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Mar 6, 2008

TRUCKS' MARKET * USA - Learning from 2007, preparing for 2010

A lack of incentives combined with price increases and a reduction in operating benefits ultimately doomed manufacturers’ efforts to prevent a major product pre-buy and subsequent fall-off in truck sales due to the introduction of 2007 low emission engines

Westin,FL,USA -Fleet Owner, by Sean Kilcarr–Mar 6, 2008: -- ... Class 8 sales fell nearly 47% in 2007, dropping to 150,965 units from 284,008 in 2006 – a decline of 133,043 units, according to data compiled by Ward’s AutoInfoBank. Sales in the medium-duty Class 6 & 7 market fared only slightly better, contracting by 36,608 units, or 22%, to 220,128 units in 2007... Yet while engine makers believe a similar pre-buy may again occur ahead of the rollout of 2010-compliant products, they also think there are more positive elements involved this time around – giving them a better opportunity to reduce the severe sales swing that occurred in 2006 and 2007... But for 2010, different elements will be in play. First, while there will be an up-charge for 2010-compliant engines, it won’t be as high as what fleets experienced in 2007. Second, all the engines for 2010 will remain the same as 2007 – there won’t be any technological changes. Finally, there’s a chance in 2010 to create positive operating metrics, which includes improving fuel economy, said Tim Tindall, director of component sales for Detroit Diesel Corp. (DDC) ...

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