Tag Archives: Trucks

Why Americans Are Broke, by Eric Peters

One reason Americans are broke is because they don’t have any low cost options, readily available in other country, on a big ticket item: trucks. From Eric Peters at ericpetersautos.com:

 

Remember when trucks were simple – and inexpensive?

They still are both – just not here. And ironically, they are built by the same company that will only sell you an expensive and complicated one, here.

General Motors.

Here, it will sell you a Chevy Colorado for $25,200 to start. This is the least expensive new truck GM sells in the United States. In China, GM sells a truck called the Zhengtu that starts at just over $9,000 through its Wuling subsidiary.

This truck would probably be of interest to many Americans – and not just because it costs less than half as much as the least expensive truck GM will sell you here. It has features you cannot get in any truck sold here – such as hinged, outward folding-flat bed walls that turn a compact-sized bed into a bed that can carry a full-sized truck load.

 

To get something equivalently spacious here, you’d have to buy a full-sized truck like the Chevy Silverado 1500 – and that one stickers for $28,600 to start. Even then, its bed isn’t as wide – or not, as you prefer, like the Zhengtu’s modular bed.

It’s just very expensive.   

Because, of course, it has to be. Uncle will not allow such things as bed walls that fold outward – it’s not saaaaaaaaaaaaaaaaaaaaaaaafe! In fact, all it is is non-compliant with current federal folderol, such as bumper/side-impact/rollover standards and so on – per my recent article on the subject.

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Money Better Spent, by Eric Peters

Buyers of the big vehicles Americans like end up subsidizing the few buyers of the small cars nobody wants. From Eric Peters at ericpetersautos.com:

If it’s true that most buyers want “fuel efficient” cars why aren’t they buying them?

It’s  a question that’s almost never asked whenever the subject of federal fuel economy standards – which are mandates – comes up. Probably because the answer isn’t what those pushing for higher federal fuel economy standards want to hear.

Their argument is that buyers pine for vehicles that use less gas but the eeeeeeeeevilcar industry – in cahoots with the even more eeeeeeeeeeevil oil industry refuses to design them.

Forces them them to buy “gas hogs.”

Enter Uncle. He will fix it! Using force.

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Trucking Booms, Heavy Truck Orders Soar, Shippers Grapple with “Capacity Crisis”, by Wolf Richter

You didn’t see too many headlines like this during the Obama administration. From Wolf Richter at wolfstreet.com:

“Veterans in this industry are saying this is the best freight market they have ever seen.” But shippers struggle with rising costs.

Orders for Class 8 trucks – the heavy trucks that haul trailers across the US – surged 114% in May, compared to a year ago. With 35,200 orders, it was the highest May on record, according to transportation data provider FTR. Order volume over the past six month averaged nearly 40,000 units a month, “volumes never seen before in the industry.”

There are winners and losers in this transportation boom that has followed the “Transportation Recession” between March 2016 and April 2017, when shipment volumes by truck, rail, air, and barge had dropped to the lowest levels in years. During that time, trucking companies slashed orders for Class 8 trucks. Truck manufacturers – and the companies that supply them, such as engine makers – responded with layoffs.

But this is history. In April, freight volume by all modes of transportation surged 10% compared to a year earlier, according to the Cass Freight Index, which pushed the index to its highest level for any April since 2007. And among the winners are truck manufactures that are getting inundated with new orders.

“Class 8 orders exceeded expectations again as fleets order in huge numbers attempting to keep up with burgeoning freight demand,” FTR explained.

This chart of Class 8 truck orders also shows that orders are seasonal, and a decline from March to April and May is typical:

The chart below shows the percentage change of Class 8 orders compared to the same month a year earlier. Note the transportation recession when orders plunged year-over-year, as the industry was reeling, and then the surge in orders with year-over-year spike of 158% in October 2017:

To continue reading: Trucking Booms, Heavy Truck Orders Soar, Shippers Grapple with “Capacity Crisis”

Carmageddon for Cars: “Cars” Are Scheduled to Die, by Wolf Richter

The US car industry no longer wants to make cars, only trucks and SUVs. From Wolf Richter at wolfstreet.com:

The end of an era in the US Auto industry — until $7 gas arrives.

“Cars,” as the auto industry defines them, are going to die. Not necessarily the vehicles, though they’re disappearing too, but the category of “cars” because sales have plunged beyond hope, especially for vehicles by the Big Three US automakers, GM, Ford, and Fiat-Chrysler.

It came to a head today: Ford announced $25.5 billion in planned cost cuts by 2022 – some red meat it threw to its restive stockholders, whether or not these “cuts” will ever materialize. But the cuts included a big category that is a sign of the times: all current Ford car models, except the Mustang, will be killed off.

This includes, in order of size, the Fiesta, the Focus, the Fusion, and the once dead, then revived, and soon dead again Taurus.

After which Ford dealers will only have “trucks” on the lot and a few Mustangs.

Industry-wide, “car” sales have been a nightmare: During the first three months of the year, “truck” sales jumped 10%, and “car” sales plunged 11%. In 2017, truck sales rose 4.3%, and car sales plunged 11%. And so on. This divergence of dropping car sales and rising truck sales started in 2015, and since then, “car” sales have gotten relentlessly crushed:

Part of the problem is that the industry’s division between “cars” and “trucks” is peculiar. “Trucks” include pickups, vans, SUVs, and compact SUVs (crossovers). But some SUVs and all crossovers are based on a unibody car chassis (instead of body-on-frame, which is the case with trucks). They’re stubbier versions of station wagons. For consumers, the switch from cars to crossovers is natural.

And part of the problem is that consumers have fallen out of love with cars. Gas is cheap (though getting more expensive), SUVs and crossovers are cool and immensely popular. And in parts of the country, pickups have for decades been the most popular US-branded vehicle type, and that love affair has only increased in recent years.

Including SUVs and crossovers, “trucks” accounted for 66.4% of total sales in March, the highest ever for a March. “Truck” sales have been above 60% of total sales for 21 months in a row.

To continue reading: Carmageddon for Cars: “Cars” Are Scheduled to Die