ATD Insider | A service of the American Truck Dealers and the Public Affairs Group of the National Automobile Dealers Association
February 26, 2014
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Top Stories In This Issue
Reactions to Fuel Economy and Emissions Mandate for Trucks

As the reactions show, everyone in trucking, shipping and manufacturing has something to say about fuel economy, specifically the call by President Obama for heavy-truck manufacturers to use technology to reduce fuel consumption and lower greenhouse gas emissions beyond model year 2018. Land Line reported OOIDA's concerns on Wednesday about how the new standards will drive up the cost of new equipment for the small-business owners who make up 90 percent those moving freight by truck. In the days following the announcement, others began weighing in. “Look at the new technology costs and what happened with emissions, as the engine's gone up $21,000 over a five year period for a Class 8,” said American Truck Dealers Chairman Eric Jorgensen. “It wasn't only that impact,” Jorgensen told Land Line. “You're also adding on top of that the 12 percent FET, the Federal Excise Tax. And for truckers or trucking companies to finance this equipment, they're going to have to come up with additional equity in the form of trade equity or more cash down.” Jorgensen says attaining the type of increase in economy the administration is looking for will be as much or more of a challenge than the Environmental Protection Agency's clampdown on greenhouse gas emissions that started more than a decade ago. “What happened is that the cost went through the roof, and the technology wasn't proven. Instead of people adopting this technology, because it was so expensive they found ways to keep their existing equipment longer. For us and our shops, our shop business boomed because of all the overhauls we were working on.”
Source: Land Line

Editor's note: American Truck Dealers (ATD) support fuel economy increases as long as the improvements are technologically feasible and cost effective. Ignoring those important factors will slow sales and delay fleet turnover negating any environmental benefit or fuel savings. Truck dealers question the rush for further fuel economy hikes as the first round of standards went into effect Jan. 1, 2014. New rules would most certainly benefit from examining the impact of the current standards. ATD seeks to work with the Obama administration to balance fuel economy advances and cost factors.

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ACT Research: January Medium and Heavy Duty Net Orders Are Up

Class 8 net orders started 2014 with a high-side surprise, up 9 percent month-over-month and 51 percent year-over-year

Class 8 net orders started 2014 with a high-side surprise, up 9 percent month-over-month and 51 percent year-over-year; Classes 5 through 7 also got off to a good start with orders up 14 percent month-over-month and 33 percent year-over-year. This updated status of the North America commercial vehicle market was included in the State of the Industry report, recently released by ACT Research Co. The report covers Classes 5 through 8 vehicles for the North American market. "While orders were strong, one has to read between the lines to appreciate Class 8 retail sales in January. Thanks to year-ending tax and sales incentives, Class 8 retail sales posted a sharp drop in January from December. But this is the case every year," said Kenny Vieth, president and senior analyst at ACT Research Co., LLC. "However, applying seasonal adjustment gives a better picture: Adjusted Class 8 sales rose 9 percent month-over-month to a 22-month high. Strong orders pushed backlogs to a 22-month high and the backlog/build ratio jumped to 4.9 months."
Source: VehicleServicePros.com

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January Storms Cut Tonnage 4.3%

Freight trend is solid, ATA says

Severe winter weather ravaged trucking in January, driving down December tonnage by 4.3%, the greatest month-to-month decline in two years, American Trucking Associations announced last week. Despite the drop in the trade group's index to 124.4 in January from 130.0 in December, tonnage rose 1.3% on a year-over-year basis. That was the smallest year-over-year increase in at least one year. “Like most economic indicators, truck tonnage was negatively impacted by bad winter weather in January,” said ATA Chief Economist Bob Costello. “January wasn't just one storm, it was several across a large part of the country. The back-to-back nature of these storms has been the problem.” Economic indicators such as a 16% drop in housing starts reflected temperatures far below average in two-thirds of the continental United States, as measured by the Commerce Department. Those weather troubles snagged all corners of a trucking industry that achieved 6.3% tonnage growth last year, the best improvement pace in 15 years and almost triple the 2.3% increase in 2012. While the most recent tonnage total was hurt by weather, there were multiple indicators that underlying January freight trends were sound. “I've heard from many fleets that freight was good, in between storms,” Costello said. “The fundamentals for truck freight still look good.”
Source: Transport Topics

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Commercial Vehicle Registrations Increase Last Year, Used Hits Near Record High

Combined new and used Class 3-8 vehicle registrations in the U.S. during 2013 increased to 1.25 million units, a 4.3% increase over 2012, according to newly released analysis from IHS Automotive, formerly known as Polk. During 2013, new registrations were up 3.8% and used transactions were up 4.7% over 2012 volumes. Combined commercial vehicle registrations, while up from 2012, have been virtually flat over the past three years at an average of 1.245 million units each year. Over the past five years, used commercial vehicle registrations have outperformed new commercial vehicle registrations, according to IHS. While used registrations have declined from their peak and new registrations have increased since the market declines of 2009, used transactions still accounted for 54.3% of total commercial vehicle registrations during 2013, up slightly from the 54.1% hit during 2012. 572,000 new commercial vehicles were registered during 2013, an increase of just 3.8% from 2012.
Source: Heavy Duty Trucking

