Truck Sales Climb 24% in July
Retail sales of Class 8 trucks in the United States continued to surge in July, climbing 24% from a year earlier and topping the 20,000-unit mark for the fifth straight month.
Truck makers and their dealers sold 23,383 heavy-duty trucks last month, up from 18,793 a year earlier, according to figures from WardsAuto.com.
July’s total declined 8% from the 25,369 trucks sold in June, which is the third-highest monthly total on record.
June and July were the top two months for truck sales since December 2006, when sales spiked ahead of the 2007 emissions changes.
“Strong Class 8 sales in July reflect favorable economic conditions, including moderate growth in [gross domestic product], a strong labor market and high profits for fleets due to healthy freight rates and low diesel prices,” said Magnus Koeck, vice president of marketing and brand management for Volvo Trucks in North America.
Through seven months, 2015 sales have totaled 146,571 units, a 24% increase from the same timeframe last year. Sales have now increased on a year-over-year basis for 23 straight months.
John Walsh, Mack’s vice president of marketing, pointed to fleets’ ongoing need to replace aging vehicles and the relative strength of the U.S. economy as key drivers of the Class 8 market.
“We continue to expect 2015 to be a very strong year for the industry as whole,” he said.
Separately, new orders for future deliveries of Class 8 trucks gained strength in July as some fleets placed orders for 2016 production slots earlier than usual, providing an early sign that sales could remain elevated next year.
ACT Research reported that North American truck manufacturers received 24,100 orders, up 19% from 20,287 in June but still 20% below the 30,073 orders placed in July 2014, although that was the highest total on record for that month.
“With the order activity we’ve seen firsthand over the past couple months, we remain optimistic that fleets will continue to experience favorable business conditions in their operations and continue to invest in new trucks,” said Jeff Sass, senior vice president of sales and marketing at Navistar International Corp.
Rihm Kenworth, which operates five dealership locations in Minnesota and Wisconsin, is already working on fleet deals for 2016, CEO Kari Rihm told Transport Topics.
“It’s a reflection of continued confidence in our local economy,” she said, adding that trucking firms are benefiting from strong demand in the agricultural and construction sectors.
Rihm also said 2015 is on track to become one of the St. Paul, Minnesota-based dealer’s top five years for sales.
She said today’s new trucks are achieving greater fuel economy and also can help fleets attract drivers.
“The styling of the truck and ease of operation is definitely giving the driver a better experience,” Rihm said.
Five of the seven major North American truck brands reported year-over-year sales gains in July.
Daimler Trucks North America sold 9,114 heavy-duty Freightliners, a 41% jump from a year earlier, Ward’s figures showed. The brand sold a total of 54,976 trucks in the first seven months of 2015, up 30% from last year and representing 37.5% of the entire Class 8 market.
Sales for DTNA’s Western Star brand rose to 355 units, from 221 a year earlier. Year-to-date sales jumped 56% to 2,723 units, for 1.9% market share.
Kenworth Truck Co. sold 3,477 heavy trucks last month, up 29% from a year earlier. Total 2015 sales through July rose 31% to 21,577 trucks, which was good for 14.7% market share.
Sales at Peterbilt Motors Co. increased to 3,075 trucks, a 22% year-over-year gain. Through seven months, the company’s sales increased 24% to 19,385 units, representing 13.2% of the market.
Navistar sold 2,945 Class 8 International models in July, a 5% decline from a year earlier. Year-to-date sales, however, edged up 3% to 18,401 units, while the manufacturer’s market share stood at 12.6%.
“The fuel economy performance and uptime of our current generation of International trucks continues to generate positive sales momentum,” Navistar’s Sass said.
Sales at Volvo Trucks jumped 38% to 2,656 units. The company’s total 2015 sales climbed 26% to 18,255 units, for 12.5% market share.
“Given their sound financial footing, many fleets continue to replace older trucks with new fuel-efficient models,” Volvo’s Koeck said.
He added that Volvo’s customers favor the company’s aerodynamic models, integrated powertrains and “uptime” services.
Mack Trucks sold 1,748 vehicles in July, a 7% downturn from a year earlier. Seven-month sales increased 11% to 11,211 units, or 7.6% of the whole market.
Mack’s Walsh also cited reliability, fuel-efficiency and uptime support as key factors for its customers.
