Industry Watch September 2012

1.877.gets.uta • www.uta.org
Used Truck Association
Chartered May 16, 1988
Published by the Used Truck Association
325 Country Club Drive, Suite A
Stockbridge, GA 30281
Table of Contents
Board News & Views............................2
New Members.......................................3
Face to Face with Philip Jenkins...........4
The Brooks Group
Sales Tip of the Month.......................5
Moving on Down the Road:
Catching Up With Ken Kosic..............8
Market Stable, Model Year
Trends Developing..................... 10-11
Industry News Briefs..................... 12-15
Polk Used Truck Data......................... 15
Industry Events Calendar....................20
From Where We Sit............................23
The UTA…
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UTA Industry Watch Editors
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Phone: 877-GETS-UTA (877-438-7882)
Fax: 770-454-0029
editor@uta.org
Volume 14 • Issue 9 • September 2012
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2012
Board of Directors
UTA Industry Watch
Board News and Views
Excuse Me! I Think We Did Build It!
F
irst let’s get this out of the way. The views in this article are my own and do not necessarily
reflect the views of the UTA, the UTA board, or the editors of the UTA Industry Watch newsletter.
Front, L to R: Kenny Doonan, Tim
Ormsby, Tim Ronan, George Barnett,
Marty Crawford, Mike Thurston
Back, L to R: Bryan Boyd, Bryan Haupt,
Sheri Aaberg, Tom Pfeiler, Rick Clark,
Lara Haag, John Cosgrove, Bobby
Williams, Ken Kosic, Jay Burgess alternate (not pictured)
President
Rick Clark
Vice President
Bobby Williams
Treasurer
Tom Pfeiler
Secretary
Sheri Aaberg
President Emeritus
Marty Crawford
Affiliates & Benefits Committee
Chairman
Bryan Boyd
Convention Committee Chairmen
Sheri Aaberg & Tim Ormsby
UTA Jerome Nerman Family
Foundation Scholarship Committee
Chairman
Tim Ronan
Elections Committee Chairman
George Barnett
Marketing Committee Chairmen
Jay Burgess & Rick Clark
Medium Duty Committee Chairman
Tom Pfeiler
Membership Committee Chairmen
John Cosgrove & Kenny Doonan
Training Committee Chairman
Ken Kosic
UTA Dealer Group Committee
Chairmen
Mike Thurston & Bryan Haupt
UTA.org Website Committee Chairman
Bobby Williams
2 September 2012
I’m sitting here in my office waiting, as I have done for the past several weeks, for my “partner”
in this business, someone from the government, to show up for work. Again I am disappointed
to see they are a no show. You would think that if they built this business for me they would be
here to run it. Actually, I’m glad they don’t show up because whenever anyone from the government
shows up and says “I’m from the IRS, EPA, BMV, DOT, etc., and I’m here to help,” the only thing
they ever help with is to lower the already low balance in my checking account.
Ok, now that I have tippy-toed around my feelings on President Obama’s comments on how we
who are in business didn’t build our business, that the government did that for us (“If you’ve got
a business, you didn’t build that. Somebody else made that happen.”) let’s look at some facts. I
am going to comment on the Interstate Highway System that we in this industry are very dependent
on, and could look at President Obama’s statement and say, “Well yes the government did build
that for us and we wouldn’t sell many trucks if we did not have it.”
Let’s look at who is really responsible for the Interstate Highway System. I would argue that a large
part of credit for a project goes to the group who funds the project. Yes, the government built it,
or had it built, but who paid for it? So here is a little history lesson. It’s the point that most of you
will quit reading this because it gets somewhat boring, or even more boring depending on your
view. Also, many of the more senior members of our organization, like myself, already know this
stuff. For some of you though it might be of some interest.
In 1956, the Highway Trust Fund was created to fund
the building of the Interstate Highway System. The
idea for this system had been around for several
years, and mostly it was seen as a way to move
military troops and equipment quickly and efficiently
around the country if needed. World War II hadn’t
been all that long ago, and the Cold War was just
starting so national defense was a priority at the time.
It was also seen as a definite benefit to the public for
automobile travel, and for easier interstate
transportation of goods and products. To fund this
project some existing taxes on fuels were raised, and
some new taxes were created.
One of the major new taxes created was the Federal
Highway Use Tax. Many of you probably recognize
those four words from all of the Form 2290s you use
to have to include with the sale of every truck you
sold. This was to prove the tax had been paid on the truck you were selling, and no back taxes
were due. The tax is a yearly tax collected on every truck registered in the USA over 55,000 lbs.
combined GVW, and most Class 8 trucks are taxed at $550.00 annually. The 12 percent federal
excise tax collected on the sale of every new truck 33,000 lbs. GVW or more sold in the U.S. at
time of sale is also a major part of the Highway Trust Fund.
