2011 Mark of Excellence - Uebelhor & Sons

Commercial Truck Trader would like to take this opportunity to congratulate one of our dealers for a recent award. 

Uebelhor & Sons fleet and commercial sales team received two awards at the

GM Fleet and Commercial sales conference held in Savannah, GA on April 3rd and 4th. 

They were honored as the third largest dealer in overall sales and the most

improved sales. In addition, their U & S Fleet and Commercial department received

the 2011 Mark of Excellence award. This award was only given to 2 dealers

in the Southeast Region, which consists of dealers from Puerto Rico to Indiana.

The award honors dealers who not only surpass their sales goals, but also maintain

a superior level of customer satisfaction (CSI). 

Uebelhor & Sons is located in Jasper, IN and specializes in Pickup Trucks, Vans, and Box Trucks. They carry all top manufacturers, including Chevrolet, Toyota, Ford, and GMC. They can be reached at (877) 853-5629.

Congratulations Uebelhor & Sons from all of us at Commercial Truck Trader.

Spring Cleaning & Site Updates

Spring is always especially busy for us in the technology group.  While we deal with increasing amounts of website traffic, we also work to upgrade critical systems while building new products for our future.  Our Architecture group has moved our webserver traffic onto a smaller cluster of much more powerful computers.  This makes us much greener in the amount of energy we burn as well as improving our website's performance.  This new infrastructure also makes us much more "cloud compatible", should we ever need to scale up or down depending on how slow or fast website responsiveness is.

Meanwhile, the software team is working new tablet-optimized versions of CommercialTruckTrader and EquipmentTraderOnline.  We've noticed that nearly 10% of our traffic now comes from mobile devices, and the majority of that traffic is from iPads.  Knowing that this traffic is only going to grow, we want to make sure we have a great experience for all of our tablet users!

A few of you may have also seen a glimpse of our new iPad-based IMT, also known as Project Quantum.  It's in a very early stage, what we call an "alpha", and being tested by our field representatives at some dealerships.  As we move ahead with squashing bugs and optimizing it, we'll start to distribute this to some test dealers to gather more user experience feedback.

In between all of this work, we've been working to increase how findable ads are in our search.  This is an ever-evolving process.  These latest updates have added Installed Options for EquipmentTraderOnline in the IMT, which are included in the Keyword search, and we've added Special Features to our Keyword search.  While it's not perfect yet, it is a step in the right direction.

Soon, we'll start offering suggested Categories & Classes to minimize the time it takes to enter ad data, as well as allow ads to be mapped to multiple Categories.  This will help deal with situations similar to where you want your ad seen under both "Pickup Truck" and "Pickup Truck - Crewcab".  There's more coming on this topic, but I can't talk about any of that just yet.

As always, you can send us feedback and thoughts at:  snfeedback@traderonline.com

~ Ryan

From Our Perspective...

By Charles Bowles

Commercial Trucks

It doesn’t appear that there will be a slowdown in commercial truck sales any time soon. According to WardsAuto.com, Domestic medium- and heavy-duty new truck sales rose for the 27^th straight month in March. And, the supply continues to tighten in the used sector.

We are, however, seeing some decreases in specific classes of trucks. Medium-duty sales are still a mixed bag, reflecting, in part, the reliance on the housing sector for certain truck types. Until the housing market kicks back into gear (any gear, please!), we’ll see continued fluctuations.

CommercialTruckTrader.com is beginning to see variances in the types of searches based on truck type within specific regions, and this makes sense. Different industries in different parts of the country drive sales. For instance, in the Central Plains, Convention sleeper is the number one searched truck type, follow closely by day cab and box truck. In the Northeast, searches for dump trucks account for 25% of the searches on the site last month. And, in the Pacific region, Utility truck and straight truck searches each account for 15% of total searches in that region.

--Charles Bowles is the general sales manager for Commercial Truck Trader and Equipment Trader. You can reach him at charles.bowles@DominionEnterprises.com or by phone at 757-351-7289.

 

When Predictions Meet the Real World

Until this month, few studies have ever compared the EPA’s cost predictions to the actual cost of meeting its motor vehicle emission mandates. A recent study completed by NADA/ATD, which looks back at the 2004-2010 medium- and heavy-duty truck emissions mandates, reveals that the EPA underestimated actual compliance costs on average by a factor of two to five. It shows what can happen when a regulatory proposal – based on far in-advance predictions – seeks to set mandates far in the future. Importantly, the study documents the real-world market disruptions that can occur as a result.