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Navistar to Close Alabama Engine Plant

Company sees loss of about 280 jobs, annual savings of $22 million

Commercial truck maker Navistar International Corp. ill close an engine plant in Alabama this summer as it moves to eliminate excess production capacity and consolidate its engine lineup for medium-size trucks. The closure of the plant in Huntsville will result in the loss of about 280 jobs and generate savings of about $22 million a year. Production at that plant will be shifted to an engine plant near Chicago, which will add about 75 workers. Navistar will continue to produce large diesel engines for heavy-duty trucks at a second plant in Huntsville. The move reflects an increasing reliance on engines made by Cummins Inc. Navistar recently began offering Cummins's engines in its medium-size trucks and had earlier decided to buy 15-liter engines from Cummins for heavy-duty trucks.
Source: The Wall Street Journal

 

 

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Former Daimler Truck Head Renschler Headed to Volkswagen

The former head of Daimler Trucks, who left the company last month after less than a year of overseeing Mercedes Benz cars and vans at parent company Daimler AG, will be taking over responsibility for commercial vehicles at Volkswagen AG. Andreas Renschler will become a member of VW's board of management effective Feb. 1, 2015, once a non-compete agreement with Daimler is over. He will take over for Dr. Leif Östling, who will continue to work with the commercial vehicles supervisory bodies in the Volkswagen Group. VW produces commercial vehicles under the Volkswagen name, as well as the Scania and MAN names overseas.
Source: Heavy Duty Trucking

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Ford Will Shift Truck Output to U.S.

Automaker expected to switch production from Mexico to Ohio

Ford Motor Co. on Friday plans to announce more details of its manufacturing shift of medium-duty trucks from Mexico to the U.S., according to a person with knowledge of the timing. The Dearborn automaker will build its F-650 and F-750 trucks at its Ohio Assembly Plant in Avon Lake, Ohio, near Cleveland. The switch is likely to take place late this year or in early 2015. Ford currently manufactures the F-650 and F-750 in Escobedo, Mexico, through a joint-venture with Navistar International called Blue Diamond Truck LLC. That joint venture dates back to 2001. Ohio Assembly Plant currently makes E-Series vans. The E-Series will soon be replaced by Ford's new Transit.
Source: The Detroit News

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ATD NextGen
Join the ATD NextGen LinkedIn Group Today!

The NextGen program was created to provide new and young members of the dealer industry with networking and mentoring opportunities to interact with other young professionals, learn about the industry and listen to advice from some of the most experienced and talented professionals in the business. “We try to offer to these young professionals access to more experienced ATD members to educate them on the industry,” said Tucker Morgan, NextGen steering committee member and manager at Kenworth Sales Company's Elko, Nev. location.

The NextGen program helps new professionals get through early career growing pains. “That's primarily the reason [NextGen] was formed,” Morgan said. “There was a group of experienced dealers who wanted to help newer members of the dealer community.”

Since many members are already taking advantage of the networking and information sharing opportunities on LinkedIn, a NextGen LinkedIn group was formed as another way to connect with other industry professionals with similar backgrounds to share ideas, get and give advice, and look for ways to improve your business operations. To join the official NextGen ATD LinkedIn group, click here and select “join group”.

Also, as a member of NextGen, all NADA University Online webinars are available for on-demand viewing. Just log into www.nadauniversity.com and search by title. Available webinars include:

  • Managing Across the Generation Matrix: Jim Dance, president of The WaltStrayer Company, presented "Managing Across the Generation Matrix". This webinar provided participants with practical approaches for communicating, coaching and managing employees from different generations. The dynamics of motivation and how to overcome resistance, manage change, create buy-in, gain commitment and deal with generational conflict will be discussed. Tips for leaders on how to engage staff-members from other generations will also be provided.
  • How to Engage Your Elected Officials:  David Regan, former executive vice president of Legislative Affairs presented “How to Engage Your Elected Officials”. Hear David discuss why it is important for dealers to be involved politically, and the best ways to make an impact, including scheduling visits to your dealership.

Source: ATD

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Top Stories
Reactions to Fuel Economy and Emissions Mandate for Trucks
ACT Research: January Medium and Heavy Duty Net Orders Are Up
January Storms Cut Tonnage 4.3%
Commercial Vehicle Registrations Increase Last Year, Used Hits Near Record High
Navistar to Close Alabama Engine Plant
Former Daimler Truck Head Renschler Headed to Volkswagen
Ford Will Shift Truck Output to U.S.
ATD NextGen
Join the ATD NextGen LinkedIn Group Today!

 

ATD-NADA University Workshops To Go

Workshops from the 2014 ATD-NADA Convention and Expo are now available to purchase. Click here for more information and pricing.


Video: Dealer Goes the Extra Mile to Attend ATD Convention (NADA-TV)

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For more information on ATD, visit www.atd.org. Any opinions or statements contained herein do not necessarily reflect the views of ATD. Factual errors are the responsibility of the listed publication. This email may contain an advertisement of NADA products and services. Questions or comments concerning ATD Insider content may be directed to media@nada.org. To unsubscribe from future editions of ATD Insider, click here or contact ATD, 8400 Westpark Drive, McLean, VA 22102.