These taxes were a huge factor in funding the Interstate Highway System, and continue to be a
major part of the funding to maintain and build new parts of the system. All of the funding for
federal highways is from taxes like this, and fuel taxes that go into the Highway Trust Fund. So
yes, the government built the roads that are needed for our industry to succeed. But like
everything else the government does, it was paid for by the private sector. In this case, most of it
from the trucking industry.
I hope to see you all in New Orleans for our UTA convention. And one last
thing, don’t forget to vote!
Tim Ormsby,
Co-Chair Convention Committee
tim@uta.org
www.UTA.org
UTA Industry Watch
New
Members
It’s always a treat to welcome new members to the Used Truck Association. Each month we profile
our new members in this newsletter. New members have the opportunity to complete a bio and send
a photo so our current members can learn more about you. We hope to learn not just how to
reach you, but what you like/don’t like about the work you do, why you joined the UTA, and
what gets your gears going as a person. So please return your questionnaire so your fellow UTA
members can get to know you!
If you’d like a copy of the new member brochure handed out at the convention, please contact
David Grace at davidgrace@charter.net or 770-389-6528 ext. 404.
Brian Anderson, Fleet Sales
Dan Dubak, Chief Operating Officer
Jim Johnston, President
Quality Equipment Sales
2335 W. Raymond St.
Indianapolis, IN 46241
www.qestrucks.com
(317) 937-0957 (W)
banderson@celadontrucking.com
Pure Motorcars, Ltd.
1424 Lee St., Suite B
Des Plaines, IL 60018
www.puremotorcars.com
(847) 813-5585 (W)
dan@puremotorcars.com
Jack Cooper Specialized Transport
2650 E. 32nd Street, Suite 220
Joplin, MO 64804
www.jackcooperspecialized.com
(417) 659-2108 (W)
jjohnston@jackcooper.com
Dan’s company is called Pure Motorcars, yet
he’s joined the UTA so we asked him how
trucks enter the picture for his dealership.
He explained that as his dealership is based
in Des Plaines, IL, he’s surrounded by truck
drivers, owner/operators, and so on. About
six to eight months ago he saw an upturn
in the market for used trucks, and decided
to also include trucks, specifically Class 8
vehicles, in his inventory.
Jim began in the
business back in 1979,
working as a dispatcher
in Oakville Ontario,
Canada. He created Jack
Cooper Specialized, a
vehicle delivery service,
in 2011.
John Barrett, Truck Sales Manager
Quality Equipment Sales
2335 W. Raymond St.
Indianapolis, IN 46241
www.qualitycompaniesllc.com
(317) 362-3896 (W)
jbarrett@celadontrucking.com
John started out in the truck business in
2008. Prior to that he was in the petroleum
industry.
He comes to UTA seeking networking
opportunities.
We asked John the question we ask all new
members, and that is what you might find
yourself doing if you weren’t in the truck
business. “I would be on the beach
somewhere,” John responded. “That would
be my hope.” We’re with you on that one
John!
Dan’s been in the transportation industry
his entire working life—about 14 years. He’s
joined the UTA to network, acquire more
inventory, and discuss the business of selling
trucks with others doing the same. In his
spare time Dan hunts and enjoys trapshooting.
He’s joined the UTA to
gain new contacts and
business associates and says the best part
of his job are the “challenges and change.”
When we asked Jim if there’s another field he
could envision himself in he said he “would
not want to be in any other business.”
Jim’s also an avid hockey fan, the proud father
of two, and proud grandfather of two.
Erik Krenz, Sales Manager
Inland Kenworth
1021 North 59th Avenue
Phoenix, AZ 85043
(602) 258-7791 (W)
ekrenz@inland-group.com
Ben Wieder, President
575 S. Hercules Ave., Ste 602
Clearwater, FL 33764
www.level6marketing.com
(727) 210-6600 (W)
(216) 224-8380 (C)
ben@level6marketing.com
People rarely succeed unless they have fun
in what they are doing.
~ Dale Carnegie
www.UTA.org
September 2012 3
UTA Industry Watch
Philip Jenkins
P
hilip Jenkins has been a member of
UTA since its inception when Marvin
Gordon began planning for the organization
and turning to truck dealers for their input.
Today Philip is the president and founder of
Jenkins International Marketing in Colleyville,
TX, buying and selling equipment. “I work
mostly with franchised dealers of all of the
major manufacturers and a few independent
dealers to locate and sell inventory,” Philip
explained. He sells used Class 8 trucks,
medium-duty trucks, trailers, RVs, buses,
and also new trucks. “I’m currently working
with various dealer groups in the U.S.,
Canada, Central and South America, and
Africa,” he said.
