Industry Watch September 2015

1.877.gets.uta • www.uta.org
Volume 17 • Issue 9 • September 2015
Chartered May 16, 1988
Nearly 400 Industry Professionals Attend
UTA’s Cummins’ ISX Engine Webinar
Published by the Used Truck Association
325 Country Club Drive, Suite A
Stockbridge, GA 30281
Latest installment in UTA’s popular webinar series
garners praise, ideas for further webinars
Used Truck Association
Table of Contents
Board News and Views.......................2
Quips & Quotes.......................................2
New Members.....................................3-4
Face to Face with Gary Conleay.......... 6
Industry Events Calendar.......................7
A Tribute for a Job Well Done!........... 8
Polk Data................................................. 8
The Brooks Group
Sales Tip of the Month........................8
Achieving Excellence in Dealer
Distributor Performance: An
Interview with Walt McDonald....... 9
Moving on Down the Road:
Catching Up with
Steve “Bear” Nadolson.....................10
NADA Update............................... 12-15
A Challenge to UTA Members!......... 16
Industry News Briefs....................18-20
From Where We Sit...........................22
The UTA…
Members Supporting Members!
SHARE YOUR news
with the UTA Industry Watch.
Send submissions, ideas and
comments to:
UTA Industry Watch Editors
Brad and Deb Schepp
c/o Grace Management
325 Country Club Drive, Suite A
Stockbridge, GA 30281
Phone: 877-GETS-UTA (877-438-7882)
Fax: 770-454-0029
[email protected]
Twitter: @usedtruckassoc
T
ruck buyers are eager to learn more about Cummins’ ISX engine as shown by the great
turnout at the UTA’s latest installment in its free webinar series. Nearly 400 truck
professionals participated in the webinar on Tuesday, July 28th, which armed truck professionals with the selling benefits of the ISX engine for used truck buyers. Alberto Alcala of
Cummins, Inc. presented the webinar.
“The presentation exceeded our expectations by
going beyond the hardware,” said Jim
Zimmerman of Kenworth of Pennsylvania.
“While doing a great job of highlighting the
benefits of the ISX engine, they also brought
to light a number of web-based applications
to assist our associates while in the field.”
Mike Roney of Warner Truck Sales and the
UTA Board Member heading the Dealer
Group also recognized and appreciated
Cummins’ industry-leading, technologybased tools. “Having the ability to utilize a
personal cell phone to identify fault codes,
and corresponding details about the
Cummins ISX in a used truck, as well as
warranty plans, are resources that will save us
time, and enable us to more quickly value
trade-ins,” he said.
Though the value-added technology wrapped around the engines garnered much attention, the
webinar also provided an outstanding summary of the benefits of the Cummins ISX engine.
Topics such as the evolution of the ISX engine through different EPA regulations, backwards
compatibility for new durability innovations, and an improved dash interface are all selling
points that will help UTA members find the right equipment for used truck customers.
Mr. Alcala also briefly discussed Cummins Medium Duty engines, and provided some helpful
insights about Cummins Natural Gas engines. He suggested that Cummins is already looking
ahead to providing other UTA webinars about its Medium Duty and natural gas engines.
Thanks to all who participated and most importantly to Cummins for putting on this webinar.
If you have any questions about the ISX webinar, please feel free to contact Alberto Alcala at
[email protected].
If you have general comments or ideas for upcoming webinars, please feel free to reach out to
the below contacts.
■■
Ken Kosic, UTA Training Committee Chair, [email protected]
■■
Amanda Kent, UTA Training Committee Vice Chair, [email protected]
■■
Todd Coppaken, [email protected]
UTA Industry Watch
2015 Board
of Directors
http://www.uta.org/directory
governing board:
President...................... Rick Clark
Vice President....... Craig Kendall
Treasurer.............Brock Frederick
Secretary......... Angelique Pierce
President Emeritus
........................... Marty Crawford
Board News and Views
My Board News & Views this month is about the Used Truck Association’s 16th annual
convention coming up in November. The reason I’m excited, and it’s only September 14th, is
that our convention team is traveling to the convention site—The Gaylord Texan and
Convention Center in Grapevine, TX­—this week. Our team of Board Members and folks from
Grace Management normally go down in September to finalize all of the meal and room
arrangements, and examine the hotel’s complete layout to ensure it will be a convention you will
be proud of. Each year this job becomes more and more challenging, because each year we have
increased our registrations and sponsorships! :)
On behalf of the UTA Board Members, I would like to thank all of the 2015 sponsors even
before we get to the convention. Without all of you we wouldn’t have the outstanding
networking and industry information opportunity that the convention will provide! I have been a
Diamond sponsor now for a number of years, and it’s a great way to give back to the Used Truck
Association, the members, the attendees, and the spouses. Thank you all!
Committee Chairpersons:
Affiliates & Benefits... Craig Kendall
Convention.....................Hal Dickson
Bryan Haupt
Dealer Group..................Mike Roney
Elections.................. Mike McColgan
Finance..................... Brock Frederick
Marketing.............. Angelique Pierce
Amanda Kent
Medium Duty............... Amy Shahan
Membership.............. John Cosgrove
Training...............................Ken Kosic
Amanda Kent
UTA Jerome Nerman Family
Foundation Scholarship
........................................ Jay Burgess
Craig Kendall
Website.................. Angelique Pierce
Wreaths Across America......Ken Kosic
Young Member Group
.................................... Brandon Hess
All things being equal, people
will do business with, and refer
business to, those people they
know, like and trust.
We have an awful lot going on at the annual convention this year, which is full of networking
and educational opportunities. On Thursday you will be consumed by all of educational items
we have on the schedule. On Friday morning we will have our guest speaker followed by a great
lineup of tours. Please go to the website at www.uta.org, and download the Convention
Brochure for the complete schedule and all of the details.
Thank you all, and I look forward to seeing you in November!
John Cosgrove
Membership Chairman
[email protected]
~Bob Burg
2 September 2015
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 enjoy 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!
Don DaVanzo, Used Truck Manager
Tony Kapustka, Dealer Development
Manager
Lou Bachrodt Freightliner
Center Port Circle
Pompano Beach, FL 33064
www.freightlinerfl.com
(954) 545-1021 (w)
[email protected]
If you have a question about the industry,
Don would be a good person to turn to. He’s
been a part of the truck business since 1972,
when he got his start as a truck driver.
One thing he really likes about this business
is the ability “to earn a strong paycheck.”
Having recently been out of work for a while
he can really appreciate that. Networking is
probably the best way to get a new job, and
networking and the chance to build
long-term relationships with other members
is what he hopes for from his membership.
Asked about other interests, Don replied,
“my grandchildren! To them I am a Rock
Star! I love it!”
Heidi Henckel
P.O. Box 800
Johnston, IA 50131
www.accesstrucks.com
(515) 270-2206 (w)
[email protected]
Bryan Howard
Daimler Trucks Remarketing
2477 Deerfield Drive
Fort Mill, SC 29715
(704) 968-2920 (w)
[email protected]
Eric Jenkins
Kordell Truck & Trailers
14868 West Ridge Lane
Dubuque, IA 52003
(563) 584-9800 (w)
[email protected]
www.UTA.org
Caterpillar Inc.
100 N.E. Adams Street
Peoria, IL 61629-2490
www.drivecat.com
(309) 675-9654 (w)
[email protected]
In 1998, Tony began
working as a Truck
Engine Marketing
Representative, his
first job in the truck
industry. Why did
Tony join the UTA? He
was quite specific in
his answer: “For
networking with used
truck industry experts and leveraging best
demonstrated practices to further enhance
customer satisfaction.”
Tony feels Cat can offer its customers
something unique, which is what he likes
best about his job there. “We have the
unique opportunity to offer customers
comprehensive solutions for a wide variety
of industries and applications via the Cat
dealer network,” he noted.
We heard something for the first time when
we asked Tony about any special interests
or passions others may not know about. “I
enjoy music; particularly playing the piano,”
he responded. Perhaps we can all enjoy a
sampling of Tony’s talents at the next
Convention!
Trich Mullane
P.O. Box 800
Johnston, IA 50131
www.accesstruck.com
(515) 270-2206 (w)
[email protected]
Mario Rodes
Paccar Financial Corp
9620 S. 76th Avenue
Hickory Hills, IL 60457
(708) 430-9011 (w)
(708) 430-9336 (c)
[email protected]
Jordan Rugg, Used Truck Sales
FYDA Freightliner
Columbus, Inc.
