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Freightliner maintains optimism despite slowing truck demand
Date:2012-08-14 Author:Eric Source:www.chinatrucks.com
www.chinatrucks.com: Freightliner officials speaking at a recent press event to herald the arrival of the new Detroit DT12 transmission, admitted Class 8 order activity has slowed beyond expectations, but insisted they maintain an optimistic outlook for the remainder of the year.
Mark Lampert, senior vice-president, sales and marketing with Freightliner, said there is not one single issue driving the slowdown in the Class 8 truck market, but a combination of them. These include: slowing economic growth; declining consumption; slumping factory output; and a gloomy consumer base.
Despite all this, Lampert said the trucking industry remains fundamentally sound. He noted carriers have pushed forward rate increases for nine consecutive quarters in the US.
“It’s important they do that, because the cost to be compliant is not going to change,” he said, referring to impending GHG 2014-17 emissions standards and various safety technology mandates. “Those things aren’t free. Carriers are acting in concert as much as I’ve ever seen in pushing (rate increases) through.”
Lampert noted fleet utilization is down and finding drivers remains a struggle for the industry. However, he said a decent amount of freight is available in relation to the trucks that are available to handle it.
One reason fleets may not be rushing to their dealers to place substantial orders is that with the current soft demand, there’s really no reason to do so. Production has slowed to the point where a new tractor can be delivered within seven weeks from the time it’s ordered, Lampert noted.
“When you are getting a new truck in seven weeks, there’s no reason to forecast,” he said. “Fleets will wait and see. Vehicle availability is a non-issue; you don’t need to place an order early to make sure you get a build slot.”
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