In covering such a broad range of inventory
and clients, Philip is living up to his own
personal history. He joined the truck
industry in 1969 when he started working
for Brockway Motor Trucks of Buffalo, NY, a
division of Mack Trucks. His next job took
him to the Mack Regional Used Truck
Center in Delran, NJ. Then he hopped over
the river to Philadelphia when he took a job
as the Used Truck Manager for the Mack
Truck factory store. His next step was the
position of Regional Manager for all the
Mack Truck locations in the East. In 2003 he
moved into the Dealer Development Group
for Mack and Volvo, and then to the
Premium Used Truck Group. Throughout
his travels and his steady climb
up the ladder, Philip learned
everything he’d need to set out
on his own. In 2010, he took the
plunge and opened up his own
business.
Today Philip is proud of the
success of his business and
dedicated to the services he
provides to his clients. “I
understand how they operate
their businesses, and I know
their needs,” he said. Philip
starts his day at 6:00 am in
order to be available for his
customers on Eastern
Standard Time. He keeps
going until 8:00 pm so that
his Pacific Coast customers
can have the same ready
access to his services. “I’ve
always tried to ‘Do the
Right Thing’ when it comes
to the dealers.” In addition
to the pride Philip takes in having created a
successful business, he is also proud of the
4 September 2012
good work he’s been privileged to do
throughout his career. He told us that while
he was the Director of Used Trucks at Mack
he took a trip to Africa. While visiting one of
his international dealers, Philip had the
opportunity to see the trucks he’d recently
sold the dealer working the port and
delivering food to the needy of Africa. “My
role in the trucking industry has allowed me
to assist dealers worldwide,” he said.
That devotion to others is part of the
Jenkins’ family culture. Philip’s wife Peggy is
an elementary school math teacher. His
older daughter Laura is a middle school
science teacher and track coach. His younger
daughter Rachel works for a non-profit
organization that supports the needs of
at-risk teens. Philip clearly has provided a
positive example for his children to follow,
and his advice to younger people starting out
in the trucking industry reflects his concerns
for the well being of others. “I want them to
understand to put some of their income
away for when our industry has a downturn
and sales slow up,” he said. “There’s nothing
worse than a desperate salesman.” He also
encourages them each to become the “point
person” for all of their clients. “Their clients
need to be able to come to them and ask
questions about the latest technology and
the changing laws in our industry,” he
observed.
When Philip isn’t working he enjoys being
active in his church community and
spending time with his wife of 40 years and
his family. “I enjoy cooking gourmet meals,
working in my yard, and spending time with
my first grandchild,” Philip told us. That
sounds like a perfect next step for a deserving and hard-working member of our
association! n
www.UTA.org
UTA Industry Watch
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UTA Industry Watch
Moving On Down the Road: Checking in with Ken Kosic
U
TA Board member Ken Kosic, who heads the training committee, recently assumed a
new position with his long-time employer Arrow Truck Sales, Inc.
Way back in 1989 Ken started his career with Arrow, and with the exception of a five-year stint at
MHC he’s been with Arrow the whole time. His first job with the company was as their retail
branch manager for Kansas City.
Over the years Ken worked his way up to Western Regional Manager. In March of this year he
began a new job as Director of Operations. Reporting to Ken in his new position are marketing
and advertising, national accounts, and the compliance department, which works on policy issues.
We gave Ken a call to find out how the new job was coming along. “The transition’s been great,”
he shared. “I was traveling 120 days per year. I thought I would miss all the interaction with my
accounts, I had gotten to know my contacts so well, and came to really enjoy the traveling.”
It turns out that Ken doesn’t mind less travel and actual enjoys not traveling so much. He’s also
found he can make a big difference to Arrow behind the scenes. As you might expect he’s a huge
booster of Arrow. “A lot of great people work for Arrow,” he said. “It seems Arrow has been the
training ground for the Used Truck Industry.”
Thanks to his less-frequent travel schedule Ken can spend more time with his wife Cathy, with
whom he’s been married for 45 years. He can also spend more time with his children Ken Jr.,
(who is also the truck business with Midwest Truck Sales), as well as Jennifer and Anne Marie.
Rounding out Ken’s family are his grandchildren Reid, Kennedy, Ava, and Aidan.
We found Ken’s enthusiasm for his work to be inspirational. “I’m 67, but there’s still a lot of work
to be done,” he told us. “The days fly by.” n
8 September 2012
www.UTA.org
UTA Industry Watch
Market Stable, Model Year Trends Developing
By Chris Visser, Senior Analyst and Product Manager, Commercial Trucks
R
etail pricing for the sleeper market overall rose unexpectedly in
July, but this rise was not supported by newer model years.
Trucks newer than four model years old continue to gradually decline
in price. The wholesale market returned a solid performance despite
historically high average mileage. Sales volume per dealership was
moderate for the third month in a row. July’s results suggest a market
remaining stable at a high level.