1250 Walcutt Rd.
Columbus, OH 43228
www.fydafreightliner.com
(614) 851-0002 ext.1217 (w)
[email protected]
Jordan is a new
member of our
industry, now
working in his
first job in the
field. He may
be new, but he’s
committed and
definitely sees
trucking as his career. “I have a decade of
sales experience, but heavy-duty trucking
equipment has always excited me,” Jordan
told us. “I’ve had a passion for it since I was
a child.”
His favorite aspects of his current job are
the managers with whom he works and
“Big Trucks.”
Jordan said that if he wasn’t in trucking
he’d like to be a Purchasing Agent. Here’s
why. “I’ve had to deal with them for the last
10 years and they never stop and are always
trying to squeeze me for every last penny
they can,” Jordan said. “I would like to
have that shoe on the other foot and dish it
out to some sales reps for a while as I would
enjoy it, and it would relieve some stress.”
Jordan’s also a “huge” Cleveland Browns
fan. “I’m quiet about it for obvious reasons
because we have been so terrible for the
last two decades. I simply don’t like the
constant giggles and heckling from people
once they find out what a die-hard Browns
fan I am.” (The picture shows Jordan with
Vikings Running Back Adrian Peterson.)
Finally, Jordan had this message for his
fellow UTA members. “I want this Industry
to be my career. Please, anybody who wants
to network with me, contact me and we
could share information, sales ideas that
have worked, and even those that haven’t.
New Members continued on page 4
September 2015 3
UTA Industry Watch
New Members continued from page 3
Also we can brainstorm about ‘Outside the
Box’ ideas and discuss successes and
failures. But most importantly, I believe we
all can help each other out when it comes to
selling more equipment if we network
together and share ideas, and know where
each other can find specific inventory that
a customer is looking for. I would love to
both offer to buy and sell inventory we
have wholesale for other inventory in
return when I need it for a specific
customer or buyer!”
Brian Wetzel, Heavy Duty Truck Mgr.
Beaux Yerger
Adesa Atlanta
5055 Oakley Industrial Blvd
Fairburn, GA 30213
www.Adesa.com
(770) 357-2175 (w)
(770) 357-2276 (c)
[email protected]
2604 Millhaven Road
Monroe, LA 71203
www.joegearco.com
(318) 267-4358 (w)
[email protected]
Let’s all welcome Brian
to the truck business,
which he just joined
this year. He’s off to a
good start as a new
UTA member because
this is a great place to
learn more about the
industry and to make
contacts.
Brian’s favorite parts of his job are working
for a “great company,” and the challenge of
learning a new product.
While a newcomer to the truck business,
Brian’s a veteran of the auction industry.
“It’s what I know and what I have always
done,” he said.
Copyright ©2015 Michelin North America, Inc. All Rights Reserved. The Michelin Man is a registered trademark of Michelin North America, Inc.
Outside of work you may well find Brian
outdoors, especially hunting or fishing.
CHOOSE MICHELIN® X ONE® TIRES
FOR INCREASED FUEL EFFICIENCY,
PAYLOADS AND UPTIME.
Switching to MICHELIN ® X One ® wide base single tires can
save you up to 10% in fuel1 and 1,410 pounds in payload.
That’s why more than two million X One tires have worked
hard for customers across North America.
And now, Used Truck Association members in the U.S.
can take advantage of a special program that provides
consistent national pricing and convenient payment
options on MICHELIN ® truck tires and retreads.
To enroll now or learn more, visit uta.org/Michelin.
1
Based on industry standard rolling resistance testing of comparable tires and
retreads. Actual results may vary, and may be impacted by many factors, to include
road conditions, weather and environment, driver performance, etc.
4 September 2015
www.UTA.org
UTA Industry Watch
LOOKING TO SELL? LOOK FOR US!
MIKE CLARK AND FRANK JOHNS
ARE AT THE CONVENTION.
CALL THEM TO SET UP A MEETING!
WE’R E BU YING:
Freightliner Cascadia,® Columbia® and Century Class®
All makes, late-model, low-mileage
Vocational specifications
Class 6 and 7 medium-duty vehicles
MIKE CLARK
FRANK JOHNS
[email protected]
[email protected]
8 03-367-2 058
www.UTA.org
614-400-6636
16TH ANNUAL
UTA CONVENTION
DIAMOND+ SPONSOR
September 2015 5
Copyright © 2015. Daimler Trucks North America LLC. SelecTrucks is a brand of Daimler Trucks North America LLC. Daimler Trucks Remarketing Corporation is a subsidiary of Daimler Trucks North America LLC, a Daimler company.
UTA Industry Watch
Gary Conleay
G
ary is the General Manager for
SelecTrucks of Atlanta and the
Director of Used Trucks for Peach State
Freightliner. With 37 years of experience in
the industry, you may just recognize him,
especially because he’s been a UTA member
since the first or second year our association
started. But Gary’s life selling vehicles
started long before that. His father, Bill
Conleay, sold automobiles for 55 years. “I
spent a lot of time following him around as I
was growing up, and learned a lot about
selling and dealing with people from him,”
Gary recalled. Still, even then, Gary knew he
didn’t want to spend his life in the car
business. “I always loved trucks, and I found
my passion in the truck business,” he said.
Gary has had a broad range of experiences throughout his long career in the
trucking industry. As a college student,
he worked at a dealership. “I worked
part time for a Chevrolet dealer that
sold heavy duty Chevrolet trucks,”
Gary told us. “I had a ‘Chauffeur’s
License’ as it was known back then,
and I used to do dealer transfers on
medium and heavy Chevys.” Since
then he’s worked for a variety of
companies. “I have represented just
about every brand of truck you can
think of,” he said. Most recently,
Gary spent 20 years representing
Freightliner. He has been at
SelecTrucks of Atlanta for seven.
Before that, he spent 13 years with
Freightliner of Knoxville.
His career as a salesman began in
1981 when he became the Sales
Manager for Peterbilt in
Shreveport, LA. “I was the
youngest sales manager in the
entire Peterbilt Network at the
time,” Gary recalled. “I have been
supervising and mentoring salespeople ever
since.” In his current position, Gary wears at
least two hats. “I am currently the General
Manager of SelecTrucks of Atlanta and also
6 September 2015
the Director of Used Truck Sales for Peach
State Freightliner,” he explained. “In that
role, I have responsibility for the used truck
activities at the Peach State location and also
at Birmingham Freightliner in Birmingham,
AL. I am responsible for putting numbers on
new truck trades for Peach State.”
As he looked back on his many years in
truck sales, Gary starts giving credit when
he mentions his first teacher, his dad. “My
dad was a great role model and mentor,” he
said. He also pointed to the great people he’s
worked with over the years, and he advises
younger members of his profession to build
strong networks and friendships in the
industry. “I wish I had a strong network of
friends back then, like I have now,” he said.
He went on to offer some sage advice for
driving a young career. “If you are going to
be in used truck management, you can never
have too many friends. Your competitors
aren’t your enemies. They should be your
friends. You never know when you can help
them, or they can help you.” As if this
weren’t incentive enough to be friends, Gary
reminds us, “You never know when you
might end up on the same team together.”
Since Gary has such a broad range of truck
experience, he’s also gained some clear
insights into what he likes. “I have spent a lot
of time selling new trucks,” he said, “but I
found that I really enjoyed selling used
ones.” It turns out Gary loves the whole
process. “I enjoy finding, buying, reconditioning, and selling a used truck,” he said. “I
love seeing a used truck transformed from a
frog to a prince!”
