SHARE YOUR nEwSwith the UTA Industry Watch.

Send submissions, ideas and comments, to:

UTA Industry Watch Editors Brad and Deb Schepp, Lara Haag

c/o Grace Management 325 Country Club Drive, Suite A

Stockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882)

Fax: 770-454-0029editor@uta.org

Volume 13 • Issue 1 • January 20101.877.GETS.UTA • www.uta.org

Table of ContentsBoard News & Views .......................... 2

New Members .................................... 3

Face to Face with Craig Kendall ........... 4

Some 90 percent of a Truck is Recycled ........................................ 5

ATD/NADA Official Commercial Truck Guide®Update ...................... 6-7

Industry News Briefs ..........................8-9

Industry Events Calendar ....................... 9

File Cabinet ...................................... 10

Moving on Down the Road: Checking in with Lee Wallace ........... 11

Last Notes ...................................... 11

The UTA…

Members Supporting Members!

Layout & Design by Laura A. Jones since Volume 8, Issue 1, January 2006 913.706.7505 • laura@laurajonesdesign.com

Used Truck AssociationChartered May 16, 1988

Published by the Used Truck Association325 Country Club Drive, Suite A

Stockbridge, GA 30281

The UTA’s on Facebook!

I remember when I first started in this business

many years ago we had NO computers, iPhones, or digital cameras. Most of us had a bag phone instead of the cell phones we use today. Our “networking” took place during “road trips,” when we were gone for days trying to find equipment, salesmen, or anything else we were looking for.

Then, in 1988 a group was formed called the Used Truck Association (UTA). We started attending conventions to learn how to hire and train salespeople, to learn about values, and most of all learn about “networking.” Now we have an incredible website, www.UTA.org, with loads of information including the presentations from last year’s convention.

We have listened to several members who asked how we can network more than once or twice a year. For a time we’ve had a link to LinkedIn on the bottom right of our home page. Now, we also have a link to Facebook where the Used Truck Association has a Group page! If you need help moving a truck/trailer across the country, have a job posting, need a salesman, or just want to say HOWDY to some of your friends, then type away.

Here is what you will need to do. Go to www.UTA.org, click on the “Facebook” link on the bottom left corner and sign up for a Facebook account. If you are already a Facebook user then just sign in and click on “Groups,” type in “Used Truck Association,” then click join. Once you do that you can start posting messages to the group, or to your friends, or upload photos. Remember, this page is for networking and is available to all UTA members and non-members.

We have some can/can’t rules because this is a public Group, so please be sure to look these over:

■ Can add photos but must be viewable for all ages. ■ Can post equipment/needs lists (no pricing). ■ Can post videos but they must be viewable for all ages. ■ Cannot advertise trucks for sale (we have UTATRUCKS.COM). ■ Cannot slander another group member.

If you have any questions, please email me at Bobby@uta.org, or give me a call 214-631-4770.

Thanks,

Bobby UTA Vice President and Website Committee Chairmanbobby@uta.org

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January 2011 www.UTA.org

President Rick Clark

Vice President Bobby Williams

Treasurer Tom Pfeiler

Secretary Sheri Aaberg

President Emeritus Marty Crawford

Affiliates & Benefits Committee Chairman

Bryan Boyd

Convention Committee ChairmanSheri Aaberg & Tim Ormsby

UTA Jerome Nerman Family Foundation Scholarship Committee Chairman

Tim Ronan

Elections Committee Chairman George Barnett

Marketing Committee ChairmanLara Haag

Medium-Duty Committee Chairman Randy Pennington

Membership Committee Chairman Randy Pennington & John Cosgrove

Training Committee Chairman Ken Kosic

UTA Dealer Group Committee Chairman Mike Thurston

UTA.org Website Committee Chairman Bobby Williams

UTATrucks.org Website Committee Chairman

Bryan Haupt

2011 Board of Directors

Front, L to R: Sheri Aaberg, Randy Pennington, Marty Crawford, Tim Ronan, Mike Thurston. Back, L to R: Tim Ormsby, Bryan Haupt, Ken Kosic, Bobby Williams, Rick Clark, Tom Pfeiler, Bryan Boyd, Lara Haag, John Cosgrove, George Barnett.

The Lowdown on CSA 2010

In December, 2010 the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) launched the Compliance Safety Accountability program (CSA).

