Hebe: Trucking Faces ‘Upheaval’ From Used Truck Glut

PORTLAND, Ore. — Freightliner President James L. Hebe warned that trucking faces a major upheaval if the glut of unsold, late-model used vehicles is not addressed — and quickly.

Hebe told a group of industry journalists at company headquarters that the first victims of the epidemic will be large, long-haul truckload carriers that will find they cannot afford to trade in their used trucks for new equipment.

“The large fleets have been sheltered by us from what’s going on in the used truck industry,” Hebe said. Large fleets generally base their business plans on recouping 50% of the amount originally paid for equipment when they sell those trucks after three years. However, Hebe said that equipment is really worth only 25% today.

“Unless something dramatic happens in the next 90 days,” Hebe said those fleets will either have to double their depreciation allowances or keep their 1998 trucks longer.

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