Retail Market
Slightly older trucks have followed a different pattern. Model year 2008
vehicles have enjoyed steady pricing since February after declining
throughout 2011. And the 2007 and even 2006 model years have not
depreciated notably in at least 18 months. It is likely that the market
has established a comfort level for the last of the pre-DPF trucks.
Bottom line – trucks with under 600,000 miles that meet trade terms
will bring strong money, regardless of age. See the “Average Retail
Price by Model Year” graph for detail.
After a relatively flat first half, and in the face of mixed economic data,
July’s average pricing surprised on the upside. The average sleeper
tractor retailed in July cost $50,077, had 557,314 miles, and was 75
months old (see graph). This result is 1.2 percent above June, with
mileage 2.6 percent higher. Age was higher by one month. This was
only the second month in the past four years in which price crested
the $50,000 barrier.
Wholesale Market
Wholesale pricing for sleeper tractors remains predictable, tied tightly
to mileage. The average sleeper tractor wholesaled in July cost $30,014,
had 680,041 miles, and was 96 months old (see graph). This result is
12.8 percent higher than June, with mileage 1.7 percent lower. Age was
identical to June.
Compared to July of last year, this month’s results were 5.2 percent
higher on price, and 7.7 percent higher on mileage. Trucks sold in July
of last year were six months younger.
Late-model trucks, particularly the 2009 and 2010 model years, have
trended moderately downwards. This behavior is to be expected for the
newest model years as they enter the market in greater numbers (see
“Monthly Retail Sales Volume” graph). At the same time, anecdotal
evidence suggests a degree of resistance to DPF-equipped trucks in regions
not directly impacted by port-related emissions regulations. Overall,
2009 model years continue to command strong money, and we do not
foresee any change in pricing other than continued mild depreciation.
Compared to July of last year, this month’s results were 11.8 percent
higher on price, and 8.2 percent higher on mileage. Trucks sold in July
were a whopping 20 months older than the same month year.
With a -0.95 correlation between price and mileage since January, we
can fairly accurately predict where pricing will fall at a given mileage
point. July’s result was on the high side of what we would expect given
the average mileage. The rule of thumb of trucks with under 650,000
miles performing well in the wholesale market may need to be revised
upwards 5 percent or so.
10 September 2012
www.UTA.org
UTA Industry Watch
Sales Volume
BIG RIGS.
BIG OPTIONS.
July’s results were nearly identical to June’s, at 5.9 trucks retailed per
dealership rooftop (see graph). The second quarter of this year was
weaker than the same period last year by 0.4 trucks per dealership or
6.7 percent. The decrease is attributable mainly to supply factors –
namely, a lack of low- to average-mileage iron to sell. At the same
time, the demand side can’t be overlooked. The mild contraction in
the manufacturing sector and the extremely cautious investment
environment are probably having some impact. But market appetite
for any truck with under 600,000 miles indicates that the demand side
is the lesser of the two factors.
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Conclusion
After mixed results in May and June, we had considered July a critical
month that would determine whether the market was in decline or
just flattening out. With late-model tractors continuing their gradual
decline, pre-DPF iron holding steady, predictability in the wholesale
markets, and little change in sales volume, we consider the used truck
market stable.
Mixed domestic manufacturing activity and the ongoing political
circus will ensure that business investment remains extremely
conservative through the end of the year. However, we maintain that
the low supply of low- to average-mileage used trucks will continue to
support high pricing levels well into 2013. n
www.nada.com/b2b
Reprinted with permission from the
ATD/NADA Official Commercial Truck Guide®
www.UTA.org
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September 2012 11
1 - 8 0 0 - 5 5 4 - 1 0 2 6 | W W W. B L A C K B O O K U S A . C O M
UTA Industry Watch
Industry News Briefs
Women In Trucking Founder honored at White House’s “Champions of Change” Event
Internet Truckstop Director of Freight Matching and Women In
Trucking Chairwoman Leigh Foxall was recently honored at the
White House as part of the “Champions of Change” initiative.
The program brings together “ordinary Americans doing extraordinary things” from different sections of the economy. The transportation industry, more specifically the Women In Trucking founder
and president, Ellen Voie, was honored July 31, 2012.
Ellen Voie, founder, president and chief executive officer of Women
In Trucking was invited to the attend to honor her for her contributions to the transportation industry. Her mission to “encourage the
employment of women in the trucking industry, promote their
accomplishments and minimize obstacles faced by women working
in the trucking industry” has been very successful, according to the
organization that she heads.