When he’s not at work, Gary and his wife
enjoy traveling. They have five children and
12 grandchildren, six boys and six girls. They
love visiting their children and traveling in
general. “We have been on 11 cruises,” Gary
told us. Even while home, they also enjoy
boating, so transportation of all types seems
to please Gary Conleay. n
www.UTA.org
UTA Industry Watch
Industry Events Calendar
SEPTEMBER
NOVEMber
20-22 • Women In Trucking Association
Accelerate! Conference & Expo
4-7 • 16th Annual UTA Convention
Hilton Anatole • Dallas, TX
http://womenintrucking.org/conference-schedule/
Gaylord Texan Resort & Convention Center
Grapevine, TX
http://uta.org/2015/03/01/2015-uta-convention-dallas/
22 • 2015 Wreaths Across America Gala
Grand Hyatt Washington • Washington, DC
http://tca.truckload.org/scripts/4Disapi.dll/events/2014wreaths-across-america-gala/275/
23-25 • National Trailer Dealers Association
(NTDA) Convention
Diplomat Resort & Spa Hollywood • Hollywood, FL
www.ntda.org
25-26 • Guilty By Association Truck Show
4 State Trucks • I-44, Exit 4 • Joplin, MO
www.chromeshopmafia.com/guilty-by-association-truck-show/
28-30 • ACT Research 53rd Commercial Vehicle
And Transportation Seminar
Clarion Hotel & Conference Center • Columbus, IN
www.actresearch.net/services/conferences/
october
MARCH 2016
5-6 • Selling for Success, UTA Sponsored Training
Courtyard Denver Airport • Denver, CO
www.uta.org
2-4 • The Work Truck Show
17-20 • ATA Annual Management Conference &
Exhibition 2015
1201 Market Street • Philadelphia, PA
www.trucking.org
29-31 • World of Transportation Expo
Greater Columbus Convention Center • Columbus, OH
www.worldoftransportationexpo.com
Indiana Convention Center • Indianapolis, IN
www.ntea.com/worktruckshow/index.aspx?id=938
6-9 • Truckload Carriers Association 2016
Annual Convention
Wynn Las Vegas • Las Vegas, NV
www.tca.truckload.org/scripts/4Disapi.dll/events/2015annual-convention/269/
31-April 3 • ATD Convention & Expo
Las Vegas Convention Center • Las Vegas, NV
www.atdconvention.org
APRIL
14-16 • Truck World
Toronto International Centre • Mississauga CAN
www.truckworld.ca
22-24 • 75 Chrome Shop Truck Show 2016
419 E State Road 44 • Wildwood, FL
www.75chromeshop.com
www.UTA.org
September 2015 7
UTA Industry Watch
A Tribute for a Job Well Done!
by Gary Conleay
A
t the end of August, Bob Hogan retired
from a 39-year career in truck selling.
He hung it up and is planning to spend more
time with his bride, Veronica. I have known
Bob for over 20 of those years, and have been
working with him for the last eight. Our
careers have taken similar paths.
He started selling trucks in 1976. I started in
1978. We both started selling Kenworths,
moved to Volvo, and then eventually landed
with the Freightliner organization. During
that time, I have worked with a lot of
people—some good, and some not so good.
Most of those I have worked with have been
hardworking and honest people. In such a
long career, though, I have encountered only
a few people that I truly admired. Bob
Hogan is one of them.
Bob started his truck-selling career in
Binghamton, NY after he got out of the
Army. There he was working for a guy
named Al Hess, whom some of you may
know. When Al decided to move to Atlanta
to take a job with General GMC-Kenworth,
Bob made the move with him, and the two
worked together for many years. After Al left
General, Bob moved over to the local Volvo
dealer, and stayed there for a few years. In
2001, Bob joined the sales team at
SelecTrucks of Atlanta, and has been here
ever since.
During Bob’s time here, he has become a
decorated veteran of the SelecTrucks
network, having earned places in both the
Century Club and President’s Club on
several occasions. Among Bob’s peers, he is
known to be a true friend to many, and one
of the few real Gentlemen in this business.
To his customers, he is known to be a
straight shooter, and a man of genuine
integrity.
Bob has shared his life with his wife
Veronica for over 40 years. They have three
children and four grandchildren. In
retirement, Bob plans to spend a lot more
time with them. We have tried to talk Bob
out of it, but he insists that all of his coupon
clipping has paid off, and he is well prepared
for retirement.
Bob is a modest man, and made us take a
pledge not to make a big deal out of his
leaving. So accordingly, we are going to do
our best to honor his wishes. However, it is
hard to let such a great guy ride off into the
sunset without some kind of recognition. So
Bob, here’s to you, my friend! May your
retirement be all that you hope for, and may
Bob Hogan
God bless you and your family in the future.
You have blessed all of us with your presence
and your example. You have served your
customers very well down through the years.
Go enjoy your retirement and come back to
see us when you can! n
Gary Conleay is the General Manager of
SelecTrucks of Atlanta and the subject of this
month’s Face to Face profile.
Polk Data
The following table summarizes the year-over-year percent change for used vehicle
transactions by GVW for the second quarter of the 2015 calendar year compared to
the same quarter in the 2014 calendar year, plus each GVWs share of used transactions
in the quarter for both calendar years.
Used Commercial Vehicle Registrations by GVW
2015 2nd QTR
% Chg. vs. 2014
2015 2nd QTR Share (%)
2014 CY Share (%)
Sales managers
who are most
GVW 3
6.1
32.5
30.8
GVW 4
-5.9
9.9
9.9
effective are
GVW 5
2.1
5.5
5.2
not afraid to
GVW 6
1.0
8.7
8.3
GVW 7
-13.3
7.1
7.8
show their humanity
GVW 8
-14.4
36.3
38.0
-5.4
100.0
100.0
Total
and kindness.
Source: IHS Automotive, Polk 2014-2015 registration data
8 September 2015
www.UTA.org
UTA Industry Watch
Achieving Excellence in Dealer Distributor
Performance: An Interview with Walt McDonald
I
f you’ve been in this industry for any length of time, you may have come across Walter
McDonald, CMC. He’s the founder of the McDonald Group, Inc., a private consulting firm
focusing on distributor operations improvement, marketing and business strategies, and
executive education and development.
Walt is a highly respected construction, material handling, mining, heavy-duty truck, fire apparatus,
and industrial equipment management seminar leader.
Since 1975, he has conducted over 2,650 management seminars and workshops throughout the
world. We caught up with him recently to discuss his new book, Achieving Excellence in Dealer/
Distributor Performance: How to Increase Profitability, Cash Flow, Market Share, which is
available through Amazon.
In part one of our two-part interview, Walt discusses why he wrote his book, some of the most
significant problems dealers now face, and how certain tools and techniques can help them.
Look for part two of our interview in next month’s Industry Watch.
Industry Watch: Please tell us about your book and why you wrote it.
McDonald: In many ways, this book is a written reflection of the live dealer management
seminars I have given more than 2,000 times. If you are familiar with my work for Kenworth,
Volvo, MACK, Freightliner, Peterbilt, and ThermoKing in this industry, you know I focus on the
real value-generating activities of the business. I am there in the trenches with Branch and
General Managers, New and Used Truck Managers, Parts and Service Managers, and Professional
Truck and Aftermarket Sales Representatives. These are the people who create real value and
make it happen every hour of every day in the dealership.
This dealer handbook is all about how to increase dealer market share, profitability, cash flow,
customer retention and employee job satisfaction of your entire dealer team.
The book is also written for those young, bright, enthusiastic, creative, insightful, technologically astute, highly motivated generations of managers of tomorrow.
Industry Watch: What are the most pressing problems facing truck dealers now, and what
advice do you have for them?
McDonald: Incredible pressure on new truck margins, escalating costs, global used truck
competition, obsolete/unfriendly management information systems, continued weakness in
revenue center management training, and unenlightened sales management.
The list goes on and on. This is a very challenging and difficult business. The winners are
making the investments in organizational training and development, proper management
information tools, and closer working relationships with OEMs, lenders, and customers.
Industry Watch: What are some of the new tools and techniques winning dealerships now use
to boost performance?
McDonald: With continuing pressure on new truck margins, HD truck dealers are focusing on
absorption rate, making certain that operating expenses are covered by aftermarket parts and
service. Accordingly, HD dealers have made a science out of improving shop labor productivity.
Supporting shop labor performance metrics is essential for success today.
The best source of high margin parts sales is shop labor. So, the #1 sales tool for higher margin
parts sales is to sell more labor. Why? Direct parts sales has become a very competitive price-driven
business and unless a dealer has a stomach for high volume-low margin churning of assets,
other options are available such as a large mega-store retail operation.
