nearly 400 industry professionals attend uta's cummins' isx

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Volume 17 • Issue 9 • September 2015 1.877.getS.uta www.uta.org Used Truck Association Chartered May 16, 1988 Published by the used truck association 325 Country Club Drive, Suite a Stockbridge, ga 30281 SHARE YOUR NEWS with the UTA Industry Watch. Send submissions, ideas and comments to: UTA Industry Watch Editors Brad and Deb Schepp c/o Grace Management 325 Country Club Drive, Suite A Stockbridge, GA 30281 Phone: 877-getS-uta (877-438-7882) Fax: 770-454-0029 [email protected] Twitter: @usedtruckassoc Nearly 400 Industry Professionals Attend UTA’s Cummins’ ISX Engine Webinar Latest installment in UTA’s popular webinar series garners praise, ideas for further webinars T ruck buyers are eager to learn more about Cummins’ ISX engine as shown by the great turnout at the UTA’s latest installment in its free webinar series. Nearly 400 truck professionals participated in the webinar on Tuesday, July 28th, which armed truck profes- sionals with the selling benefits of the ISX engine for used truck buyers. Alberto Alcala of Cummins, Inc. presented the webinar. “e presentation exceeded our expectations by going beyond the hardware,” said Jim Zimmerman of Kenworth of Pennsylvania. “While doing a great job of highlighting the benefits of the ISX engine, they also brought to light a number of web-based applications to assist our associates while in the field.” Mike Roney of Warner Truck Sales and the UTA Board Member heading the Dealer Group also recognized and appreciated Cummins’ industry-leading, technology- based tools. “Having the ability to utilize a personal cell phone to identify fault codes, and corresponding details about the Cummins ISX in a used truck, as well as warranty plans, are resources that will save us time, and enable us to more quickly value trade-ins,” he said. ough the value-added technology wrapped around the engines garnered much attention, the webinar also provided an outstanding summary of the benefits of the Cummins ISX engine. Topics such as the evolution of the ISX engine through different EPA regulations, backwards compatibility for new durability innovations, and an improved dash interface are all selling points that will help UTA members find the right equipment for used truck customers. Mr. Alcala also briefly discussed Cummins Medium Duty engines, and provided some helpful insights about Cummins Natural Gas engines. He suggested that Cummins is already looking ahead to providing other UTA webinars about its Medium Duty and natural gas engines. anks to all who participated and most importantly to Cummins for putting on this webinar. If you have any questions about the ISX webinar, please feel free to contact Alberto Alcala at [email protected]. If you have general comments or ideas for upcoming webinars, please feel free to reach out to the below contacts. Ken Kosic, UTA Training Committee Chair, [email protected] Amanda Kent, UTA Training Committee Vice Chair, [email protected] Todd Coppaken, [email protected] Table of Contents Board News and Views ...................... 2 Quips & Quotes ......................................2 New Members .................................... 3-4 Face to Face with Gary Conleay ......... 6 Industry Events Calendar ......................7 A Tribute for a Job Well Done! .......... 8 Polk Data ................................................ 8 The Brooks Group Sales Tip of the Month .......................8 Achieving Excellence in Dealer Distributor Performance: An Interview with Walt McDonald....... 9 Moving on Down the Road: Catching Up with Steve “Bear” Nadolson .................... 10 NADA Update.............................. 12-15 A Challenge to UTA Members!........ 16 Industry News Briefs ...................18-20 From Where We Sit .......................... 22 The UTA… Members Supporting Members!

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Page 1: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

Volume 17 • Issue 9 • September 20151.877.getS.uta • www.uta.org

Used Truck AssociationChartered May 16, 1988

Published by the used truck association325 Country Club Drive, Suite a

Stockbridge, ga 30281

SHARE YOUR nEwSwith the UTA Industry Watch.Send submissions, ideas and comments to:UTA Industry Watch Editors Brad and Deb Scheppc/o Grace Management 325 Country Club Drive, Suite AStockbridge, GA 30281 Phone: 877-getS-uta (877-438-7882)Fax: [email protected]: @usedtruckassoc

Nearly 400 Industry Professionals Attend UTA’s Cummins’ ISX Engine WebinarLatest installment in UTA’s popular webinar series garners praise, ideas for further webinars

Truck buyers are eager to learn more about Cummins’ ISX engine as shown by the great turnout at the UTA’s latest installment in its free webinar series. Nearly 400 truck

professionals participated in the webinar on Tuesday, July 28th, which armed truck profes-sionals with the selling benefits of the ISX engine for used truck buyers. Alberto Alcala of Cummins, Inc. presented the webinar.

“The presentation exceeded our expectations by going beyond the hardware,” said Jim Zimmerman of Kenworth of Pennsylvania. “While doing a great job of highlighting the benefits of the ISX engine, they also brought to light a number of web-based applications to assist our associates while in the field.”

Mike Roney of Warner Truck Sales and the UTA Board Member heading the Dealer Group also recognized and appreciated Cummins’ industry-leading, technology-based tools. “Having the ability to utilize a personal cell phone to identify fault codes, and corresponding details about the Cummins ISX in a used truck, as well as warranty plans, are resources that will save us time, and enable us to more quickly value trade-ins,” he said.

Though the value-added technology wrapped around the engines garnered much attention, the webinar also provided an outstanding summary of the benefits of the Cummins ISX engine. Topics such as the evolution of the ISX engine through different EPA regulations, backwards compatibility for new durability innovations, and an improved dash interface are all selling points that will help UTA members find the right equipment for used truck customers.

Mr. Alcala also briefly discussed Cummins Medium Duty engines, and provided some helpful insights about Cummins Natural Gas engines. He suggested that Cummins is already looking ahead to providing other UTA webinars about its Medium Duty and natural gas engines.

Thanks to all who participated and most importantly to Cummins for putting on this webinar. If you have any questions about the ISX webinar, please feel free to contact Alberto Alcala at [email protected].

If you have general comments or ideas for upcoming webinars, please feel free to reach out to the below contacts.

■ Ken Kosic, UTA Training Committee Chair, [email protected]

■ Amanda Kent, UTA Training Committee Vice Chair, [email protected]

■ Todd Coppaken, [email protected]

Table of ContentsBoard News and Views ......................2

Quips & Quotes ......................................2

New Members ....................................3-4

Face to Face with Gary Conleay ......... 6

Industry Events Calendar ......................7

A Tribute for a Job Well Done! ..........8

Polk Data ................................................8

The Brooks Group Sales Tip of the Month .......................8

Achieving Excellence in Dealer Distributor Performance: An Interview with Walt McDonald.......9

Moving on Down the Road: Catching Up with Steve “Bear” Nadolson ....................10

NADA Update .............................. 12-15

A Challenge to UTA Members! ........ 16

Industry News Briefs ...................18-20

From Where We Sit ..........................22

The UTA… Members Supporting Members!

Page 2: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

2 www.UTA.orgSeptember 2015

Board News and Views

http://www.uta.org/directory

governing boArd:

President ..................... Rick Clark

vice President....... Craig Kendall

Treasurer ............Brock Frederick

Secretary ........Angelique Pierce

President emeritus ........................... Marty Crawford

CoMMiTTee ChAirPerSonS:

Affiliates & benefits ..Craig Kendall

Convention ....................Hal Dickson Bryan Haupt

dealer group .................Mike Roney

elections ................. Mike McColgan

Finance .................... Brock Frederick

Marketing .............Angelique Pierce Amanda Kent

Medium duty .............. Amy Shahan

Membership ............. John Cosgrove

Training ..............................Ken Kosic Amanda Kent

UTA Jerome nerman Family Foundation Scholarship ........................................ Jay Burgess Craig Kendall

Website .................Angelique Pierce

Wreaths Across America .....Ken Kosic

Young Member group .................................... Brandon Hess

2015 boArd oF direCTorS

All things being equal, people will do business with, and refer business to, those people they know, like and trust.

