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Economic slowdown hits truck sales

New truck sales drop dramatically as European manufacturers take advantage of emissions standards.

By Gary Worrall

After an astonishing sales month during June, it looks as though economic reality has hit the truck market in a big way, with a drop in new truck sales for the month of July.

While the strong performers remain strong, including Isuzu and Kenworth, the reality is of the top five sellers, only the American stalwart would have been pleased with the result.

At the heavy end of the market, Kenworth continues to dominate, actually growing its monthly sales to a new high of 254 units, well above its monthly average of 209 trucks, while Western Star continues to hold onto second, although it’s grip on that position is becoming increasingly tenuous with both Isuzu and Volvo outselling it in third and fourth place.

Also starting to come on strong in the second half of the year are Euro manufacturers Mercedes Benz and Iveco, which are recording steady sales to consolidate their market share.

With more companies starting to look to Euro 5-compliant trucks as a way of reducing carbon footprints ahead of the proposed federal Emissions Trading Scheme, the European manufacturers appear to be in the box seat over the next 18 months, with no American brand able to offer better than the mandatory Euro 4 levels.

A similar story is beginning to play out in the medium duty sector, with Isuzu and Hino both dropping markedly against the highs of June, although Fuso, UD Trucks and Iveco all held steady compared to previous sales.

The light duty sector was no different, where Isuzu and Hino again found themselves retreating from June sales figures, while other manufacturers such as Fuso and Mercedes enjoyed sales growth, while Ford and FIAT both remained static against previous figures.

In the van market, Mercedes still dominated a shrinking market, outselling nearest rival Ford by 25 units, 128 to 103, while FIAT languished in third with just 34 sales for the month, although still well ahead of IVECO, Volkswagen and Renault.

With the economic policies of Prime Minister Kevin Rudd and Treasurer Wayne Swan exerting their influence on the economy, combined with the US economy sliding towards a recession, the next few months could prove exciting for the local commercial vehicle market.

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