This week’s roundup was a busy one. We address EPA Administrator Lee Zeldin’s announcement that the agency would like to ditch all GHG regulations and how that could be done; what’s the latest on CARB regulations and how that state may be realizing ZEV demand isn’t where California wants it to be, as well as OEM earning reports, more aftermarket segment analysis and more.
Lucas: Hey everybody. Lucas here with the TPS Weekly News Roundup. It’s been a crazy busy week around here, so let’s get started. Biggest news was Tuesday. The EPA wants to throw out greenhouse gas [GHG] regulations. Not just the 2027 ones we’ve been preparing for — all of them dating back to 2010. The EPA uses something called the ‘Endangerment Finding’ as their authority to set emission regulations and current administrator, Lee Zeldin says it’s possible that could be revoked, which would basically throw out all regulations we’ve had since the introduction of SCR and, memorably, EGR in 2010. We’re not sure if that’s going to happen, but we are keeping our eye on it and I will have a story next week hopefully about what if that rule was to be revoked and those regulations were to be thrown to the side, what will that do to new and used truck sales moving forward? So, keep an eye on that next week.
Also, CARB [California’s Air Resources Board] announced late last week and we had the story this week that they have amended their credit program for their Advanced Clean Trucks [ACT] program. I know what you’re thinking, ‘I thought the CARB programs didn’t work anymore. I thought they weren’t valid.’ Yes, you’re thinking correctly. President Trump revoked the waivers for CARB’s Advanced Clean Truck and Omnibus regulations in June, but CARB believes those actions were unconstitutional. They’re fighting them in court and they are still expecting manufacturers to maintain the agreement, which was set in the Clean Truck Partnership, which would require the manufacturers to follow the ACT rule.
That said, the decision to amend the rule and amend the credit program suggests that CARB recognizes that demand for new zero-emission vehicles just isn’t there. The amendments — some of the key amendments is the pooling of credits, which means credits earned in say, New York or Washington, could be used in California and vice versa. And also the ability to offset some credits for lighter, applications into the Class 8 space, meaning credits earned in the Class 2-3, and Class 4-8 truck space could be used to help a manufacturers sell Class 8 tractors. Keep an eye on that story. You can find it on the website. We’re going to continue to keep up on the litigation around CARB’s ACT rule and if it will continue to exist.
Also, MacKay & Company had another great update this week. This is on the Canadian aftermarket; what they’re seeing in that space and what they anticipate moving forward for the rest of the year.
And we had earnings reports from International, Paccar and Daimler. Not great as you would suspect, but there is some good nitty-gritty stuff in there on exactly where orders are, exactly where sales are for each manufacturer, which segments are strongest within their individual businesses, and then how they’re amending their expectations for Q3, Q4 and beyond.
And then lastly, the Trucks, Parts, Service quarterly MarketPulse report. I sent that out to my participants on Thursday. That story will be out early next week. So, if you like following the MarketPulse, maybe you’d like to be a part of the market pulse, you like seeing how dealers and independent aftermarket operations are faring, that story will be out early next week. Keep an eye on it.
Thank you for listening. See you this next week. Have a great weekend. Bye, guys.