~Bob Burg

My Board News & Views this month is about the Used Truck Association’s 16th annual convention coming up in November. The reason I’m excited, and it’s only September 14th, is that our convention team is traveling to the convention site—The Gaylord Texan and Convention Center in Grapevine, TX —this week. Our team of Board Members and folks from Grace Management normally go down in September to finalize all of the meal and room arrangements, and examine the hotel’s complete layout to ensure it will be a convention you will be proud of. Each year this job becomes more and more challenging, because each year we have increased our registrations and sponsorships! :)

On behalf of the UTA Board Members, I would like to thank all of the 2015 sponsors even before we get to the convention. Without all of you we wouldn’t have the outstanding networking and industry information opportunity that the convention will provide! I have been a Diamond sponsor now for a number of years, and it’s a great way to give back to the Used Truck Association, the members, the attendees, and the spouses. Thank you all!

We have an awful lot going on at the annual convention this year, which is full of networking and educational opportunities. On Thursday you will be consumed by all of educational items we have on the schedule. On Friday morning we will have our guest speaker followed by a great lineup of tours. Please go to the website at www.uta.org, and download the Convention Brochure for the complete schedule and all of the details.

Thank you all, and I look forward to seeing you in November!

John CosgroveMembership Chairman [email protected]

Page 3: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

3www.UTA.org September 2015

New Members

It’s always a treat to welcome new members to the Used Truck Association. Each month we profile our new members in this newsletter. New members have the opportunity to complete a bio and send a photo so our current members can learn more about you. We hope to learn not just how to reach you, but what you enjoy about the work you do, why you joined the UTA, and what gets your gears going as a person. So please return your questionnaire so your fellow UTA members can get to know you!

New Members continued on page 4

Don DaVanzo, Used Truck ManagerLou Bachrodt Freightliner Center Port Circle Pompano Beach, FL 33064 www.freightlinerfl.com (954) 545-1021 (w)[email protected]

If you have a question about the industry, Don would be a good person to turn to. He’s been a part of the truck business since 1972, when he got his start as a truck driver.

One thing he really likes about this business is the ability “to earn a strong paycheck.” Having recently been out of work for a while he can really appreciate that. Networking is probably the best way to get a new job, and networking and the chance to build long-term relationships with other members is what he hopes for from his membership.

Asked about other interests, Don replied, “my grandchildren! To them I am a Rock Star! I love it!”

Heidi Henckel P.O. Box 800 Johnston, IA 50131www.accesstrucks.com (515) 270-2206 (w)[email protected]

Bryan Howard Daimler Trucks Remarketing 2477 Deerfield Drive Fort Mill, SC 29715(704) 968-2920 (w) [email protected]

Eric Jenkins Kordell Truck & Trailers14868 West Ridge Lane Dubuque, IA 52003(563) 584-9800 (w)[email protected]

Tony Kapustka, Dealer Development Manager Caterpillar Inc.100 N.E. Adams Street Peoria, IL 61629-2490www.drivecat.com(309) 675-9654 (w)[email protected]

In 1998, Tony began working as a Truck Engine Marketing Representative, his first job in the truck industry. Why did Tony join the UTA? He was quite specific in his answer: “For networking with used truck industry experts and leveraging best demonstrated practices to further enhance customer satisfaction.”

Tony feels Cat can offer its customers something unique, which is what he likes best about his job there. “We have the unique opportunity to offer customers comprehensive solutions for a wide variety of industries and applications via the Cat dealer network,” he noted.

We heard something for the first time when we asked Tony about any special interests or passions others may not know about. “I enjoy music; particularly playing the piano,” he responded. Perhaps we can all enjoy a sampling of Tony’s talents at the next Convention!

Trich Mullane P.O. Box 800 Johnston, IA 50131 www.accesstruck.com (515) 270-2206 (w)[email protected]

Mario Rodes Paccar Financial Corp 9620 S. 76th Avenue Hickory Hills, IL 60457 (708) 430-9011 (w)(708) 430-9336 (c) [email protected]

Jordan Rugg, Used Truck Sales FYDA Freightliner Columbus, Inc. 1250 Walcutt Rd. Columbus, OH 43228 www.fydafreightliner.com(614) 851-0002 ext.1217 (w)[email protected]

Jordan is a new member of our industry, now working in his first job in the field. He may be new, but he’s committed and definitely sees trucking as his career. “I have a decade of sales experience, but heavy-duty trucking equipment has always excited me,” Jordan told us. “I’ve had a passion for it since I was a child.”

His favorite aspects of his current job are the managers with whom he works and “Big Trucks.”

Jordan said that if he wasn’t in trucking he’d like to be a Purchasing Agent. Here’s why. “I’ve had to deal with them for the last 10 years and they never stop and are always trying to squeeze me for every last penny they can,” Jordan said. “I would like to have that shoe on the other foot and dish it out to some sales reps for a while as I would enjoy it, and it would relieve some stress.”

Jordan’s also a “huge” Cleveland Browns fan. “I’m quiet about it for obvious reasons because we have been so terrible for the last two decades. I simply don’t like the constant giggles and heckling from people once they find out what a die-hard Browns fan I am.” (The picture shows Jordan with Vikings Running Back Adrian Peterson.)

Finally, Jordan had this message for his fellow UTA members. “I want this Industry to be my career. Please, anybody who wants to network with me, contact me and we could share information, sales ideas that have worked, and even those that haven’t.

Page 4: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

4 www.UTA.orgSeptember 2015

Beaux Yerger 2604 Millhaven Road Monroe, LA 71203 www.joegearco.com (318) 267-4358 (w)[email protected]

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Switching to MICHELIN ® X One ® wide base single tires can save you up to 10% in fuel1 and 1,410 pounds in payload.

That’s why more than two million X One tires have worked hard for customers across North America.

And now, Used Truck Association members in the U.S.can take advantage of a special program that provides

consistent national pricing and convenient payment options on MICHELIN ® truck tires and retreads.

To enroll now or learn more, visit uta.org/Michelin.

1Based on industry standard rolling resistance testing of comparable tires and retreads. Actual results may vary, and may be impacted by many factors, to include

road conditions, weather and environment, driver performance, etc.

CHOOSE MICHELIN® X ONE® TIRES FOR INCREASED FUEL EFFICIENCY,

PAYLOADS AND UPTIME.

New Members continued from page 3

Also we can brainstorm about ‘Outside the Box’ ideas and discuss successes and failures. But most importantly, I believe we all can help each other out when it comes to selling more equipment if we network together and share ideas, and know where each other can find specific inventory that a customer is looking for. I would love to both offer to buy and sell inventory we have wholesale for other inventory in return when I need it for a specific customer or buyer!”

Brian Wetzel, Heavy Duty Truck Mgr.Adesa Atlanta 5055 Oakley Industrial Blvd Fairburn, GA 30213www.Adesa.com (770) 357-2175 (w)(770) 357-2276 (c) [email protected]

Let’s all welcome Brian to the truck business, which he just joined this year. He’s off to a good start as a new UTA member because this is a great place to learn more about the industry and to make contacts.

