>ÀÌiÀi`Ê >ÞÊ£È]Ê£ nn UTA’s Mentoring Program Launches at … · 2017-05-18 · MaxxForce 13 weighs only 2,400 pounds, while other 13 liter engines are in the 2,600 pound

Volume 15 • Issue 9 • September 20131.877.getS.uta • www.uta.org

Used Truck AssociationChartered May 16, 1988

Published by the used truck association325 Country Club Drive, Suite a

Stockbridge, ga 30281

SHARE YOUR nEwSwith the UTA Industry Watch.Send submissions, ideas and comments to:UTA Industry Watch Editors Brad and Deb Schepp and Jay Burgessc/o grace Management 325 Country Club Drive, Suite aStockbridge, ga 30281 Phone: 877-getS-uta (877-438-7882)Fax: [email protected]

Table of ContentsBoard News and Views .......................2

Quips & Quotes ....................................2

Face to Face with Roy Vaughan ..........4

New Members ..................................6, 8

The Truck Driver Shortage: Can Women Help Fill the Gap? ..... 12

Medium Duty Corner ..........................12

The Brooks Group Sales Tip of the Month .................... 12

NADA Update: Class 8 Volume Rebounds in July ..................... 14-16

Industry News Briefs ..............20-21, 23

Industry Events Calendar .................22

From Where We Sit ...........................25

The UTA… Members Supporting Members!

UTA’s Mentoring Program Launches at ConventionSpecial Invitation extended to Younger UTA Members

The Used Truck Association Dealer Group has a special invitation for UTA dealer members between the ages of 25 to 35. You’re invited to attend the UTA Dealer Group Luncheon/

Meeting being held at this November’s convention at Orlando’s Walt Disney World Swan and Dolphin Resort.

The event will take place from 1 – 3 pm on Wednesday, November 6

just a few hours before the “Meet & Greet” reception

Attendees can look forward to the following: ■ Mentoring from more experienced used truck professionals ■ A forum for getting questions answered about selling trucks, how to handle difficult customers, and so on

■ Great networking opportunities ■ The chance to tap into the expertise and knowledge of other younger members about things such as marketing to younger people, communications, and using Twitter and Internet sites

This UTA Dealer Group Meeting will be the first step in establishing the UTA Mentoring Program. The Dealer Group is launching this program to actively mentor, and reach out to younger members. We’re hoping that these members will then have more experienced members to contact about issues or concerns they have.

If you’re a veteran UTA member we urge you to get younger members more involved in the Used Truck Association. These folks are the future of our Association!

Everyone —veteran and younger members alike—may contact one of our volunteers for more information:

Mike MounseyMHC Kenworth [email protected] (615) 438-7080

Jim ZimmermanKenworth of [email protected] (717) 691-2212

We look forward to seeing you at the Convention, and working with you as the Dealer Group helps grow the UTA.

If you are not able to attend the 2013 UTA Convention, and would like to be involved in this program—as either a younger or more experienced member —please contact one the people listed above.

Thank you! Mike Thurston & Craig Kendall

Mike ThurstonLarson [email protected] (417) 827-9853

Craig KendallThe Peterbilt [email protected] (214) 789-7501

UTA Industry Watch

2 www.UTA.orgSeptember 2013

Board News and Views

http://www.uta.org/directory

governing boArd:

President ..................... Rick Clark

vice President..............Ken Kosic

Treasurer .................. Tom Pfeiler

Secretary ...............Sheri Aaberg

President emeritus ........................... Marty Crawford

CoMMiTTee ChAirPerSonS:

Affiliates & benefits ... Bryan Boyd

Convention ................Sheri Aaberg & Rick Clark

UTA Jerome nerman Family Foundation Scholarship ...................Tim Ronan, Jay Burgess & Brock Frederick

elections ............... George Barnett

Marketing ....................... Rick Clark

Medium duty .............Amy Shahan

Membership .......... John Cosgrove, Kenny Doonan & Bryan Boyd

Training ............................Ken Kosic & Brock Frederick

dealer group ..........Mike Thurston & Bobby Williams

UTA.org Website .....Bobby Williams

2013 boArd oF direCTorS

Forget about the business outlook, be on the outlook for business.

~Paul J. Meyer

Navistar MaxxForce 13 Powered International ProStars and TranStar Tractors

Navistar sold over 60,000 vehicles powered by MaxxForce 13 engines, primarily long haul tractors, in 2010, 2011, and early 2012. During this time, MxF 13 was the only engine available,

and International’s heavy duty diesel market share approached 20 percent (as the graph below shows.) This engine is also a major factor in the growth of 13L heavy duty diesels.

With MaxxForce 13 powered tractors showing up on the used truck market, information is needed in several areas:

■ What drove the popularity and market acceptance of new MaxxForce 13 powered tractors? ■ Did first owners encounter field issues? If so, what has been done and what is the outcome? ■ What should second owners know about MaxxForce 13 powered International ProStar and TranStar tractors?

What drove the popularity and market acceptance of new MaxxForce 13 powered tractors?New truck buyers quickly adopted MaxxForce 13 due to four key characteristics: Excellent fuel economy with no DEF, strong power characteristics, high strength with low weight, and extremely smooth and quiet operation.

As they tested 2010 engines, major fleets quickly found they could get the same or better fuel economy with MaxxForce as with SCR engines, but MaxxForce needs no DEF. They also found MaxxForce’s high torque (up to 1,700 lbs. ft.) at low engine speeds provides excellent lugging power. MaxxForce was, and remains today, the lightest weight 13L engine available. But it is extremely tough and durable because the block is made from an advanced iron formulation (compacted graphite iron). This is much stronger and stiffer than the standard gray iron from which older engine blocks are made.

