Business & Investment

May Class 8 orders reduced to 22,900

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Citing early data from truck makers, ACT Research suspended May’s Class 8 pre-orders as they fell to their lowest levels since August and the industry had little chance of joining this year’s backlog. It reported that it was slightly below 23,000.

Orders for May were 22,900, an increase of 242% compared to last year’s pandemic of 6,687.

According to ACT, May also decreased by 32% compared to 33,630 in April.

ACT Chairman Kenny Wies estimates that there are thousands of “red-tagged” units that are basically built, but unfinished and awaiting parts.

“Based on anecdotal conversations, the number of units currently tagged with red is about 5,000 units across the industry,” he said.

Based on preliminary data, the FTR pegged 23,600 orders and calculated that there were 420,000 Class 8 orders in the last 12 months.

Don Ake, Vice President of Commercial Vehicles at FTR, said: “In my information, the truck maker hasn’t accepted orders for 2022 yet, so it’s just full in 2021.”

A fleet executive gave a bittersweet view of his latest order.

Garrett Bowers, CEO of Bowers Trucking and Logistics Inc. in Ponca City, Oklahoma, said, “We are very pleased with the fact that we may buy some of the last diesel trucks in our fleet with the latest orders. I’m aware of it. ” Transportation topics.

“I was fortunate to be able to keep my first order for Bruckner Truck Sales in Tulsa, Oklahoma in December 2019, keeping my order for 25 trucks during the pandemic, but many others. The vehicle was withdrawn or canceled. ” “So far, we have received 12 POs for the first 25 trucks, mainly as a result of a shortage of microchips in the manufacturing process.”

Bruckner not only extended the fleet’s price protection policy through a pandemic, but also allowed another period in 2021, he said.

Founded 41 years ago, his company ranks 40th on the Transport Topics list of North America’s largest flatbed / heavy carrier. It operates 68 heavy-duty trucks.

“In April, we increased our orders to the additional 25 units we expect to receive in 2022,” Bowers added. “I think it’s a very exciting time for the transportation industry, especially when it comes to the evolution of equipment and technology.”

Related news is that the Biden administration’s budget request for fiscal year 2022 includes a proposal for a brand new zero-emission truck investment tax credit (ITC), primarily based on the incremental cost of zero-emission vehicles for conventional vehicles. It was.

“This credit can be selected as a cash payment instead of an investment tax credit,” said Kyle Winslow, federal policy director at Calstart, a clean transport accelerator based in Pasadena, California.

“The new ITC for zero-emission trucks and the benefits of being able to redeem those new credits instead of cash have been the main focus of the Calstart-led national zero-emission truck coalition for the past year,” Winn said. Slow said.

Worker installing parts on engine at Macungie, PA (Luke Charlett / Bloomberg)

The proposal includes Class 3 to Class 8 battery electric and fuel cell vehicles, with credits gradual down from $ 25,000 to $ 120,000, depending on the class. Credits begin in fiscal year 22 and are fully deducted for the first three years and gradually reduced to fiscal year 27. The management project covers 10 years of spending up to 2031.

For example, for Class 7-8 short-haul vehicles, the credits are:

  • $ 120,000 per vehicle purchased between January 1, 2022 and December 31, 2023.
  • $ 100,000 per vehicle purchased between January 1, 2024 and December 31, 2024.
  • $ 80,000 per vehicle purchased between January 1, 2025 and December 31, 2027.

For Class 7-8 long-haul vehicles, the credits are:

  • $ 120,000 per vehicle purchased between January 1, 2022 and December 31, 2024.
  • $ 100,000 per vehicle purchased between January 1, 2025 and December 31, 2027.

Meanwhile, federal laboratories reported that challenges could impact the availability and production of rare earth materials needed for electric vehicles.

President Joe Biden also recently signed an executive order to review the supply chain of important materials, including rare earth minerals, including Neogym and Scandium, which are used in everything from electric cars to telephones and fighters. Contains groups of elements.

Scientists at the US Department of Energy’s Argonne National Laboratory recently published a study on how rare earth mineral supply chains respond to disruptions such as natural disasters, labor disputes, and construction delays. , The head of integrated communications at Argonne National Laboratory, told Transport Topics.

“The biggest impact on EV production is certain types of supply interruption scenarios, which can have a dramatic impact on EV production by making neodymium magnets used in most electric vehicle motors unusable. May give, “said Matthew Riddle of Assistant Energy. Argonne scientist.

“We are beginning to explore key materials for lithium-ion batteries,” said Allison Bennett Irion, chair of Argonne’s Advanced Supply Chain Analytics initiative. It will be interrupted. “

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May Class 8 orders reduced to 22,900

https://www.ttnews.com/articles/may-class-8-orders-fall-22900 May Class 8 orders reduced to 22,900

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