Brian’s favorite parts of his job are working for a “great company,” and the challenge of learning a new product.

While a newcomer to the truck business, Brian’s a veteran of the auction industry. “It’s what I know and what I have always done,” he said.

Outside of work you may well find Brian outdoors, especially hunting or fishing.

Page 5: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

5www.UTA.org September 2015

LOOKING TO SELL? LOOK FOR US!

MIKE CLARK AND FRANK JOHNSARE AT THE CONVENTION.

CALL THEM TO SET UP A MEETING!

16TH ANNUAL UTA CONVENTIONDIAMOND+ SPONSOR

MIKE CLARK8 0 3 - 3 6 7 - 2 0 5 8

[email protected]

FRANK JOHNS6 1 4 - 4 0 0 - 6 6 3 6

[email protected]

Copyright © 2015. Daimler Trucks North America LLC. SelecTrucks is a brand of Daimler Trucks North America LLC. Daimler Trucks Remarketing Corporation is a subsidiary of Daimler Trucks North America LLC, a Daimler company.

Freightliner Cascadia,® Columbia® and Century Class®

All makes, late-model, low-mileageVocational specifi cations

Class 6 and 7 medium-duty vehicles

W E ’ R E B U Y I N G :

Page 6: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

6 www.UTA.orgSeptember 2015

Gary Conleaythe Director of Used Truck Sales for Peach State Freightliner,” he explained. “In that role, I have responsibility for the used truck activities at the Peach State location and also at Birmingham Freightliner in Birmingham, AL. I am responsible for putting numbers on new truck trades for Peach State.”

As he looked back on his many years in truck sales, Gary starts giving credit when he mentions his first teacher, his dad. “My dad was a great role model and mentor,” he said. He also pointed to the great people he’s worked with over the years, and he advises younger members of his profession to build strong networks and friendships in the industry. “I wish I had a strong network of friends back then, like I have now,” he said. He went on to offer some sage advice for driving a young career. “If you are going to be in used truck management, you can never have too many friends. Your competitors aren’t your enemies. They should be your friends. You never know when you can help them, or they can help you.” As if this weren’t incentive enough to be friends, Gary reminds us, “You never know when you might end up on the same team together.”

Since Gary has such a broad range of truck experience, he’s also gained some clear insights into what he likes. “I have spent a lot of time selling new trucks,” he said, “but I found that I really enjoyed selling used ones.” It turns out Gary loves the whole process. “I enjoy finding, buying, recondi-tioning, and selling a used truck,” he said. “I love seeing a used truck transformed from a frog to a prince!”

When he’s not at work, Gary and his wife enjoy traveling. They have five children and 12 grandchildren, six boys and six girls. They love visiting their children and traveling in general. “We have been on 11 cruises,” Gary told us. Even while home, they also enjoy boating, so transportation of all types seems to please Gary Conleay. n

Gary is the General Manager for SelecTrucks of Atlanta and the

Director of Used Trucks for Peach State Freightliner. With 37 years of experience in the industry, you may just recognize him, especially because he’s been a UTA member since the first or second year our association started. But Gary’s life selling vehicles started long before that. His father, Bill Conleay, sold automobiles for 55 years. “I spent a lot of time following him around as I was growing up, and learned a lot about selling and dealing with people from him,” Gary recalled. Still, even then, Gary knew he didn’t want to spend his life in the car business. “I always loved trucks, and I found my passion in the truck business,” he said.

Gary has had a broad range of experi-ences throughout his long career in the trucking industry. As a college student, he worked at a dealership. “I worked part time for a Chevrolet dealer that sold heavy duty Chevrolet trucks,” Gary told us. “I had a ‘Chauffeur’s License’ as it was known back then, and I used to do dealer transfers on medium and heavy Chevys.” Since then he’s worked for a variety of companies. “I have represented just about every brand of truck you can think of,” he said. Most recently, Gary spent 20 years representing Freightliner. He has been at SelecTrucks of Atlanta for seven. Before that, he spent 13 years with Freightliner of Knoxville.

His career as a salesman began in 1981 when he became the Sales Manager for Peterbilt in Shreveport, LA. “I was the youngest sales manager in the entire Peterbilt Network at the

time,” Gary recalled. “I have been supervising and mentoring salespeople ever since.” In his current position, Gary wears at least two hats. “I am currently the General Manager of SelecTrucks of Atlanta and also

Page 7: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

7www.UTA.org September 2015

Industry Events CalendarSEPTEMBER

20-22 • Women In Trucking Association Accelerate! Conference & ExpoHilton Anatole • Dallas, TXhttp://womenintrucking.org/conference-schedule/

22 • 2015 Wreaths Across America Gala Grand Hyatt Washington • Washington, DC http://tca.truckload.org/scripts/4Disapi.dll/events/2014-wreaths-across-america-gala/275/

23-25 • National Trailer Dealers Association (NTDA) ConventionDiplomat Resort & Spa Hollywood • Hollywood, FLwww.ntda.org

25-26 • Guilty By Association Truck Show4 State Trucks • I-44, Exit 4 • Joplin, MOwww.chromeshopmafia.com/guilty-by-association-truck-show/

28-30 • ACT Research 53rd Commercial Vehicle And Transportation SeminarClarion Hotel & Conference Center • Columbus, INwww.actresearch.net/services/conferences/

oCToBER5-6 • Selling for Success, UTA Sponsored TrainingCourtyard Denver Airport • Denver, COwww.uta.org

17-20 • ATA Annual Management Conference & Exhibition 20151201 Market Street • Philadelphia, PA www.trucking.org

29-31 • World of Transportation Expo Greater Columbus Convention Center • Columbus, OHwww.worldoftransportationexpo.com

NOVEMBER

4-7 • 16th Annual UTA ConventionGaylord Texan Resort & Convention Center Grapevine, TXhttp://uta.org/2015/03/01/2015-uta-convention-dallas/

MARCH 2016

2-4 • The Work Truck ShowIndiana Convention Center • Indianapolis, INwww.ntea.com/worktruckshow/index.aspx?id=938

6-9 • Truckload Carriers Association 2016 Annual ConventionWynn Las Vegas • Las Vegas, NV www.tca.truckload.org/scripts/4Disapi.dll/events/2015-annual-convention/269/

31-April 3 • ATD Convention & Expo Las Vegas Convention Center • Las Vegas, NVwww.atdconvention.org

APRIL

14-16 • Truck WorldToronto International Centre • Mississauga CAN www.truckworld.ca

22-24 • 75 Chrome Shop Truck Show 2016419 E State Road 44 • Wildwood, FLwww.75chromeshop.com

Page 8: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

8 www.UTA.orgSeptember 2015

A Tribute for a Job Well Done!by Gary Conleay

bob hogan

Sales managers

who are most

effective are

not afraid to

show their humanity

and kindness.

At the end of August, Bob Hogan retired from a 39-year career in truck selling.

He hung it up and is planning to spend more time with his bride, Veronica. I have known Bob for over 20 of those years, and have been working with him for the last eight. Our careers have taken similar paths.

He started selling trucks in 1976. I started in 1978. We both started selling Kenworths, moved to Volvo, and then eventually landed with the Freightliner organization. During that time, I have worked with a lot of people—some good, and some not so good. Most of those I have worked with have been hardworking and honest people. In such a long career, though, I have encountered only a few people that I truly admired. Bob Hogan is one of them.