“It is very exciting to have Ellen recognized for her work. It is evident
that Women In Trucking’s efforts to bring awareness to the great
careers in the transportation industry is being recognized,” said
Leigh Foxall, Internet Truckstop Director of Freight Matching and
Women In Trucking Chairwoman. “It was an honor for both Ellen
and members of the board to attend this White House event.” n
From left, Laura Roan, Hyundai Translead; Leigh Foxall, chairwoman, WIT/Internet
Truckstop; Jeff Hammonds, Walmart Transportation; Ray LaHood, Secretary
of Transportation; Ellen Voie, CEO, WIT and Jan Hamblin, J.J. Keller; (unknown
man in blue) were all on hand for Ellen’s award ceremony. ©USDOT Photo
Navistar Teams with Cummins to Meet 2010 EPA Regs
It looks like Navistar may have found a way to comply with the EPA’s
2010 emissions standards. The company has introduced ICT+
(In-Cylinder Technology Plus), which it said leverages the advances
the company’s made in clean engine technology, while “providing
greater certainty for its customers, dealers, and other key constituents.”
To speed ICT+ delivery, Navistar entered into an agreement with
Cummins Emission Solutions, whereby Cummins will supply its
urea-based after-treatment system to Navistar. This would be
combined with Navistar’s advanced in-cylinder engine to create ICT+.
Navistar said that by combining Cummins’
after-treatment system with its existing
MaxxForce engines, its ICT+ will meet 2010 U.S. Environmental
Protection Agency (EPA) emissions regulations, and position it to
meet greenhouse gas (GHG) rules ahead of 2014 and 2017 requirements. “With this clean engine solution, we are taking the best of
both technology paths to provide our customers with the cleanest
and most fuel efficient engines and trucks on the market and to meet
stringent U.S. emission regulations,” said Daniel C. Ustian, Navistar
chairman, president and CEO.
The company also said that during the transition to ICT+, it “will
continue building and shipping current model EPA-compliant trucks
in all vehicle classes using appropriate combinations of earned
emissions credits and/or non-conformance penalties (NCPs).”
Navistar also said it’s working with the EPA and the California Air
Resources Board (CARB) regarding ICT+ transition.
As part of the deal with Cummins, Navistar will offer the Cummins
ISX15 engine in certain models, thus expanding its vehicle lineup
and “on-highway market opportunity.” Navistar noted it will
introduce the Cummins ISX15 engine as a part of its North American on-highway truck line-up starting in January 2013, and begin
introducing ICT+ in its MaxxForce 13-liter in early 2013. For more
information visit http://www.navistar.com/. n
12 September 2012
www.UTA.org
UTA Industry Watch
The State of U.S.
Truckload Fleets
July’s Class 8 Preliminary Net Orders “Below
Trend”
ACT Research reported that North America heavy-duty GVW Class 8
commercial vehicle preliminary net orders for July were below trend.
Classes 5-7 net orders, however, bounced back above the long run order
trend. The final numbers, not available at the time of this writing, will
approach 12,900 units for heavy-duty Class 8 trucks and 14,800 for
medium duty Classes 5-7 vehicles ACT said. (Preliminary net order
numbers are usually within 5 percent of the final tally.)
“Class 8 orders fell below our near-term expectations, even when
adjusted for seasonality,” said Kenny Vieth, president and senior
analyst, ACT Research. “Seasonal adjustment pushes July’s Class 8 net
orders total from the actual 12,900 units to 15,400 units. In Q2, net
orders averaged 17,300 units per month, even as Class 8 builds averaged
26,000 units. As has been the case since late February/early March, the
order weakness appears to boil down to confidence in the economy
relative to the risk of taking out a sizeable loan to buy a truck.”
“Positively, Class 8 cancellations remained at low levels and retail sales
were strong through Q2, reflecting the continued support of large
trucking concerns. The big public carriers posted strong profits on
modest revenue growth in Q2. This along with other data suggests
that as the economy steadies and the outlook becomes clearer, demand
should return to pre-soft-patch levels.”
For additional information, go to http://www.actresearch.net. n
FTR Agrees­—
Class 8 Orders Weak
FTR Associates released preliminary
data showing July Class 8 truck net
orders at 12,568 units, which it said is
the lowest month for orders since
August 2010, and 32 percent below the
same month last year. These order
numbers span all major North American OEMs. July orders were 23
percent below weak June activity and “continue reflecting soft demand
for Class 8 vehicles.” FTR added that for the May-July period, orders
annualize to 186,300 units.
TCP Partner Richard Mikes recently
gave a presentation on the State of U.S.
Truckload Fleets. Takeaways and conclusions follow.
Volume
■■ While most people are concerned about the economic uncertainly,
70 percent of carriers believe volumes will grow over the next year.
Pricing
■■ Pricing trends remain strong even in the face of decelerating volume
growth.
■■ Almost half of the carriers surveyed said rates increased by five
percent or more between March 2012 and May 2012.
■■ Two-thirds of carriers surveyed say rates will climb over the next 12
months.
Capacity
■■ Class 8 tractor orders have generally cooled over the past two years
as carriers grew cautious about ordering incremental units.
■■ 71 percent of fleets surveyed plan to add less than five percent
incremental capacity over the next year.