The internet has changed the dynamics of the used truck business somewhat, but the seven
Axioms for Used Truck Business Success are still correct: They begin with, “You must buy it
right to sell it right.” The rest are covered in my book. n
www.UTA.org
September 2015 9
UTA Industry Watch
Moving on Down the Road:
Catching Up with Steve “Bear” Nadolson
S
teve “Bear” Nadolson has been named the Heavy Duty Truck Program Manager for
American Guardian Warranty Services, Inc. (AGWS). AGWS administrates the Compass
Heavy Duty Truck Protection Plan, a “fully insured protection plan for Medium and Heavy Duty
Trucks and Buses.”
Steve, a former UTA president, has over 38 years of experience in truck sales, management,
financing, training, and used truck protection plan sales. Starting as a salesman at International’s
Used Truck Center in Columbus, Ohio, he has since managed several large used truck operations,
consulted for many truck dealers and related companies, and trained people in the United
States, Central America, Mexico, Brazil, and Canada.
“I have a couple of goals in this new position,” Steve said. “First, I want to unify the sales agents
across the country into a team of professionals, and second, I want to help AGWS become
recognized as a world-class provider of used truck protection plans.”
As Heavy Duty Truck Program Manager, “Bear” as he is known in the used truck arena, is
charged with increasing sales, helping define new areas of coverage, and forming a trained,
professional sales team.
“We do not need to brow beat dealers into offering our programs,” Steve noted. Our comprehensive
coverage, versatility, and built-in benefits to the buyer sell themselves. We need to show our dealers
how to use the programs to benefit their buyers.”
“Bear” can be reached at [email protected], or by phone at (740) 507-0717.
10 September 2015
n
www.UTA.org
Stronger partner.
That ’s Ryder.
Make a stronger decision on your
transportation partner. Turn to Ryder for
stronger trucks—and a stronger selection
of parts when you need them.
Stronger trucks
All Ryderstrong™ certified pre-owned
trucks must first pass our rigorous
140-point inspection.
Stronger parts provider
Ryder Fleet Products is your easyto-use, online source for the same
reliable parts that Ryder uses on its
own fleet—all at reduced rates:
To receive a weekly dealer wholesale
inventory list, please contact:
[email protected]
•
Discounted prices on over 50,000
brand-name, aftermarket truck
parts, tools and shop supplies
•
Parts from more than 250
leading manufacturers
Put the strength of Ryder to work for you today. View our full inventory of
Ryderstrong™ certified pre-owned trucks at usedtrucks.ryder.com and all parts
and supplies at ryderfleetproducts.com
FLEET MANAGEMENT |
DEDICATED TRANSPORTATION
|
SUPPLY CHAIN SOLUTIONS
• Simplest Warranty Qualification.
“The Original NO Hoops” to Jump Through.
No Dynos, No Waiting Period. No Preapproval or
Preinspection Required
• Class 8 Coverages Up To 4 Years/500,000 Miles +
Available for Engine, Transmission & Differentials
• Turbochargers, Injectors & Water Pump
Coverages Available
• Emissions Package: DPF & EGR Valve Coverage
• Model Age Must Be 9 Years from Current Year or Newer
Ryder and the Ryder logo are registered trademarks of Ryder System, Inc.
Copyright © 2015 Ryder System, Inc. Ever better is a trademark of Ryder System, Inc.
• Over 2500 Selling Locations
• Best Record for Paid Claims
• Most Competitive Prices In The Industry
• Medium Duty Truck - Reefer Unit Coverage.
Thermo King and Carrier. 1-2 Years.
• Auxiliary Power Units Coverage Available
Instant Accurate Values for Anything on Wheels
Premium 2000+ ™
Provides Complete Warranty Training. Front to Back.
Every month Black Book’s Official Medium and Heavy Duty Truck
and Trailer Guide carries the load on valuation.
This valuable resource covers approximately 4,000 class
4 through class 8 trucks, tractors, straight trucks and commercial
trailers used in the trucking and transportation industry.
“Setting The Standard” In Truck Warranties
•
•
•
•
•
Increased Used Truck Sales Volume
Increased Value of Used Equipment
Increased Return on Investment
Increased Customer Retention
Increased Finance Approvals
888-261-7581
Call 800-554-1026 to subscribe or learn more.
Premium2000.com
[email protected]
190 Charlois Blvd., Suite 200B
Winston-Salem, NC 27103
UTA Industry Watch
NADA Update
Chris Visser, Senior Analyst and Product Manager, Commercial Trucks
Twitter: @NADAUsedCarGde
Average Retail Price by Model Year -­‐ Sleeper Tractors Market Summary
$140,000 Retail sales volume recovered from an unusually low June, and
wholesale volume remains strong. Pricing in both channels was little
changed month-over-month on average, with selected individual
models showing movement. Medium duty conventionals had a better
month, while cabovers remain stable. This month, we look at the
market for 6x2’s and dive deeper into factors driving retail and
wholesale volume.
Looking at the market overall, the average used sleeper tractor retailed
in July for $60,945, had 483,221 miles, and was 74 months old. Compared
to June, this truck brought $1,288 (or 2.2 percent) more money, had
23,081 (or 4.6 percent) fewer miles, and was 2 months newer. Compared
to July 2014, this average truck brought $178 (or 0.3 percent) more
money, had 20,663 (or 4.1 percent) fewer miles, and was identical in age.
See “Average Retail Price and Mileage” graph for detail.
$60,000 520,000 Price $45,000 460,000 430,000 Average Retail Price Fe
b M
ar
Ap
r M
ay
Ju
n Ju
l Au
g Se
p Oc
t No
v De
Ja c n-­‐
15
Fe
b M
ar
Ap
r M
ay
Ju
n Ju
l Ja
n-­‐
14
Period The number of trucks sold through auction and dealer-to-dealer
channels through July is running 6.6 percent ahead of the same period
of 2014. Dealer-to-dealer sales were unusually strong in July, at 3.3
trucks per rooftop, which is the highest result since December of 2010.
■■
14
Fe
b M
ar
Ap
r M
ay
Ju
n Ju
l Au
g Se
p Oc
t No
v De
Ja c n-­‐
15
Fe
b M
ar
Ap
r M
ay
Ju
n Ju
l n-­‐
Ja
Trucks of model year 2011 averaged $35,619 through July of 2015 – a
$12,229 (or 25.6 percent) decrease versus trucks of model year 2010
this time last year.
Again, the steep decline in pricing of the five-year-old group is
attributable to the ProStar. Excluding the ProStar, this cohort actually
appreciated $1,827 (or 3.8 percent).
See “Average Wholesale Price by Model Year” graph for detail.
Average Wholesale Price by Model Year -­‐ Sleeper Tractors 2 per. Mov. Avg.(2007) 2 per. Mov. Avg.(2008) 2 per. Mov. Avg.(2009) 2 per. Mov. Avg.(2010) 2 per. Mov. Avg.(2011) 2 per. Mov. Avg.(2012) $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 n-­‐
1
Trucks of model year 2012 averaged $72,413 through July of 2015 – a
$2,191 (or 2.9 percent) decrease versus trucks of model year 2011 this
time last year.
Trucks of model year 2012 averaged $56,257 through July of 2015 – a
$1,599 (or 2.8 percent) decrease versus trucks of model year 2011 this
time last year.
Ja
Trucks of model year 2013 averaged $81,952 through July of 2015 – a
$3,740 (or 4.4 percent) decrease versus trucks of model year 2012 this
time last year.
■■
Trucks of model year 2013 averaged $67,999 through July of 2015 – a
$1,415 (or 2.1 percent) increase over trucks of model year 2012 this
time last year.
Average Wholesale Price Period Specifically, the three- to five-year-old cohort depreciated 1.3 percent
month-over-month and 1.5 percent year-over-year. Three-year-old
trucks have stabilized in the high-$70,000 range for the past two
months, after depreciating moderately in the first five months of the
year. There were notably fewer three-year-old trucks reported sold in
the first seven months of 2015 than 2014 – 54.3 percent fewer, in fact.
Also, the make/model supply is well-mixed, with no single model
overly impacting averages. As such, the lower pricing is likely
demand-driven. Specific figures are as follows:
■■
2014 Sleeper Tractors – Wholesale
400,000 Performance of three- to five-year-old trucks tells a more accurate story,
though, with three-year-old models bringing lower pricing year-overyear despite lower volume. At the same time, trucks of that age have
stabilized in recent months after depreciating earlier in the year.