The lessons learned from this report apply directly to the proposed MY 2017-2025 fuel economy regulations for light-duty vehicles. That rulemaking, combined with previous Obama administration fuel economy mandates, will raise the average price of a vehicle by $3,000, according to EPA and National Highway Traffic Safety Administration estimates. When faced with unreasonable federal regulatory mandates that increase motor vehicle costs, buyers of light-duty vehicles – similar to what commercial truck buyers experienced – will seek out less expensive alternatives in the marketplace.

Let’s hope this study gives regulators and lawmakers pause when considering what we’ve found.  Here are remarks I gave on the issue at a press conference March 8:

Having been in the truck business since 1991, I recall all too well when the 2004, 2007 and 2010 truck emissions regulations were implemented. With each set of regulations trucks became more expensive, and the 2004 and 2007 models were less reliable and hampered by lower fuel economy.

Anticipating these concerns, many buyers rushed to pre-buy trucks ahead of these new emissions mandates. As would be expected, the following year, truck sales fell off a cliff.

Instead of buying new trucks, many operators chose to hold onto their older trucks longer and willingly accepted the higher operating and maintenance costs and reliability risks.  Large fleet purchasers did the same. For four years after the 2007 regulations, trucks sales were depressed and the market for delivered class 8 trucks fell 60%. It took until 2011 for the market to begin a turnaround.

In cases where they absolutely needed a truck, purchasers turned to the used market. Since these rules came into play, I have also seen a surge in rebuilding or repurposing of older trucks sometimes side-skirting new emissions regulations. Concurrent with the drop in new truck purchases, the average age of a truck on the road skyrocketed. Today, the average on-highway commercial truck averages more than six and a half years old, about 11 months older than the historical average dating back to 1979. Vocational trucks in the Boston market have increased their average age to nearly 12 years of age.

Jobs suffered as a result!

Manufacturers were forced to cut thousands of jobs. A top Volvo truck executive warned in 2006 that the new environmental regulations would cause such a decline in truck sales that it would have to lay off workers. That same year, Volvo let 600 people go as new truck purchases plummeted. The same year Peterbilt cut its workforce in half. Freightliner was forced to lay off 1,800 in 2007 and eventually closed a plant two years later. Navistar experienced similar very lean times; but, through natural attrition, closing a plant in Canada and shifting production they managed through the period.

In my own store, there were across the board pay and benefit reductions, several layoffs and travel restrictions. Sales of vehicles dropped as a result many of the commissioned sales people suffered deep reductions in compensation. Fortunately, our product diversifications and the parts and service business sustained us through the long downturn.

The primary goals of these mandates were to reduce the environmental impact of trucks. The EPA mandates focused on cutting nitrous oxides (NOx), particulate matter, and unburnt diesel gases. A good goal, but as I said earlier sales of new vehicles suffered. Because the new technologies that EPA intended to reduce truck emissions never made it on the road, the environmental benefits were significantly delayed.

Setting emissions standards for any vehicle, large or small, too far in advance is dangerous for any regulatory agency. The variables are simply too difficult to predict—at least with any accuracy. For example, what technologies will be used? What will the economy look like? What will fuel cost?

The risks are simply too high and the unintended consequences are too great. People’s jobs and their livelihoods—dealers, manufacturers, truck operators and their supply chain—hang in the balance. Any goals should be set in smaller increments of time and in more manageable steps providing the flexibility to incorporate new technologies.

ABOUT THE AUTHOR: 

 Dick Witcher is one of Commercial Truck Trader's principal dealers, Minutemen Trucks, Inc., and a chairman of the ATD (American Truck Dealers).  His vast knowledge in the trucking industry is truly one-of-a-kind. 

RAM Social Media Truck at the 2012 New York Auto Show

Here's a quick look at the RAM Social Media Truck at the New York International Auto Show. With touch screens in the windows and other cool gadgets, this unique concept vehicle was prepared by RAM to a provide a platform where show guests could interact with their social media feeds -- and to support two RAM partners, Covenant House and K.I.D.S -- Kids in Distressed Situations. Some 2000 RAM plush toys in the RAM Social Truck's bed were distributed to children in need.

From Our Perspective

Truck sales continue their much-needed growth. While at the Mid-America Trucking Show (MATS) in Louisville, KY a couple of weeks ago, I was astonished at how upbeat the industry is. Based on a number of conversations I had while at MATS, a number of owners will be expanding their fleets, thereby growing unit sales beyond the replacement demand phenomenon we’ve seen for the past 27 months. That is terrific news.