This new safety program will use the Safety Measurement System (SMS) to analyze all safety-based violations from inspections and crash data to determine a commercial carrier’s safety performance. Performance scoring will be determined by the SMS--one score for carriers and one for drivers. SMS will assign weights to each violation in the Behavior Analysis and Safety Improvement Categories (BASIC).

The bureaucrat in charge of acronyms has been job justified in the first paragraph.

For those of us who have not been immersed in the devilish details of the program, I thought I would try to recap some of its highlights.

The FMCSA regulates all carriers over 10,000 lbs. that travel interstate, and all carriers that haul hazardous material intrastate.

The BASICs are: ■ Unsafe driving/Fatigued driving ■ Hours of service (HOS) logbook violations ■ Driver fitness ■ Controlled Substances/Alcohol ■ Vehicle maintenance ■ Cargo securement ■ Crash history

Under the old system carrier performance was assessed in only four broad categories. Now, once a month SMS will evaluate the carrier’s past 24 months of roadside violations and crash reports. The carrier will receive a fresh safety score based on the behavioral categories (BASIC). The carrier scores will be ranked relative to all others in its peer group. This will help authorities see which carriers have specific safety problems, and provide targeted information to change unsafe practices. The peer groups based on power units are: 5 or fewer, 6 to 15, 16 to 50, 51 to 500, and 500 or more.

Drivers will be held accountable in that all roadside violations will be looked at through the CSA window. Officials will be on the lookout for violations such as invalid CDL, false medical certificate, and hours of service (HOS) violations. Drivers will be held directly accountable for violations, but the carrier may receive enforcement action if it bears responsibility for driver violations. Every violation will be scored so driver history will have an impact on a carrier’s overall rating. Violations issued to drivers in their personal vehicles will not figure in CSA scores, and carriers do not inherit a newly hired driver’s past violations in the SMS records. CSA does introduce a driver safety assessment tool and continues to hold carriers responsible for the performance of those who work for them. CSA does not currently have any rules that restrict employment based on BMI, weight, or neck size.

Driver profiles are compiled from the FMCSA Driver Information Resource and drivers can view their own profiles. FMCSA’s Pre-Employment Screening Program (PSP) is available to carriers as a pre-screening tool if the driver has authorized the release of the information. PSP is not part of CSA.

CSA does allow for carriers and drivers to review data such as crash and inspection reports to ensure there are no erroneous violations.

The CSA was designed to identify unsafe truck and bus companies and ultimately reduce commercial vehicle crashes and save lives. Many carriers believe they may be harmed by the release of their BASIC ratings if the data is inaccurate.

Any program that makes trucking safer and polishes the perception of the industry is good for the truck-selling business. My hope is that the carriers use all the information to become the best in their business, and the government will refine the process to make it more efficient and effective without burdening us with even more regulation.

These are just a few highlights (or lowlights, if you are a marginal carrier). More information can be found at: http://csa.fmcsa.dot.gov/.

Quickly now – what is BASIC, FMCSA, PSP, SMS, CSA, HOS, DOT? ■

Tom Pfeiler UTA Treasurer tom@uta.org

Board news and Views

UTA Industry watch

3January 2011www.UTA.org

New MembersCharles W. Bailey, Jr., Owner Diamond Line Chassis 9055 Old National Rd. P. O. Box 116 New Paris, OH 45347 (765) 969-1316 (W) (765) 935-6919 (C) www.DLCSITE.comsalesdlc@earthlink.net

Charles really enjoys working with the people in our industry, which is something we’re happy to say we hear again and again. It’s the people that make the truck industry so special.

Charles joined the UTA to further his used truck knowledge. For one thing he feels it’s important for members to “learn all you can about the equipment changes that are coming.”

Asked to contemplate other possibilities, Charles said he couldn’t imagine being in any other industry. Then we asked him to tell us something that many people may not know about him. “I’m loveable and not a crook,” he replied! Both are good things for sure.

Todd Carlson, Owner DTI Trucks8955 W. 44th Ave Wheat Ridge, CO 80033 (303) 524-3820 (W) www.dtitrucks.comtodd@dtitrucks.com

Craig Ferguson, Wholesale Export Mgr TAG Truck Center 1653 East Brooks Rd.Memphis, TN 38116 (800) 264-0336 (W)(901) 409-8270 (C) www.tagtruckcenter.comcferguson@tagtruckcenter.com Craig started working in our industry in 1994 as a parts delivery driver. But for most of the interven-ing years he’s been serving his countrymen. “I just got back into the industry in 2008,” he said. “I was a police officer for 11 years, and prior to that I had the opportunity to serve with some of the bravest men and women in the world.”

