A “perfect storm” of a nose-diving economy, high fuel prices and governmental missteps have all combined to ravage the trucking industry and the companies that supply its equipment, according to Jim Hebe, senior vice president of North American sales for Navistar Inc.
Hebe, addressing the annual meeting of the National Tank Truck Carriers here May 11, said while trucking has always had to deal with business cycles, “they’re happening more often and they’re getting steeper. The highs are higher and the lows are lower.”
Hebe said new Class 8 truck sales have fallen significantly this year (see story, p. 1), while another speaker, Qualcomm’s Norm Ellis, cited data that showed tanker loads have fallen 40 percent during 2009, compared with last year’s already de-pressed levels.
Mack Trucks Incorporated, a subsidiary of Volvo AB (NASDAQ: VOLV) (STO: VOLVA) (STO: VOLVB), has reached a tentative agreement with the United Auto Workers union on a new 40-month Master Agreement.
The contract includes the creation of a trust that will completely eliminate Mack’s health care liabilities for retirees.
Caterpillar Inc. and Navistar International Corp. announced last month they had signed a definitive agreement to produce Caterpillar heavy-duty vocational trucks for sale in North America and had formed a 50/50 joint venture to pursue commercial truck opportunities outside of North America and India. The agreement, which is subject to regulatory approval, finalizes a planned alliance announced in June 2008.
The new Caterpillar trucks, to be unveiled in late 2010, will be co-developed by Caterpillar and Navistar and built at Navistar’s facility in Garland, Texas. They will be sold and serviced exclusively through the Caterpillar North American dealer network. The North American truck deal is subject to various closing conditions, including the execution of the related strategic alliance agreement and certain other ancillary agreements, the companies said.
WASHINGTON D.C. To combat its often negative image as a “dirty” and inefficient source of energy, the diesel-fuel advocacy group Diesel Technology Forum (DTF) hosted a special event on Capitol Hill here to bring together members of Congress and elements of the diesel industry and show off how current diesel-based power systems can curb pollution and reduce overall fuel consumption.
“When people think of ways to address climate change and energy security, they typically think of solar power, wind power, things that are new and different,” Allen Schaeffer, DTF executive director, told FleetOwner.
The NAFTA commercial vehicle industry is facing one of its most difficult periods in decades due to economic and EPA regulatory issues. OEM component suppliers are under intense pricing pressure in this tightening market.
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