Equipment & Tech

Volvo Autonomous Solutions (VAS) and DHL Supply Chain have taken a significant step towards transforming freight transportation with the launch of autonomous operations in the United States. “Early adopters play a pivotal role in accelerating the deployment and acceptance of autonomous technology, enabling us to validate both safety and operational performance,” said Sasko Cuklev, head of On-Road Solutions at VAS. “Our collaboration with DHL Supply Chain exemplifies the potential of autonomy as a complementary mode of transport that increases freight capacity and optimizes supply chain efficiencies.”  According to a media release, the operations will be enabled by the purpose-built, production-ready Volvo VNL Autonomous which is powered by the Aurora Driver. The start of operations marks a critical phase in validating the full ecosystem required for autonomous transport at scale. At this stage, a safety driver will be present to monitor performance and ensure seamless integration into existing logistic networks. Freight will initially be hauled on two lanes, Dallas to Houston and Fort Worth to El Paso. A Strategic Alliance for Innovation  “Autonomy is a key enabler in advancing the digital transformation across the logistics sector by providing reliable long-haul capacity, said Jim Monkmeyer, president of Transportation for DHL Supply Chain North America. “Our long-standing partnership with Volvo has been instrumental in aligning their autonomous transport solutions with our 24/7 operational demands. Volvo’s legacy of safety and relentless pursuit of innovation make them an ideal partner in our journey to elevate trucking efficiency and deliver greater value to our customers.” Uncompromising Commitment to Safety  Staying true to Volvo’s long-standing commitment to safety, the Volvo VNL Autonomous is designed from the ground up with built-in redundancy for critical systems. In autonomous trucks, redundancy replaces the backup provided by a human driver with systems that can automatically take control in the rare case of primary systems encountering an issue, ensuring safe operations, according to the release. The release also noted that this safety approach is further strengthened by Volvo’s close partnership with Aurora, whose sophisticated and robust technology enables the Volvo VNL Autonomous to safely navigate the world around it. The Aurora Driver is equipped with powerful sensors, including high-resolution cameras, imaging radar, and proprietary long-range lidar that allow for safe autonomous operations at highway speeds. An Ecosystem Approach to Real-World Autonomy  “As part of the Volvo Group, we have access to industry leading product development, world-class manufacturing and a mature dealer and service network,” said Nils Jaeger, president of VAS. “For a large-scale deployment of autonomy, in addition to the autonomous truck, there also needs to be a cohesive and seamless support network of surrounding infrastructure, which creates a comprehensive autonomous ecosystem that enables daily operations.” To ensure uptime for future autonomous fleets, VAS has leveraged the industry and transport knowledge of key Volvo Trucks’ dealers across Texas to establish critical support and service points for the Volvo VNL Autonomous.   Investing in the Future of Freight Autonomy is set to revolutionize the transport industry by lowering operational costs, increasing efficiency, and enhancing safety. With 24/7 capabilities, autonomous transport can accelerate delivery times and optimize supply chains, promoting a more resilient transport network, according to the release. “Autonomous trucks can also offer drivers new opportunities, such as remote monitoring and management of fleets while also addressing ongoing labor challenges,” Monkmeyer said. “Additionally, autonomous trucks can reduce the physical and mental strain on drivers, leading to improved quality of life and increased job satisfaction.” Strategic partnerships like that of VAS and DHL Supply Chain are essential for leveraging resources and expertise to earn regulatory and public trust and acceptance of autonomous technologies—and ultimately, to deliver on the full promise of autonomy, according to the release. About Volvo Autonomous Solutions  The autonomous transport solution offered by Volvo Autonomous Solutions includes a vehicle purpose-built for autonomous driving, a virtual driver, required infrastructure, operations and uptime support as well as a cloud solution that controls the transport system and manages logistics flows. The solutions developed by Volvo Autonomous Solutions are tailor-made for each customer’s needs are intended to make their operations safer, and more productive and sustainable.

