Friday, June 10, 2011

U.S. Big-Truck Sales Soar By 62% in May

According to a report today from  Wards Auto,

"U.S. big-truck sales soared in May, up 61.9% vs. a year-ago and far surpassing April’s 31.2% increase, previously 2011’s best monthly performance. Class 8 sales made the biggest leap, up 82.4% thanks to triple-digit percentage increases at Volvo Truck and PACCAR, up 175.4% and 145.4%, respectively. Through May, sales of medium- and heavy-duty trucks in the U.S. were tracking 30.9% ahead of like-2010.

In other big-truck news, Daimler says it will add output and jobs at its North American plants this year. In the second half the company will hire about 1,230 workers at its Mt. Holly and Gastonia, NC, plants, as well as at the truck maker’s sites in Portland, OR, and Saltillo, Mexico."

MP: Doesn't quite fit the "gloom and doom" double-dip recession story.    

7 Comments:

At 6/10/2011 3:20 PM, Blogger morganovich said...

the age of the US truck fleet is at it's highest level since the interstate highway system.

http://www.hdma.org/Main-Menu/HDMA-Publications/Diesel-Download/May-9-2011/Celadon-Exec-Abrupt-Capacity-Shortage-Threatens-Trucking.html

they are over 6.7 years old, more than 11 months over the average.

people have been predicting this for some time.

this may be more a function of simply not being able to defer costs any longer and the trucks in the fleet simply not being serviceable anymore as opposed to a big bet on economic growth.

this is just forced replacement buying.

it's also easy to show huge % jumps after major declines.

i'd be interested to see how the absolute number compares to a good year like 1999 or 2006.

 
At 6/10/2011 5:43 PM, Blogger rjs said...

morganovich, here's your comparison:

http://www.automotivedigest.com/content/displayArticle.aspx?a=67733

looks like we need a couple more years like this to get back to 2006 levels...

 
At 6/10/2011 9:30 PM, Blogger Don said...

It seems likely that the following things will tend to boost new truck investments at present besides just the age of the fleet.

1. New trucks should be more fuel efficient.
2. Fuel prices are and are likely to remain high.
3. Interest rates are still low, but not forever.
4. There are likely few alternative investments which can justify their risk.

Regards, Don Lloyd

 
At 6/10/2011 10:50 PM, Blogger C said...

This comment has been removed by the author.

 
At 6/10/2011 10:58 PM, Blogger C said...

For the love of God Mark, please stop with all the the Pollyanish BS. It's like you have some crazy vested interest in the performance of the U S economy. You're SUPPOSED to be a scientist, which means you focus on reality. And since you haven't apparently noticed, that includes many negative facts about that economy. Grow up already. Try commenting on the facts, primarily, and not just that which fits within your preconceived framework.

 
At 6/11/2011 7:57 AM, Blogger VangelV said...

MP: Doesn't quite fit the "gloom and doom" double-dip recession story.

Sure it does. The real economy became so bad that the older vehicles that should have been scrapped last year were kept running. It is now time for the replacement cycle to lead to higher sales because the new vehicles have a much lower total operating cost and are far more reliable. Even if the contraction continues the truck builders will have to increase production until the replacement cycle has run its course.

 
At 6/11/2011 8:48 AM, Blogger Rufus II said...

Diesel Fuel Sales are running 4.9% Below the same 4 wk period Last Year.

 

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