MaxxForce 13 weighs only 2,400 pounds, while other 13 liter engines are in the 2,600 pound range, and 15 liter engines weigh about 3,000 pounds. Add another 400 pounds savings because of no SCR, and MaxxForce is about 1,000 pounds lighter than a 15 liter engine with the same power, and it’s likely to be more durable. MaxxForce remains the quietest heavy duty diesel available, which is obvious at the first start up.

did 1st owners encounter field issues? if so, what has been done, and what is the outcome?The fuel economy, power, weight, and sound of 2010 MaxxForce 13 engines impressed both owners and drivers. Combined with the excellent ride, aerodynamics, and styling of the ProStar, or the maneuverability of the TranStar, MaxxForce 13 is playing a big part in establishing 13L engines as a major and growing segment of the long-haul truck market. However, within a year some issues with the EGR system began to crop up. These issues have been addressed and update improvements are already installed in Navistar Used Truck Center vehicles.

The engine Air Control Valve determines turbocharger boost, and its electric power supply was originally hardwired to the valve housing. The connection could short circuit with engine vibration. This sometimes caused fractional second interruptions in turbo boost, resulting in increased soot within the EGR system. Soot build-up could result in EGR valve plate shaft breakage.

Board News and Views continued on page 8

UTA Industry Watch


Roy Vaughandown the drain when the first customer, employee, or vender stops by the office. The new list starts then and goes into the next day!” Despite the hectic pace Roy still enjoys the excitement of the sale and the realization that a used truck is going to make a profit.

In looking toward the future, Roy has some concerns about the challenges the industry will face. “One of the biggest challenges will be to find and maintain a customer base as the size of the larger fleets is getting bigger and the owner/operators are getting smaller,” he explained. Roy then went on to discuss how younger people just starting out in the industry will need to keep up with their educations. “The market today holds many new secrets and changes as technology and regulations change,” he said. “My advice would be to get well educated and keep educated on these changes to better inform your potential clients. Get up early, stay late, and do something that no other dealership is doing for the customer.”

When we asked Roy to tell us a bit about his life outside of work he enthusiastically replied. “This is the point in the interview that I’ve most been waiting for, to talk about my wife Linda and my family.” It seems Linda has put up with a lot from Roy over the last 41 years. The list includes lots of traveling for Roy, working on the farm, working away from home, unfinished projects in the shop that hang around for “a while,” cleaning guns in the kitchen and, “lots of other stuff I don’t want to mention,” Roy said. Together the two have raised two beautiful daughters. They have two devoted sons-in-law, three granddaughters, and a grandson. “Linda and I travel between Richmond, KY and Savannah, GA to visit the grandkids and their parents,” Roy confessed. When they’re not on the road, they still maintain the family farm where they raise corn, soybeans, wheat, and hay. They also maintain a small Black Angus beef herd. “I do enjoy shooting, doing some vehicle renovation, and wood projects,” Roy added. n

Roy Vaughan, Sales Manager for Allstate Peterbilt Group in Youngstown, OH,

began his career in retail truck sales in 1984 when he started selling International and Ford heavy trucks. He can’t quite remember when he joined UTA, but he’s been here long enough for the group to include what he calls, “lifetime friends and business associates.” Both Roy and his wife Linda enjoy the devotion of the friends they’ve made through UTA. Roy tells us his wife has found friends she swaps recipes and grandchildren photos with! The couple feels especially blessed to have had the comfort and support of their UTA friends during times when both suffered serious illnesses. Roy told us of the comfort and prayers that came from UTA members. “The difference between any organization and UTA,” he explained, is “organizations care about the number of members they have and the UTA cares about their members and their spouses.”

Roy’s first job was the inspiration behind his successful career in truck sales, but not in the way you would normally think. He recalled his early years growing up on the farm in southeast Ohio. “Shoveling ear corn into the truck and unloading bags of fertilizer and feed from the truck made me a believer,” he said. “I wanted to drive the truck instead of do the manual labor.” That led Roy to become a truck driver, which led to yet another revelation. “After years of driving

and working on trucks I found that I liked people just as much, if not more than, trucks.” And, that’s when Roy made the switch and put his people skills to good use in truck sales.

Now, 29 years later, Roy still enjoys the “people” parts of his job. “As the sales manager, the most important part of my job is to assist the sales staff in any way possible to complete a sale,” he explained. “The aspect that I most enjoy about my current position is the relationships with all the people who come by the office and/or the dealership, and the challenge to make them smile and enjoy life a bit more. I like to make a difference, plant the seed and watch it grow.” Over the years, Roy has judged his success by the reputation he has among his peers. He knows they have a good opinion of the manner in which he has conducted his business over the course of the last 29 years, and a lot of respect for the companies he deals with. “Twice I’ve been nominated as Dealer of the Year, and I am very proud to be included in such an elite group.”

In addition to his management responsibilities to his sales staff, Roy is also responsible for sourcing the used inventory for his dealership. “I am responsible for the purchase of all used inventory and the work involved to get them home, inspected, reconditioned, and marketed ready for sale,” Roy said. He also oversees and assists with the ordering of new Ford and Peterbilt inventory for the

dealership. This keeps Roy hopping through most of his days in the office. “Each day starts with a list of things you want to accomplish, the calls you didn’t get to the day before, the emails that have been left unopened,” he said. “All of those items go

UTA Industry Watch


Teri Jones, Pricing Manager, Used Truck OrganizationNavistar 2701 Navistar Drive Lisle, IL 60532 (331) 332-6310 (w) (331) 481-3478 (c) [email protected]

Rick Klemme, Used Truck Manager Allstate Peterbilt-Eau Claire 6500 Texaco Drive Eau Claire, WI 54703 www.allstatepeterbilt.com (715) 874-4747 (w) (612) 817-0674 (c) [email protected]

We caught up with Rick one unusually crisp August morning. He said he’s been in the truck business his whole working life, ever since graduating from high school some 30 years ago. His dad owned a dealership, and taught him most everything he knows, Rick said.

As a new UTA member, Rick is hoping to expand his network, and really broaden his horizons in the truck industry.

