Fleet podcast thumbnail
OperationsJuly 31, 2026

How Stellantis Plans to Get Ahead of Fleet Downtime

Vehicle acquisition may grab the headlines, but fleet uptime increasingly determines operating success. Darren Bradshaw of ‪Mopar‬ North America gives the details.

Read More →
Ad Loading...
A lineup of Hyundai vehicles with overlay text announcing the 2027 Commercial Fleet Program, highlighting new fleet incentives for eligible commercial and government buyers.
Operationsby News/Media ReleaseJuly 31, 2026

Hyundai Releases 2027 Commercial Program Incentives 

The 2027 Model Year "Fleet Street Incentives" are available to commercial and government fleets.

Read More →
Chris Brown of Automotive Fleet and Lauren Fletcher of Work Truck pose beside a Soap Box Derby car in a Team Brown vs. Team Fletcher race graphic benefiting The Hourglass Foundation.
Operationsby News/Media ReleaseJuly 30, 2026

It's All Downhill from Here! Fleet Industry Raises $22,000 for Skilled Trades Scholarships

Work Truck’s Lauren Fletcher and Automotive Fleet’s Chris Brown turned a friendly racing rivalry into $22,000 for automotive technology and skilled trades scholarships.

Read More →
Commercial Fleet
SponsoredJuly 23, 2026

The Top 300 Commercial Fleets

The Top 300 Commercial Fleets: See the List

Read More →
Ad Loading...
Cover of the "Top 50 Green Fleets" report presented by Automotive Fleet and Inspiration Fleet, featuring an aerial nighttime photo of a lit highway interchange with looping ramps.
SponsoredJuly 16, 2026

The Top 50 Green Fleets

The List Is in: The Top 50 Green Fleets

Read More →
A car dealership with added inscription "Every fleet vehicle eventually becomes local."
Operationsby Chris BrownJuly 15, 2026

Your Local Dealer Knows More Than You Think

Your local dealer can provide an information advantage that extends well beyond courtesy deliveries.

Read More →
Portrait of Austin Schutte, founder and CEO of Anew Solutions, featured in Automotive Fleet's Fleet Meets series highlighting his career, leadership philosophy, and fleet industry insights.
Operationsby Faith HowellJuly 14, 2026

Fleet Meets: Austin Schutte

Here are some industry insights, personal touches, and words of advice from the CEO and Founder of Anew Solutions.

Read More →
Ad Loading...
Photo of Team Brown building soap box derby
Operationsby Chris BrownJuly 13, 2026

Soap Box Derby Challenge: What’s Powering Team Brown

The car is coming together, the students are solving real build problems, and the fleet industry is helping push Team Brown toward the starting line.

Read More →