Paccar Sees 1999 Decline in Heavy Truck Sales, Stark's Reports
12 January 1998
Paccar Sees 1999 Decline in Heavy Truck Sales, Stark's Reports
CHICAGO, Jan. 12 -- Paccar Inc., the world's second largest
manufacturer of commercial trucks (Kenworth, Peterbilt, Foden and Daf
nameplate vehicles), believes the industrywide market for medium-duty and
heavy-duty vehicles in the U.S., Canada and Mexico may contract by as much as
13% in 1999, ending a two year recovery in business, according to today's
issue of Stark's Truck & Off-Highway Ledger, a respected business publication.
Commercial truck business is a key indicator of future U.S. economic activity
with a 9-12 month lead time.
Paccar Chairman & Chief Executive Officer Mack C. Pigott told the business
journal that U.S. and Canadian retail sales of medium-duty trucks would likely
decline to 105,000-115,000 units in the industry during 1999 from an
anticipated 125,000 units in 1998. Midsize truck sales in Mexico are expected
to expand to 10,000 units in 1999 from a foreseen 8,000 units in 1998, the
Paccar chairman was quoted as saying.
Heavy-duty truck (33,001 lbs. GVW & higher) sales throughout the industry
are seen contracting to 170,000-190,000 units during 1999 in the U.S. and
Canada, from an anticipated 200,000-220,000 units in 1998. In Mexico, heavy
commercial vehicle sales are expected to expand to 10,000-12,000 units in 1999
from a forecasted 8,000-9,000 units in 1998, the Paccar chief executive
stated.
Stark's reported that Paccar attributes the foreseen 1999 slowdown in
commercial truck sales throughout the industry to a return of "normal
cyclicality" to the business. "After that, will business recover?," he asked.
"I think that's a normal cycle," he added.
Paccar, which acquired Daf Trucks N.V. of Holland, a large producer of
medium and heavy-duty commercial vehicles, in late 1996, also foresees a
modest increase in 1999 industrywide sales of medium-duty (16 tons GVW & over)
trucks throughout western Europe. Sales should rise to 75,000-80,000 units
versus forecasted sales of 75,000 units in 1998. Heavy truck sales in western
Europe are expected to fall by as much as 8-1/2% during 1999, to 160,000-
170,000 units from about 175,000 units in 1998.
Paccar believes that the 1999 adoption of a common European currency will
have "a little bit of an unsettling impact on trucking. After that, a very
efficient transportation system will emerge. Then, as the general economy
grows, we'll see the growth of trucks," Stark's reported.
SOURCE Paccar Inc.