When we asked Rick if there was anything else he could envision himself doing besides working in the truck industry, he didn’t hesitate for a moment. “Anything outdoors,” he said. Rick is very interested in construction, especially new home construction.

There’s one thing though that Rick’s just as passionate about as the truck business: NASCAR!

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!

If you’d like a copy of the new member brochure handed out at the convention, please contact David Grace at [email protected] or 770-389-6528 ext. 404.

New Members continued on page 8

Greg Lingner, Sales 7E Sales, LLC425 Industrial Blvd. McDonough, GA 30253 www.7esales.com (770) 914-5151 (w) (404) 405-1750 (c) [email protected]

Greg started in the truck industry in 1992, working for Rollins Truck Rental and Leasing as a Rental Manager. Like many new UTA members he’s hoping to expand his network of contacts through his membership.

The “freedom” is what Greg likes most about his job. “I can do business anywhere I go,” he said. “I can always find a lead.”

Greg is a salesperson by nature, and he’d probably still be in sales if he wasn’t in the truck business. When we asked him about his other interests he said he was probably like most UTA members. He enjoys golf and fishing as well as kicking back with a beer.

Rob Nusca, Used Truck ManagerTEAM Truck Centres Limited 599 Wabanaki Drive Kitchener, Ontario N2C2G3 (CANADA)www.teamtruck.com (519) 279-1493 (w) (289) 259-6054 (c) [email protected]

Ron O’Neill, President R & M Sales & Equipment, Inc.514 S. Kansas Ave Olathe, KS 66061 www.rmsales-equip.com (913) 829-1606 (w) (913) 829-8143 (c) [email protected]

Ron got his start in our business back in 1971, working in the parts warehouse of Borbein, Young & Company in Wichita, KS.

He’s hoping his UTA membership will bring him in contact with members who are truck exporters.

While Ron tells us he’s spent most of his career in parts, working for factories as a representative, he’s recently achieved success in another part of the business. He’s developed a system to convert over-the-road trucks to right hand drive for the export market. This has “certainly has taken us away from the ‘me too’ part of the industry,” Ron says.

Gunsmithing is another field in which Ron can envision himself. He enjoys both collecting and shooting guns. A special interest of his is target shooting, a sport he finds both challenging and relaxing.

Looking ahead to November, Ron says he’s looking forward to meeting some of the members face-to-face at the upcoming convention. Lots of people feel the same way as you Ron!

The truck shown was R & M Sales & Equipment Inc.’s 100th RHD conversion, which was finished in July 2012. “Miss Lexie” was 4 months old at that time, and has since been elected CEO, Ron said.

UTA Industry Watch


New Members continued from page 4

Doug Rich, Manager, Used Truck CenterPACCAR Financial P.O. Box 1518 Bellevue, WA 98009 (425) 468-7100 (w) [email protected]

Doug is a newcomer to the truck business, having started out in 2011 as a Transportation Funding Manager for CIT – Equipment Financing, Inc. He’s joined UTA for four reasons: knowledge, networking, friendships, and support.

Doug really enjoys working in the truck industry. “It is often said we need to do what we love and I love working in the trucking industry,” he said. “There are so many great people and I am lucky enough to work for an incredible company in PACCAR Financial.”

Before moving to trucking, Doug used to work in a corporate finance position, which he found fun. He enjoys spending time with his wife and three kids. The outdoors call to him as well. “I enjoy the outdoors —running, camping, hiking, mountain biking, hunting, fishing, horseback riding, snow and water sports and team sports,” Doug said.

Mark Sails, General Manager Midwest Transportation Specialist 400 Kansas Ave. Kansas City, KS 66105 www.midwestts.com (913) 281-1003 (w) [email protected]

Steve Sevigny, Owner 7E Sales, LLC425 Industrial Blvd. McDonough, GA 30253 www.7esales.com (770) 914-5151 (w) (616) 893-0040 (c) [email protected]

Board News and Views continued from page 2

Debris might then flow into the EGR cooler causing coolant leaks. The terminal is now located further down the power supply wire so the wire absorbs engine vibration, leaving a secure terminal connection. Also, the EGR valve plate shaft diameter was increased 12 percent, and the valve plate geometry was revised for improved operation and resistance to soot build-up.

What should 2nd owners know about MaxxForce 13 powered international ProStar and TranStar tractors?EGR system updates are installed in Navistar Used Truck Center MaxxForce 13s. Reliability, fuel economy, and power are once again at the top-tier performance level for which MaxxForce

13 is known. n

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UTA Industry Watch


The Truck Driver Shortage: Can Women Help Fill the Gap?

In the news section of this month’s newsletter we reported that career

website CareerBuilder recently released a study of the jobs managers find most difficult to full. Truck driver ranked 4th.

As an industry member, you may not have found this news surprising. You know there’s an acute shortage of truck drivers. But we wondered what Ellen Voie, President/CEO of the trade group Women in Trucking thought of this news. After all, the group was created to encourage “the employment of women in the trucking industry, promote their accom-plishments and minimize obstacles faced by women working in the trucking industry.”

We asked Ellen to respond to CareerBuilders’ finding, and discuss some of the hurdles the trucking industry may present to women. It would seem that if some of these hurdles could be addressed, the driver shortage may become a thing of the past.

Here’s what Ellen had to say:

“I can understand why the position of truck driver ranks fourth on the HR Manager’s list of most difficult jobs to fill. In addition to all of the industry standards to consider (driving record, felony activity, BMI, sleep apnea, years of experience, and turnover rate) it’s getting harder and harder to find qualified candidates for the position. Add to that an image stereotype (white male in his forties or fifties) and the number of available drivers is diminishing.

“We need to appeal to other segments of the population by attracting them to the industry, but more importantly, by accommodating them and their work life needs. For women, we have to start showing more females in our recruiting ads, featuring more women in mainstream media, and getting the word out to the general population that there are jobs available and that women are not only needed and capable of doing the job, but they are wanted! Then, we need to change the work environment to accommodate the driver outside of the truck as well.

