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Can you say Jiffy Lube five times fast? With such well known oil changing chains as Jiffy Lube and Q-Lube, the Pennzoil-Quaker State company may own the funniest sounding names in the industry. Pennzoil-Quaker State is also top dog in the motor oil business, controlling 37 percent of the U.S. market, thanks in part to its top selling Pennzoil brand. The company generates annual sales of $3.2 billion with such popular car care products as Classic Car Wax, Slick 50 engine treatments, and Blue Coral car wash. Read my lips: Oil is profitable Pennzoil first had its start during the post World War II oil boom when brothers J. Hugh and Bill Liedtke struck it rich in West Texas. Perhaps they had good karma: one of their partners became President of the United States, a young man by the name of George Bush. The Liedtke brothers proved to be shrewd business men with their takeover of United Gas Pipeline in 1956, a company five times the size of Pennzoil, and a successful $10.5 billion 1985 lawsuit against Texaco, which eventually declared bankruptcy. From making oil to changing it Quaker State predates the advent of the automobile by about 50 years. The company was started in 1913 when 19 small oil companies and stockbroker Charles Pape transformed the original Quaker State, founded in 1859, into a top of the line oil refining operation. By the mid 1980s, Quaker State became an industry leader in motor oil with over 20 percent of the North American market. The company jumped into the oil change business with its purchase of Minit-Lube in 1985, better known today as the Q-Lube chain. Goodbye Union Pacific. Heeelllooo Quaker State!!! Pennzoil merged its motor oil and car care operations with Quaker State in 1998 while spinning off its oil production and exploration units into PennzEnergy, a separately traded company. The move came at the heels of an ugly yet unsuccessful $6.4 billion buyout bid from Union Pacific Resources group. Pennzoil-Quaker State expects to save between $90 million and $125 million from the merger, through layoffs and closing several blending plants/distribution centers, not to mention Quaker State's Dallas headquarters. Pennzoil-Quaker State will absorb Quaker's Q-Lube centers into the Jiffy Lube chain. Fine tuning In order to focus on its car and oil products, the company announced in May 2000 that it would be selling its chemical business, 330 gasoline stations across 10 states, and its last refinery which is located in Shreveport, LA. Pennzoil-Quaker State closed its last packaging plant and refinery in Pennsylvania earlier in the year. About 300 people lost their jobs with the closing of this Rouseville plant, some having worked there for over 30 years. Pennzoil's roots, which go deep into PA soil, are now planted in Dallas, TX at the joint company's new headquarters. Thinking like a brand manager Pennzoil-Quaker State hopes to crack a $25 billion international market by doubling sales to the Americas, Europe, and Asia to at least $500 million over the next five years. Newly appointed president James Postl, a former brand executive at Nabisco, Proctor & Gamble, and Pepisco, plans to use his marketing experience to increase consumer sales by 2 to 3 percent, mostly by pressuring retail outlets to make more room for Pennzoil-Quaker State products. Postl also hopes to use some merger savings to invest in related auto care businesses, which is growing at a brisk 15 to 20 percent a year. Auto accessories Pennzoil subsidiaries Pennzoil-Quaker State Ltd and Pennzoil-Quaker State Australia Company are helping cars smell fresh since each acquired automotive air freshener companies, Airfresh UK Ltd, and Auto Fashions, respectively. The Australian arm also acquired Bluecol Brands Ltd, a UK leader in the production of antifreeze.
Pennzoil-Quaker State recruits extensively on campus with most interviews described as being "quite relaxed." "You'll be brought in as a group," says one insider. "You will be shuffled to various employees who will have a set of interview questions...which are not too technical. Your grades and extracurricular activities are considered." Students need not worry about being intimidated by some crusty company old-timer. The interviewers are barely out of college themselves with just a few years of experience. Those students who make the cut are then invited for day long office interviews usually with 3 to 5 managers. "Some interviews will be primarily technical questions," warns one employee.
I guess that means sneakers are out Working at Pennzoil-Quaker State requires a strict level of professionalism. Employees describe the company environment as "corporate America" and "conservative", though the dress code has recently changed to business casual. "Pennzoil-Quaker State has the vision of being the Procter & Gamble of the Automotive Aftermarket," says one employee, not surprising seeing that new president and COO James Postl is a former Procter & Gamble executive. Well-lubed benefits Hours are the usual 8-5 Monday to Friday with flex-time (instituted in Fall 1999). Employees report healthy pay and benefit packages, especially the company's 401(k) plan. "This is one of the best 401k's I have run into," says one employee. "It is quite generous but I believe you have to wait a year to participate. It is a dollar per dollar match up to 6 percent of your salary." College graduates usually start in the low $30,000 range "with some more resulting from internship experience and specialized degrees." Annual bonuses are paid by grade. Pennzoil-Quaker State also offer a medical-dental plan based on a percentage of your salary, HMO plans (described as "costly"), basic term life insurance, and an accidental death and dismemberment plan. Perks include bus passes and a parking program for car pools. Employees receive two weeks of vacation after the first year, three weeks after five, four weeks after 10, and five weeks after 20. Some cracks in the glass ceiling A conservative company is usually not known for promoting diversity. Pennzoil is no exception although the company is now trying to "attract professional minorities." "I felt there was a glass ceiling," says an Asian employee. "There are a number of Asian women working at Pennzoil today. That wasn't the case two years ago." According to one insider, the company recently settled a lawsuit which accused it of discriminating against blacks. As a result, "the company has made an effort to promote blacks now." Still, a little kissing up is also in order. "Looking back, you might want to brown-nose a bit," advises one employee. "The new companies will change. It is believed by many of the males that a woman has more of a chance for promotion at Pennzoil."
Human Resources
Pennzoil motor oil;Jiffy Lube centers;Classic car wax;Fix-a-flat tire inflators;Blue Coral car wash;Rain-X window rain repellent;Medo air freshners;Roadside Rescue
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