Bob started his truck-selling career in Binghamton, NY after he got out of the Army. There he was working for a guy named Al Hess, whom some of you may know. When Al decided to move to Atlanta to take a job with General GMC-Kenworth, Bob made the move with him, and the two worked together for many years. After Al left General, Bob moved over to the local Volvo dealer, and stayed there for a few years. In 2001, Bob joined the sales team at

SelecTrucks of Atlanta, and has been here ever since.

During Bob’s time here, he has become a decorated veteran of the SelecTrucks network, having earned places in both the Century Club and President’s Club on several occasions. Among Bob’s peers, he is known to be a true friend to many, and one of the few real Gentlemen in this business. To his customers, he is known to be a straight shooter, and a man of genuine integrity.

Bob has shared his life with his wife Veronica for over 40 years. They have three children and four grandchildren. In retirement, Bob plans to spend a lot more time with them. We have tried to talk Bob out of it, but he insists that all of his coupon clipping has paid off, and he is well prepared for retirement.

Bob is a modest man, and made us take a pledge not to make a big deal out of his leaving. So accordingly, we are going to do our best to honor his wishes. However, it is hard to let such a great guy ride off into the sunset without some kind of recognition. So Bob, here’s to you, my friend! May your retirement be all that you hope for, and may

God bless you and your family in the future. You have blessed all of us with your presence and your example. You have served your customers very well down through the years.

Go enjoy your retirement and come back to see us when you can! n

Gary Conleay is the General Manager of SelecTrucks of Atlanta and the subject of this month’s Face to Face profile.

The following table summarizes the year-over-year percent change for used vehicle transactions by GVW for the second quarter of the 2015 calendar year compared to the same quarter in the 2014 calendar year, plus each GVWs share of used transactions in the quarter for both calendar years.

Used Commercial vehicle registrations by gvW

2015 2nd QTR % Chg. vs. 2014

2015 2nd QTR Share (%) 2014 CY Share (%)

GVW 3 6.1 32.5 30.8

GVW 4 -5.9 9.9 9.9

GVW 5 2.1 5.5 5.2

GVW 6 1.0 8.7 8.3

GVW 7 -13.3 7.1 7.8

GVW 8 -14.4 36.3 38.0

Total -5.4 100.0 100.0

Source: IHS Automotive, Polk 2014-2015 registration data

Polk Data

Page 9: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

9www.UTA.org September 2015

Achieving Excellence in Dealer Distributor Performance: An Interview with Walt McDonald

If you’ve been in this industry for any length of time, you may have come across Walter McDonald, CMC. He’s the founder of the McDonald Group, Inc., a private consulting firm

focusing on distributor operations improvement, marketing and business strategies, and executive education and development.

Walt is a highly respected construction, material handling, mining, heavy-duty truck, fire apparatus, and industrial equipment management seminar leader.

Since 1975, he has conducted over 2,650 management seminars and workshops throughout the world. We caught up with him recently to discuss his new book, Achieving Excellence in Dealer/Distributor Performance: How to Increase Profitability, Cash Flow, Market Share, which is available through Amazon.

In part one of our two-part interview, Walt discusses why he wrote his book, some of the most significant problems dealers now face, and how certain tools and techniques can help them.

Look for part two of our interview in next month’s Industry Watch.

Industry Watch: Please tell us about your book and why you wrote it.

McDonald: In many ways, this book is a written reflection of the live dealer management seminars I have given more than 2,000 times. If you are familiar with my work for Kenworth, Volvo, MACK, Freightliner, Peterbilt, and ThermoKing in this industry, you know I focus on the real value-generating activities of the business. I am there in the trenches with Branch and General Managers, New and Used Truck Managers, Parts and Service Managers, and Professional Truck and Aftermarket Sales Representatives. These are the people who create real value and make it happen every hour of every day in the dealership.

This dealer handbook is all about how to increase dealer market share, profitability, cash flow, customer retention and employee job satisfaction of your entire dealer team.

The book is also written for those young, bright, enthusiastic, creative, insightful, technologi-cally astute, highly motivated generations of managers of tomorrow.

Industry Watch: What are the most pressing problems facing truck dealers now, and what advice do you have for them?

McDonald: Incredible pressure on new truck margins, escalating costs, global used truck competition, obsolete/unfriendly management information systems, continued weakness in revenue center management training, and unenlightened sales management.

The list goes on and on. This is a very challenging and difficult business. The winners are making the investments in organizational training and development, proper management information tools, and closer working relationships with OEMs, lenders, and customers.

Industry Watch: What are some of the new tools and techniques winning dealerships now use to boost performance?

McDonald: With continuing pressure on new truck margins, HD truck dealers are focusing on absorption rate, making certain that operating expenses are covered by aftermarket parts and service. Accordingly, HD dealers have made a science out of improving shop labor productivity. Supporting shop labor performance metrics is essential for success today.

The best source of high margin parts sales is shop labor. So, the #1 sales tool for higher margin parts sales is to sell more labor. Why? Direct parts sales has become a very competitive price-driven business and unless a dealer has a stomach for high volume-low margin churning of assets, other options are available such as a large mega-store retail operation.

The internet has changed the dynamics of the used truck business somewhat, but the seven Axioms for Used Truck Business Success are still correct: They begin with, “You must buy it right to sell it right.” The rest are covered in my book. n

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UTA Industry Watch

10 www.UTA.orgSeptember 2015

Moving on Down the Road:Catching Up with Steve “Bear” Nadolson

Steve “Bear” Nadolson has been named the Heavy Duty Truck Program Manager for American Guardian Warranty Services, Inc. (AGWS). AGWS administrates the Compass

Heavy Duty Truck Protection Plan, a “fully insured protection plan for Medium and Heavy Duty Trucks and Buses.”

Steve, a former UTA president, has over 38 years of experience in truck sales, management, financing, training, and used truck protection plan sales. Starting as a salesman at International’s Used Truck Center in Columbus, Ohio, he has since managed several large used truck operations, consulted for many truck dealers and related companies, and trained people in the United States, Central America, Mexico, Brazil, and Canada.

“I have a couple of goals in this new position,” Steve said. “First, I want to unify the sales agents across the country into a team of professionals, and second, I want to help AGWS become recognized as a world-class provider of used truck protection plans.”

As Heavy Duty Truck Program Manager, “Bear” as he is known in the used truck arena, is charged with increasing sales, helping define new areas of coverage, and forming a trained, professional sales team.

“We do not need to brow beat dealers into offering our programs,” Steve noted. Our comprehensive coverage, versatility, and built-in benefits to the buyer sell themselves. We need to show our dealers how to use the programs to benefit their buyers.”

“Bear” can be reached at [email protected], or by phone at (740) 507-0717. n

Page 11: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

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Page 12: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

12 www.UTA.orgSeptember 2015

Market SummaryRetail sales volume recovered from an unusually low June, and wholesale volume remains strong. Pricing in both channels was little changed month-over-month on average, with selected individual models showing movement. Medium duty conventionals had a better month, while cabovers remain stable. This month, we look at the market for 6x2’s and dive deeper into factors driving retail and wholesale volume.

Sleeper Tractors – retailSleeper tractors retailed in July averaged mildly lower mileage than in recent months, pushing the month’s average pricing to the highest level since February.

Looking at the market overall, the average used sleeper tractor retailed in July for $60,945, had 483,221 miles, and was 74 months old. Compared to June, this truck brought $1,288 (or 2.2 percent) more money, had 23,081 (or 4.6 percent) fewer miles, and was 2 months newer. Compared to July 2014, this average truck brought $178 (or 0.3 percent) more money, had 20,663 (or 4.1 percent) fewer miles, and was identical in age.

