Truck Sales Remain Abysmal as April Total Drops 44.4%

By Jonathan S. Reiskin, Associate News Editor

This story appears in the May 18 print edition of Transport Topics.

Heavy-duty U.S. truck sales continued at a dismal pace in April, as monthly volume fell 44.4% from a year earlier, when sales were already declining. Year to date, sales are now 32.5% behind the comparable period of 2008, according to the latest monthly survey from WardsAuto.com.

Although all original equipment manufacturers posted declines of at least 18% for both April and for the year’s first four months, several truck makers and dealers said that sales would improve in the second half of 2009.

OEMs and their dealers sold 6,664 Class 8 trucks during the month, compared with 11,983 in April 2008. The year’s cumulative volume fell to 28,496 units from 42,231 in the first four months of 2008. February’s tally of 6,236 heavy trucks was the lowest tally since early 1983, according to industry consulting firm FTR Associates.

Navistar Inc. grabbed first place in monthly and year-to-date market share from Freightliner Trucks, which held the distinction last month (4-20, p. 1).

“It’s not that we’re doing well, we’re just losing less volume than our competitors,” said Navistar spokesman Roy Wiley. “I think this is the worst market in 30 years,” he said.

“We’re down more than the national average,” said Jim Henson, president of West Texas Peterbilt. “We were decent last year at this time . . . but volume for new and used truck sales is down by 47% for us, year-over-year,” he said.

But California is starting to swing in the opposite direction because of the May 12 publication of a regulatory schedule by the state’s Air Resources Board, said sales manager John Wallace of California Truck Centers.

“During the first four months of the year, people sat on their hands, but this came out a week ago and now orders are being placed,” said Wallace, whose company sells Freightliner and Western Star Trucks. The CARB notice contains a schedule for repair and retrofitting of older trucks.

Top executives of Volvo Trucks commented on truck sales during a May 8 event in Boston (see story, p. 2); they said there were signs the market would improve.

Per Carlsson, CEO of Volvo Trucks North America, said April sales were “stabilizing. . . . We’re seeing increased activity for new trucks and used trucks.”

He said there were “high activity levels in terms of quotations and customer contacts . . . but the starting point is from a low level.”

Ward’s May 12 report said Navistar Inc.’s volume losses in both the month and year-to-date have been less than those of any other manufacturer. The company sold 1,987 International vehicles in April, down 22.8% from the 2,573 units in April 2008. Cumulative volume fell 18.5% to 8,079 vehicles.

Freightliner came in second, selling 1,551 heavy trucks for the month, down 51.2% from 3,177 units a year ago. For the year’s first four months, the company’s sales dropped 25.2% to 7,930 vehicles.

Navistar and Freightliner were the only two name plates to add market share through the year’s first third, gaining 4.9 and 2.7 percentage points, respectively.

Peterbilt Motors sold 802 big trucks, down 50.3% from April 2008. Its cumulative total declined 38.9% to 3,237 units. Kenworth Trucks’ monthly sales fell 53.4% to 752 from 1,613 units. The four-month total fell 41.4% to 3,101 vehicles.

Mack Trucks’ sales dropped 45.7% to 652 units from 1,200 in April 2008. The cumulative total fell 46.8% to 1,901 vehicles. Volvo sold 618 big trucks for the month, down 30.1% from 884. The year-to-date tally declined 45.8% to 2,542 units.

Freightliner’s two smaller sister companies within Daimler Trucks North America — Sterling and Western Star Trucks — took the two final slots. Sterling manufactured its last new truck in March, but sold 243 units in April. The 69.7% drop from 801 vehicles in April 2008 was the highest rates of decline of any OEM. Year-to-date sales fell 40.5% to 1,430 vehicles.

Western Star sold 57 trucks during the month, down 50.4% from 115 units last year. The cumulative volume was 267, down 32.1% from the first four months of 2008.

Managing Editor Bruce Harmon contributed to this story from Boston.