But he’s thrilled to be back in the truck business. “I love my job,” he said. “I enjoy talking to the contacts I’ve made and discussing the industry. I enjoy learning something new about my job every day.”

To Craig, UTA membership is quite important, especially for the networking opportunities. “We all have had a rough couple of years,” he said. I could not have been as successful during this

time if not for the customers and acquaintances I have become friends with in the industry. These professionals all are members of the UTA and they are great at what they do. I felt like I could learn from them and became a member of this network to be connected.”

Finally, Craig had some thoughts to share with other UTA members. “I have met several of you and talked to you on the phone. We have put deals together and developed great working relationships. If I haven’t had the pleasure of meeting you yet, I hope to one day. I thank each and every one of you for the time and advice that is helping me become successful in what I do.”

Elard Palma, Sales Manager Rush Truck Center of Tampa 8111 E. Adamo Dr. Tampa, FL 33619 (813) 371-2112 (W) (863) 205-1885 (C) www.rushtruckcenters.com/Tampa/palmae@rushenterprises.com

It was the year the Dallas Cowboys defeated the Denver Broncos, 27-10 to win the Super Bowl. Annie Hall won the Oscar for Best Picture, and Pete Rose got his 3,000th major league hit. It was also the year Elard Palma started in the truck business. It was 1978.

Maybe Elard has remained in the business because he so enjoys what’s at its heart, “dealing with trucks and talking with people,” as he put it.

Elard already knows quite a bit about the truck business, as you would expect. Yet he joined the UTA to learn even more. Welcome!

Tim Pfister, Vice President Hilco Industrial 5 Revere Drive, Ste 300 Northbrook, IL 60062 (847) 313-4747 (W) www.hilcoind.com tpfister@hilcoind.com

“I joined UTA for the contacts and great market presence it has,” Tim shared.

He tells us that his company, Hilco, has delivered more than 1,500 construction, mining and transportation equipment asset appraisals with asset values ranging from $500,000 to $1 billion. He wanted us to mention that Hilco is also increasing the number of asset liquidations, redistributions, and auctions.

Robby Phillips, VP Used TruckTAG Truck Center 1653 E. Brooks Rd. Memphis, TN 38116 (901) 345-5633 (W) (901) 496-5599 (C) www.tagtruckcenter.com rphillips@tagtruckcenter.com

Peter Swartzentruber, Owner/PresidentOver The Road Equipment Sales and Leasing Inc.255 Third Concession Road Princeton, Ontario N0J 1V0 Canada(519) 458-8100 (W)www.overtheroadequipment.cominfo@otrequipment.com

Peter may now be the owner/president of a company, but he definitely worked his way up the ladder to get there. His first job in the industry was driving a moving truck with his father, when he was 17. “We hauled cattle from the west,” Peter said. “Ever since that time I have been involved one way or another in the truck business.”

He told us a bit about his company and how fortunate he feels to be in the position he is. “Our company was started by my wife and me almost seven years ago. Together we buy and sell trucks, trailers, and specialized equipment for the agriculture and heavy spec markets on a global platform. We have been blessed to meet some very good people along the way and formed some very lasting friendships.”

Cold weather isn’t for everyone. But Peter couldn’t be happier in Canada. If he wasn’t in the truck business, he “would have loved to have run a fishing/hunting lodge in Northern Ontario,” he said. “Grew up in one and believe me there is nothing better for the soul than the experience.”

Peter also shared some wise words, which you may have heard before, but which always bear repeating. “Love what you do and you will never work a day in your life!”

If Peter’s name sounds familiar, it may be because he was a UTA member about 10 years ago.

Brad Wolf, Wholesale and Export Mgr.TAG Truck Center 1653 East Brooks Rd. Memphis, TN 38116 (901) 345-5633 (W) (901) 494-6004 (C) www.tagtruckcenter.com bwolf@tagtruckcenter.com

It’s always a treat to welcome new members to the Used Truck Association. Each month we profile our new members in this newsletter. New members will have the opportunity to complete a bio and send a photo so our current members can learn more about you. We hope to learn not just how to reach you, but what you like/don’t like about the work you do, why you joined the UTA, and what gets your gears going as a person. So please return your questionnaire so your fellow UTA members can get to know you!Also, if you’d like a copy of the new member brochure that we handed out at the convention in Jacksonville, please contact David Grace at davidgrace@charter.net or 770-389-6528 ext. 404.