See “Average Retail Price and Mileage” graph for detail.

Performance of three- to five-year-old trucks tells a more accurate story, though, with three-year-old models bringing lower pricing year-over-year despite lower volume. At the same time, trucks of that age have stabilized in recent months after depreciating earlier in the year.

Specifically, the three- to five-year-old cohort depreciated 1.3 percent month-over-month and 1.5 percent year-over-year. Three-year-old trucks have stabilized in the high-$70,000 range for the past two months, after depreciating moderately in the first five months of the year. There were notably fewer three-year-old trucks reported sold in the first seven months of 2015 than 2014 – 54.3 percent fewer, in fact. Also, the make/model supply is well-mixed, with no single model overly impacting averages. As such, the lower pricing is likely demand-driven. Specific figures are as follows:

■ Trucks of model year 2013 averaged $81,952 through July of 2015 – a $3,740 (or 4.4 percent) decrease versus trucks of model year 2012 this time last year.

■ Trucks of model year 2012 averaged $72,413 through July of 2015 – a $2,191 (or 2.9 percent) decrease versus trucks of model year 2011 this time last year.

■ Trucks of model year 2011 averaged $63,601 through July of 2015 – a $4,476 (or 7.6 percent) increase over trucks of model year 2010 this time last year.

NADA Update Chris Visser, Senior Analyst and Product Manager, Commercial TrucksTwitter: @NADAUsedCarGde

400,000  

430,000  

460,000  

490,000  

520,000  

550,000  

$30,000  

$35,000  

$40,000  

$45,000  

$50,000  

$55,000  

$60,000  

$65,000  

Jan-­‐14  

Feb  

Mar  Apr  May  Jun   Ju

l  Aug  

Sep  

Oct  Nov  

Dec  

Jan-­‐15  

Feb  

Mar  Apr  May  Jun   Ju

l  

Mileage  

Price  

Period  

Average  Retail  Price  and  Mileage:  All  Sleeper  Tractors  Under  1M  Miles  

Price  

Mileage  

Source:  ATD/NADA  Official  Commercial  Truck  Guide®  

See “Average Retail Price by Model Year” graph for detail.

Sleeper Tractors – WholesaleThe number of trucks sold through auction and dealer-to-dealer channels through July is running 6.6 percent ahead of the same period of 2014. Dealer-to-dealer sales were unusually strong in July, at 3.3 trucks per rooftop, which is the highest result since December of 2010.

This increased volume has not yet impacted pricing to any great extent. Three- and four-year old sleeper tractors command pricing similar to last year. Five-year-old sleepers are running substantially behind, but this is mainly due to the outsized impact of the 2011 International ProStar on the averages. Specific figures are as follows:

■ Trucks of model year 2013 averaged $67,999 through July of 2015 – a $1,415 (or 2.1 percent) increase over trucks of model year 2012 this time last year.

■ Trucks of model year 2012 averaged $56,257 through July of 2015 – a $1,599 (or 2.8 percent) decrease versus trucks of model year 2011 this time last year.

■ Trucks of model year 2011 averaged $35,619 through July of 2015 – a $12,229 (or 25.6 percent) decrease versus trucks of model year 2010 this time last year.

Again, the steep decline in pricing of the five-year-old group is attributable to the ProStar. Excluding the ProStar, this cohort actually appreciated $1,827 (or 3.8 percent).

See “Average Wholesale Price by Model Year” graph for detail.

$0  

$20,000  

$40,000  

$60,000  

$80,000  

$100,000  

$120,000  

$140,000  

Jan-­‐14  

Feb  

Mar  Apr  May  

Jun   Ju

l  Aug  

Sep  

Oct  

Nov  

Dec  

Jan-­‐15  

Feb  

Mar  Apr  May  

Jun   Ju

l  

Average  Retail  Price  

Period  

Average  Retail  Price  by  Model  Year  -­‐  Sleeper  Tractors  

2007  

2008  

2009  

2010  

2011  

2012  

2013  

2014  

Source:  ATD/NADA  Official  Commercial  Truck  Guide®  

$0  

$10,000  

$20,000  

$30,000  

$40,000  

$50,000  

$60,000  

$70,000  

$80,000  

$90,000  

Jan-­‐14  

Feb  

Mar  

Apr  

May  

Jun   Ju

l  Aug  

Sep  

Oct  

Nov  

Dec  

Jan-­‐15  

Feb  

Mar  

Apr  

May  

Jun   Ju

l  

Average  W

holesale  Price  

Period  

Average  Wholesale  Price  by  Model  Year  -­‐  Sleeper  Tractors  

2  per.  Mov.  Avg.(2007)   2  per.  Mov.  Avg.(2008)   2  per.  Mov.  Avg.(2009)  

2  per.  Mov.  Avg.(2010)   2  per.  Mov.  Avg.(2011)   2  per.  Mov.  Avg.(2012)  

Source:  ATD/NADA  Official  Commercial  Truck  Guide®  

Page 13: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

13www.UTA.org September 2015

NADA continued on page 14

As for the market overall, the average used sleeper tractor wholesaled in July for $35,625, had 611,879 miles, and was 83 months old. Compared to June, this truck brought $5,943 (or 14.4 percent) less money, had 50,569 (or 9.0 percent) more miles, and was seven months older. Compared to July 2014, this average truck brought $5,482 (or 13.3 percent) less money, had 40,837 (or 7.2 percent) fewer miles, and was nine months older. Through the first seven months of the year, though, average pricing is nearly identical to last year.

See “Average Wholesale Price and Mileage” graph for detail.

Demand remains strong for late-model sleeper tractors. We should see increased dealer-to-dealer activity as trade packages continue to return, but we don’t foresee depreciation accelerating beyond our 1-2 percent per month forecast through the end of the year on average.

Competitive Comparison: 3-5 Year-old Sleeper Tractors (retail) The three- to five-year-old sleeper market dipped mildly in July, coming in 1.4 percent lower than June on average. Year-to-date, 2015 is running 1.0 percent behind 2014. Trucks of model year 2012 are responsible for the lower year-over-year result, with this four-year-old group running 6.1 percent behind 2014. Increased supply is the main factor behind lower pricing.

Looking at individual models, the Volvo VNL 730/780 is back at the top of the aerodynamic sleeper pack this month, just edging out a resurgent Kenworth T660. The Volvos have been consistently high in all three model years represented in this graph, while the Kenworth’s strength was mainly in the 2013 model year. The T660’s monthly volatility is attributable to its much lower volume.

Last month’s leader, the Freightliner Cacasdia, saw lower selling prices for 2012 and 2013 model year units, due to high volume. The Cascadia remains the highest-volume truck in the three-to- five year-old segment, underscoring its performance.

The Peterbilt 387/587 took a notable downward dip this month, mainly due to weak performance of 2011 387’s.

The three- to five-year-old cohort continues to dominate the used truck market. Minimal depreciation year-over-year indicates continued strong demand for late-model iron.

See the “Average Retail Price of Selected 3-5 Year-Old Sleeper Tractors” graph for detail.