DETROIT (AP) — General Motors said Tuesday it will retreat from the robotaxi business and stop funding its money-losing Cruise autonomous vehicle unit. Instead the Detroit automaker will focus on development of partially automated driver-assist systems for personal vehicles like its Super Cruise, which allows drivers to take their hands off the steering wheel. GM said it would get out of robotaxis “given the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market.” The company said it will combine Cruise’s technical team with its own to work on advanced systems to assist drivers. GM bought control of San Francisco-based Cruise automation in 2016 with high hopes of developing a profitable fleet of robotaxis. Over the years GM invested billions in the subsidiary and eventually bought 90% of the company from investors, all while racking up millions in losses. GM’s brushoff of Cruise represents a dramatic about-face from years of full-blown support that left a huge financial dent in the automaker. The company invested $2.4 billion in Cruise only to sustain years of uninterrupted losses, with little in return. Since GM bought a controlling stake in Cruise for $581 million in 2016, the robotaxi service piled up more than $10 billion in operating losses while bringing in less than $500 million in revenue, according to GM shareholder reports filed with the Securities and Exchange Commission. The automaker even announced plans for Cruise to generate $1 billion in annual revenue by 2025, but it scaled back spending on the company after one of its autonomous Chevrolet Bolts dragged a San Francisco pedestrian who was hit by another vehicle in 2023. The California Public Utilities Commission alleged Cruise then covered up details of the crash for more than two weeks. The embarrassing incident resulted in Cruise’s license to operate its driverless fleet in California being suspended by regulators and triggered a purge of its leadership — in addition to layoffs that jettisoned about a quarter of its workforce. GM CEO Mary Barra told analysts on a conference call Tuesday the the new unit will focus on personal vehicles and developing systems that can drive by themselves in certain circumstances. The company has agreements to buy another 7% of Cruise and intends to buy the remaining shares so it owns the whole company. The move is another step back from autonomous vehicles, which have proved far harder to develop than companies once anticipated. Two years ago, crosstown rival Ford Motor Co. disbanded its Argo AI autonomous vehicle venture in Pittsburgh that it co-owned with Volkswagen. At the time the company said it didn’t see a path to profitability for a number of years. Yet other companies are pressing forward with plans to deploy autonomous vehicles and expanding their services. Alphabet Inc.’s Waymo is accelerating plans to broaden its robotaxi service beyond areas of metropolitan Phoenix, San Francisco and Los Angeles. Last week the company said it would begin testing its driverless Jaguars in Miami next year, with plans to start charging for rides in 2026. The move comes less than a month after Waymo opened up its robotaxi service to anyone looking for a ride in an 80-square-mile (129 square kilometer) area of Los Angeles. Waymo also has plans to launch fleets in Atlanta and Austin next year in partership with ride-hailing leader Uber. In April, a company called Aurora Innovation plans to start hauling freight on Texas freeways using fully driverless semis. Tesla CEO Elon Musk has said his company plans to have autonomous Models Y and 3 running without human drivers next year. Robotaxis without steering wheels using Tesla’s “Full Self-Driving” system would be available in 2026 starting in California and Texas, he said. But an investigation by the National Highway Traffic Safety Administration into Full Self-Driving’s ability to see in low visibility conditions cast doubt on whether Teslas are ready to be deployed without humans behind the wheel. The agency began the investigation in October after getting reports of four crashes involving “Full Self-Driving” when Teslas encountered sun glare, fog and airborne dust. An Arizona pedestrian was killed in one of the crashes. GM said it will work with Cruise’s leadership to restructure the company and refocus Cruise’s operations on driver assist systems. The company expects the restructuring to reduce spending by more than $1 billion annually. Cruise has about 2,300 employees and will retain a presence in San Francisco, GM said. It’s too early to talk about employment levels until the restructuring is completed next year, a spokesman said. Dave Richardson, senior vice president of software and services engineering, said Cruise will bring its software, artificial intelligence and sensor development to GM to team up on improving GM’s driver-assist systems. “We want to leverage what already has been done as we go forward, and we think we can do that very effectively,” Barra said. Shares of GM rose about 3% in trading after Tuesday’s closing bell. They are up about 47% for the year. AP Technology Writer Michael Liedtke in San Francisco contributed to this report.