“The Women in Trucking Association is doing this by featuring a member of the month, honoring female drivers at the Salute to Women Behind the Wheel, awarding an “Influential Woman in Trucking” each year, and honoring a carrier for the best recruiting ad (to reflect diversity). It’s all about showing the non-trucking public that this industry is important and the drivers are valued. As more and more women find a career path in trucking we will change the image to a more positive one. Sure, it takes a culture change, but we’ve started the process and will continue making the job of a professional driver one that instills respect and admiration for the skills these men and women have behind the wheel.”

Now the obvious next question is: is there anything the UTA can do to make the job of truck driver more appealing to women? n

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UTA Industry Watch


Class 8 Volume Rebounds in July. Mixed Results for Other ClassesChris Visser, Senior Analyst and Product Manager, Commercial Trucks

SummaryJune’s major drop in retail sales volume turned out to be a one-month pause, as predicted. Pricing remains little changed in most retail segments, with Class 8 sleepers off the record high by a mere $64. Wholesale sleeper pricing was up mildly from last month, with average mileage trending back down after the historically high levels seen earlier this year. The construction market continues to show mixed results, with certain models selling in outsized numbers relative to the competition. Medium duty cabovers and conventionals have not yet recovered.

Sleeper Tractors – retailRetail pricing in this segment set a new record high every month from March through June. That streak came to an end in July, but just by a hair. Retail sales data submitted by dealers and OEM’s to NADA shows that the average price paid for a sleeper tractor in July was $52,609, off June’s record by a miniscule $64 (or 0.01 percent). Compared to July, 2012, this month’s result was $2542 (or 4.8 percent) higher. See the “Average Retail Price and Mileage” graph for detail.

Mileage is exhibiting interesting behavior. June’s record pricing came despite the highest average mileage we’ve recorded since our current data collection system began six years ago. Prior to June, average mileage had been trending downward, with three consecutive months below 540,000. June looks to have been an anomaly, because July returned the average back to the trend, coming in at 536,623 – 29,869 (or 5.3 percent) lower than June, and 20,741 (or 3.7 percent) lower than last July.

We attribute the recent decrease in average mileage (outside of June) to an increasing supply of newer trucks in the marketplace. As the “Monthly Retail Sales Volume by Model Year” graph illustrates, the 2009 and 2010 model years have really come on-line since mid-spring, taking over from the waning 2007 model year. With these newer model years entering the meaty part of their trade-in curve, we expect the trend of lower average mileage combined with higher average pricing to continue. Market appetite for trucks with under 600,000 miles should be more than enough to absorb increased supply of these trucks.

Sleeper Tractors – WholesaleAs usual, the wholesale channel is performing differently from the retail channel. Volume has fluctuated over the past few months, but remains higher than late 2012. After a dip in June, average pricing came back mildly with a $844 (or 3.3 percent) increase. Mileage was comparable to last month, at 687,987 – a 3288 (or 0.5 percent) increase. Age was one month older, at 86 months.

Pricing in the first half of 2013 has been lower than the same period in 2012, as you can see from the “Average Wholesale Price and Mileage” graph. However, what is also evident is that this lower average pricing is due mainly to a higher average mileage mix of trucks sold in 2013. There is still a strong correlation between price and mileage, which means that pricing for trucks at a given mileage level has not changed appreciably in this period. As the “Average Wholesale Selling Price by Mileage Range” graph illustrates, only the 600-699K cohort has depreciated notably in recent months. This behavior is most likely due to an increased number of trucks in this range introduced to the wholesale market during this period. We expect this downward trend to relax or even turn mildly positive as supply evens out in upcoming months.

400000

420000

440000

460000

480000

500000

520000

540000

560000

580000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

Jan-‐10

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Jan-‐11

Mar

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Nov

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Price Mileage

Average Retail Price and Mileage -‐ All Sleeper Tractors Under 1M Miles

Source: ATD/NADA

0

50

100

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Jan-‐1

1 Mar

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3 Mar

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2 per. Mov. Avg.(2006)






Monthly Retail Sales Volume by Model Year: Sleeper Tractors Under 1M Miles

Source: ATD/NADA

400000

450000

500000

550000

600000

650000

700000

750000

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Jan-‐10

Mar

May

Jul

Sep

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Jan-‐11

Mar

May

Jul

Sep

Nov

Jan-‐12

Mar

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2 per. Mov. Avg.(Price)

2 per. Mov. Avg.(Mileage)

Average Wholesale Price and Mileage: All Sleeper Tractors Under 1M Miles

Source: ATD/NADA

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Jan-‐12

Feb Mar Apr May Jun Ju

l Aug

Sep

Oct Nov

Dec

Jan-‐13

Feb Mar Apr May Jun Ju

l

2 per. Mov. Avg.(500-‐599K) 2 per. Mov. Avg.(600-‐699K) 2 per. Mov. Avg.(700-‐799K) 2 per. Mov. Avg.(800-‐899K)

Average Wholesale Selling Price by Mileage Range (Sleeper Tractors)

Source: ATD/NADA and Auc1onNet

UTA Industry Watch

15www.UTA.org September 2013

Class 8 Volume Rebounds in July. Mixed Results for Other ClassesChris Visser, Senior Analyst and Product Manager, Commercial Trucks

NADA continued on page 16

Class 8 Construction TrucksThe “Average Retail + Wholesale Price of Construction Trucks” graph shows average retail and wholesale selling price by model year for construction models. Prices have been adjusted for mileage. Again, since we’re tracing directional movement rather than absolute numbers, we’ve combined retail and wholesale sales data.