■■ Half of responding carriers say that return on investment (ROI) is
too low to justify buying incremental tractors and trailers.
■■ Shippers are changing their behavior to compensate for a real or
perceived capacity shortage.
■■ Carriers have found it less necessary to use brokers as supply and
demand has tightened across the industry.
Conclusions: With tightening supply and demand dominating the
truckload industry landscape, rates should continue rising as long as
the economy continues growing at a modest 1.5 percent to 2 percent
GDP growth rate (or better). Rate increases will continue to outstrip
cost increases, especially for large truckload carriers, enabling further
operating margin expansion.
To receive the slide deck of the presentation, send an email to
partners@transportcap.com. n
“While orders came in below expectations, they didn’t really surprise
us. We have been forecasting slower sales of Class 8 vehicles in the
second half of 2012 for some time, and the reported order numbers for
July support our current outlook for the remainder of the year,” said
Eric Starks, FTR’s President.
More details are available by contacting FTR Associates at
ftr@ftrassociates.com, or by calling 1-888-988-1699. n
Industry News Briefs continued on page 14
www.UTA.org
September 2012 13
UTA Industry Watch
Industry News Briefs continued on from 13
Ford Scooping up Chinese Heavy Truck Manufacturer
Ford Motor Company announced that as part of its aggressive expansion
in Asia, and particularly its commercial investment in China, it will
move into the heavy-truck business via a major acquisition. The result:
Ford will gain a foothold in the world’s largest market for the segment.
Jiangling Motors Corporation (JMC), of which Ford is a major shareholder,
will buy a 100-percent stake in Taiyuan Changan Heavy Truck Company.
The deal is pending final approvals from Chinese government authorities.
“JMC’s acquisition represents a great opportunity to continue to expand
the breadth of our business in China across vehicle segments,” said Dave
Schoch, chairman and
CEO, Ford Motor
China. “A strong heavy truck
operation like Taiyuan will complement Ford’s existing passenger car and light commercial vehicle operations here in the world’s largest and fastest-growing vehicle market.”
As part of its Chinese expansion Ford said it will also introduce 15 new
vehicles and 20 advanced powertrains to that market by 2015. To support
this growth, Ford and its partners are building five new plants in China,
including a new manufacturing plant in Nanchang (JMC’s home), with
an annual capacity of 300,000 units. When the facility comes online
in 2013, Ford said, it will produce both JMC and Ford-branded vehicles.
Shanxi Province, Ford noted, provides a “significant launch pad” for JMC’s
move into an area where heavy trucks are in strong demand due to the
region’s abundance of raw materials and iron, coal, and electricity.
Ford feels demand for heavy duty trucks in China will continue to rise
because of “China’s long-term economic growth potential and strong
investments in infrastructure by the Chinese government.” Ford added
that China represents the world’s largest market for heavy trucks, with
nearly one million units sold last year – more than North America,
Europe and South America combined. n
$25 Billion in Savings Possible by Switching Freight Shipments to Carriers Using Alternative Fuels
We’re all aware of the arguments in favor of clean or green technology. Until
recently, however, cost savings have rarely been among those arguments.
Now a report from a Washington, D.C. energy policy group urges the
federal government to start allocating its $150 billion budget for transport
services to carriers that fuel their fleets on domestically produced natural
gas, electricity, biofuels, and other diesel and gasoline alternatives.
The report, by the non-profit American Clean Skies Foundation (ACSF),
says a switch of just 20 percent of the U.S. government’s business to freight
and package carriers using alternative fuels would yield taxpayer savings of
up to $7 billion annually, and approximately $25 billion by 2025 (assuming
a gradual fuel shift, beginning in 2015). Much of the savings is from
reduced fuel costs. That’s because major alternatives, such as compressed
natural gas (CNG), cost less per gallon than petroleum-based fuels.
The 55-page ACSF report—Oil Shift: The Case for Switching Federal Transportation Spending to Alternative Fuel Vehicles­—finds that shifting federal
transportation contracts to vans and trucks running on alternative fuels
could reduce oil imports by billions of gallons annually; cut greenhouse gas
(GHG) pollution by over 20 million metric tons a year; and stimulate the
nationwide introduction of tens of thousands of new alternative fuel vehicles.
“When it comes to shipping goods to the government, we think it’s
high time for Washington to start ‘Buying American’ and using more
carriers that rely upon cleaner domestic fuels. That will not only save
billions of taxpayer dollars but also lead to cheaper and less polluting
freight transportation options for everyone else,” said Gregory C. Staple,
CEO of ACSF and co-author of the report.
To get shippers that handle government business on clean energy
paths, the report recommends Washington simply apply the same
measurement and reporting tools developed by federal agencies over
the last two decades to decrease petroleum use and harmful emissions
associated with the government’s own transportation fleet.