Volvo Trucks North America customer Labatt Breweries of Canada has added ten Volvo VNR Electric trucks to its fleet, marking a significant milestone in sustainable transportation. “We have seen increasing demand for battery-electric vehicles (BEV) in Canada, particularly in Ontario and Quebec, helping customers make progress towards their decarbonization goals by adopting BEVs,” said Matthew Blackman, managing director for Canada, Volvo Trucks North America. “We are proud to support Labatt’s leadership in sustainable transportation solutions and their commitment to minimizing their environmental impact with these zero-tailpipe emission trucks.”  According to a company press release, the trucks will transport Labatt’s beer and ready-to-drink-beverage portfolio from distribution centers in Montreal and Bois-des-Filion to customers in Montreal and on the north shore of Montreal.  Labatt’s Volvo VNR Electric trucks feature a four-battery configuration, providing a range of up to 370 km (230 miles) on a single charge. The trucks will operate on daily routes that range from 50 to 110 km. With the ability to charge up to 80% in about 60 minutes, these trucks offer operational flexibility depending on distance traveled, route optimization, and driver efficiency. The Volvo VNR Electric truck is a zero-tailpipe emission solution designed to meet the needs of fleet operators engaged in local and regional distribution, including pickup and delivery, as well as food and beverage transportation. Labatt’s deployment of ten Volvo VNR Electric trucks is a key part of its strategy to reduce greenhouse gas emissions. To support the transition to battery-electric vehicles, Labatt has developed onsite charging infrastructure at its distribution centers. GSH Camions Volvo Montréal, one of the first Volvo Trucks Certified Electric Vehicle Dealers in Canada, led driver training to help Labatt’s drivers understand how to optimize the range of the Volvo VNR Electric, including how to leverage regenerative braking benefits to add power back to the battery. Drivers have expressed satisfaction with the vehicle’s quiet operation, which provides a more comfortable driving experience and reduces noise pollution in local communities during deliveries. “Labatt is committed to innovation and sustainability, and these Volvo VNR Electric trucks represent an additional step towards our goal of achieving net-zero emissions across our operations nationwide by 2040,” said Sarah Genetti, senior director of procurement and sustainability at Labatt Breweries of Canada. “We believe in leading change and investing in technologies that create long-term value for our customers, the environment, and the communities we serve.” According to the release, in addition to vehicle deployment, GSH Camions Montreal supported Labatt in navigating available funding opportunities to offset the initial investment in battery-electric trucks and charging infrastructure. Labatt secured funding through the federal Incentives for Medium- and Heavy-Duty Zero-Emissions Vehicles (iMHZEV) program and Quebec’s Écocamionnage program, underscoring the critical role government support plays in accelerating the transition to clean transportation.

COLUMBUS, Ind. — November preliminary North America Class 8 net orders were 37,200 units, up 21% month over month. Complete industry data for November, including final order numbers, will be published by ACT Research in mid-December. “We are still in the early stages of the industry’s building of 2025 backlogs, but through November, seasonally strong orders have made little progress in closing the backlog gap compared to year-ago levels,” said Kenny Vieth, ACT’s president and senior analyst. “While up from October, orders were 11% below last November’s performance. On a seasonally adjusted basis, Class 8 orders jumped 42% from October to 34,800 units, 418k SAAR,” he said. “Medium duty Classes 5-7 orders continue their consistent, if slowly deflating, trajectory into historically elevated truck and bus backlogs,” he continued. “Preliminary November NA Classes 5-7 orders fell 30% year over year to 16,500 units, the third weakest net order tally of 2024.”