The data shows little change vs. last month. Pricing for the 2007, 2008, and 2009 model years remained locked in the low-$70K range. Average mileage for 2013 to date remains similar for the 2008 and 2009 model years, although the gap widened moderately in July. However, this gap – currently at 16,297 - is still small enough to result in similar pricing. As for 2007’s, average mileage for that model year is only 54,495 higher than for 2008’s. That manageable difference, combined with the lack of DPF for 2007’s, makes that year’s competitive pricing logical. Newer model years (2010 and newer) are performing well, but they are currently present in the market in such low numbers that including them in the graph is of limited use.

Mack leads this segment in volume, with the CV713 the highest seller from the 2006 model year, the CT713 the highest seller from the 2007 model year, and the GU713 the highest from 2008 and 2009. Peterbilt also makes a strong showing, with the 2006 357 and 2008 367 performing second-highest behind the Macks. The International 7600 gets an honorable mention for the 2006 and 2007 model years. With other models turning in notably lower volume, these models are largely dictating average pricing.

Model vs. Model Competitive ComparisonTo switch things up a bit, this month we’ll look specifically at the 2008 model year instead of an average of 3-6 year-old trucks. As you can see from the “Retail Selling Price of 2008 Models” graphs, the 2008 model year on average shows noticeable but not substantial depreciation. An extremely basic linear trendline tells us that 2008’s decreased $581 per month from January, 2011 to July, 2013 on average. This figure compares favorably with the typical used truck payment, which should be a positive factor for businesses involved in lending.

Certain trucks of course returned results substantially outside that average. Our simple trendline tells us that the model with the lowest depreciation during this period was the Volvo VNL730/780, at $355/month, while the truck with the greatest depreciation during the period was the International ProStar, at $1137/month. It must be pointed out that the ProStar’s depreciation was heaviest from January, 2011 through March, 2013, after which that model recovered a bit to settle

in in the $40,000 range. It is possible that the industry is increasingly comfortable with the ProStar.

Overall, performance of this model year is evidence that our averages are impacted by the increasing supply of 2009-2011 model years in the marketplace. We will continue to share selected results of our ongoing monthly analysis with the industry.

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Jan-‐11

Mar May

Jul

Sep

Nov

Jan-‐12

Mar May

Jul

Sep

Nov

Jan-‐13

Mar May

Jul


3 per. Mov. Avg.(VNL 730/780)

3 per. Mov. Avg.(T660/600)

3 per. Mov. Avg.(Cascadia)

Retail Selling Price of 2008 Models Adjusted for Mileage

Source: ATD/NADA $0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Jan-‐12

Feb

Mar Apr May Jun Ju

l Aug

Sep

Oct Nov

Dec

Jan-‐13

Feb

Mar Apr May Jun Ju

l





Average Retail + Wholesale Price of Construc7on Trucks by Model Year Adjusted for Mileage

Sources: ATD/NADA and Auc2onNet

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Jan-‐11

Mar May

Jul

Sep

Nov

Jan-‐12

Mar May

Jul

Sep

Nov

Jan-‐13

Mar May

Jul


3 per. Mov. Avg.(CX)

3 per. Mov. Avg.(Century)

3 per. Mov. Avg.(VNL 630/670)


Source: ATD/NADA

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Jan-‐11

Mar May

Jul

Sep

Nov

Jan-‐12

Mar May

Jul

Sep

Nov

Jan-‐13

Mar May

Jul

3 per. Mov. Avg.(Columbia)

3 per. Mov. Avg.(ProStar)

3 per. Mov. Avg.(T2000)


Source: ATD/NADA

UTA Industry Watch


NADA continued from page 15

Medium duty Cabovers and ConventionalsLooking first at conventionals, Class 4’s outperformed Class 6’s in July, with 4’s up after a June dip and 6’s dropping for the second month in a row. See “Average Wholesale Selling Price – 4-6 Year Old Conventionals” graph for detail.

Specifically, compared to June, Class 4 was up $1472 (or 10.1 percent), and Class 6 was down $1204 (or 7.5 percent). Year-over-year, Class 4 was up $128 (or 0.9 percent), and Class 6 was up $503 (or 3.4 percent). In terms of mileage, Class 4 was down 16,575 (or 14.6 percent) month-over-month, and up 1463 (or 1.5 percent) year-over-year. Class 6 was up 19,956 (or 11.4 percent) month-over-month, and up 2917 (or 1.7 percent) year-over-year.

Class 4’s performance appears due mainly to a lower volume of lower-mileage trucks cycling through the market. Similarly, Class 6’s performance is likely due to a slightly larger pool of higher-mileage trucks cycling through. Both segments are still buyer’s markets, so swings in volume and mileage of available trucks should continue to substantially impact pricing.

As for cabovers, average mileage was down mildly, as was volume. However, pricing was also down, by $773 (or 5.9 percent) vs. June and $177 (or 1.4 percent) vs. last July. Lower pricing on lower mileage and volume points to an oversaturated market. See “Average Wholesale Selling Price – 4-6 Year Old Class 3-4 Cabovers” graph for details.

Sales volumeAs mentioned, the major drop in June retail sales per dealership was a one-month cyclical event. Volume rebounded in July to match May. As we’ve mentioned in our Commercial Vehicle Blog, the reasons behind this annual late spring/early summer “pause” are likely that truck operators shift their focus from acquiring equipment to digesting first quarter earnings and ramping up for the busy shipping months. 2013 is somewhat unique in that the dip happened one month later than 2010-2012, and to a moderately greater degree. The industry should expect this behavior to recur every year. See the “Average Number of Used Trucks Sold per Rooftop” graph for detail.

ConclusionThe retail sleeper market continues to become stratified, with newer, lower-mileage iron bringing extremely high money and trucks with 600K and up showing more depreciation. As for the construction market, current residential, industrial, and infrastructure activity has not been enough to move the bar appreciably, at least in the used market (with the exception of extremely new equipment). Similarly, strength in medium duty segments on the new side has not yet translated into increased used truck pricing.

