Class 8 Truck Sales Jump 52.9%

U.S. Class 8 truck sales grew sharply in January, jumping 52.9% compared with the first month of 2011, as all manufacturers posted gains of more than 40%, with the exception of Volvo Trucks, which dropped 5.2%.

Volvo was hit particularly hard by problems with Bendix brake valves, recalling more trucks than any of its competitors (2-13, p. 1).

“Defective Bendix ATR-6 valves prompted Volvo to postpone factory deliveries, which adversely impacted our January retail performance,” said Volvo spokesman Brandon Borgna.

The Feb. 10 report from WardsAuto.com said original equipment manufacturers sold 14,119 heavy-duty trucks, up from 9,236 the previous January.

Although last month was the busiest January since 2007, when 18,555 big trucks were sold, it was a substantial fall-off from December’s volume of 20,939 (1-23, p. 1). However, December is typically busy, while January usually is slow.

Freightliner Trucks took first place in January market share, selling 4,540 big trucks, a 43.2% increase from 3,170 in the year-ago month.

“We are pleased with the strong start to 2012,” said David Hames, general manager of marketing and strategy for Daimler Trucks North America, Freightliner’s parent company.

Hames added that he expects “to see some fluctuation in Class 8 demand, with the end of the bonus depreciation credit and fuel prices projected to rise through the summer months ahead.”

The bonus-depreciation tax break expired at the end of December (see story, p. 4).

Navistar Inc. took second place for the month, selling 3,376 International trucks, a 48.3% improvement over 2,276 in January 2011.

“Some large fleets are growing as a result of acquisition or market-share growth and are purchasing beyond simple replacement volume and the market is rebounding as expected,” although most are in replacement mode, said Steve Gilligan, Navistar vice president of product planning.

“We continue to see a blurring between the historical definitions of truckload and less-than-truckload carriers,” Gilligan said. “As a result, we’re seeing growth in shorter sleepers and lighter tractors from fleets that might not have historically purchased this configuration. These carriers are looking for trucks that lend themselves to a low-cost operation with regional, mid-length haul applications and can be used in longer hauls when required, and weight and fuel economy are paramount.”

The Paccar Inc. companies took third and fourth places. Peterbilt Motors sold 2,028 big trucks, a 77.6% improvement from 1,142 units a year ago. Kenworth Trucks had a 93.2% increase to 1,998 heavy trucks from 1,034.

Rush Enterprises, the nation’s largest Peterbilt dealership chain and a public company, reported strong improvements in revenue and net income for the fourth quarter and the year. In a Feb. 14 statement, Rush, New Braunfels, Texas, predicted a good 2012.

“The company expects U.S. Class 8 retail sales will remain on pace to reach approximately 200,000 to 215,000 units in 2012, just slightly above historical replacement levels,” the Rush statement said.

Rush added, “We expect first-quarter deliveries to be less than fourth-quarter deliveries due to the expiration of tax incentives related to bonus depreciation.”

“Based on the average age of the U.S. Class 8 truck fleet and assuming continued general economic stability, we continue to expect strong truck sales markets in 2013 and 2014,” Rush added.

North American truck orders declined by 7.8% in January, according to a preliminary report from ACT Research Co., which said new heavy-duty orders dropped to 25,200 units for the month, compared with 27,342 in January 2011. In December, orders increased by 11.8%, year-over-year, to 30,100 vehicles (1-16, p. 3).

Volvo saw its monthly sales fall to 760 big trucks last month, from 802 in January 2011. In contrast, they soared in December, surging 170.1%, year-over-year, en route to an annual gain of 108.8%. Volvo fell to sixth place in January sales volume from fourth in December.

“We said at the beginning of the year that we expect 2012 to be very choppy from month to month, but we anticipate an overall strong year,” Volvo’s Borgna said.

Mack Trucks, like Volvo owned by Volvo Group, which is based in Sweden, rose to take fifth place for the month. It sold 1,201 big trucks, a 75.1% increase from 686 in January 2011.

Western Star Trucks, Daimler’s niche line for extra-severe applications, rounded out the roster of seven OEMs, selling 214 heavy trucks, a 72.6% increase from last year’s 124.

Illinois and Missouri truck dealer Mike Yates said there is a strong need for trucks among his customers for Daimler’s two brands.

“In our customer base they’re buying trucks because they have to. They can’t maintain trucks with 800,000 miles on them and they haven’t bought a lot for several years,” said Yates, president of Truck Centers Inc. He added that there is a struggle to meet demand.

“There have been some raw material and suppler shortages, and that’s pushed out some deliveries, even to September already, depending upon the model of the truck and engine,” Yates said.