Heavy-Duty Truck Sales Up 7.5% to Best January Total Since 2007

This story appears in the Feb. 24 print edition of Transport Topics.

Class 8 truck sales rose 7.5% in January to the highest total for the month in seven years and the fifth straight month in which sales have improved year-over-year, WardsAuto.com reported.

Prior to the string of five increases, heavy-duty truck sales had declined year-over-year in each of the 12 previous months.

Sales totaled 14,146 units, the most for January since 18,555 heavy-duty trucks were sold in the first month of 2007. The total was 4,000 units — or 39.4% —higher than the 10,146 average for January over the past six years.

The first month generally posts the lowest sales of the year, doing so in four of the past six years, according to Wards data. The exceptions were last year, when January was the third lowest, and 2009, when it was the fifth lowest.

Despite the year-over-year up-turn, January’s Class 8 sales were the lowest since 13,100 last March, which were down 24.3% from the same month a year earlier.

The sales figures came on the heels of strong truck orders — which jumped 51% in both December and January — although one analyst said last week that there can be big differentials between orders and sales figures.

“There is no standard or expected ratio or relationship between truck orders and sales,” said Steve Tam, vice president at ACT Research Co. in Columbus, Ind.

“Orders can flow in in a very uneven fashion, while sales tend to be quite a bit more orderly,” Tam told Transport Topics. “For example, a trucking company may order 1,200 trucks in one month, then take delivery of 100 per month for 12 months.”

The total included gains for all truck manufacturers except Daimler Trucks North America’s Freightliner and Western Star brands, which declined for the month.

Freightliner sales fell 8.6% to 5,631 units, though the brand held the top spot among OEMs with a 37.9% market share. Western Star sold 184 trucks, down from 317 a year ago. With the two together, DTNA’s January market share was 39.2%.

Daimler officials declined to comment on the month’s truck sales, although company executives said last week they foresee a strong 2014 on the strength of recent truck orders (see story, p. 37).

January’s sales increase was led by Navistar International Corp., whose sales jumped 31.6% to 2,578 units, propelling it to the No. 2 spot in market share, with 18.2%.

Navistar was sixth of the six major U.S. brands in December with an 11.2% market share, although it had been in the No. 2 spot a year ago, with 14.9%.

“Fuel economy is a top priority for our customers, and they want the fuel-efficient vehicles that the industry has to offer today,” said Bill Kozek, Navistar’s president of North America truck and parts.

“The truck fleet age is still old, and while our customers have been cautious about investing in new vehicles, we are seeing replacement demand begin to increase as the result of an improving economy,” he said.

Volvo Trucks posted the biggest percentage increase, with a 45.1% surge to 1,505 trucks and a 10.5% market share. That compares with a 12.9% market share in December and 7.9% a year ago.

“The economy appears primed for a positive 2014, which we anticipate will prompt a modest uptick in the North American heavy-duty market to about 250,000 Class 8 vehicles,” said Magnus Koeck, Volvo Trucks’ vice president of marketing and brand management.

“Replacement demand remains the main driver, but reduced operating costs through improved fuel efficiency and vehicle uptime are also contributing factors,” Koeck said.

Mack Trucks — also part of the Volvo Group — posted a 9% increase to 937 trucks and a 6.6% market share, down from 11.8% in December and about even with a year ago.

Mack also cited replacement demand as a primary driver of its sales, said John Walsh, the OEM’s vice president of marketing.

“We’re also getting a very positive response to Mack’s total value proposition — reliable, fuel-efficient trucks backed by solutions like GuardDog Connect [that are] specifically designed for the unique demands of our customers,” Walsh said.

Paccar Inc.’s Peterbilt and Kenworth brands also saw gains for the month. Peterbilt’s sales rose 18.5% to 1,872, with a 13.2% market share, which was up from a 12.5% share in December and 11.7% last January.

Kenworth’s sales rose 11.3% to 1,708 trucks. The OEM posted a 12.1% market share, down from 15.8% in December but up from 11.7% a year earlier. Both Paccar units declined to comment last week.