* New York - Analysis: Dealer inventories of unsold big rigs are at their highest level since before the financial crisis
-- Orders for new big rigs plunged and inventories of unsold trucks soared to their highest levels since just before the financial crisis, as uncertainty about future demand and a weak market for freight transportation weighed on truck manufacturers... About 67,000 Class 8 trucks are sitting unsold on dealer lots, after sales in March dropped 37% from a year earlier to 16,000 vehicles, according to ACT Research. Class 8 trucks are the type most commonly used on long-haul routes. Inventories haven’t been this high since early 2007, said Kenny Vieth, president of ACT... Companies that placed large orders in late 2014, only for customers to move less freight than expected last year, are reluctant to buy more vehicles now, analysts said. Online freight marketplace DAT Solutions reported last month that spot market rates for dry vans, or the box trucks that are ubiquitous on U.S. highways, fell 18% between February 2015 and February 2016, an indication of weak demand... Stifel analyst Michael Baudendistel wrote in a note Tuesday that the backlog of Class-8 trucks appears to be about six months, and said that truck and truck component manufacturers like PACCAR Inc., Navistar and Meritor Inc. are likely to see further pressure on their share prices and earnings...
(Photo Bloomberg News - Orders for new Class 8 trucks plunged in March, and unsold dealer inventories are on the rise) -- NY, USA - The WSJ, by Robbie Whelan - April 5, 2016Labels: truck sales USA and Canada, truckmakers news USA
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