■■
2013 $40,000 See “Average Retail Price by Model Year” graph for detail.
Mileage 490,000 $50,000 $30,000 ■■
2012 $60,000 Source: ATD/NADA Official Commercial Truck Guide® ■■
$55,000 Source: ATD/NADA Official Commercial Truck Guide® 2011 4 Fe
b M
ar
Ap
r M
ay
Ju
n Ju
l Au
g Se
p Oc
t No
v De
c
Ja n-­‐
15
Fe
b M
ar
Ap
r M
ay
Ju
n Ju
l 550,000 $65,000 Mileage 2010 $80,000 This increased volume has not yet impacted pricing to any great
extent. Three- and four-year old sleeper tractors command pricing
similar to last year. Five-year-old sleepers are running substantially
behind, but this is mainly due to the outsized impact of the 2011
International ProStar on the averages. Specific figures are as follows:
Average Retail Price and Mileage: All Sleeper Tractors Under 1M Miles $35,000 2009 $0 Sleeper tractors retailed in July averaged mildly lower mileage than in
recent months, pushing the month’s average pricing to the highest
level since February.
Price 2008 $100,000 $20,000 Sleeper Tractors – Retail
$40,000 2007 $120,000 Source: ATD/NADA Official Commercial Truck Guide® Period Trucks of model year 2011 averaged $63,601 through July of 2015 – a
$4,476 (or 7.6 percent) increase over trucks of model year 2010 this
time last year.
12 September 2015
www.UTA.org
UTA Industry Watch
As for the market overall, the average used sleeper tractor wholesaled
in July for $35,625, had 611,879 miles, and was 83 months old.
Compared to June, this truck brought $5,943 (or 14.4 percent) less
money, had 50,569 (or 9.0 percent) more miles, and was seven months
older. Compared to July 2014, this average truck brought $5,482 (or
13.3 percent) less money, had 40,837 (or 7.2 percent) fewer miles, and
was nine months older. Through the first seven months of the year,
though, average pricing is nearly identical to last year.
See “Average Wholesale Price and Mileage” graph for detail.
Average Wholesale Price and Mileage: All Sleeper Tractors Under 1M Miles $45,000 Price $40,000 $35,000 $30,000 $25,000 2 per. Mov. Avg.(Price) $20,000 2 per. Mov. Avg.(Mileage) Ja
n-­‐
14
Fe
b M
ar
Ap
r M
ay
Ju
n Ju
l Au
g Se
p Oc
t No
v De
Ja c n-­‐
15
Fe
b M
ar
Ap
r M
ay
Ju
n Ju
l $15,000 Mileage 760,000 730,000 700,000 670,000 640,000 610,000 580,000 550,000 520,000 490,000 460,000 430,000 400,000 $50,000 Source: ATD/NADA Official Commercial Truck Guide® Period Demand remains strong for late-model sleeper tractors. We should see
increased dealer-to-dealer activity as trade packages continue to
return, but we don’t foresee depreciation accelerating beyond our 1-2
percent per month forecast through the end of the year on average.
Competitive Comparison: 3-5 Year-Old Sleeper
Tractors (Retail)
The three- to five-year-old sleeper market dipped mildly in July,
coming in 1.4 percent lower than June on average. Year-to-date, 2015
is running 1.0 percent behind 2014. Trucks of model year 2012 are
responsible for the lower year-over-year result, with this four-year-old
group running 6.1 percent behind 2014. Increased supply is the main
factor behind lower pricing.
Looking at individual models, the Volvo VNL 730/780 is back at the
top of the aerodynamic sleeper pack this month, just edging out a
resurgent Kenworth T660. The Volvos have been consistently high in
all three model years represented in this graph, while the Kenworth’s
strength was mainly in the 2013 model year. The T660’s monthly
volatility is attributable to its much lower volume.
Special Study – Is there a Market for 6x2’s?
Recently, manufacturers have been promoting the fuel economy
benefits of the 6x2 drive solution. As you probably know, a 6x2 tandem
has only one axle driven (as opposed to both in a 6x4), with a “dead”
or non-driven 2nd axle. This design eliminates the weight and friction
losses of a second driveshaft, set of universal joints, and differential,
contributing to fuel economy and load capacity.
The 6x2 configuration has been available for years, but until recently
the take rate had been extremely low. Concern about traction in slick
environments was the main factor limiting demand. Newer offerings
attempt to address this concern by working with the truck’s air
suspension to automatically place more weight on the driven axle
when the ABS and/or traction control system senses slippage.
Some of the more progressive fleets have taken a closer look at this
strategy in recent years, and the take rate has incrementally increased.
As such, the used truck market has started to absorb more 6x2
trade-ins. With this in mind, where do we stand on market data for
used 6x2’s?
Unfortunately, the volume of these trucks in our 2015 retail and
wholesale databases is still essentially nonexistent. There have been a
total of eight 6x2 trucks reported sold so far in 2015. Further, these
trucks were models that are not typically high-volume even in 6x4
configuration. However, there were enough sales to draw an initial,
rough comparison.
In the first case, we have three 2015 model-year trucks of identical
year, make, model and spec. Two are 6x2’s, and one is a 6x4. Adjusting
for mileage, the 6x2’s sold for about $14,450 less than the 6x4.
Last month’s leader, the Freightliner Cacasdia, saw lower selling prices
for 2012 and 2013 model year units, due to high volume. The Cascadia
remains the highest-volume truck in the three-to- five year-old
segment, underscoring its performance.
In the second case, we have ten 2013 model year trucks, again of
identical year, make, and model, but with slightly different specs. One
is a 6x2, and the rest are 6x4’s. Adjusting for spec and mileage, the 6x2
sold for about $11,500 less than the 6x4’s.
The Peterbilt 387/587 took a notable downward dip this month, mainly
due to weak performance of 2011 387’s.
Since the volume in both cases is so low, plus the trucks sold at
different times and from different dealerships, we do not necessarily
consider the figures accurate representations of the market. At the
same time, the results are not too far off from casual word-of-mouth
estimates from dealers.
The three- to five-year-old cohort continues to dominate the used
truck market. Minimal depreciation year-over-year indicates
continued strong demand for late-model iron.
See the “Average Retail Price of Selected 3-5 Year-Old Sleeper Tractors”
graph for detail.
The true value of the 6x2 configuration will unfold over upcoming
quarters, as more of these trucks are traded in and resold. As with
most new technology, dealers currently buying and selling these
trucks are likely placing conservative numbers on them, due to
NADA continued on page 14
www.UTA.org
September 2015 13
UTA Industry Watch
NADA continued from page 13
uncertainty and limited demand. The ultimate value will depend on
end user buy-in to the fuel economy and weight savings benefits of a
6x2, as well as increased confidence in the traction technology.
We look forward to receiving more of this data in upcoming months
and ultimately arriving at a valuation judgment.
Medium Duty – Class 4 and 6 Conventionals
Class 4 conventionals continue to steadily outperform last year, while
Class 6 models recovered from a weak June to turn in a strong month.
Through the first seven months of the year, our benchmark four- to
seven-year-old Class 4 group returned pricing 24.5 percent higher
than 2014, while our Class 6 group is essentially identical to last year,
running 0.8 percent behind. Volume remains lower in 2015, with the
Class 4 cohort running 33.3 percent behind, and the Class 6 cohort
running 14.3 percent behind.
In terms of specific numbers, the average four- to seven-year-old Class
4 conventional wholesaled in July for $21,468 and had 110,343 miles.
Pricing was $469 (or 2.2 percent) lower, and mileage was 1,247 (or 1.1
percent) higher month-over-month. Year-over-year, pricing was $5,212
(or 32.1 percent) higher, and mileage was 5,604 (or 5.4 percent) higher.
Sales Volume
Following June’s drastic drop in retail sales per dealership, July
rebounded a bit to come in at 5.0. This figure is 0.5 truck higher than
June, but a whopping 1.5 trucks lower than a strong July 2014.
See the “Average Number of Retail Sales per Rooftop” graph for detail.
Our Class 6 cohort averaged $23,175 and 190,126 miles in July. Pricing
was $5,267 (or 21.9 percent) higher month-over-month, and mileage
was 22,016 (or 17.4 percent) higher. Year-over-year, pricing was $8,829
(or 61.5 percent) higher, and mileage was 53,165 (or 21.9 percent) lower.
