Kenworth Assesses Ramifications of ELDs on Business
KIRKLAND, Wash. — Kenworth Truck Co. looks at the potential effect of mandatory electronic logging devices on its business from the perspectives of truck production and valuation and fleet maintenance, company executives said.
The two things Kenworth hears most frequently regarding ELDs are: “How will [implementation] manifest itself from a true capacity [perspective] — both in [truck] volume and [driver] time — and the flow-on effect that it will potentially have on the used-truck market,” General Manager Mike Dozier said.
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For instance, more truck owners choosing to quit the industry rather than use ELDs could increase used-truck volumes and dampen those prices, a situation that possibly could affect new truck sales as trade-in values fall, Dozier said.
Also, ELD implementation is important to Kenworth from a planning perspective, said Kevin Baney, assistant general manager for sales and marketing. “It’s about staying tuned in with customers. Whether it’s industry capacity or build, it’s more about planning [for us].”
Dozier and Baney spoke to reporters here prior to a ride and drive featuring the truck maker’s latest vocational vehicles, including dump trucks and mixers. Kenworth is a unit of Paccar Inc.
Baney added: “We have talked with fleets and customers about what their [truck] needs are going to be in the fourth quarter and then going into next year. We’re making sure we are ready to support whatever they need to do.”
Also, ELDs and the connected-truck efforts underway at Kenworth are closely related, Baney said, to the point where required repairs or maintenance could be scheduled and performed while the driver has to rest.
“We think combining connected-truck data with ELDs in providing the customers the best information that they can use to plan their business and logistics is absolutely required,” he said.
At the same time, Kenworth needs to be in the position of supporting whatever ELDs are available, from apps to tablets, Baney said. Whether ELDs ever become fully integrated in a truck cab is an ongoing discussion with all the ELD providers, he said.
It is important to provide flexibility within the truck cab in an environment of rapid technological change, he said.
“There is and will remain room for consolidation of technologies,” Dozier said. “It’s yet to be seen what is the right level of consolidation and integration of multiple technologies [in the cab].”