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January 2011 www.UTA.org

You could easily say that Craig Kendall is a people person. We know, this is a

slightly over-used description, but you’ll see in just a few paragraphs why it’s also indisputably the best way to describe Craig, the Sales Manager for Peterbilt of Knoxville, TN, also known as the Pete Store.

Even before he graduated from the University of Tennessee, Knoxville in 1985, Craig was taking full advantage of the wisdom he found among his circle of friends, family members, and coworkers. “I always try to watch people and see how some people do certain things well and other people don’t do things as well,” he told us. “I really try to avoid the traps they fall into.” After all these years of a successful career, Craig is still watching and learning. But now he’s also in a great position to teach others, and he offers us all a great deal of wisdom.

Craig counts among his many blessings the wonderful people he’s known throughout his life. “I have been blessed with being around lots of great people,” Craig said. First on his list is his wonderful wife Lisa. “I couldn’t have a better wife,” he said. But long before he and Lisa chose each other Craig had already made a habit of appreciating people and learning from them. “My parents always believed in me,” he said, “and they still do.” Craig has long admired his father’s steady approach to life, and his mom has a talent for seeing the good in any situation. In addition to his parents, Craig also called on long-time family friends Bob and Mozelle Core. “Bob was a tough guy,” Craig told us. “He was in the Army during World War II, stationed at Pearl Harbor at the time of the attack. He was the nicest and most generous guy. I still miss him,” he reminisced.

Craig Kendallthem.” Craig admits to also loving the part of his job that has him creating, offering, and executing great deals. “I love to see if we can buy some trucks right. It’s really cool to get a truck or a group of trucks that really get the phones ringing. If we buy the right trucks for the right price, it is good for the customer, good for our sales reps, and good for the company. That is fun!”

Other proud moments throughout Craig’s career include his own personal achievements and his interactions with his colleagues through the UTA, which he joined in 2001. The day Craig received his Masters Degree from Vanderbilt University in Mechanical Engineering is a personal high point. Being asked by Tim Ormsby and Tim Ronan to act as the Master of Ceremonies for the 2009 UTA convention in San Antonio was another proud moment. “That was fun and really an honor,” he said. “Being elected to the UTA Board of Directors was great!” Of all the happy and enriching times Craig has spent with the UTA, he notes watching people he knows and respects get recognized through the Lifetime Achievement Award ranks very near the top. “Seeing the award go to Paul Spokas and Jim Sundy, both who are gone now, and I knew well and worked with was really special.”

When we asked Craig to offer some advice to young salespeople just starting out, he said, “Be yourself.” He noted that we’re all unique. “Be honest. When in doubt, always tell the truth. Don’t be in a hurry to sell, but be busy about it. When you fail, and you will, learn from it, move on and try not to make the same mistake in exactly the same way. Stay upbeat and positive! You’re not as good or bad as most people want you to think. And, please, have some fun. See the joy in everything, it is there.” Craig cautions others in his industry to keep in mind that the trucking industry is coming out of its worst two years —2008 and 2009— in a very long time. “Yesterday is gone. Are we willing to accept the future is changing or are we going to be too busy missing the ‘good ole days’ to adapt and be successful in the future”? Finally, Craig noted that having a strong faith has been very useful to him throughout his career. “That has helped me more than I can say. Trucking will test you!” As far as we can see, Craig is passing these tests all with flying colors. Not only does he continue to watch and learn from the people he connects with, he’s also showing and teaching the rest of us a thing or two. ■

Once Craig left the circle of his family and friends, he continued his people-watching trend. His first job was with Liberty Mutual Insurance where he worked in the Loss Prevention-Safety Engineering/Consulting branch. “At Liberty Mutual I specialized in working with trucking companies on driver safety and workers’ compensation. Liberty Mutual writes more Workers Compensation insurance than any other company,” Craig told us. That allowed him to immerse himself in another long time interest, trucks and trucking.

