Class 8 truck sales close ’07 down by 47% for year

The Trucker Staff

1/14/2008

New heavy-duty truck sales for December hit the highest level since May, but the industry still finished 2007 down by almost half compared to 2006.

According to figures published by Ward’s Automotive, Class 8 sales in December totaled 12,034 trucks in the United States, compared to 10,309 in November, a month-to-month improvement of 16.7 percent. That up-tick was only the second such improvement of the year, as sales had fallen off steadily from January through September. October sales jumped 21.6 percent to 11,769, before a slip to 10,309 in November.

Reported sales were 26,462 in December 2006, making for a decline of 54.5 percent in 2007 compared to the same period, the eighth consecutive month the total has fallen by more than half.

Still, the fourth quarter gained enough momentum to propel the year-end tally to 150,965, a 46.8 percent drop compared to the record 284,008 in 2006 — but better than the previous industry swoon, which saw OEM sales bottom out at 139,576 in 2001. That slump dragged into 2003, with the sales not topping 145,000 trucks.

Though more severe than generally anticipated, the emissions mandate-driven slump of ’07 could linger, depending on the economy. Manufacturers and industry analysts agree, however, the narrow window ahead of substantial equipment changes required by 2010 standards should mean sales return to peak levels later this year through 2009.

In a closer look at the most recent data, Freightliner’s 2,583 units in December paced the OEMs in volume, narrowly topping International’s 2,521 mark — the fist time since July Freightliner has occupied its accustomed spot at the top of the Class 8 sales leader board.

Still, both companies took substantial hits in the order book compared to the same month a year ago, with Freightliner down 61.4 percent, while International was off 37.2 percent — the least among the top brands which, as a group, saw sales fall 54.5 percent.

Compared to the month before, Freightliner was up 35.9 percent (best in the field) while International improved 3.3 percent. The group showed a net improvement of 16.7 percent.

Freightliner finished 2007 with a market share of 24.8 percent for the year, with International holding 19.7 percent of the Class 8 total sales in the U.S.

The market leader has seen a decline in its share total, however, compared to a year ago. Freightliner’s cut was reduced by 286 basis points (from 27.6 percent). Sterling, a Freightliner LLC brand, with an 8.0 percent Class 8 market share, and PACCAR’s Kenworth, at 12.8 percent, have improved the most compared to a year ago, respective increases of 210 and 113 basis points.

Look for a complete report of the Ward’s data, as well as industry insider comment, in the Feb. 1 issue of The Trucker.