Heavy Truck Sales Surge in October

Heavy truck sales surged in October, rising 117 percent year-over-year and 104 percent from September, as freight volumes showed signs of improving and carriers began a last-minute round of truck purchasing before new emissions standards raise prices.

Preliminary data from FTR Associates shows Class 8 net orders for all major North American truck makers totaled 21,792 units in October. That led the vehicle market research firm to declare “the recovery has begun,” but to warn the truck manufacturing industry has a long, slow haul ahead, at least until the second half of 2010.

“All indications are that the October increase is due to filling up of remaining 2009 production slots for trucks with the older 2007 engine technology and to avoid the new 2010 engines, which due to tighter emissions standards will be more expensive and will employ new technology,” said Eric Starks, president of FTR Associates.

For the last three months, Class 8 orders were received at an annualized rate of 172,300, significantly better than early 2009, FTR reported. The figure includes orders for the United States, Canada, Mexico and exports.

“We are encouraged that fleets have developed enough confidence in the economic recovery that they have been willing to make such commitments,” he said. “However, we believe this is a temporary situation that may actually take orders away from early 2010.”

Starks said the economy has settled into a slow, uneven pace typical of recession bottoms. “We are cautious about forecasting any near-term major improvements for freight companies and their suppliers,” he said. “In fact, we have slightly reduced our Class 8 equipment forecast for 2010.”

Contact William B. Cassidy at wcassidy@joc.com.