Going forward, the steadily improving economy should support gradual improvement in the construction market. Highway tractors with under 600K will continue to bring extremely strong money, despite a steadily increasing supply of 2009 and newer trucks. n

www.nada.com/b2b

Reprinted with permission from the ATD/NADA Official Commercial Truck Guide®

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Jan-‐12

Feb

Mar Apr May Jun Ju

l Aug

Sep

Oct

Nov

Dec

Jan-‐13

Feb

Mar Apr May June

Jul

2 per. Mov. Avg.(Class 4)

2 per. Mov. Avg.(Class 6)

Average Wholesale Selling Price: 4-‐6 Year-‐Old Conven:onals by GVW Class Adjusted for Mileage


0

1

2

3

4

5

6

7

8

Jan-‐09

Mar

May

Jul

Sep

Nov

Jan-‐10

Mar

May

Jul

Sep

Nov

Jan-‐11

Mar

May

Jul

Sep

Nov

Jan-‐12

Mar

May

Jul

Sep

Nov

Jan-‐13

Mar

May

Jul

Retail

Wholesale

Average Number of Used Trucks Sold per Roo8op (NADA Repor;ng Dealers)

Source: ATD/NADA

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

Jan-‐12

Feb

Mar Apr May Jun Ju

l Aug

Sep

Oct Nov

Dec

Jan-‐13

Feb

Mar Apr May Jun Ju

l

Average Wholesale Selling Price: 4-‐6 Year-‐Old Class 3-‐4 Cabovers Adjusted for Mileage


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UTA Industry Watch


Industry News Briefs

July’s Class 8 Orders DownJuly’s Class 8 orders will come in at their lowest level since September 2012, according to FTR. The market research company pegged preliminary data for July’s Class 8 truck net orders at 17,307. This number is also down 7 percent from June’s number. Still, the tally was 38 percent better than July 2012’s figure. FTR now projects that for all of 2013, Class 8 orders will come in at 251,700 units, as compared to 2012’s 224,600 units.

The drop in numbers is nothing new for the summer months, although July did come in toward the lower end of FTR’s expectations. The company said it will watch August’s order numbers closely. “Any further softening in the numbers would suggest that FTR would likely need to lower the Q4 production forecast. However, the recent uptick in manufacturing keeps us optimistic that order activity will remain at healthy levels,” said Eric Starks, FTR’s president.

For further details contact FTR Associates at [email protected], or 1-888-988-1699 ext. 1. n

Penske Used Trucks Offer Roadside Assistance & Warranty ProgramPenske Used Trucks now offers complimentary warranties and emergency roadside assistance services when customers buy “select” used trucks and tractors.

Those buying Penske trucks and tractors will receive both a complimentary one-year membership to emergency breakdown services from RoadsideMASTERS.com, and a limited-time warranty (Class 3 to Class 7 trucks, 6 months/25,000 miles; Class 8 tractors, 3 months/25,000 miles) from National Truck Protection.

Restrictions apply, so be sure to call 888-803-5675 for more details, or go to www.PenskeUsedTrucks.com. n

Navistar And Cummins Partnership Reaches 10,000 Order MilestoneNavistar, Inc. said it’s received more than 10,000 orders for International® Trucks that include the Cummins ISX15 engine and Cummins SCR aftertreatment system. It took seven months to reach this tally. Navistar also said the future is looking even better.

“The International ProStar with ISX has a strong reputation within the industry and we are seeing increased interest for this configuration across our key segments,” says Bill Kozek, a Navistar executive.

Besides International’s ProStar model, the engine was also “re-launched” in the International® PayStar® 5900 Set-Back Axle and the International® 9900i back in April.

Navistar said its orders have come from such top fleets as Knight, Penske, Ryder, and Swift. In July, Navistar announced its on-highway Class 8 order share was at a three-year high.

“Increasing acceptance from our large fleet customers who conduct rigorous analysis prior to purchase is evidence of the value our vehicles deliver,” added Kozek.

Navistar started its move to SCR-based technology with Cummins’ ISX15 engine in late 2012. Navistar said that most of the configuration options for SCR-powered International heavy-duty vehicle models were “nearing completion.” n

Freightliner’s 2014 Cascadia® Evolution Tops 15,000 Orders Freightliner said it’s received more than 15,000 orders for its 2014 Cascadia® Evolution. The model’s been in production since March of this year. “The Cascadia Evolution is pacing the industry in terms of order intake for long-haul applications that demand the highest level of fuel efficiency,” the company said in a release.

The truck is powered by the Detroit™ DD15® engine. It features aerodynamic and efficiency improvements “that deliver up to an additional 7 percent improvement in fuel economy over an EPA 2010-compliant Cascadia, and up to 5 percent improvement in fuel efficiency over the 2013 Cascadia with first-generation aerodynamic enhancements,” according to Freightliner.

The company added that achieving the 15,000 milestone highlights the demand from its customers for “today’s vehicle benchmark in terms of fuel efficiency.”

For more information go to www.FreightlinerTrucks.com. n

UTA Industry Watch


Rush to buy Dealerships in Kansas, Missouri and VirginiaDespite Rough Quarter, Rush is still Expanding

It was a case of good news/bad news when Rush announced its second quarter results.

First, the bad news. Net income fell to $5.6 million compared with net income of $17.4 million for the same

quarter in 2012. (The drop was mostly due to a pre-tax charge of $10.8 million in selling, general, and administrative expenses related to its “Retirement and Transition Agreement” with W. Marvin Rush.) Rush also said a “lackluster new truck sales environment and increased overhead related to substantial investments made to support the continued growth of our organization contributed to the tough quarter.”

The good news came when Rush elaborated on its immediate growth plans. The company announced it completed acquisitions in North Carolina and Ohio, and entered into agreements with two dealer groups to acquire locations in Kansas, Missouri, and Virginia.