“While at Liberty Mutual I had the opportunity to be Regional Loss Prevention Consultant, managing the United Parcel Service (UPS) account from Bakersfield, CA to Alaska,” he said. “Liberty Mutual provided some of the greatest training I could have received,” Craig said. “It was like the military. We were trained how to do everything —answer the phone, write letters, greet and work with customers, and so on. I was even trained in defensive tractor trailer driving! They paid me to learn and see Alaska, Montana, Washington state, Oregon, and Northern California.” Craig still marvels at the many sights he enjoyed, noting that his travel afforded him a lot of experiences that many folks from Nashville, TN don’t usually get on their own.

During this time, Craig said that he learned a lot from Ron Marquis, a Region Safety Manager with UPS. “Ron is a really smooth and polished guy,” Craig said. “I admire how Ron could give people bad news and get them to do things they needed to do in an easy and gracious manner.” There’s another skill Craig noted and incorpo-rated into his own work life. Still, the boy from Tennessee counts among his best days ever the day he got offered a job with Peterbilt and the chance to come home to Tennessee. In 1993, he officially joined the trucking industry and he’s been happily working for Peterbilt ever since.

“I’m really fortunate to work for a great company and to work with great people,” Craig said. When we asked him about his typical day, he turned back to his love of people. “A typical day has lots of people contact—customers, suppliers, dealership personnel, sales, service, parts and body shop. I like people and doing what I do lets me interact with lots of different people. It’s fun to see if you can sell trucks that fit your customers and help

UTA Industry watch

5January 2011www.UTA.org

Some 90 percent of a Truck is Recycled*

Volvo Trucks is at the absolute cutting edge when it comes to dealing with old

trucks in an environmentally sustainable manner. When a truck is scrapped, almost everything is recycled.

Nowadays, no less than 90 percent of a truck can be recycled and, according to Lars Mårtensson, Environmental Affairs Director at Volvo Trucks, this figure is going to increase.

“We have to think about the environment, our resources and future generations. This is a large part of the driving force,” he says.

Recycling is not just an environmental issue, it also has economic aspects. In the future, there could be a shortage of resources such as metal and, when prices rise, it will be necessary to recycle even more.

To facilitate recycling, Volvo Trucks produced a dismantling manual back in the mid-1990s. At the design stage, Volvo Trucks already takes account of what is going to happen the day the truck is taken off the road.

The parts in good condition become spare parts; others are recycled or are turned into new energy. To make dismantling effective, the parts have to be easy to remove. All the cables and wiring, for example, are held together with 2,000 plastic clips to make them easy to dismantle.

All the materials are selected with recycling in mind. Using dyed plastic rather than painted plastic is just one of the many details.

Iron and steel are very valuable. In a newly produced Volvo FM or Volvo FH 4x2 tractor, 97 percent of the weight of the cast iron is recycled, as is 50 percent of the forged iron and 90 percent of the aluminum. When it comes to lead, bronze, copper and stainless steel, between 40 and 86 of the percentage by weight in a new truck is made from recycled material. In overall terms, no less than 33 percent of the total weight of a new Volvo truck is accounted for by recycled metal.

So a truck that is ready for scrapping is more or less worth its weight in gold to the owner. The Volvo Group’s dismantling facilities pay up to SEK 100,000 kronor for it and then sell the parts.

Volvo Trucks owns two dismantling facilities in Sweden and one in France. They take the trucks to pieces and the different parts are put in containers.

The containers of engines that are not going to be remanufactured are taken to the Volvo Group’s smelting plant in Skövde, Sweden, and are then used to produce new engines. Other containers with electronic systems, hazardous waste, plastic and batteries are taken to Stena Metall, Sakab, Renova or Ragn-Sells, who melt them down, and clean or recycle the energy from truck components.

In Sweden, not a single truck component from Volvo Trucks is buried at a landfill. ■

Editor’s Note: Last spring National Geographic visited one of Volvo’s recycling plants to make a documentary on how Volvo’s trucks are recycled. You can see a trailer of the documentary here: http://channel.nationalgeographic.com/series/break-it-down/4336/Overview#tab-Videos/08359_00

*This article originally appeared in Volvo Trucks Magazine, June 15, 2010. Reprinted with permission.

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January 2011 www.UTA.org

October’s sales data provides an interesting look at the relationships between mileage, age and selling

price. Increased sales of trucks with average mileage and specs appear to have pushed down the averages this month. This performance bolsters the observation that the “hot” portion of the used truck market is limited to trucks with lower-than-average mileage.

