Study: EPA rules driving new truck demand

| April 23, 2010

FTR Associates on April 22 said its analysis shows strong current truck production, but also cautions that a significant portion of current demand is a short-run surge being created by the imminent onset of new U.S. Environmental Protection Agency-compliant 2010 engines.

According to FTR, fleets appear to be taking advantage of build slots for power units with pre-2010 EPA engines while they are still available, pulling demand forward from the second half of the year.

“The current production numbers will not be sustained once the remaining stock of pre-2010 engines is exhausted,” said Eric Starks, president of FTR Associates. “The basic issue affecting overall 2010 demand – the still-large inventory of underutilized and idle trucks – remains. Pulling ahead orders now to avoid 2010 engine technology will be at the expense of second-half production.”