Volvo Trucks North America has redefined the spec’ing process for the all-new Volvo VNL models with an industry-first packaging approach including the innovative Technology Packages that provide a simple way to quickly select options for to improve driver safety, convenience, and comfort, all while enabling savings to be passed onto the customer through the bundled approach. “The all-new Volvo VNL is the most driver-centric truck ever built for North America. When we began working on our packaging strategy, we focused on building the Technology Packages to enhance the overall driver experience and help fleets attract and retain today’s drivers, who desire a modern, connected truck loaded with advanced features and thoughtful design,” said Johan Agebrand, director of product marketing, Volvo Trucks North America. “From veteran drivers to the next generation of future drivers, the Technology Packaging with the all-new Volvo VNL offers tailored options to elevate the customer experience.”  According to a company media release, these packages provide significant enhancements that enhance connectivity capabilities, driver productivity and driver satisfaction while delivering exceptional value for both fleets and drivers. This industry-first packaging approach streamlines the spec’ing and ordering process for customers and dealers with a consultative approach to ensure that fleets have a best-in-class experience with their Volvo Trucks portfolio. The all-new Volvo VNL is available in four exterior and interior trim levels — Core, Edge, Edge Black and Ultimate — across six cab configurations. Packaging options are available for each interior trim level to optimize the configuration and ordering process. Each interior trim package allows the Technology Package to be upgraded or downgraded one level from the pre-selected option. The Core trim level includes the standard Technology Package, while the Edge trim includes Technology Package #1. The Edge Black and Ultimate trim levels feature the top tier Technology Package #2. The innovative Technology Packages build upon one another, offering a streamlined, efficient way to select features that enhance driver comfort and productivity while optimizing fleet performance. Technology Packages for the all-new Volvo VNL include: RADIO PACKAGE  The Radio Package is designed to keep drivers entertained and informed with options that accommodate a range of listening preferences, making long hauls more comfortable and enjoyable. Volvo Trucks is the first heavy-duty truck manufacturer to offer Sirius XM 360L with over-the-air data connectivity.  SiriusXM satellite radio is complimentary for the first three months when customers purchase the all-new Volvo VNL with the standard Technology Package. Customers who opt for the upgraded Technology Packages gain access to SiriusXM 360L app via the optional 9-inch Volvo infotainment system display, blending satellite and streaming for more available content and a personalized listening experience. Features like curated “For You” recommendations and notifications when your favorite artist, song or team is playing make it easier for drivers to find the perfect content on the go. The Premium Radio Package enhances the sound experience with additional speakers, an amplifier and a subwoofer that provide higher audio clarity. Cell phone integration enables seamless access to navigation, messaging, and music playback apps. NAVIGATION/NAVIGATION PLUS   Both Navigation and Navigation Plus are available as part of the truck’s advanced infotainment system and designed to simplify navigation, reduce time on the road, and support compliance with route regulations — all critical for fleet efficiency and driver satisfaction. The standard Navigation system provides essential route planning to help drivers avoid congestion and stay on schedule. It includes easy-to-read, turn-by-turn directions displayed on the digital screen, ensuring drivers have access to accurate route guidance. The upgraded Navigation Plus system offers additional tools specifically geared toward long-haul trucking needs. To make it easier for drivers to plan the safest and most efficient routes for larger vehicles, it includes real-time traffic updates and enhanced route optimization for truck-specific restrictions. DOOR LOCK AND IGNITION SWITCH   Volvo Trucks is the first heavy-duty truck manufacturer to offer an optional push-button ignition option. An all-new Volvo VNL equipped with push-button ignition can be started remotely via a key fob. Drivers can begin warming or cooling the cab and activate external lighting with their fob to assist their pre-trip inspection process. The innovative Volvo Parking Cooler, an integrated climate-control option, can also be activated from the fob. WINDOW LIFT   Electrically powered windows with an auto up and down feature on both doors allow drivers to effortlessly enhance ventilation and comfort. WIRELESS CHARGING   A wireless charging pad on the “doghouse” provides a convenient way for drivers to keep cell phones charged without extra cords or adapters, reducing cabin clutter. Wireless charging is also available in the sleeper environment for medium and large sleepers. With driver cell phone connectivity via Bluetooth and no wired USB