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HVIA introduces new finance deal to help OEMs

2022 is likely to be a record year for both truck and trailer sales. However, despite order books being full, the HVIA says many heavy vehicle OEMs are still struggling with supply chain disruptions and the rising costs of raw materials.

Finance company Morris, in partnership with Heavy Vehicle Industry Australia (HVIA), is offering a new finance product for heavy vehicle manufacturers and transport companies.

Morris and the HVIA’s product is a finance approval process that treats building a truck or a trailer the same as building a house.

Morris says it locks in the deals, and the original equipment manufacturer (OEM) is provided with progress payments during construction at regular intervals.

Morris says these progress payments avoid the normal risk that the manufacturer carries in the industry and is designed to alleviate cash flow difficulties and help with component purchases and supply costs.

Morris says there is a small additional cost for the purchaser of servicing the loan as it is drawn down, but says it is insignificant compared to the equipment purchase price and is justifiable given the additional certainty, peace of mind and reduce red tape.


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 Morris General Sales Manager Rod Cunningham says this product can help make the industry more sustainable.

“I have been working in the transport industry my entire working career and I believe one of the strengths has been the enduring friendships I have made across the journey,” Cunningham says.

“I love the fact that we operate largely on a handshake, but as good as this is, I also want the industry to be sustainable.

“Recently I have heard stories of trailer OEMs being stuck with highly customized equipment which has been forfeited due to an inability to complete the transaction.”

At the recent round of HVIA state committees, Cunningham says there were stories from HVIA members who were unhappy and concerned about taking risks during these current times. “I have often said that the heavy vehicle and building industries closely follow each other and I am in dismay at the number of builders defaulting and going into liquidation,” Cunningham says.

“Granted, there are varied reasons for this, but they too are in a strong market.

“I would hate to see this happen in our industry and I genuinely believe this is a solution that alleviates risk for OEMs while providing certainty for the client.”

 

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