Class 4 models are clearly recovering nicely. Class 6 models are
struggling to stabilize. The second half of the year is typically weaker
for heavier medium duty models, so the upcoming months should tell
us whether the Class 6 recovery has legs.
See the “Average Wholesale Selling Price – 4-7 Year-Old Conventionals”
graph for detail.
July was a strong month in 2014 and 2013, while June was relatively
weak in both years. 2015 is therefore following this short-term trend,
albeit at a lower level. In the first seven months of this year, dealers
sold an average of 35.8 trucks per rooftop. This figure is down 6.3
trucks from same-period 2014, and 6.7 trucks from 2013.
There is no clear reason for decline. General economic measures have
trended upward since 2010, and 2015 was incrementally healthier than
the previous two years in most respects. Judging by pricing, demand
for late-model iron has not let up. There has been some minor
depreciation for newer model years, but this price erosion is driven
mainly by supply.
Medium Duty – Class 3 and 4 Cabovers
July’s pricing rebounded from the depressed conditions of the previous
two months, coming in at $17,059 – a $2,245 (or 15.2 percent) increase
over June, and a $1,407 (or 9.0 percent) increase over July 2014. Average
mileage was 119,035 – 13,572 (or 10.2 percent) lower than June, and
3,323 (or 2.7 percent) lower than July 2014.
July’s recovery helped to extend 2015’s lead over 2014 through the first
seven months of the year, with this year running 12.2 percent ahead.
There were no economic or market factors to explain the pricing dip in
May and June, so we consider those months anomalies, and the
market for Class 3-4 cabovers stable.
See the “Average Wholesale Selling Price – 4-7 Year-Old Cabovers”
graph for detail.
14 September 2015
In general, summer months are poor indicators of the relative health
of the used truck market. End users are typically focused on moving
freight rather than acquiring iron. We will continue to monitor trends
and identify changes if they occur.
On the wholesale side, dealer-to-dealer sales steeply increased in July,
from 1.6 to 3.3 trucks per rooftop. In addition, auction activity is 6.0
percent higher in 2015 to date than last year. What are the factors
behind this increased wholesale activity?
Fundamentally, the continued increase in new truck deliveries results
in a commensurate increase in trades. These trades are typically cycled
through auctions, which largely explains the higher activity in that
channel.
www.UTA.org
UTA Industry Watch
Dealer-to-dealer wholesale trading generally happens for three
reasons. First, a dealer might purchase specific trucks from a different
dealer to meet a retail customer’s need. Second, a dealer may receive a
package of trades too large to absorb and sell retail, so he sells some or
all of these trucks to other dealers to avoid holding the trucks. Third, a
dealer may accept wholesale pricing for aged inventory in order to
remove that iron from his books. The increase in trades this year
suggests the second scenario is most likely responsible for July’s higher
volume.
Generally, increased dealer-to-dealer sales suggest a regional realignment of inventory, which can be an early indicator of a maturing
market. Supply is increasing, and these trucks are distributed to where
demand is greatest.
See the “Total Reported Wholesale Volume” graph for detail.
10 GUIDEBOOKS
IN ONE
UNLIMITED
USERS
DESKTOP &
MOBILE
WEB ACCESS
Better business decisions made easier
» Wholesale, Loan and Retail values for commercial
trucks and trailers
» GVW, GCW, MSRP and ENRP
» VIN Scanner app free with subscription
Make better decisions with NADA Online.
Order NADA Online today!
Visit nada.com/NADAOnline or call 866.976.6232
Outlook
Our outlook is unchanged from last month. August orders were down
substantially from July, but 2015 is still the healthiest new truck
market since the pre-buy year of 2007 if deliveries are included. Used
truck pricing remains stable, wholesale volume is positive, and general
economic trends continue to move upward. We expect continued mild
supply-driven depreciation for newer used trucks in upcoming
months. n
Reprinted with permission from the ATD/
NADA Official Commercial Truck Guide®
www.nada.com/b2b
15-NA-0867_ad_Ad Update - NADA Online Quarter Pg for UTA Convention.indd 1
National Inspection
Services
A Nationwide Commercial Vehicle
Inspection Company Specializing in
Fast and Affordable Inspections
Trucks
Trailers
Rolling Stock
Industrial Equipment
Containers
Motorcycles
Cars
ATVs
We have over
250 inspectors
nationwide.
www.UTA.org
8/18/15 2:39 PM
Over 25 Years Industry Experience
816-795-3380
September 2015 15
UTA Industry Watch
A Challenge to UTA Members!
“WE’VE BEEN CHALLENGED!” Each year,
the trucking industry teams with patriotic
Americans across the country during the
holiday season to remember our fallen veterans.
During “Wreaths Across America Day,” the
second Saturday of December, the industry
shows its patriotism and heart in a big way.
tombstones at Arlington National Cemetery,
and over 2,500 other cemeteries across the
country. Second, through the voluntary
delivery of these handmade wreaths, the
trucking industry makes a huge difference in
the lives of the families who have lost a loved
one who has served in the armed forces.
The backbone of Wreaths Across America.org
is, and has always been, the trucking industry!
Our industry supports this important cause
in two ways. First, the industry sells remembrance wreaths to be placed on veterans’
For 2015, The UTA has been challenged by
NASCAR’s Jennifer Jo’s fans and the Women
In Trucking organization. There will be three
teams. A red team, white team, and blue team.
The UTA is the “Blue Team.” From September
7th through October 31st, the team that sponsors
the most wreaths for Arlington National
Cemetery will be the winner, and their logo
will be the honorary “primary” sponsor on
the hood of Jennifer Jo’s #10 race truck for
her Miami NASCAR race on November
20th. The Challenge kicks off on Labor Day,
September 7th at Noon EST, and will end
Saturday October 31st at Midnight EST.
The “Captain” himself, Ken Kosic, will also
be the Blue Team Captain, and will keep
members updated each week throughout the
16 September 2015
competition via email splashes, and the UTA
Industry Watch newsletter. You can also visit
us on the Used Truck Association Facebook
and LinkedIn pages, or on Twitter @
usedtruckassoc.
We encourage our individual members and
companies to sponsor one or more remembrance wreaths by visiting www.uta.org/
driven2honor. Each wreath is just $15. Share
the link with your company management,
co-workers, family, and friends and let ‘em
know The UTA is “IN IT TO WIN IT,” and
it’s all for a great cause.
Sincerely,
UTA Board Members
www.UTA.org
UTA Industry Watch
Industry News Briefs
TCI Reaches Highest Level this Year
The trucking industry has regained its footing according to FTR’s
latest Trucking Conditions Index (TCI). June’s TCI jumped 56 percent
from May’s level, to 7.66—the highest reading this year. While freight
growth slowed during Q2, FTR reported, “rates continue to show growth
and margins are still good.” FTR added that it expects “regulatory
conditions and a continued economic recovery to fuel an accelerating
index during 2016.”
In a release, FTR provided “key takeaways” from its latest report.
■■
■■
■■
■■
Freight growth has slowed but is on track for the 6th straight year of
annual gains.
Drops in fuel costs continue to be a positive for everyone involved-truckers, shippers, and consumers.
But labor costs have shown substantial increases, which is keeping
up the pressure for rising rates.
If fuel prices jump during 2016, just as capacity is tightening, it
could cause a significant acceleration in rates.
“It was a positive sign for trucking that the index rebounded in June,”
said Jonathan Starks, FTR’s Director of Transportation Analysis. “May
was the lowest level in three years, but June was the best month so far
in 2015. Continued declines in fuel prices during July and August
should help to keep the index elevated as the industry prepares for the
fall shipping season. The fall peak may not be as strong this year but
the economy continues to chug along, and contract rates are still
growing versus last year. The spot market has certainly slowed in 2015,
relative to a very robust year in 2014. For the last week of July, the
Market Demand Index (MDI) from Truckstop.com was down over 50
percent from 2014. Spot rates are also down, but not nearly as
dramatically, and half of the decline stems solely from lower fuel
prices. The truck market is quite stable at the moment and seems likely
to maintain that pace until we get into 2016.” n
July’s Class 8 Orders Near
24,000: FTR
FTR had some other good news to share
recently. Net Class 8 orders rose in July for
the first time this year. Preliminary numbers
show net orders of 23,920 units--up 21 percent month-over month, but
down 19 percent over last July, according to FTR.
