Dealers Pay a Price for ‘Bull Run’ of Truck Sales, Volvo CEO Says
SAN ANTONIO — Truck sales are softening yet deals are harder to put together. Parts and service work is falling short of expectations, and dealer profits declined by one-third in 1999 despite a 25% increase in sales.
That’s the picture Marc F. Gustafson, president of Volvo Trucks North America, drew for members of the American Truck Dealers division of the National Automobile Dealers Association in his keynote address at the ATD annual convention and exhibition here April 8.
“Without question, some of you are facing tough decisions,” Gustafson said. “I believe we are paying the price for the tremendous bull run in both the trucking industry and the general economy.”
Heavy-duty truck sales have been on a tear in recent years. The industry sold more than 309,000 Class 8 tractors in North America in 1999, a 41.7% increase over 1997. Gustafson said he expects continentwide sales of only 238,000 units in 2000.
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