Hebe Warns of Used-Truck Crisis

February 1, 2000 9:55 AM, EST

PORTLAND, Ore. — Freightliner Corp. President James L. Hebe warned that the entire trucking industry faces a “virtual crisis” of falling used truck prices that threatens to undermine the economic viability of the nation’s fleets, truck manufacturers and truck finance companies.

	Freightliner Corp.
	Freightliner President James L. Hebe says a glut of low-mileage used trucks is an even bigger threat to the industry than soaring diesel prices.

After several years of strong new-truck sales, capped by the record-breaking pace of the past two years, a wave of good, low-mileage tractors could flood the market and depress prices even more throughout the industry, he said.

The falling value of their huge investments in equipment have already left about two-thirds of the trucking companies in North America “practically bankrupt” under accounting rules, Hebe said.

He called this issue “the biggest challenge and potential problem” for the industry, even more important than skyrocketing fuel prices and the ongoing driver shortage. If a solution to falling used truck prices isn’t found, he said, “it could affect the entire industry structure.”

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