Late 2009 Sales Boost Heavy Truck Production

(chinatrucks.com, Jan.15, 2010)Production of heavy trucks will increase 22 percent in the first quarter, as manufacturers work to fulfill the last orders placed by truckers in 2009.

But orders for new trucks will slow, as the build slots for pre-2010 engines vanish, ACT said, which means production is likely to slow once existing orders are complete and pick up in the second half of the year, as carrier equipment replacement needs boost sales.

"With the industry out of pre-mandate build slots, there is very little near-term support for domestic order activity," said Kenny Vieth, partner and senior analyst at ACT.

The price of a new Class 8 tractor is set to rise sharply as manufacturers comply with tighter federal diesel emissions standards that take effect with 2010 models. That encouraged a late-year surge in orders for pre-mandate models that peaked in October.

"The trucking industry is still dealing with excess capacity and weak used sales values," Vieth said. "We expect OEMs will be particularly aggressive marketing outside the U.S."

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