Hebe: Trucking Faces ‘Upheaval’ From Used Truck Glut
PORTLAND, Ore. — Freightliner President James L. Hebe warned that trucking faces a major upheaval if the glut of unsold, late-model used vehicles is not addressed — and quickly.Hebe told a group of industry journalists at company headquarters that the first victims of the epidemic will be large, long-haul truckload carriers that will find they cannot afford to trade in their used trucks for new equipment.
“The large fleets have been sheltered by us from what’s going on in the used truck industry,” Hebe said. Large fleets generally base their business plans on recouping 50% of the amount originally paid for equipment when they sell those trucks after three years. However, Hebe said that equipment is really worth only 25% today.
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