September Class 8 Retail Sales At An All-time High
Despite slowing freight growth, some fleets are still expanding
September Class 8 preliminary U.S. retail sales were 28,200, 4%
higher than the previous record of December 2006. Sales were up 20% m/m and 20%
y/y. All OEM’s reported robust activity for the month.
Sales had been strong and steady for the
previous five months and September was expected to be similar. The record
activity was a surprise, even more so with fewer sales days in the month.
Despite slowing freight growth, some fleets are still expanding and need more
trucks. Sales were also boosted by fleets taking delivery of some large orders
that had been sitting on OEM lots during the summer. In addition, carriers have
cash to spend to replace older units. Reports indicate some OEMs are offering
discounts to reduce record-high inventories, so now might be the ideal time to
trade trucks in.
Sales are expected to pull back considerably in
October and November as the industry adjusts to the softer freight environment.
FTR expects sales volume to drop more than 20% in 2020.
Don Ake, vice president of commercial vehicles,
commented “September should be considered a fluke as fleets delayed taking some
deliveries in the summer and the sales all closed in September. Still, it was
great sales month for Class 8 trucks. It will be a much tighter market going
forward as fleet expansion slows due to the weaker freight environment. The
market is slipping back to replacement level, but fleets are still profitable,
so this should stabilize sales.”
Category: Featured, General Update, News