Not only were the people at MATS excited about the unit sales growth, they were excited about the new models that were being showcased. There are a lot of interesting new wrinkles in commercial truck offerings in all medium- and heavy-duty classes.

A greater degree of attention is being placed on green trucks – hybrids and alternative fuel vehicles. Based on attendee interest in these vehicles at both MATS and the Work Truck Show in Indianapolis, Indiana in March, it’s likely that we’ll continue to see rapid growth in the production of green vehicles. And, with fuel prices continuing their incredible upward climb, green vehicles are starting to look much more attractive to fleet owners and municipalities.

We’re observing an increase in the number of green vehicles listed on CommercialTruckTrader.com. Although the total green units online is still very small, it’s growing every month.

--Charles Bowles is the general sales manager for Commercial Truck Trader and Equipment Trader. You can reach him at Charles.Bowles@DominionEnterprises.com or by phone at 757-351-7289.

Day One at MATS & New Trucks Unveiled

By: James Menzies

LOUISVILLE, Ky. -- Kenworth, Peterbilt and Navistar all introduced new truck models today, on the eve of the Mid-America Trucking Show.

Kenworth T680

Kenworth came out with a new T680, which the company boldly claimed is 10% more aerodynamic than the current best-in-class truck model, resulting in a 5% fuel economy improvement. The truck was designed to last 1.5 million miles.

Kenworth officials said the new truck, with an 83-inch wide cab, can provide an operational savings of up to $4,000 per year over its existing models, which it already claims to be the best when it comes to fuel economy.

“Simply put, the Kenworth T680 is Kenworth’s most aerodynamic truck ever,” said Preston Feight, Kenworth chief engineer. “The T680 is designed to smoothly slice through the air, setting an industry standard for aerodynamics and fuel efficiency.”

Other features include: excellent forward lighting; a 30% larger door; a cab that’s 40% quieter compared to today’s offerings; and 65% more interior storage.

During a demonstration, the large door closed with a subtle ‘swoosh,’ prompting Feight to giddily declare: “This is an incredibly capable door; just the sound of it is beautiful.”

On first glance, the entry into the sleeper cab has been noticeably widened. The passenger seat swivels a full 180-degrees and can be used as a comfortable place from which to work on the foldout desk. The dash has been reconfigured to accommodate a ‘Driver Performance Centre’ with a five-inch configurable display, visible through the steering wheel.

Kenworth says it will issue performance alerts, not through fault codes, but rather “statements in English about what is wrong with the truck and what to do with it.”

The new truck, Feight says, will “change the way people will use the inside of the truck,” from a driving, working and living perspective. The sleeper cab has a full-length wardrobe closet and boasts eight feet of headroom. The new model will commence production on May 21, Kenworth announced. Truck News executive editor James Menzies will have a chance to drive the new T680 today and will file a full report soon thereafter.

Pete 579

Also new at MATS was the Peterbilt Model 579, an “all-new” model that the company says was five years in the making and one of its most momentous new product introductions ever.

“The all-new 579 goes beyond meeting a market demand for an exceptional vehicle that satisfies both the bottom line and operator expectations,” said Bill Kozek, Peterbilt general manager and Paccar vice-president. “The 579 integrates legendary Peterbilt quality and innovation with a product platform that delivers in every aspect of vehicle performance, productivity and safety. From optimized cab dimensions to an enhanced chassis design, and from driver amenities to a revamped electrical system – every design element of the 579 was analyzed and engineered to provide real-world benefits and business solutions that exceed industry trends.”

The new truck boasts a 2.1-metre wide aluminum cab and three-piece bumper for cost-effective repairs. The hood is also comprised of three parts for simple repairs, and Peterbilt said it incorporates the company’s most efficient tilt assist system that requires only 25 lbs of effort to lift.

Production of the new model will commence in May.

International LoadStar

On the more specialized end of the scale, Navistar introduced a new Class 8 severe-service low cab forward International LoadStar.

The market represents only 6,000 to 8,000 units in North America, Jim Hebe, senior vice-president of sales operations said during a press conference here. However, he said Navistar is dedicated to the market and designed the LoadStar from the ground up, including the industry’s first stainless steel cab installed at the factory level.

The stainless steel cab will minimize corrosion and increase durability, the company claims, and variable depth frame rails will result in greater durability, lighter weight, lower frame rail heights and better ride characteristics, the company says.

