North American Commercial Vehicle Market Hints Improvement

Heavy-duty Class 8 commercial vehicle net orders inched up in August 2009 to their highest level since November of 2008. Despite sequential improvement, Class 8 net orders were still down 30 percent year over year, according to the State of the Industry report released by ACT Research Co., LLC (ACT).

Medium-duty Class 5-7 net orders were up 75 percent from the prior year, influenced by a large order for buses and strong pullback in cancellations.

August new Class 8 orders rose 15 percent from July. However, cancellations remained elevated again in August, bringing the net order number down to a less robust month-over-month gain.

August’s Class 5-7 vehicle net orders varied dramatically by vehicle type. Medium duty truck orders rose to a five month high, but were down 26 percent from year-ago August. Buses and step-vans posted very strong net orders in August, although there is little to suggest these higher levels are sustainable.

"Even though hauling capacity has been coming out of the market through below replacement level retail sales and strong exports of used equipment, Class 8 overcapacity remains an issue limiting near-term demand, " said Kenny Vieth, partner and senior analyst with ACT. "While order activity has begun to make modest strides, there is no suggestion that demand is poised for a sustained break-out above replacement level volumes any time soon."

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.