connection needed for charging, the all-new Volvo VNL provides a completely wireless interface. CAMERAS  Optional cameras provide up to seven views in the infotainment system display and customers can place the cameras in locations that make the best sense for their operations. The reverse back-up camera provides an excellent view of the back of the chassis on the 12-inch Driver Information Display (DID) without the need of the infotainment system display, making connecting the trailer much easier. Navigation can also be viewed on the DID or by using the infotainment system display, which can also scroll through up to a total of seven exterior camera views and configure up to four cameras to view in reverse gear. AUTOMATIC LIGHTS & WIPERS  Intelligent lighting includes automatic headlight activation, high beams that automatically switch on and off, and cornering lamps that provide additional lighting when entering and exiting turns or curves at low speeds. Rain-sensing windshield wipers activate automatically when rain is detected. TIRE PRESSURE MONITORING SYSTEM   Sensors check tire pressure and temperature every 10 seconds and update data in the DID or on the infotainment system display, if equipped, every minute, with tire low pressure and high temperature notifications in near real-time, helping maintain optimal fuel efficiency and safety. “With the extensive hours drivers spend behind the wheel, the all-new Volvo VNL boasts customizable features to enhance the driving experience,” Volvo said. “The Technology Packages have been expertly tailored to provide excellent value and reduce overall costs, simplifying the ordering process for customers and dealers.”

BLOOMINGTON, COLUMBUS, Ind. — November preliminary North America Class 8 net orders show an improvement in numbers. ACT Research reported North America Class 8 net orders were 37,200 units, up 21% m/m showing a rebound from the previous numbers, while FTR reported that preliminary North American Class 8 net orders for November totaled 33,500 units, reflecting a 12% increase month-over-month (m/m) but a 7% decrease year-over-year (y/y). “We are still in the early stages of the industry’s building of 2025 backlogs, but through November, seasonally strong orders have made little progress in closing the backlog gap compared to year-ago levels,” said Kenny Vieth, ACT’s president and senior analyst. “While up from October, orders were 11% below last November’s performance. On a seasonally adjusted basis, Class 8 orders jumped 42% from October to 34,800 units, 418k SAAR.”  According to FTR, while down y/y, orders were still above seasonal expectations as the average November order level over the past seven years is 30,393 units. Despite ongoing stagnation in the truck freight market, net orders in September through November 2024 were 1% higher than the same period in 2023, signaling slight positive momentum for the 2025 order season. “Despite a sluggish freight market, fleets have continued to invest in new equipment, mainly at replacement demand levels so far in 2024,” said Dan Moyer, FTR senior analyst, commercial vehicles. “We expect a modest rise in November backlogs once the final Class 8 market data is released later this month.” FTR noted year-to-date (YTD) order performance has slightly surpassed replacement demand levels, averaging 22,473 net orders per month. As of November 2024, YTD net orders were up 9% y/y. North American Class 8 orders have now totaled 273,143 units for the last 12 months. OEMs experienced relatively consistent m/m growth in total market demand in November. The on-highway market saw a significant increase in demand that offset and overshadowed the decline in the overall vocational sector. “MD Classes 5-7 orders continue their consistent, if slowly deflating, trajectory into historically elevated truck and bus backlogs,” Vieth said. “Preliminary November NA Classes 5-7 orders fell 30% y/y to 16,500 units, the third weakest net order tally of 2024.”  According to FTR, the announcement presents challenges for the commercial vehicle industry already grappling with preparations for 2027 U.S. EPA NOx regulations, further straining supply chains and costs. While the late-November announcement likely had minimal impact on orders for the month, orders over the next month or so could see a boost as fleets aim to preempt potential tariffs. If tariffs take effect in 2025Q1, OEMs may struggle to quickly ramp up production beforehand due to labor and supply chain constraints, especially during the slow production months of December to February. High Class 8 inventory levels could partially meet any surge in retail demand.” “Meanwhile, the election potentially could begin affecting the commercial vehicle market in the near term,” Moyer said. “The solid m/m increase in net orders might reflect some fleets choosing to place orders following the conclusion of the November U.S. elections, but the election impact might not end there. On November 25, President-elect Donald Trump announced plans to impose tariffs as one of his first executive orders, proposing a 25% tariff on all imports from Mexico and Canada and an additional 10% tariff on Chinese goods. More than 40% of Class 8 trucks built for the U.S. market currently are built in Mexico.”