400,000  430,000  460,000  490,000  520,000  550,000  580,000  610,000  640,000  670,000  700,000  730,000  760,000  

$15,000  

$20,000  

$25,000  

$30,000  

$35,000  

$40,000  

$45,000  

$50,000  

Jan-­‐14  

Feb  

Mar  Apr  May  Jun   Ju

l  Aug  

Sep  

Oct  Nov  

Dec  

Jan-­‐15  

Feb  

Mar  Apr  May  Jun   Ju

l  

Mileage  

Price  

Period  

Average  Wholesale  Price  and  Mileage:  All  Sleeper  Tractors  Under  1M  Miles  

2  per.  Mov.  Avg.(Price)  

2  per.  Mov.  Avg.(Mileage)  

Source:  ATD/NADA  Official  Commercial  Truck  Guide®  

Special Study – is there a Market for 6x2’s?Recently, manufacturers have been promoting the fuel economy benefits of the 6x2 drive solution. As you probably know, a 6x2 tandem has only one axle driven (as opposed to both in a 6x4), with a “dead” or non-driven 2nd axle. This design eliminates the weight and friction losses of a second driveshaft, set of universal joints, and differential, contributing to fuel economy and load capacity.

The 6x2 configuration has been available for years, but until recently the take rate had been extremely low. Concern about traction in slick environments was the main factor limiting demand. Newer offerings attempt to address this concern by working with the truck’s air suspension to automatically place more weight on the driven axle when the ABS and/or traction control system senses slippage.

Some of the more progressive fleets have taken a closer look at this strategy in recent years, and the take rate has incrementally increased. As such, the used truck market has started to absorb more 6x2 trade-ins. With this in mind, where do we stand on market data for used 6x2’s?

Unfortunately, the volume of these trucks in our 2015 retail and wholesale databases is still essentially nonexistent. There have been a total of eight 6x2 trucks reported sold so far in 2015. Further, these trucks were models that are not typically high-volume even in 6x4 configuration. However, there were enough sales to draw an initial, rough comparison.

In the first case, we have three 2015 model-year trucks of identical year, make, model and spec. Two are 6x2’s, and one is a 6x4. Adjusting for mileage, the 6x2’s sold for about $14,450 less than the 6x4.

In the second case, we have ten 2013 model year trucks, again of identical year, make, and model, but with slightly different specs. One is a 6x2, and the rest are 6x4’s. Adjusting for spec and mileage, the 6x2 sold for about $11,500 less than the 6x4’s.

Since the volume in both cases is so low, plus the trucks sold at different times and from different dealerships, we do not necessarily consider the figures accurate representations of the market. At the same time, the results are not too far off from casual word-of-mouth estimates from dealers.

The true value of the 6x2 configuration will unfold over upcoming quarters, as more of these trucks are traded in and resold. As with most new technology, dealers currently buying and selling these trucks are likely placing conservative numbers on them, due to

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UTA Industry Watch

14 www.UTA.orgSeptember 2015

Sales VolumeFollowing June’s drastic drop in retail sales per dealership, July rebounded a bit to come in at 5.0. This figure is 0.5 truck higher than June, but a whopping 1.5 trucks lower than a strong July 2014.

See the “Average Number of Retail Sales per Rooftop” graph for detail.

July was a strong month in 2014 and 2013, while June was relatively weak in both years. 2015 is therefore following this short-term trend, albeit at a lower level. In the first seven months of this year, dealers sold an average of 35.8 trucks per rooftop. This figure is down 6.3 trucks from same-period 2014, and 6.7 trucks from 2013.

There is no clear reason for decline. General economic measures have trended upward since 2010, and 2015 was incrementally healthier than the previous two years in most respects. Judging by pricing, demand for late-model iron has not let up. There has been some minor depreciation for newer model years, but this price erosion is driven mainly by supply.

In general, summer months are poor indicators of the relative health of the used truck market. End users are typically focused on moving freight rather than acquiring iron. We will continue to monitor trends and identify changes if they occur.

On the wholesale side, dealer-to-dealer sales steeply increased in July, from 1.6 to 3.3 trucks per rooftop. In addition, auction activity is 6.0 percent higher in 2015 to date than last year. What are the factors behind this increased wholesale activity?

Fundamentally, the continued increase in new truck deliveries results in a commensurate increase in trades. These trades are typically cycled through auctions, which largely explains the higher activity in that channel.

NADA continued from page 13

uncertainty and limited demand. The ultimate value will depend on end user buy-in to the fuel economy and weight savings benefits of a 6x2, as well as increased confidence in the traction technology.

We look forward to receiving more of this data in upcoming months and ultimately arriving at a valuation judgment.

Medium duty – Class 4 and 6 ConventionalsClass 4 conventionals continue to steadily outperform last year, while Class 6 models recovered from a weak June to turn in a strong month. Through the first seven months of the year, our benchmark four- to seven-year-old Class 4 group returned pricing 24.5 percent higher than 2014, while our Class 6 group is essentially identical to last year, running 0.8 percent behind. Volume remains lower in 2015, with the Class 4 cohort running 33.3 percent behind, and the Class 6 cohort running 14.3 percent behind.

In terms of specific numbers, the average four- to seven-year-old Class 4 conventional wholesaled in July for $21,468 and had 110,343 miles. Pricing was $469 (or 2.2 percent) lower, and mileage was 1,247 (or 1.1 percent) higher month-over-month. Year-over-year, pricing was $5,212 (or 32.1 percent) higher, and mileage was 5,604 (or 5.4 percent) higher.

Our Class 6 cohort averaged $23,175 and 190,126 miles in July. Pricing was $5,267 (or 21.9 percent) higher month-over-month, and mileage was 22,016 (or 17.4 percent) higher. Year-over-year, pricing was $8,829 (or 61.5 percent) higher, and mileage was 53,165 (or 21.9 percent) lower.

Class 4 models are clearly recovering nicely. Class 6 models are struggling to stabilize. The second half of the year is typically weaker for heavier medium duty models, so the upcoming months should tell us whether the Class 6 recovery has legs.

See the “Average Wholesale Selling Price – 4-7 Year-Old Conventionals” graph for detail.

Medium duty – Class 3 and 4 CaboversJuly’s pricing rebounded from the depressed conditions of the previous two months, coming in at $17,059 – a $2,245 (or 15.2 percent) increase over June, and a $1,407 (or 9.0 percent) increase over July 2014. Average mileage was 119,035 – 13,572 (or 10.2 percent) lower than June, and 3,323 (or 2.7 percent) lower than July 2014.

July’s recovery helped to extend 2015’s lead over 2014 through the first seven months of the year, with this year running 12.2 percent ahead. There were no economic or market factors to explain the pricing dip in May and June, so we consider those months anomalies, and the market for Class 3-4 cabovers stable.

See the “Average Wholesale Selling Price – 4-7 Year-Old Cabovers” graph for detail.

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UTA Industry Watch

15www.UTA.org September 2015

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Dealer-to-dealer wholesale trading generally happens for three reasons. First, a dealer might purchase specific trucks from a different dealer to meet a retail customer’s need. Second, a dealer may receive a package of trades too large to absorb and sell retail, so he sells some or all of these trucks to other dealers to avoid holding the trucks. Third, a dealer may accept wholesale pricing for aged inventory in order to remove that iron from his books. The increase in trades this year suggests the second scenario is most likely responsible for July’s higher volume.

Generally, increased dealer-to-dealer sales suggest a regional realign-ment of inventory, which can be an early indicator of a maturing market. Supply is increasing, and these trucks are distributed to where demand is greatest.

