Truck Makers Face Decreasing Brand Loyalty, Retired Exec Hebe Says
What has not changed, Hebe said here Feb. 29 at the Executive Leadership Forum of American Trucking Associations, is the importance of the used-truck market in establishing the health of new-truck sales.
During more than 40 years in truck making, Hebe was CEO of the predecessor of Daimler Trucks North America and later the senior vice president of sales for Navistar International Corp. Earlier, he worked for Kenworth Trucks.
The importance of intermodal sunk in for Hebe one day while playing golf. He stood near a tee and watched an intermodal train pulling trailers on flatcars featuring trucking companies he never thought would leave the longhaul business.
The increasing intermodal volume means fewer new trucks sold per year than would otherwise be sold, and more day cabs for regional work rather than sleepers for longhaul.
As for used trucks, Hebe said the magic number is 150,000 per year, which is the approximate level of annual U.S. transactions, on average. When new-truck sales exceed that level by a lot, it creates a used-truck glut three to five years later. When new trucks fail to hit the 150K mark, there’s a used-truck shortage several years later.
"I gained a Ph.D. in used trucks," Hebe said of his time at Freightliner.
He also predicted that fleets will drop their allegiance to specific brands and concentrate on the performance of the trucks and their dealers. Price, service and assistance with used-truck sales will beat out the attachment to logos, he said.