KIRKLAND, Wash. —  Kenworth Truck Company has been awarded a new 4-year cooperative government purchasing contract with Sourcewell and the Canoe Procurement Group of Canada that streamlines the purchase of Kenworth trucks and PACCAR commercial truck parts for more than 50,000 government agencies and non-profit organizations throughout the United States and Canada (excluding Quebec). “We are pleased to offer the full line of Kenworth trucks, including the Class 8 heavy-duty vocational leader T880, heavy haul W900 and W990 long-hood model, on-highway flagship T680, medium duty models T180, T280, T380 and T480, and our latest battery-electric vehicles, the T680E, K270E and K370E, through our new cooperative purchasing contract with Sourcewell and Canoe,” said Kevin Haygood, Kenworth assistant general manager for sales and marketing.” According to a media release, Sourcewell is a government agency that helps public entities buy goods and services through cooperative contracts. Canoe is Sourcewell’s Canadian partner. “Sourcewell is a self-sustaining government organization offering a cooperative purchasing program with more than 400 competitively solicited contracts to government, education, and nonprofit entities throughout North America,” the release said. “By utilizing Sourcewell contracts, participating agencies save time and money by capturing the buying power of more than 50,000 organizations.” Canoe unites the purchasing power of over 5,000 public and non-profit organizations across Canada, giving members access to an extensive selection of products and services at preferred rates. Partnering with Sourcewell, Canoe drives Canadian dealers’ sales growth while ensuring compliance with the trade and procurement standards required by its members. The Sourcewell and Canoe cooperative contract (032824-KTC) includes all Kenworth Class 5-8 chassis, including medium- and heavy-duty battery electric and natural gas trucks and tractors. A new addition to the Kenworth contract is the availability of PACCAR Parts to support aftermarket commercial vehicle needs with cooperative contract discount pricing. Government agencies interested in purchasing through the Kenworth contract (032824-KTC) may contact their nearest Kenworth truck dealer. For more information, contact Mike Kleespies, Kenworth Truck Company [email protected] / 813-455-1248) or Vinita Nair, Paccar Parts [email protected] / 425-269-5492) The new Kenworth contracts with Sourcewell and Canoe are in effect until 2028.

The Volvo VNR Electric truck model has surpassed 10 million miles of zero-tailpipe emissions in customer operations since commercial orders began in December 2020, according to a Dec. 2, 2024, news release by Volvo Trucks North America. Nearly 600 Volvo VNR Electric trucks are now being used across the U.S. and Canada by fleets of all sizes, ranging from single trucks with an owner-operator to fleets of over 100 battery-electric trucks. “Surpassing 10 million miles with the Volvo VNR Electric is a monumental achievement that reflects the dedication of our customers, partners and more than 65 Volvo Trucks Certified EV Dealers across North America,” said Peter Voorhoeve, president of Volvo Trucks North America. “In October we celebrated reaching 8 million miles, and now we’ve hit 10 million. This progress is a testament to the trust and commitment of those who believe in our vision for a sustainable future.” According to Volvo, customers operating VNR Electric trucks are collectively driving more than 200,000 miles per week, something the OEM says showcases the vehicle’s reliability and efficiency in real-world applications. Volvo’s news release describes the VNR Electric as “representative of a total transportation solution ecosystem which has led Volvo Trucks North America to the market leading position and customers to their operational success.” The manufacturer’s foray into electric Class 8 trucks began in 2020 with the launch of the VNR Electric as part of the Volvo LIGHTS Project, a $90 million public-private partnership the company hoped would lay the foundation for the scaled adoption of heavy-duty battery-electric trucks by exploring the infrastructure and operational adaptations required to support electric mobility. Voorhoeve acknowledged there have been challenges in scaling heavy-duty zero-emission solutions. “Although the battery electric deployments have not scaled as quickly as we anticipated or hoped for, Volvo Trucks remains committed to decarbonizing transportation,” he said. “Our customers are logging an increasing number of miles every day, proving that the shift is not only possible, but is underway,” he continued. “We are optimistic about accelerating the adoption of sustainable technologies through our strong partnerships with our dealers, customers and organizations like PACT (Powering America’s Commercial Transportation).”

