Hebe Disputes Overproduction Claims

LOUISVILLE, Ky. - Those who blame overproduction for current problems in the market for big rig class 8 trucks are taking an "idiot's view" of the situation, James Hebe, Freightliner president said here Wednesday.

The remarks were made at the scene of the Mid-America Trucking Show, being held through Saturday at the Kentucky Fair and Exposition Center.

Speaking at a press conference to announce Freightliner's plans to deal with the very weak sales of used trucks, a situation that has plagued the industry, Hebe said it is "not the case" that manufacturers produced too many trucks.

In the truck-manufacturing boom of the 1990s, Hebe said, Freightliner "built trucks for which we had orders - not for inventory."

Instead, he said the problem is that "the music stopped on what was the most robust economy since World War II."

Hebe cited high fuel costs, high interest rates, a drop in freight demand and a resulting onset of bankruptcies by truck operators as what he called "fair weather" finance companies exited the market.

Restarting the economy will require more action than the federal government - including the Federal Reserve that has been cutting interest rates already - has taken so far, he said.

Hebe said relief on fuel prices and interests rates are needed. He called for government to take stronger action to reduce fuel prices and to establish a strong energy policy.

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