With new engines comes new pricing. But in 2027, thanks to the upcoming EPA NOx regulation, engines won’t even have to be new to be costlier.
Thanks to the amendments proposed to the NOx regulation in July, truck and engine manufacturers are expected to have multiple pathways for compliance with 2027 regulations when they are implemented in January. One notable pathway is through nonconformance penalties, which will enable manufacturers to continue selling existing, noncompliant engines into the marketplace provided they pay a fee for each nonconforming unit they sell.
As we highlighted last week, the nonconformance penalty pathway will be utilized by multiple OEMs next year, particularly in the early months as production facilities scale up for the eventual shift to EPA 2027 compliant engines.
The flexibility created by the proposed amendments has been mostly met with positive reception by the trucking industry but the changes are not without challenges. Chief among them — for anyone selling or leasing new equipment — is simply communicating the full scope of engine options available to customers, and the pricing tiers for each.
“Most customers are aware of the new regulations, but regulatory uncertainty has created some confusion,” say International’s David Hillman, vice president of Integrated Technology Sales, and Kevin O’Brien, pricing director.
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“Awareness varies by customer and application,” adds Mike Young, manager of powertrain and safety product marketing at Daimler Truck North America. “DTNA has shared the pricing impacts with customers, but awareness may depend in part on whether a customer has requested a quote for a model year 2027 vehicle.”
Both manufacturers are working with their dealer partners to inform customers in this area.
Young says DTNA is training its dealers to focus on equipment design and functionality when meeting with customers, moving the conversation to pricing and compliance as necessary. Customer choice has been equally prioritized at International, the duo say, with the goal of having a dealer network that can shepherd customers through product research and evaluation so they understand what the regulation means to their operation.
Daimler Truck North America made the Gen 6 DD13 and DD15 engines available to spec into Freightliner and Western Star trucks on Sept. 1.Daimler Truck North America
Understanding the compliance level of an engine matters, but the most important thing when speaking with spec’ing customers is still making sure they get the engine that’s best for their job.
On that note, Young notes larger fleets with dedicated engineering and procurement teams are entering sales conversations with a better understanding of the regulatory landscape, while other customers “are less focused on the details of the rule itself and more concerned with the practical impact on the trucks they purchase and operate.”
And that sentiment isn’t limited to OEMs either.
NationaLease has member companies across the North American heavy truck sector and all are equally busy preparing for the 2027 regulations, says Mike Blimling, vice president of Truck Technology and Maintenance.
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“I think there is a wide-ranging level of awareness among customers, especially since proposed modifications to the regulation have continued to make headlines,” he says. “This is why we have focused our efforts on informing and educating our sales professionals to bridge any gaps in awareness some customers may have.”
The OEMs and NationaLease also note they’re using every platform available to drive that awareness. The more customers can be informed before a sales conversation, the less complicated that conversation is likely to be. Blimling mentions newsletters, webinars and in-person meetings as helpful messaging avenues for NationaLease. At International, industry panel discussions, dealer training events and customer tours of its engine plant have all proven successful, Hillman and O’Brien say.
“NationaLease has been working with our OEM partners and industry experts to ensure our members have access to up-to-date information about the upcoming regulation and how it will impact truck pricing and availability,” says Blimling. “By sharing this information and enabling this level of access, our members are well-equipped to take a consultative approach when discussing asset acquisitions with our customers for 2027 and beyond.”
Young also notes the importance of anticipating customer questions in advance and being prepared to respond. With multiple engine platforms and pricing structures found through each OEM, customer confusion is natural. Meeting that with confusion with clarity and product expertise is a value add dealers can provide.
“Customer questions have become increasingly specific: ‘What equipment is available? What will it cost? What changes for drivers and technicians? How will fuel use, DEF consumption, regeneration and maintenance be affected? How does the vehicle compare with other options in the market?’” Young says.
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He adds DTNA dealers have been trained to “help customers evaluate those factors within their specific applications.”
Blimling agrees the ability to consultatively help customers through these decisions will only become more valuable moving forward.
“As commercial vehicle systems become increasingly complex, the benefit of working with partners that have the knowledge and infrastructure to effectively maintain these assets becomes increasingly apparent,” he says. “By working with a NationaLease member, our customers have access to expert guidance to help them navigate the changing regulatory and technical environment.”
