Class 8 Truck Sales Rise 21%

This story appears in the Oct. 18 print edition of Transport Topics.

A strong surge by Freightliner Trucks helped lead heavy-duty U.S. retail truck sales to a 21% increase in September, the ninth straight month of improved Class 8 sales from last year, WardsAuto.com reported.

September’s sales volume was 9,402 trucks, up from 7,769 in September 2009, while year-to-date sales were 77,082, up from 65,880 — a 17% increase.

Looking at demand in the pipeline, FTR Associates said September Class 8 orders in North America rose 38.8% above the same month in 2009 and 21.6% over the August figure. Separately, ACT Research Co. reiterated its heavy-duty production forecast for a 26% increase this year and a 57% jump next year.

Freightliner, the flagship company of Daimler Trucks North America, posted a 72.3% monthly volume gain, selling 3,382 big trucks, up from 1,963 the previous September. Nine-month sales rose 44.2% to 24,902 units, giving the company a 32.3% market share after three quarters of 2010.

“We feel our EPA-10 SCR strategy — while more expensive at time of purchase — clearly offers the lowest cost per mile over the life cycle of the unit,” said Brian Cota, Freightliner’s vice president of sales.

Daimler, like all other North American truck makers but Navistar Inc., uses selective catalytic reduction to meet the Environmental Protection Agency’s 2010 emissions standard.

Navistar Inc. held onto second place in sales for the month and year-to-date despite a 9.1% decline in its monthly volume. Navistar sold 1,804 of its International brand trucks, down from 1,985 in September 2009. Three-quarter sales rose 14.7% to 21,603 units for a 28% market share.

Navistar spokesman Roy Wiley said the decline is consistent with sales patterns discussed previously by management. The company had better volumes earlier in the year when it was selling vehicles with 2009 engines left in inventory.

Wiley said the company expects a modest first-quarter acceleration in sales next year, but that there will be a lull for the last three or four months of this year.

“This was all part of our build-and-hold strategy,” he said.

U.S. diesel engines made since Jan. 1 have had to meet tougher federal environmental standards. However, truck makers were allowed to keep a supply of 2009 engines to be dropped into trucks made this year.

Wiley said Navistar’s current production vehicles now feature 2010-compliant engines.

In looking at the past six months of truck orders, FTR said the industry is now on a pace to accrue 163,100 orders a year for the United States, Canada and Mexico. Firm President Eric Starks said orders could hit the 20,000-a-month level in October and November.

If they do not get to 20,000, Starks said, it means that “many fleets will continue to sit on the sideline until they are more comfortable of a sustained economic recovery.”

While ACT cut its forecast for medium-duty production, it maintained its estimate for Class 8.

Paccar Inc.’s two domestic brands kept third and fourth place for the month. Peterbilt Motors sold 1,358 big trucks, a 12.8% increase from 1,204 a year ago. Nine-month sales were 8,905, a 3.2% increase.

Kenworth Trucks sold 1,151 heavy trucks, down 3% from 1,187 in September 2009. Year-to-date sales rose 0.5% to 7,970 units. Kenworth General Manager Bill Kozek said previously that looking only at U.S. sales diminishes the importance of the company’s improvements in the Canadian market (click here for previous story).

Kenworth and Navistar were the only two brands to post declines for the month.

Volvo AB’s two domestic brands had strong increases but stayed in fifth and sixth places. Mack Trucks posted a 31.4% increase to 850 units, up from 647 in September 2009. Cumulative sales this year rose 18.6% to 5,984.

Volvo Trucks North America sold 781 big trucks for the month, or 42.5% more than 548 a year ago. Cumulative sales are up 31.3% to 6,452 units.

DTNA’s other brand, Western Star Trucks, sold 75 tractors in September, a 4.2% increase over the 72 from last year. Nine-month sales were up 47.3% to 779 vehicles.