Although the latest TCI reading would seem to indicate a jump in net
orders was coming, FTR said the numbers were “much higher than
expectations.” It attributed the rise in part to a few big fleets placing
large 2016 orders early. However, “orders were down year-over-year
due to a similar, but heftier, spike last July.” The market researcher said
the market “remains robust with Class 8 orders totaling 356,000 units
over the last 12 months.”
ACT is Also Surprised by
July’s Numbers
By ACT’s accounting, 24,600 Class 8 vehicles
were booked in July. For Classes 5-7, 15,900
net orders were posted.
“At the midway point of Q3, the economy and freight markets are
being buffeted by cross-currents, generating mixed signals,” said
Kenny Vieth, ACT’s President and Senior Analyst. He added, “In July,
Class 8 orders broke to the high side of expectations for the first time
since February, producing seasonally adjusted net orders to 29,600.”
According to Vieth, “Helping drive the high-side outcome in July was
a large press-release worthy 9,000 unit, multi-year order, but even if
this is excluded July’s orders were well ahead of expectations.”
Concerning medium duty, Vieth said, “On balance, the Classes 5-7
market saw orders improve from June to July, with broad-based
strength in Classes 6-7 orders (up 7 percent y/y) offsetting weakness in
Class 5 orders, which were down 12 percent y/y.” He added, “The
improvement in Classes 6-7 orders would have been stronger but for a
sharp drop in step van orders versus a one-off order last July.” n
Fuel Economy/GHG Rules Should be
Affordable, Not Compromise Performance:
ATD
“Phase 2 truck and engine
efficiency standards must be
affordable and not compromise
performance, the standards must
be uniform nationwide and doing
the rule right is more important
than doing it quickly,” Eric Jorgensen, chairman of the American
Truck Dealers (ATD) recently said. Jorgensen was speaking at a
government hearing on the administration’s Phase 2 rule-making
proposal to increase fuel economy and greenhouse gas (GHG)
standards for medium- and heavy-duty vehicles, engines, and
light-duty work trucks, and to establish new truck trailer mandates.
“Cleaner/greener new equipment will do nothing for the environment
or for energy security until it is bought and placed into service, more
often than not replacing older, less efficient equipment,” added
Jorgensen, president of JX Enterprises, Inc., a multi-state mediumand heavy-duty truck dealership. “Consequently, your goal should be
to hit a regulatory sweet spot by setting performance standards that
result in new products purchasers are willing and able to buy.” n
“This is a strong order number for July,” said Don Ake, FTR’s Vice
President of Commercial Vehicles. “Even though most of the market
was subdued, the fact that some big fleets have the confidence to place
huge orders right now is a great sign for the Class 8 market going
forward. Fleets are positive because freight markets continue to grow.
We may see more of this early ordering trend the next two months
before the peak order season starts in October.” n
18 September 2015
www.UTA.org
UTA Industry Watch
Volvo Introduces Prepaid Maintenance Plans
The company says its goal is to help customers manage costs
Volvo Trucks North America now offers prepaid preventive maintenance plans “as part of the company’s
ongoing effort to reduce customers’ operating costs.” Volvo says the plans cover all model year 2011 and
newer Volvo models powered by Volvo D11, D13 or D16 engines, and align with the new service intervals
announced earlier this year.
The company explained that the new plans are “prepaid contracts that
offer numerous levels of coverage, locking in current parts and labor
rates and increasing customer control of maintenance expenses.”
There are three plans ranging from basic oil changes and 74-point
inspections to more in-depth maintenance. In addition, Volvo said its
customers “can create custom plans of varying scope and duration to
fit their specific needs.” The company added that the plans also offer
the option to include service of the after-treatment system, transmission, and chassis.
Customers buying the plans can schedule maintenance at Volvo
dealerships in the U.S. and Canada through “Volvo Action Service,”
which Volvo says provides seasoned up-time experts who offer 24/7
support. Customers can buy the plans through Volvo dealers.
The new Volvo Premium Maintenance Plans are pre-paid contracts
that allow customers to select and customize coverage levels and lock
in current parts and labor rates. Customers can schedule service
through Volvo Action Service at any dealership in the U.S. or Canada.
Volvo added that the new program is its latest effort to help customers
control maintenance costs. Earlier this year, the company announced
new recommended maintenance intervals that added 10,000 miles to
the previous life of an oil change for model year 2011 and newer Volvo
trucks equipped with Volvo engines. n
Mack Also Offers Prepaid Maintenance Plans
Plans are similar to Volvo’s
Like Volvo, Mack Trucks now also now offers customers the option to
buy prepaid preventive maintenance plans. The maintenance plans,
Mack says, are available for all model year 2011 and newer Mack®
models powered by Mack MP7®, MP8®or MP10® engines.
“Mack Premium Maintenance Plans are prepaid contracts that take
the worry and hassle out of maintenance by offering a variety of
coverage,” the company said in a media release. “Three different plans
are available, offering a range of service from basic oil changes and
74-point inspections to more in-depth maintenance, including service
for the exhaust aftertreatment system, transmission and chassis. By
purchasing a pre-paid maintenance plan, customers can lock in
today’s parts and labor rates. They can also choose the duration of
their maintenance plan.”
Mack added that customers buying a Mack Premium Maintenance
Plan can quickly and easily schedule maintenance by contacting Mack
OneCall™, Mack’s 24/7 service and support network. Customer
maintenance can be scheduled and performed at any of its dealerships
in the U.S. and Canada. n
Mack Trucks has introduced three prepaid preventive maintenance
plans, which it says enable customers to reduce their cost of
ownership. Depending on the level of coverage selected, Mack
Premium Maintenance Plans cover everything from basic oil changes
and 74-point inspections to more in-depth maintenance, including
service on the aftertreatment system, transmission and chassis.
NEWS continued on page 20
www.UTA.org
September 2015 19
UTA Industry Watch
NEWS continued from page 19
International Truck Seals 9,000 Truck Order
Deal
No doubt about it, Navistar is on a roll, which partly explains July’s
Class 8 surprising numbers.
First off, International announced an order for 1,500 Class 8 tractors
in mid-July. It soon followed that up by announcing it had finalized
the remaining 7,950 orders from the same customer, Quality
Companies, Inc., a wholly owned subsidiary of Celadon Group, Inc.
Navistar said the 9,000 vehicle commitment consists primarily of
International® ProStar® and LoneStar ® vehicles powered by Cummins®
ISX-15 engines, and will be spread across the next three years.
“Our significant growth over the last 18 months has been driven by
our loyal customers. This order demonstrates our commitment to
growth, and positions us to support our customers for the next several
years,” said Danny Williams, chief operating officer, Quality
Companies, LLC. “We strive to
supply the most fuel efficient and
reliable equipment in the industry.
We’ve seen superior performance
from both International ProStar
and LoneStar models in our lease
fleet. With this agreement, we have
taken a big step toward our goal of
fuel efficiency and reliability.” n
20 September 2015
MACK PREMIUM CERTIFIED
USED TRUCKS
®
TM
Mack is the American truck you can count on.
Has been for over 100 years. No other truck
brand works harder, lasts longer or performs
better. And when a used Mack earns its Premium
Certified status, you get peace of mind knowing
your Mack is ready to work for you.
Inspected, Reconditioned and Ready to Work.
Visit macktrucks.com/usedtrucks to find
Premium Certified Used Trucks near
you.
www.UTA.org
UTA Industry Watch
From Where We Sit
It is our great joy to announce a new arrival!
Well, “new” isn’t exactly the right word for her
since she’s seven, but she’s new to us. Our family
now includes a little beagle pup who, well into
middle age, lost her family through no fault of
her own. Our daughter, Stephanie, works for a
large local county funded animal shelter in a
nearby affluent county. Like many counties here,
the population includes families who have been
here for centuries on the land their ancestors
farmed and newly transplanted executives who
have moved their families into enormous
generic mansions when they came here for the
jobs. We do have lots of jobs here. So, as you
would guess, shelter staff members see a wide variety of animals come
into the shelter. She and her coworkers work tirelessly to find good
homes for every one of them, no matter who comes through the door.