Rush said it reached agreements with Midwest Truck Sales to acquire locations in St. Peters and St. Louis, Missouri; and Olathe, Kansas. Rush also reached an agreement with TransAuthority to acquire International dealerships in Richmond and Suffolk, Virginia; and parts and service locations in Fredericksburg and Chester, Virginia.

The agreements were a part of Rush’s overall plan to expand service locations along the I-95 corridor and into the midwest United States. “Importantly, these acquisitions also continue our growth plan with Navistar, expanding the Company’s Navistar Division to 32 Rush Truck Centers and two collision centers in eight states,” the company noted. n

Industry News Briefs continued on page 23

Mack Trucks Names Top Bulldog in Walk the Bulldog CompetitionForth Worth, TX Salesperson named Top Dog

Tom Tenseth of Bruckner Truck Sales of Fort Worth, Texas was judged the best at delivering Mack’s “value proposition to customers,” during the company’s annual Walk the Dog competition. As such, he earned the right to be top bulldog as the winner of the 2013 competition.

The competition pits sales professionals from across the U.S. against each other to determine who most effectively presents what Mack trucks offer customers. Competitors must do a truck “walkaround,”--a

hands-on presentation of the MACK® Granite® model to a customer. Judges evaluate competitors on how well they communicate product features and benefits, based on customer requirements. They also evaluate them on how well they present service and support solutions offered under Mack’s Pedigree Uptime Protection™ program.

Tenseth placed third at last year’s competition. He started at Bruckner’s as a truck technician in 1995, and began selling Mack trucks in 1999. Twelve sales professionals competed in the competition, all of whom were top finishers

at regional competitions. One hundred and eight sales professionals participated overall. n

Tom Tenseth of Bruckner Truck Sales of Fort Worth, Texas takes top honors at the Mack Trucks 2013 Walk the Bulldog competition

CareerBuilder Releases List of Hardest-to-Fill PositionsTruck Driver Ranks 4th

As an industry professional you know there’s a shortage of truck drivers. But did you know just how bad that shortage was? Recently, Internet job site CareerBuilder ranked careers by how difficult a time employers had in filling openings. Truck Driver ranked 4th, just below Sales Representative, Machine Operator/Assembler/Production Worker, and Nurse.

Overall, a third of hiring managers said they had positions open 12 weeks or more, despite the upsurge in available workers since the Great Recession. “Employers are struggling to find new employees for technology-related occupations, sales, healthcare, and a variety of other areas,” said Brent Rasmussen, President of CareerBuilder North America. “Two in five employers (41 percent) reported that they continuously recruit throughout the year, so that they have candidates in their pipeline in case a position opens up down the road. The skills

gap that exists for high-growth, specialized occupations will become even more pronounced in the years to come, prompting the need to place a greater emphasis on reskilling workers through formal education and on-the-job training,” Rasmussen said. n

UTA Industry Watch


Industry Events Calendar 2013SEPTEMBER

16 – 17 • UTA Sponsored Seminar Training: Selling for SuccessLos Angeles, CA www.UTA.org

18 - 19 • 2013 Great Lakes Truck ExpoCleveland, OHCleveland Medical Mart & Convention Center (CMMCC) http://greatlakestruckexpo.com/

27 – 28 • Guilty By Association Truck ShowSponsored by Chrome Shop MafiaJoplin, MO4 State Trucks I-44, Exit 4 http://chromeshopmafia.com/ events/gbats/

OCTOBER1 - 2 • Green Fleet Conference & Expo Phoenix, AZPhoenix Convention Centerwww.greenfleetconference.com

9 - 11 • National Trailer Dealers AssociationNaples, FLThe Waldorf Astoriawww.ntda.org/ntda/Convention.aspx

14 – 15 • UTA Sponsored Seminar Training: Selling for SuccessDallas, TX www.UTA.org

19 – 20 • Golden State Trucking ExpoSponsored by CAP Companies, LLCPomona, CAFairplexwww.goldenstatetruckingexpo.com

19 – 22 • 2013 ATA Management Conference & Exhibition Orlando, FL Orlando World Centerwww.trucking.org

NOVEMBER6 – 9 • 14th Annual UTA ConventionOrlando, FL at The Walt Disney World Swan and Dolphin Resort www.UTA.org

DECEMBER4-6 • 2013 ATA Executive Summit Irving, TXFour Seasons Resort & Club Dallas at Las Colinas http://www.trucking.org/Events.aspx

2014 MARCH5-7 • The Work Truck Show 2014Indianapolis, INIndiana Convention Centerhttp://www.ntea.com/worktruckshow/

UTA Industry Watch


Industry News Briefs continued from page 21

NADA, ATD to Host Service Dealer Academy EventNADA instructor Robert Atwood promises to trans-form your service department into an industry leader, as part of NADA/ATD’s Special Ops Service Seminar. The seminar is scheduled to run from September 23-27 in McLean, VA.

The weeklong seminar will cover:

Current Situation Assessment ■ Departmental Analysis ■ Profit-centering and Expense Analysis ■ Service Analysis Using ELR

Personnel Techniques ■ Proficiency Assessment and Staffing Requirements ■ Customer Handling and Write-up Procedures ■ Repair Order and Warranty Management

Production Techniques ■ Conventional ■ Work Groups ■ Teams

Legal Requirements in Service ■ Lemon Law ■ Mechanic’s/Garageperson’s Lien ■ Bailment, OFAC/GLB

Shop Scheduling and Loading ■ Appointment and Scheduling Procedures ■ Hours-available Calculations ■ Comebacks

Idea Session and SWOT Analysis ■ Bring an idea pertaining to your department that will contribute to greater profits/savings

■ In-depth homework assignment using skills acquired throughout the week

Managing by Objective ■ Leadership Techniques ■ Practical Job Aids and Tools ■ Service Manager’s Quick-check

For registration details, call (703) 821-7216 or email [email protected]. You can also visit the NADA Academy’s website at http://www.nada.org/nadauniversity/academy/. n

Production Begins on Navistar’s TranStar with 13-Liter SCR Diesel EngineNavistar, Inc. has officially launched its International® TranStar® regional haul tractor with MaxxForce® 13 engine, with Selective Catalytic Reduction (SCR) emissions technology. The TranStar is Navistar’s fifth heavy-duty International® truck model that’s moved to SCR technology since December 2012.