“Most people are probably unaware that the freight services which are
14 September 2012
used by the government and major product suppliers provide a 30
times larger opportunity for oil savings and emissions reductions than
the cars and trucks that the government owns itself,” said Warren
Lavey, co-author of the report and ACSF’s Senior Regulatory Counsel.
“Moreover,” added Lavey, “our proposal does not require any new
legislation or spending -- federal agencies already have the legal
authority required to track the oil used and pollution associated with
third-party shipping services. And agencies also have the authority to
begin buying those services from freight carriers that increasingly rely
on cleaner, domestically sourced alternative fuels.”
Recommendations
To realize the budget and environmental benefits described above, the
ACSF report makes three main recommendations:
1) Starting in 2014, federal agencies should publish annual targets and
initiatives for buying more alternative fuels, reducing petroleum and
lowering emissions associated with major transport services.
2) Starting in 2015, agencies should require major carriers to use
alternative fuels for at least five percent of contracted shipments
(measured in ton-miles). This requirement should increase by at least
two percent each year from 2015 to 2025.
3) Starting in 2016, federal agencies should publish annual targets, and
initiatives for using more alternative fuels, reducing petroleum and
lowering emissions associated with the transport services used by major
vendors to deliver products to the government (i.e., for vendor contracted shipping services not covered by the prior recommendations).
In addition, ACSF says Congress should encourage a transportation
spending shift by directing the GAO to report annually, beginning in
2013, on the effectiveness of federal programs to increase the use of
alternative fuels and to reduce costs related to transport services
directly or indirectly purchased by federal agencies. Congressional
oversight hearings may also be appropriate. n
www.UTA.org
UTA Industry Watch
ATA to FMCSA: New CSA Revision Process a Start, Serious
Flaws Remain
In comments filed July 30, American Trucking Associations told the
Federal Motor Carrier Safety Administration that while it supports the
agency’s new process for improving its carrier oversight program
Compliance, Safety, Accountability, the system “still has serious
deficiencies that must be corrected.”
“ATA supports this new approach to making adjustments to the Safety
Measurement System methodology,” ATA’s Vice President of Safety
Policy Rob Abbott wrote. “Previously, FMCSA occasionally made changes to the methodology with
no prior explanation or announcement.”
Despite the process’s increased openness, Abbott said ATA still had significant concerns about
the methodology. In particular, ATA cited the agency’s treatment of non-preventable crashes
and the creation of a new category to exclusively measure hazardous materials safety.
“There can be no better predictor of future crash risk than past at-fault crash involvement,”
Abbott said. Speaking to FMCSA’s recent announcement that it intends to spend a year
conducting research before developing a process for determining crash accountability, ATA
urged FMCSA to establish an interim process to remove from consideration crashes in which it
is “plainly evident” that the truck driver was not responsible for the crash.
ATA reiterated its support for FMCSA’s plan to create a separate category to measure hazardous
materials carriers. But ATA urged the agency to implement the change only after modifying and
testing the methodology to ensure that carriers’ scores relate to future crash risk. Currently, the
BASIC assigns high scores to many reputable, safe motor carriers with laudable crash rates and
low scores in all other categories.
“While compelling fleets to improve compliance with HM regulations is important, the more
pressing need – and the goal of CSA - is to identify fleets with a greater risk of crash involvement and to change their behavior,” Abbott said. “Doing so would undoubtedly be a more
appropriate and efficient use of the system.” n
Polk Data
Used Truck Sales
Quarter 2, 2012
GVW
Used Trucks
3 49,632
4 17,026
5
8,567
6 13,848
7 11,952
8 62,174
Quarter 1, 2012
GVW
Used Trucks
3 48,983
4 14,718
5
8,004
6 14,010
7 12,977
8 65,332
Register NOW at
www.UTA.org
Quarter 4, 2011
GVW
Used Trucks
3 43,950
4 12,911
5
7,137
6 12,356
7 11,429
8 53,582
Quarter 3, 2011
GVW
Used Trucks
3 52,243
www.UTA.org
4
17,392
5
8,780
6
14,954
7
15,299
8
72,863
September 2012 15
16
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Ask your authorized Cat dealer about the 2012 Cat engine parts programs
or visit www.cat.com/2012partsprogram.