“We talked to drivers to better understand their needs and what is missing from the trucks they drive,” said Hebe. “To fit driver needs, we optimized the space in the cab, increased seat and steering wheel movement, and adjusted joystick placement to deliver an outstanding ergonomic and customizable work environment.”

The LoadStar will be available for orders in October.


For pictures from MATS and of these new units - visit our Facebook Page!

Keep Your Eyes on the Road

Texting. Talking on the phone. Eating. Searching for a radio station.

At some point while driving, you’ve probably participated in at least one of the above distractions – leading you to take your eyes off the road, your hands off the wheel and your mental focus off driving.

These types of diversions increase your risk of crashing. For example, when using a cell phone while driving, you’re four times as likely to be involved in a crash. According to the American Automobile Association (AAA), distracted driving is a factor in between 4,000 and 8,000 crashes per day in the United States.

“It’s important to remember that your main focus behind the wheel should be safe driving  – period,” said Troy Green, national spokesperson for AAA. “When you drive while distracted, your decision not only affects you, but also other passengers in your vehicle, passengers in other vehicles, pedestrians, bicyclists and any other road users.”

The folks at Penske Truck Rental teamed with AAA to offer these tips to keep you and others safe on the road, whether you’re in your own vehicle or in a Penske rental truck.

Plan ahead – Review maps and check traffic before you get behind the wheel.

Prepare your vehicle – Adjust your seat, mirrors, temperature, sound system, etc., before you leave or when your vehicle is stopped.

Secure loose objects – Safely secure unfastened items to prevent them from rolling around and taking your focus off driving.

Make sure passengers are safe and happy before you drive away – Protect your young children by properly securing them in seat belts and child safety seats. Supply your children with plenty of snacks and entertainment, based on your trip’s length. Pull off the road safely if your children require additional care during the trip. Drivers should use a pet restraint system to limit distractions and help protect pets and passengers.

Turn off your phone – Keep your phone off to reduce the temptation to check text messages, emails, etc.  If you must use your phone to communicate, park in a safe place off the road.

Eat before you drive – Eat meals and snacks before you get on the road, or stop somewhere to eat if driving a long distance.

Prep yourself at home – Brush your hair, shave, apply make-up and adjust your clothing while at home, or wait until you reach your destination.

Drivers can find additional safe driving tips at AAA.com.

Penske is the exclusive moving truck rental provider for AAA and CAA members. Be sure to show your AAA or CAA membership card to save more than 20 percent on your next rental truck with Penske. So remember, Penske Truck Rental and AAA save you more on your moving budget.

Article from Penske  
By Kandace Wertz

From Our Perspective...

Commercial Trucks

Domestic commercial truck sales, particularly in the heavier classes, are showing significant growth over last year. It appears that this trend will continue throughout 2012, as replacement demand is driving these results. Light-duty is still making headway over last year, but the growth is not as pronounced as it is in heavy-duty. The ties that medium-duty sales have to the housing market are still hampering sales, and it is unlikely that we will see a big spike in medium-duty until housing gets back into high gear.

We are seeing a large increase in the number of units for sale on CommercialTruckTrader.com. Although we normally begin to see unit growth on the site in the spring, we are seeing greater volume than we have in several years.  We are also noticing unit growth on our private dealer network, WholesaleIndustrialNetwork.com. From our perspective, it appears that this will be a good spring and summer for commercial truck sales.

Equipment

The end of stimulus funding for transportation and the overall malaise of the economy are taking their toll on construction equipment sales. When you add to that the pull-back of construction spending by state governments, the short-term sales outlook for construction equipment is not so great. A bright spot in the construction industry is the rental segment. More businesses are turning to renting rather than buying, as more companies and municipalities are increasingly hesitant about committing to major capital purchases. We are seeing rental rates inch up, which may have the effect of moving some potential renters to buyers. We’ll see how this plays out over the coming months.

An interesting fact that we have observed on EquipmentTraderOnline.com is that buyers have begun to search farther away to locate the piece of equipment that they need. In fact, 60% are searching within a radius of between 100 – 250 miles from their home ZIP code. Contrast this to the fact that only 3% of all searchers are limiting their radius to 50 miles or less. What this tells us is that price and unit scarcity are forcing potential buyers to search greater distances to find the piece of equipment that they need, at a price they can afford.

--Charles Bowles is the Sales Development Manager for Commercial Truck Trader and Equipment Trader. You can reach him at Charles.Bowles@DominionEnterprises.com or by phone at 757-351-7289.