The sleeper market overall exhibited a minor but noticeable decline in average price (reference “all sleeper tractors” graph). The reasons for this decline appear to be twofold. First, the overall age of this market segment increased to a three-year high of 62 months (reference “average age” graph). Second, a larger volume of fleet-oriented trucks with average mileage were sold in October.

Focusing solely on four-year-old sleeper tractors, average price decreased less notably (reference “4-year-old” graph). This difference is primarily due to the mathematical influence of a multiple-unit package sale from one particular dealership. If this sale were to be excluded from our calculations, October’s performance would be essentially equal to September’s.

Based on all this, it should come as no surprise that average mileage of the overall sleeper universe continued the climb begun in March, slowing down to settle at just over 480K for October (reference “average mileage” graph). As our analysis of year-to-date data suggests, this figure likely represents the point at which a used truck’s price premium might be expected to decrease.

As mentioned, sales per dealership increased slightly this month (reference “month over month” graph). Volume increased across all sub-segments, with a few multiple-unit packages increasing the count.

Jan-

08

Feb-

08

Mar

-08

Apr-0

8

May

-08

Jun-

08

Jul-0

8

Aug-

08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr-0

9

May

-09

Jun-

09

Jul-0

9

Aug-

09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb-

10

Mar

-10

Apr-1

0

May

-10

Jun-

10

Jul-1

0

Aug-

10

Sep

-10

Oct

-10

50

52

54

56

58

60

62

64

Average Age in Months: Sleeper Tractors (All Model Years)Age

Month

Age

Average Retail Selling Price, 4YO Sleeper Tractors

Average Retail Selling Price, All Sleeper Tractors Under 1M Miles

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7January 2011www.UTA.org

Mar-10

4/1/

2010

5/1/

2010

6/1/

2010

7/1/

2010

8/1/

2010

9/1/

2010

Oct-10

430,000

440,000

450,000

460,000

470,000

480,000

490,000

Average Mileage: Sleeper Tractors (All Model Years)

Month

Mile

age

Oct-09

Nov-09

Dec-09

Jan-1

0

Feb-1

0

Mar-10

Apr-1

0

May

-10

Jun-1

0Ju

l-10

Aug-1

0

Sep-1

0

Oct-10

-20%

-10%

0%

10%

20%

30%

40%

Month-over-Month Change in Retail Sales Volume Per Dealership

Month

Per

cent

age

Sol

d P

er D

eale

rshi

p

In sum, October’s results were defined by increased sales of slightly older trucks with average mileage and specs. The fact that selling prices decreased suggests a return to the traditional inverse relationship between volume/mileage and price. This relationship is of course the traditional “norm” for the market, one that has been absent since demand for used trucks exploded in early Spring. However, it is important to keep in mind that one month does not equal a trend. Given the anomalies we’ve seen this year, it is quite possible that this relationship might shift again next month.

Looking forward, the foundation of the used truck market remains strong. Total used truck sales, both on the dealer level and overall, are ahead of both 2009 and 2008 to date. Freight tonnage has steadily increased in all quarters. Most general economic measures have rebounded except for those that are traditionally the last to turn around (unemployment and consumer behavior). The low new truck production of the past three years will continue to define the performance of the used truck market going forward. ■

Reprinted with permission from the ATD/NADA Official Commercial Truck Guide®

www.nada.com/b2b

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January 2011 www.UTA.org

Kenworth and PACCAR Extend Extended Warranty Program The Kenworth and PACCAR Financial Extended Warranty Program is now available through March 31, 2011, for U.S. customers who buy eligible new Kenworth Class 8 factory trucks.

Kenworth customers may receive a three-year/ 300,000-mile basic vehicle extended warranty if they choose PACCAR Financial to finance their new Kenworth Class 8 trucks with a standard highway warranty.

Kenworth added that qualifying Class 8 customers receive an additional two years and 200,000 miles of warranty coverage (valued at more than $2,900 per eligible truck), under this joint Kenworth and PACCAR Financial program.

The offer applies to Kenworth trucks ordered on or after Sept. 16, 2010 and financed through PACCAR Financial no later than March 31, 2011. (This is extended from the prior deadline of Dec. 31, 2010.) There is a maximum quantity of 20 units per customer. Contact Kenworth (www.kenworth.com) or PACCAR Financial (1-800-777-8525) for program terms and conditions. ■

EPA and Rush Enterprises Team up to Clean up Southern RoadsThe EPA has awarded the Southern Alliance for Clean Energy (SACE) $5 million dollars to help truck drivers afford greener rigs. The money will guarantee loans used to buy used, retrofitted rigs from Rush Truck Centers throughout the South.

