Kenworth GM Warns Truck Market Woes to Continue
Speaking this week at the Mid-America Trucking Show in Louisville, Kenworth Trucks General Manager Ed Claudill said trucking’s tough times will continue through this year and will not go away soon. He estimates that sales of new big-rig Class-8 trucks will total 130,000-150,000 units this year, down from 211,507 in 2000. And he disagreed with estimates calling for a strong rebound next year to sales between 200,000 and 230,000 units. “Truck sales for the rest of the year will depend on changes that are taking place in several key economic areas,” said Claudill. While the general economy may strengthen, now the formerly strong construction industry is starting to slow down, and that will affect heavy truck sales. Claudill said, “The problem is still the oversupply of existing Class-8 trucks, they continue to be an alternative to new trucks.” “We’re in for an extended downturn and the problem won’t go away soon,” said Claudill. Because of manufactures’ programs to buy back used trucks, he noted that “the ’99 models are going to come back next year, and unless someone can convince users to keep their trucks longer, the industry can expect to see 50,000, 60,000, 70,000 or 80,000 excess used trucks next year,” on the market.
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