Because they are government funded, they are there to help every
animal who comes in, from parrots to pigs and hamsters to horses. Of
course, some of the animals who come in touch the staff in special ways.
brutality, but because of how deeply this little
dog had been loved. As luck would have it,
the staff person who signed our new friend
out to us was the same one who’d signed
Mojo in from her former owner. This is JoJo’s
sad story.
Her owner brought her in with absolutely
everything she owned, from her bowl to her
bed to her harness and leash. He just kept
saying that there was trouble in his family
and none of it had anything to do with his
dog. He recognized that he couldn’t give her a
good home anymore, and, in a selfless act of
pure love, brought her to people who would help her get a good home.
He asked for promises that they would be sure to get a home for her,
and they did their best to make only promises that they knew they
could keep. They promised to do everything possible to make that
happen. As he signed her over, he burst into tears, right there in the
shelter lobby. His grief moved everyone who saw it. When she handed
us our completed paper work, this kind woman said she was going to
call the former owner and let him know about his beloved dog’s good
new life. “At least I can lift that bit of sorrow from his heart,” she said.
So, now JoJo is home and settling in quite comfortably. As you might
guess she was confused and sad the first few days. She missed everything
in the only life she’d ever known. She could see we were nice people,
but we weren’t her people. Almost two weeks in, and lots of that has
changed. She’s clearly settling in. As in any new relationship, there are
some challenges. Her former family evidently enjoyed treating her to
snacks, lots of them. She has to lose at least 20 percent of her body
weight. Her little beagle body looked like a big bullet with a head on
one end and a tail on the other! So, her new life has come with lots of
exercise and a delicious, even if it is carefully controlled, diet to help
her middle-aged body improve its health. In gratitude for a comfy
home, two squares a day, and all the belly rubs a pup could want, she’s
begun to teach us a world of lessons. Even in these early days of our
relationship, our new friend has already begun to teach us wisdoms
far beyond the expected abilities of a beagle. Next month we’ll be
prepared to share some of those, but for now, here’s our first lesson.
Knowing that we’d like to get a dog, Stephanie called us one afternoon
in July and told us that she’d found our dog, and we had to come get
her. Sadly, work schedules and a sudden illness kept us away for a
whole week! In shelter time, that usually means a missed opportunity,
since the great dogs get scooped up pretty easily. On that first day we
were fit to go, we made sure to be at the shelter just as it opened. Well,
we’re delighted to report that, once again, our daughter was absolutely
100 percent right! We fell in love with “Mojo” almost on sight, and
right then we decided to take our “JoJo” home with us. Everyone was
so happy that Steph’s parents were the ones who’d give this little dog a
home. That was a guarantee that life would be very good for JoJo from
here on out.
Some of the animals who come through the doors have stories of
neglect and abuse that could break your heart 100 times before
breakfast. In JoJo’s case, her story is heart-breaking, not because of its
22 September 2015
When something really bad happens in life—and those of us who live
long enough will all see it happen—seek out good people who know
how to help you, and ask them for help. We can’t explain it, but
sometimes the big things in life, like adding a family member, happen
just when and how they’re supposed to. That poor man and his poor
little dog both ended up with broken hearts, but a new life has started
for the helpless one in this story, and the powerful one lived the rest of
his days knowing he’d done the right thing to honor the love entrusted
to him the day he brought that eight-week-old
puppy home. He proved his moral center and
that’s a fit ending to any good story. JoJo got a
home, and we got a humbling look at what
love and devotion really mean. At least that’s
the way it looks from where we sit.
Deb and Brad Schepp
[email protected]
www.UTA.org
vOLVO pREMIUM cERTIFIED
USED TRUCKS
tm
Your business needs reliable trucks to keep
freight moving and customers happy.
That’s where Volvo Premium Certified
vehicles make all the difference.
You get the cost-saving value of a
quality used truck, plus the added
peace of mind knowing your truck has
been through our rigorous inspection
and reconditioning of our highest standards.
If they can meet our criteria,
they’ll exceed yours.
For more information visit
www.premiumtruckdealers.com
Visit volvotrucks.us.com/usedtrucks to find
Premium Certified Used Trucks near you.
Volvo Trucks. Driving Progress
THE WORLD’S LEADING
ONLINE TRUCK MARKETPLACE
An IronPlanet Marketplace
Weekly Online Auctions
Global Buyers and Sellers
250+ Trucks Sold Every Week
Targeted Marketing Programs
More than 1.4 Million Registered Users
No Transportation Costs
Pre-Qualified Bidders
Detailed Inspection Reports by
Asset Appraisal Services
the Leader in Truck Inspections
All Classes • Day Cabs • Sleepers • Dump Trucks • Boom Trucks • Trailers
WWW.TRUCKPLANET.COM
1-888-433-5426
WE LOOK FORWARD TO
SEEING Y’ALL
IN DALLAS
FOR THE 2015 UTA ANNUAL CONVENTION
Where America buys and sells used trucks
Ritchie Bros. is the one stop truck shop for fleet owners, dealers and owner-operators across America.
In 2014 we sold more than $600 million of transport trucks and trailers.
When it’s time to buy, choose from thousands of top-name trucks, with easy financing for owners and dealers.
And if you’re planning to sell, find out how easily you can turn your trucks into cash.
Ritchie Bros. holds regular live unreserved truck auctions, with on-site and online bidding; or buy and sell at any
time on EquipmentOne.com, featuring monthly truck events.
Check recent truck prices
rbauction.com
with a free account at
Branding ad Used Truck Association 8x10.5 04115.indd 1
15-08-28 9:22 AM
®
THE ALL-MAKES LEADER
Premium Off-Lease & Rental Equipment
Trucks Meet Terms & Conditions
• Lease Maintained
• Front-Line Ready
• Single Owner
Justin Orenic
VP - Used Truck Sales
847.304.3184
• Wholesale Only
• Large Online Showroom
• 275 - 350 Trucks in Inventory
Adam Johanneson
Director - Used Truck Sales
847.304.3193
EXPERTISE • STABILITY • RESPONSIVENESS
www.IdealeaseUsedTrucks.com
© Idealease2015
2015 UTA Convention Sponsors
Diamond
+ Level
Daimler Trucks Remarketing
International Used Truck Centers
Peterbilt Motors Company
Thank you Sponsors!
We couldn’t do it without YOU!
Platinum Level
Freedom Truck Finance
Manheim Specialty Auctions
MHC Truck Source
National Truck Protection
PACCAR Financial Corp.
Premium 2000 Plus Warranty
TRP, Parts For Trucks, Trailers & Busses
TruckPlanet
Gold Level
ACT Research Co LLC
ADESA
Alliance DriveAway Solutions, Inc.
ATD/NADA Commercial Truck Guide
Bennett DriveAway
Black Book
DEKRA-TRS
Eaton Corporation
Idealease Of North America
Indiana Truck Auction
J & J Drive Away Inc.
Michelin
National Inspection Services
NextTruck
RoadRunner Driveaway
Russ Darrow Leasing Co.
Ryder Vehicle Sales
Team Drive-Away, Inc.
Transit Pros
Diamond Level
Arrow Truck Sales
CAG Truck Capital
Coldiron Companies
Commercial Truck Trader.com
Kenworth Truck Company
Ritchie Bros. Auctioneers
Roy’s Trucks & Equipment, Inc.
TruckMovers.com Inc.
Volvo Trucks and Mack Trucks
Silver Level
Access Trucks
AuctionTime.com
Balboa Capital Corporation
BOLT Insurance.com
Chrome Country
Commercial Vehicle Inspection Group
Continental Batteries
Cummins New and ReCon Parts
Dealer Solutions
Dex Heavy Duty Parts
Engs Commercial Finance Co.
FleetMover
FSX Equipment Inc.
Housby Auctions
HTAEW.com
IHS Automotive
Insurance Auto Auctions
Interstate Online Software/SOARR
Liquidity Services / TruckCenter.com
Mitsubishi Fuso Truck of America, Inc.
My Little Salesman
North American Equipment Finance
Randall-Reilly
Rush Enterprises
Ryder Fleet Products
Second City Leasing
Skyline Emissions, Inc. an ESW Group Company
The Truckers Choice
Transport Topics
Truck Paper
Bronze Level
AmeriTruck
Best Used Trucks
Crook Motor Co
Hess Auctioneers, LLC
Hino Motors Sales USA
Truck Market News
Vanguard Truck Centers