Chevron to get out of gasoline business in Md. Exxon to take over 65 area stations

December 11, 1992|By Ross Hetrick | Ross Hetrick,Staff Writer

Chevron U.S.A. Products Co. announced yesterday that i would end its gasoline station operations in Maryland, Washington and Tidewater Virginia to concentrate on other areas of its market.

The San Francisco-based oil company said it would leave the market by turning over 65 stations and a vacant piece of property in Maryland to Exxon Corp. In exchange, Chevron would receive 59 Exxon stations in the South Florida counties of Dade, Palm Beach and Broward.

The affected stations include 30 in Maryland, 30 in Virginia and 5 in Washington, according to Exxon spokesman Les C. Rogers. Exxon, based in Irving, Texas, already has 230 gasoline stations in Maryland, Mr. Rogers said.

The exchange will not include 11 Chevron stations in Maryland. But the company was soliciting offers for those stations. Any that were not sold by the end of June would be closed, Chevron spokesman Mike Libbey said.

The exchange does not involve any cash and would not affect the earnings of either company, Mr. Libbey said. It would also not affect Chevron's lubricant business in the region.

"We are discontinuing branded gasoline sales in the Baltimore-Washington and Tidewater area, and enhancing our position in Florida as part of our continuing strategy to improve operating efficiency and profitability," said Al Caccamo, general manager for marketing for Chevron.

Mr. Libbey said the affected Chevron operations were on the outer edge of the company's market area. "We found we were not very competitive in that last fringe of our market," he said.

Similarly, Exxon found that its South Florida business was deteriorating and was not likely to improve, Mr. Rogers said.

The deal is scheduled to be completed June 30.

Chevron dealers can accept or reject the new arrangements, Mr. Libbey said. But since Chevron owns or has a long-term lease on all of the stations, a rejection by a dealer would mean he or she would be replaced by another dealer.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.