“We continue to rapidly increase our 15-liter and 13-liter product coverage and we remain on track to complete the SCR transition of our heavy-duty truck offerings,” said Navistar’s Bill Kozek. “The trucks we are building today are the highest quality trucks Navistar has ever built and they offer improved fuel economy with the same off-the-line responsiveness.”

Navistar’s lineup of SCR-based heavy-duty trucks includes the International ProStar®, International PayStar® 5900 Set-Back Axle and International 9900i with the Cummins ISX15 engine. In addition, the International ProStar, International WorkStar® and the International TranStar are available with the MaxxForce 13 engine with SCR.

International TranStar® Features

The TranStar has a setback axle and a 50-degree wheel cut “to give drivers one of the tightest turning radiuses in its class,” Navistar said. “With the shortest bumper-to-back-of-cab (BBC) length in the industry of 107 inches, and an available electronic stability control solution, the TranStar is a highly maneuverable, regional transport solution,” the company added.

Other features: ■ Wheelbase options from 140-295” ■ Available 4x2 and 6x4 axle configurations ■ Available MaxxForce 13 SCR engine with 370 hp and 1,350 lb.-ft torque up to 410 hp and 1,900 lb.-ft torque

■ Available Cummins Westport ISL G natural gas engine with 320 hp and 1,000 lb.-ft. torque

■ 72” of cab headroom and 82” of interior width for enhanced driver comfort

■ Extended cab option with available bunk for storage and rest ■ Wrap-around windshield, sloping hood and available fender mirrors for excellent visibility

For details go to http://www.navistar.com/navistar/news. n

UTA Industry Watch

24 www.UTA.orgSeptember 2013 NeXt stop ORLANDO...Imagine the Possibilities

UTA Industry Watch


is modeled from a drive-in restaurant near his home that has been in businesses since the 50s. They still serve the same food, so his display is authentic! As Brad listened to him describe the years of devotion and dedication he’s put into restoring this beautiful old car, it was so clear that in all that effort, he’s also preserving a part of his life that was happy. He’s sharing with us his glimpse of a world when a drive-in meal in a great looking car was a reason enough to be happy. It still sounds like a pretty good reason, at least that’s the way it looks from where we sit

Summer is winding down and the kids have returned to the schools behind our house. It won’t be long before our little town will be deep into the harvest, and the days will move fast again. But for now, the farm markets are bursting with fresh produce, the peach crop is mostly in, and it’s time to enjoy a bit of the beautiful late-summer weather that makes the end of August so special. Just this past weekend, we enjoyed a fantastic antique car show held just around the corner at the firefighter’s carnival grounds. For several days leading up to the show we’d seen pickup trucks go past the house towing trailers that looked to be holding other vehicles. As Saturday approached we started to see a few older cars coming down Main Street like they’d done in their prime.

It probably shouldn’t have surprised us, but it did, that by the time we arrived at the show on Saturday afternoon, we found hundreds of old vehicles, mostly in beautifully restored condition lined up proudly and neatly across the carnival fairgrounds. For every color you could remember or imagine cars to have been in the last 100 years, there was a color to match. The day was so beautiful that the green of the fairgrounds and the crystal blue of the sky made the perfect backdrop to the rainbow of human creation displayed between them. It was a little hard to imagine those cars having ever looked better!

We set about trying to be sure we’d see everything from the 1950 tractor we saw on a flatbed go by the house the day before, to the street hotrods of the 50s, the muscle cars of the 70s, the coupes of the 30s, oh, you know what we felt! We wanted to be sure to see every bit of it. Before too long, we began to notice our fellow car-show guests. We came in all ages, and all backgrounds, but despite our diversity, we all shared a pretty common thing. We were captivated by many of the cars in the show, but the ones that truly held our imaginations came from certain parts of our lives. It was almost universal!

The visitors who were much older spent most of their time enjoying the cars they’d had as young adults. They seemed to be caught in the memories of their first taste of freedom, and what a vital part of that freedom came in the shape of that car. It was fun to watch older couples remembering events with friends and family long ago. For those visitors who were young enough to have always remembered the family car, there were two categories of vehicles that grabbed at their hearts. Of course, they were passionate about the Mustangs, Camaros, and Pontiac GTs, but their hearts also settled close to the big sedans of the 50s that were their first homes away from home.

Truth be told, that’s where I lingered. My dad was the world’s greatest do-it-yourselfer. He fixed everything, and well into his 70s, it was an exception when he turned our car over to a mechanic. So, he always had great used cars that he kept in awesome shape. My heart still goes back to the 1955 Buick Roadmaster —two-toned green— that was the first car of my memory. I can still feel the warmth of my brothers as we cuddled on her backseat, safe as if you were home in bed, is how Dad described it. And, that’s how that wonderful car was, safe and big and warm.

Sadly, I couldn’t find a 1955 Buick Roadmaster at this show, but we did find this beautiful two-toned Chevy that had some of the same feel. Brad got to talking about the car with the older man who’d owned it for more than 50 years. He said that the food on the tray at the window

From Where We Sit

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You have vehicles and we have over two million registered buyers who want to buy them – now. We can convert your surplus vehicles into revenue through our

live and online auctions. Let us help you turn your trucks and trailers into cash. Call 888-832-7525 or

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© 2013 Fritz CommunicationsDo not reproduce without written instruction from Fritz Communications

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>ÀÌiÀi`Ê >ÞÊ£È]Ê£ nn UTA’s Mentoring Program Launches at … · 2017-05-18 · MaxxForce 13 weighs only 2,400 pounds, while other 13 liter engines are in the 2,600 pound