See the “Total Reported Wholesale Volume” graph for detail.

outlookOur outlook is unchanged from last month. August orders were down substantially from July, but 2015 is still the healthiest new truck market since the pre-buy year of 2007 if deliveries are included. Used truck pricing remains stable, wholesale volume is positive, and general economic trends continue to move upward. We expect continued mild supply-driven depreciation for newer used trucks in upcoming months. n

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Page 16: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

16 www.UTA.orgSeptember 2015

A Challenge to UTA Members!“WE’VE BEEN CHALLENGED!” Each year, the trucking industry teams with patriotic Americans across the country during the holiday season to remember our fallen veterans. During “Wreaths Across America Day,” the second Saturday of December, the industry shows its patriotism and heart in a big way.

The backbone of Wreaths Across America.org is, and has always been, the trucking industry! Our industry supports this important cause in two ways. First, the industry sells remem-brance wreaths to be placed on veterans’

tombstones at Arlington National Cemetery, and over 2,500 other cemeteries across the country. Second, through the voluntary delivery of these handmade wreaths, the trucking industry makes a huge difference in the lives of the families who have lost a loved one who has served in the armed forces.

For 2015, The UTA has been challenged by NASCAR’s Jennifer Jo’s fans and the Women In Trucking organization. There will be three teams. A red team, white team, and blue team. The UTA is the “Blue Team.” From September 7th through October 31st, the team that sponsors the most wreaths for Arlington National Cemetery will be the winner, and their logo will be the honorary “primary” sponsor on the hood of Jennifer Jo’s #10 race truck for her Miami NASCAR race on November 20th. The Challenge kicks off on Labor Day, September 7th at Noon EST, and will end Saturday October 31st at Midnight EST.

The “Captain” himself, Ken Kosic, will also be the Blue Team Captain, and will keep members updated each week throughout the

competition via email splashes, and the UTA Industry Watch newsletter. You can also visit us on the Used Truck Association Facebook and LinkedIn pages, or on Twitter @usedtruckassoc.

We encourage our individual members and companies to sponsor one or more remem-brance wreaths by visiting www.uta.org/driven2honor. Each wreath is just $15. Share the link with your company management, co-workers, family, and friends and let ‘em know The UTA is “IN IT TO WIN IT,” and it’s all for a great cause.

Sincerely, UTA Board Members

Page 17: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX
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UTA Industry Watch

18 www.UTA.orgSeptember 2015

TCI Reaches Highest Level this YearThe trucking industry has regained its footing according to FTR’s latest Trucking Conditions Index (TCI). June’s TCI jumped 56 percent from May’s level, to 7.66—the highest reading this year. While freight growth slowed during Q2, FTR reported, “rates continue to show growth and margins are still good.” FTR added that it expects “regulatory conditions and a continued economic recovery to fuel an accelerating index during 2016.”

In a release, FTR provided “key takeaways” from its latest report.

■ Freight growth has slowed but is on track for the 6th straight year of annual gains.

■ Drops in fuel costs continue to be a positive for everyone involved--truckers, shippers, and consumers.

■ But labor costs have shown substantial increases, which is keeping up the pressure for rising rates.

■ If fuel prices jump during 2016, just as capacity is tightening, it could cause a significant acceleration in rates.

“It was a positive sign for trucking that the index rebounded in June,” said Jonathan Starks, FTR’s Director of Transportation Analysis. “May was the lowest level in three years, but June was the best month so far in 2015. Continued declines in fuel prices during July and August should help to keep the index elevated as the industry prepares for the fall shipping season. The fall peak may not be as strong this year but the economy continues to chug along, and contract rates are still growing versus last year. The spot market has certainly slowed in 2015, relative to a very robust year in 2014. For the last week of July, the Market Demand Index (MDI) from Truckstop.com was down over 50 percent from 2014. Spot rates are also down, but not nearly as dramatically, and half of the decline stems solely from lower fuel prices. The truck market is quite stable at the moment and seems likely to maintain that pace until we get into 2016.” n

July’s Class 8 orders Near 24,000: FTRFTR had some other good news to share recently. Net Class 8 orders rose in July for the first time this year. Preliminary numbers show net orders of 23,920 units--up 21 percent month-over month, but down 19 percent over last July, according to FTR.

Although the latest TCI reading would seem to indicate a jump in net orders was coming, FTR said the numbers were “much higher than expectations.” It attributed the rise in part to a few big fleets placing large 2016 orders early. However, “orders were down year-over-year due to a similar, but heftier, spike last July.” The market researcher said the market “remains robust with Class 8 orders totaling 356,000 units over the last 12 months.”

“This is a strong order number for July,” said Don Ake, FTR’s Vice President of Commercial Vehicles. “Even though most of the market was subdued, the fact that some big fleets have the confidence to place huge orders right now is a great sign for the Class 8 market going forward. Fleets are positive because freight markets continue to grow. We may see more of this early ordering trend the next two months before the peak order season starts in October.” n

Industry News BriefsACT is Also Surprised by July’s NumbersBy ACT’s accounting, 24,600 Class 8 vehicles were booked in July. For Classes 5-7, 15,900 net orders were posted.

“At the midway point of Q3, the economy and freight markets are being buffeted by cross-currents, generating mixed signals,” said Kenny Vieth, ACT’s President and Senior Analyst. He added, “In July, Class 8 orders broke to the high side of expectations for the first time since February, producing seasonally adjusted net orders to 29,600.” According to Vieth, “Helping drive the high-side outcome in July was a large press-release worthy 9,000 unit, multi-year order, but even if this is excluded July’s orders were well ahead of expectations.”

Concerning medium duty, Vieth said, “On balance, the Classes 5-7 market saw orders improve from June to July, with broad-based strength in Classes 6-7 orders (up 7 percent y/y) offsetting weakness in Class 5 orders, which were down 12 percent y/y.” He added, “The improvement in Classes 6-7 orders would have been stronger but for a sharp drop in step van orders versus a one-off order last July.” n

Fuel Economy/GHG Rules Should be Affordable, Not Compromise Performance: ATD“Phase 2 truck and engine efficiency standards must be affordable and not compromise performance, the standards must be uniform nationwide and doing the rule right is more important than doing it quickly,” Eric Jorgensen, chairman of the American Truck Dealers (ATD) recently said. Jorgensen was speaking at a government hearing on the administration’s Phase 2 rule-making proposal to increase fuel economy and greenhouse gas (GHG) standards for medium- and heavy-duty vehicles, engines, and light-duty work trucks, and to establish new truck trailer mandates.

“Cleaner/greener new equipment will do nothing for the environment or for energy security until it is bought and placed into service, more often than not replacing older, less efficient equipment,” added Jorgensen, president of JX Enterprises, Inc., a multi-state medium- and heavy-duty truck dealership. “Consequently, your goal should be to hit a regulatory sweet spot by setting performance standards that result in new products purchasers are willing and able to buy.” n

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UTA Industry Watch

19www.UTA.org September 2015

NEWS continued on page 20

Volvo Introduces Prepaid Maintenance Plans The company says its goal is to help customers manage costs

Volvo Trucks North America now offers prepaid preventive maintenance plans “as part of the company’s ongoing effort to reduce customers’ operating costs.” Volvo says the plans cover all model year 2011 and newer Volvo models powered by Volvo D11, D13 or D16 engines, and align with the new service intervals announced earlier this year.

The company explained that the new plans are “prepaid contracts that offer numerous levels of coverage, locking in current parts and labor rates and increasing customer control of maintenance expenses.” There are three plans ranging from basic oil changes and 74-point inspections to more in-depth maintenance. In addition, Volvo said its customers “can create custom plans of varying scope and duration to fit their specific needs.” The company added that the plans also offer the option to include service of the after-treatment system, transmis-sion, and chassis.

