Truck Makers Extend Shutdowns as Class 8 Orders Drop to Lowest Level Since 2010
Little Rock, AR – Class 8 truck makers are extending production shutdowns as Class 8 orders crashed in March to their lowest level since 2010.
This week major truck makers extended ongoing shut downs at production facilities.
On Wednesday, Paccar, makers of Kenworth and Peterbilt trucks, announced it was extending its production suspension for an additional two weeks until April 20, 2020.
On Thursday, Navistar International Corporation, makers of International Trucks, announced it was extending its production suspension at its truck assembly plant in Springfield, OH, until April 27.
Also on Thursday, Daimler and Daimler Trucks North America, makers of Freightliner and Western Star trucks, extended its ongoing suspension of the “majority” of its production of cars, vans and trucks at its commercial vehicle plants in the U.S., Europe, Latin America, Africa and India.
Company officials are hopeful to return to production in the U.S. by April 13.
Volvo Group has also extended shut downs at its Hagerstown powertrain facility until at least April 10 and Mack’s Lehigh Valley Operations until April 17.
The company’s New River Valley manufacturing facility continues a limited production schedule, according to officials.
Class 8 Orders Crash
The extension of production shutdowns come as Class 8 orders fell in March to their lowest level since 2010.
According to FTR Intelligence, preliminary North American Class 8 orders plummeted in March to 7,400 units.
That’s a 48 percent month-over-month drop and down 52 percent year-over-year.
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The sharp decline in orders were heavily precipitated by economic fears as a result of the COVID-19 pandemic and large-scale federal, state and local mitigation policies causing the economy to suffer.
“A significant number of fleets canceled orders previously placed due to the sharp and sudden downturn in economic conditions,” FTR said in a statement.
Don Ake, FTR’s vice president commercial vehicles, commented, “The only good news here, is that the number was still positive despite the high number of expected cancellations.”
However, he also noted, “It is expected that most fleets will pause their replacement cycles due to the crisis. The second quarter will be tough on the Class 8 market, and the third quarter is still highly uncertain.”