In this week’s roundup, we start with regulation. North America’s Class 8 OEMs (DTNA, Volvo, Paccar, International) filed a lawsuit on Monday against CARB in hopes of scrapping the Clean Truck Partnership. The truck makers believe the partnership is no longer valid or the right track for the industry. ATA also petitioned the EPA to delay its NOx rule to 2031, stating the extra time would enable engine OEMs to lower the cost of the new technology required and give the freight market time to rebound from its now three-year recession. Finally, we talked tariffs and where the newest ones have been announced, new truck forecasts and used truck volumes.
Lucas:
Hey everyone. Lucas here with the TPS Weekly News Roundup. This has been another really regulatory heavy week. The OEMs announced on Monday, the Class 8 truck OEMs, that they are suing CARB regarding the Clean Truck Partnership. The OEMs say the partnership is no longer valid or should no longer be considered valid because President Trump revoked the EPA waivers for CARB’s heavy-duty regulations in June. CARB says President Trump’s actions were unconstitutional and they are still holding the manufacturers to the partnership, but the manufacturers say that California hasn’t held up its end of the bargain as it relates to the partnership and that it’s not the right move for the industry moving forward.
Additionally, on Wednesday, ATA sent a letter to the EPA seeking to delay the heavy-duty NOx rule to 2031. It is currently on the books for 2027 and manufacturers are developing engines and preparing to certify engines for 2027. But the ATA says that the additional cost of the engines — anywhere from $15,000 to $30,000, depending on the make and model — and the current position of freight and the freight market being soft, this is not the time to put those regulations in because it will be incredibly daunting for carriers that are in tough financial position right now. ATA believes delaying to four years will allow the price of the technology to come down will also allow the freight market to be stronger so that carriers can better manage that additional cost as they add new vehicles to their fleet.
ACT Research this week had two announcements. One on new truck forecast and one on used truck pricing and volumes. In the new truck market, as you can expect, things are not great. Their forecast is continuing to go downward for on-highway and vocational trucks.
They say people who want to buy trucks, carriers who want to buy trucks right now are buying from the heavy inventory we have on lots, which is why orders continue to fall. They anticipate that will continue moving forward for the next couple months.
In the used truck market, they said the retail market is continuing to do well. Volumes were up 5% in July, but in the wholesale and auction space, volumes were down substantially, meaning the entire industry was down about 5% (Editor’s note: Actually 10%) month over month in July. So, we’re keeping an eye on that.
And then lastly, tariffs. There were a new round of tariffs announced late last week. The biggest ones 50% on Brazil, 50% on India. The 50% tariffs on steel and aluminum that went in place earlier this summer continue to be in place. The tariffs on China were once again paused as there are ongoing negotiations between China and the U.S. But as more tariffs are introduced, more tariffs particularly on countries in the far East that could impact parts and component pricing moving forward; so we’re going to keep an eye on that.
And then just keeping our eye on everything else that’s happening in the news. So, if you didn’t keep up with TPS this week or you need to keep up now, check out what’s going on on the website, check out our newsletter, and we will see you next week. Thanks everybody. Have a great weekend.