COLUMBUS, Ind. – Preliminary net trailer orders rose about 4,800 units from September to October, but at 16,900 units, were lower compared to last October, down 52% y/y, according to ACT Research. “Since we’re still in the early stages of the traditional start to the order season, this month’s uptick was expected,” said Jennifer McNealy, director CV Market Research and Publications at ACT Research. “It’s also no surprise that the data is significantly below the October 2023 intake, given the soft demand recorded throughout this year. October’s data bring ytd 2024 US trailer net orders to 118,300 units, a 37.5% contraction when compared to the first ten months of 2023.” Seasonal adjustment (SA) at this point in the annual order cycle lowers October’s tally to 12,300 units, but that’s about 16% above September’s seasonally adjusted intake. Final October results will be available later this month. This preliminary market estimate is typically within ±5% of the final order tally. “Industry anecdotes suggest that the lack of optimism continues, based on lower backlogs than we’ve seen in a decade, McNealy said. Despite positive momentum in the US economy, lingering weak carrier profitability suggests little support for trailer orders heading into 2025.” McNealy also gave a word of caution. “Despite the sequential order improvement, October data continue to bear witness to our expectations of weaker trailer demand relative to recent performance, as continuing weak for-hire truck market fundamentals, low used equipment valuations, and already-filled dealer inventories impede stronger activity, especially into early 2025,” McNealy said. “An order uptick showcasing demand, or the lack thereof, depends not just on the first two months of the new order cycle, but at least on order volumes through January 2025.”  

Bloomington, Ind. — FTR is reporting U.S. trailer net orders in October rose 34% month-over-month (m/m) to 15,970 units, reflecting typical seasonal trends, but were down 55% year-over-year (y/y). “With the launch of the 2025 order season, North American Class 8 net orders increased 6% y/y in September-October 2024 while U.S. trailer net orders dropped by 58% y/y during the same period,” said Dan Moyer, senior analyst, commercial vehicles. “The steep decline in trailer demand is largely due to fleets prioritizing investments in new power units over trailers, likely influenced by reduced profitability or shifts in trade cycles. Some fleets might also have been postponing trailer orders until after the November elections or in hopes of lower trailer prices. Slightly elevated trailer inventories, reduced fleet spending, and shrinking backlogs are expected to pressure trailer production levels through the rest of 2024. If 2025 trailer orders fail to rebound soon, some OEMs may need to extend or deepen production cuts into next year.” According to an FTR press release, this result marks the lowest October net order total since FTR’s trailer data tracking began in 2013. Despite the opening of 2025 order boards, net orders remain well below expectations, struggling to build momentum. “The challenging truck freight environment continues to weigh on U.S. trailer demand,” FTR said. “Trailer net orders for the year to date (YTD) fell 36% y/y to 108,977 units, an average of just 10,898 units per month. Total trailer build rose 8% m/m in October to 16,603 units, aligning with typical seasonal patterns, but was down 38% y/y. This output is 34% below the five-year average for October and marks the second-lowest monthly production level since August 2020.” According to the release, in October, total trailer net orders were slightly below total production, reducing backlogs by 1,017 units to 82,089 units. Higher m/m production and lower backlogs pulled the backlog/build ratio down to 4.9 months, the lowest since June 2020 and about a month below the pre-2020 average. This result indicates mounting pressure on OEMs to scale back production in the near term.