Customers buying the plans can schedule maintenance at Volvo dealerships in the U.S. and Canada through “Volvo Action Service,” which Volvo says provides seasoned up-time experts who offer 24/7 support. Customers can buy the plans through Volvo dealers.

Volvo added that the new program is its latest effort to help customers control maintenance costs. Earlier this year, the company announced new recommended maintenance intervals that added 10,000 miles to the previous life of an oil change for model year 2011 and newer Volvo trucks equipped with Volvo engines. n

Mack Also Offers Prepaid Maintenance PlansPlans are similar to Volvo’s

Like Volvo, Mack Trucks now also now offers customers the option to buy prepaid preventive maintenance plans. The maintenance plans, Mack says, are available for all model year 2011 and newer Mack® models powered by Mack MP7®, MP8®or MP10® engines. “Mack Premium Maintenance Plans are prepaid contracts that take the worry and hassle out of maintenance by offering a variety of coverage,” the company said in a media release. “Three different plans are available, offering a range of service from basic oil changes and 74-point inspections to more in-depth maintenance, including service for the exhaust aftertreatment system, transmission and chassis. By purchasing a pre-paid maintenance plan, customers can lock in today’s parts and labor rates. They can also choose the duration of their maintenance plan.”

Mack added that customers buying a Mack Premium Maintenance Plan can quickly and easily schedule maintenance by contacting Mack OneCall™, Mack’s 24/7 service and support network. Customer maintenance can be scheduled and performed at any of its dealerships in the U.S. and Canada. n

The new Volvo Premium Maintenance Plans are pre-paid contracts that allow customers to select and customize coverage levels and lock in current parts and labor rates. Customers can schedule service through Volvo Action Service at any dealership in the U.S. or Canada.

Mack Trucks has introduced three prepaid preventive maintenance plans, which it says enable customers to reduce their cost of ownership. Depending on the level of coverage selected, Mack Premium Maintenance Plans cover everything from basic oil changes and 74-point inspections to more in-depth maintenance, including service on the aftertreatment system, transmission and chassis.

Page 20: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

UTA Industry Watch

20 www.UTA.orgSeptember 2015

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International Truck Seals 9,000 Truck Order Deal No doubt about it, Navistar is on a roll, which partly explains July’s Class 8 surprising numbers.

First off, International announced an order for 1,500 Class 8 tractors in mid-July. It soon followed that up by announcing it had finalized the remaining 7,950 orders from the same customer, Quality Companies, Inc., a wholly owned subsidiary of Celadon Group, Inc.

Navistar said the 9,000 vehicle commitment consists primarily of International® ProStar® and LoneStar ® vehicles powered by Cummins® ISX-15 engines, and will be spread across the next three years.

“Our significant growth over the last 18 months has been driven by our loyal customers. This order demonstrates our commitment to growth, and positions us to support our customers for the next several years,” said Danny Williams, chief operating officer, Quality Companies, LLC. “We strive to supply the most fuel efficient and reliable equipment in the industry. We’ve seen superior performance from both International ProStar and LoneStar models in our lease fleet. With this agreement, we have taken a big step toward our goal of fuel efficiency and reliability.” n

NEWS continued from page 19

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UTA Industry Watch

22 www.UTA.orgSeptember 2015

From Where We Sit

Deb and Brad Schepp [email protected]

brutality, but because of how deeply this little dog had been loved. As luck would have it, the staff person who signed our new friend out to us was the same one who’d signed Mojo in from her former owner. This is JoJo’s sad story.

Her owner brought her in with absolutely everything she owned, from her bowl to her bed to her harness and leash. He just kept saying that there was trouble in his family and none of it had anything to do with his dog. He recognized that he couldn’t give her a good home anymore, and, in a selfless act of

pure love, brought her to people who would help her get a good home. He asked for promises that they would be sure to get a home for her, and they did their best to make only promises that they knew they could keep. They promised to do everything possible to make that happen. As he signed her over, he burst into tears, right there in the shelter lobby. His grief moved everyone who saw it. When she handed us our completed paper work, this kind woman said she was going to call the former owner and let him know about his beloved dog’s good new life. “At least I can lift that bit of sorrow from his heart,” she said.

So, now JoJo is home and settling in quite comfortably. As you might guess she was confused and sad the first few days. She missed everything in the only life she’d ever known. She could see we were nice people, but we weren’t her people. Almost two weeks in, and lots of that has changed. She’s clearly settling in. As in any new relationship, there are some challenges. Her former family evidently enjoyed treating her to snacks, lots of them. She has to lose at least 20 percent of her body weight. Her little beagle body looked like a big bullet with a head on one end and a tail on the other! So, her new life has come with lots of exercise and a delicious, even if it is carefully controlled, diet to help her middle-aged body improve its health. In gratitude for a comfy home, two squares a day, and all the belly rubs a pup could want, she’s begun to teach us a world of lessons. Even in these early days of our relationship, our new friend has already begun to teach us wisdoms far beyond the expected abilities of a beagle. Next month we’ll be prepared to share some of those, but for now, here’s our first lesson.

When something really bad happens in life—and those of us who live long enough will all see it happen—seek out good people who know how to help you, and ask them for help. We can’t explain it, but sometimes the big things in life, like adding a family member, happen just when and how they’re supposed to. That poor man and his poor little dog both ended up with broken hearts, but a new life has started for the helpless one in this story, and the powerful one lived the rest of his days knowing he’d done the right thing to honor the love entrusted

to him the day he brought that eight-week-old puppy home. He proved his moral center and that’s a fit ending to any good story. JoJo got a home, and we got a humbling look at what love and devotion really mean. At least that’s the way it looks from where we sit.

It is our great joy to announce a new arrival! Well, “new” isn’t exactly the right word for her since she’s seven, but she’s new to us. Our family now includes a little beagle pup who, well into middle age, lost her family through no fault of her own. Our daughter, Stephanie, works for a large local county funded animal shelter in a nearby affluent county. Like many counties here, the population includes families who have been here for centuries on the land their ancestors farmed and newly transplanted executives who have moved their families into enormous generic mansions when they came here for the jobs. We do have lots of jobs here. So, as you would guess, shelter staff members see a wide variety of animals come into the shelter. She and her coworkers work tirelessly to find good homes for every one of them, no matter who comes through the door. Because they are government funded, they are there to help every animal who comes in, from parrots to pigs and hamsters to horses. Of course, some of the animals who come in touch the staff in special ways.

Knowing that we’d like to get a dog, Stephanie called us one afternoon in July and told us that she’d found our dog, and we had to come get her. Sadly, work schedules and a sudden illness kept us away for a whole week! In shelter time, that usually means a missed opportunity, since the great dogs get scooped up pretty easily. On that first day we were fit to go, we made sure to be at the shelter just as it opened. Well, we’re delighted to report that, once again, our daughter was absolutely 100 percent right! We fell in love with “Mojo” almost on sight, and right then we decided to take our “JoJo” home with us. Everyone was so happy that Steph’s parents were the ones who’d give this little dog a home. That was a guarantee that life would be very good for JoJo from here on out.

Some of the animals who come through the doors have stories of neglect and abuse that could break your heart 100 times before breakfast. In JoJo’s case, her story is heart-breaking, not because of its

Page 23: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

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Page 24: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

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Page 25: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

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Page 26: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

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Page 28: Nearly 400 Industry Professionals Attend UTA's Cummins' ISX

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