© 2012 Caterpillar All Rights Reserved
CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the “Power Edge”
trade dress, as well as corporate and product identity herein, are trademarks
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UTA Industry Watch
www.UTA.org
September 2012 19
UTA Industry Watch
Industry Events Calendar
SEPTEMBER
NOVEMBER
9-10 • NMFTA Annual Meeting
Alexandria, VA
Hilton Alexandria
http://www.nmfta.org/Pages/NewsandEvents.aspx
16-22 • National Truck Driver
Appreciation Week
Sponsored by American Trucking
Associations (ATA)
www.truckline.com
28-29 • 22nd Annual Antique and
Working Truck Show
Cookeville, TN Hyder-Burks Ag Pavilion
http://www.aths.org/
28-29 • GBATS 2012
(Guilty By Association)
Joplin, MO
4 State Trucks
http://chromeshopmafia.com/events/
guilty_by_association_truck_show/
february 2013
8 - 11 • ATD/NADA
Convention & Expo
Orlando, FL
Orange County Convention Center
http://www.nadaconventionandexpo.org/
OCTOBER
MARCH 2013
5 - 6 • Charlotte Diesel Super
Show
Concord, NC
18 - 20 • ACT’s Commercial Vehicle Industry
Review & Forecast
Columbus, IN
Charlotte Motor Speedway zMax
Dragway
www.dieselsupershow.com
Location TBD
www.actresearch.net
7 - 10 • ATA Management Conference & Exhibition
Las Vegas, NV
21 - 23 • Mid-America
Trucking Show
Sponsored by Mid-America
Trucking Show (MATS)
http://truckinginfo.com/industry-events/event_detail.
asp?ID=1823 13 - 14 • Golden State
Trucking Expo
Pomona, CA
Kentucky Exposition Center,
Louisville, KY
www.truckingshow.com
Fairplex in Pomona
http://www.
goldenstatetruckingexpo.com/
20 September 2012
www.UTA.org
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See our 2012 Guarantees
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If you are not totally satisfied with the bottom line performance of the MICHELIN®
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Program guidelines and exclusions:
• ThisprogramiseffectivebeginningJanuary1,2012untilDecember31,2012.
• OfferappliestotirespurchasedbetweenJanuary1,2012andDecember31,2012andmanufactured
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• Offerappliestoamaximumof10setsofMICHELIN® X One® tires.
• WarrantymustbesignedbyaMICHELIN representative prior to purchase.
• Dateofdeliveryorproofofpurchaseisrequired.
• Allreimbursementspursuanttothetermsoftheprogrammayonlybeprocessedthroughan
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Michelin will pay $30 per MICHELIN® X One® tire assembly returned towards change-over mounting
servicesasoutlinedabove,viacreditmemotoanAuthorizedMICHELINDealeronly.
• Allclaimsunderthetermsofthisprogrammustbemadebytheoriginalpurchaser/owner
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• Reimbursementoforiginaltireandwheelorre-purchaseofcasingandwheelwillbedone
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• Tiresrenderedunserviceableduetoabuse,misuseorroadhazardsareexcluded.
• AllMICHELIN® Limited Warranty exclusions still apply. See warranty for details.
• Michelinreservestherighttomodifyordiscontinuethisprogramatanytime
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UTA Industry Watch
22 September 2012Don’t
www.UTA.org
Miss the Excitement This Year in The Big
Easy
UTA Industry Watch
From Where We Sit
September marks the moment in time when
a long-ago assumption about our family
comes to be true. When our son was born
family members both far and wide proclaimed our “little family” complete. Ethan
arrived and joined his big sister Stephanie,
and the assumption was one daughter, one
son, family finished. I, for one, took great
offense at this statement, no matter which
side of the family offered it. First of all, how
did these far-flung relations know that we
hadn’t decided to have a half dozen sons and
an equal number of daughters? Not only that,
but suppose sometime in the future we’d be
in a position to take in a family member’s
child or a child’s friend in need of a home.
Who were these people who’d not only decided, but also proclaimed so loudly about
something they had no right to judge and no role in deciding?
Well, as it turned out, “they” seem to have been correct. Our son is the baby of the
family, and we raised our kids having kept the nuclear family to just an even four. That
perception remained constant until our daughter got married nearly three years ago.
Her husband, Andrew, joined the group,
and then there really was a new and wholly
enfranchised member of the family. He
came into our lives as though he’d always
been a part of the group, and we’ve truly
embraced each other as devoted family
members.
In just a few weeks, as the summer wanes
and the autumn begins to show up, Ethan
will marry his high-school sweetheart,
Laurel. She is already an integral part of
our family, and we simply couldn’t be any
happier to have her join us officially. She is
everything parents could want in their son’s
partner, and she joins her brother-in-law in
taking her own special place here with us.
In some traditions, when the youngest child
is married, the parents receive a crown.
That is a charming little addition to the
reception that says, “These parents have
completed the task! Their work is done.”
There will be no official crowning of the
groom’s parents here. We’ll just rejoice in the fact that we truly
have completed our family. Now any additions to the group will
be because our kids have taken that step. We’ll embrace whoever
comes along, no matter what the circumstance, and enjoy. That
crown will forever reside symbolically as we watch, with great
happiness, our four beloved children add their very own jewels
to it. At least that’s the way it seems from where we sit.
Deb and Brad Schepp
editor@uta.org
www.UTA.org
September 2012 23