The program will result in less polluted Southern roadways, SACE said in a press release, as the retrofitted rigs will run cleaner than similar rigs. “The financing will play an important role in updating older, dirty diesel trucks with clean diesel technology, helping reduce emissions and improve air quality in the Southeast,” SACE explained.

Rush Enterprises, Inc. will be the exclusive dealer for the green machines and will start selling them in Tennessee and Florida, and then expanding to its other Southeast locations. Rush and SACE will work together to select trucks to be retrofitted. Or, buyers can choose to retrofit a pre-2007 truck from the lot.

The program is part of SACE’s Clean Trucks Make Cents program, which focuses on eight Southeastern states that comprise EPA Region 4, where SACE says 16 million people face pollution levels exceeding national air quality standards for ground-level ozone, smog’s main component.

SACE advises buyers to contact Rush Truck Centers or search Rush’s inventory online at www.rushtruckcenters.com, beginning in January. For further details, go to SACE’s website: http://www.cleanenergy.org/. ■

Industry news Briefs

Daimler Truck Sales Rise as Recession EbbsDaimler reported its sales increased 44 percent to 94,800 units for the third quarter of 2010, as compared to the same period in 2009. Lest we forget, last year the commercial vehicle sector had to cope with an average sales decline of 50 percent according to figures supplied by the company.

Through the end of September 2010, Daimler Trucks reported sales were up by 34 percent to 249,000 units, versus sales of 185,600 units during the same period last year.

Recently, Daimler board member Andreas Renschler explained the prospects for Daimler trucks and buses to analysts and investors. “The forecasts indicate that the worldwide markets for medium-duty and heavy-duty trucks will grow by eight percent to 2.6 million units in the period between 2010 and 2013. At Daimler Trucks it looks like we will succeed in boosting sales by more than 40 percent to over 500,000 units during the same period. Given this outlook, a return on sales of eight percent is within reach for Daimler Trucks across the entire business cycle,” Renschler added. ■

Medium-Duty Engines Vary Widely in Fuel Efficiency, Customer SatisfactionHow fuel efficient are different medium-duty engines, and are the differences among them significant? In a recent report, J.D. Power and Associates looked closely at those questions, and arrived at some answers in which you may be interested.

How efficiently an engine uses fuel varies widely from manufacturer to manufacturer, according to the 2010 U.S. Medium-Duty Truck Engine and Transmission Customer Satisfaction StudySM . These differences can really add up when fuel costs are tallied.

The study found annual cost differences of roughly 18 percent between medium-duty truck engines with the best gas mileage, and those with the worst. The difference between the best and worst performers can mean a fuel cost difference of about $2,100 per truck—or $36,000 annually for a fleet of 17 trucks (the average number of trucks per fleet). The report found that engine makes with the best gas mileage averaged 9.3 miles per gallon, as compared to the industry’s average of 8.4 miles per gallon. Not surprisingly, the more fuel-efficient trucks scored higher on customer satisfaction levels.

“Fleet owners that purchase a truck with an engine that is very fuel-efficient can have a real competitive advantage in terms of their overall operating costs,” said Todd Markusic, an executive with J.D. Power and Associates. “With some fleets exceeding 100 trucks, saving a few thousand dollars each year in fuel costs per truck may have a considerable impact on the bottom line. Although some fleet owners may be tempted to purchase gas engines given that gas prices are currently much lower than diesel, a more fuel-efficient diesel engine will ultimately lead to much lower annual fuel costs.”

The study measured customer perceptions of 2009 model-year Class 5, 6, and 7 gasoline and diesel engines. Eight factors were considered to arrive at overall engine satisfaction: engine reliability and dependability; accessibility to components for service/maintenance; engine warranty; control module (ECM); maintaining speeds on grades; average fuel

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economy; vibration at idle; and acceleration when fully loaded.

Hino Truck engines ranked highest in customer satisfaction with a score of 822 on a 1,000-point scale, the study found. Next in the rankings came Paccar (774) and General Motors (769).

“Hino continues to satisfy its owners by focusing its efforts on the most important aspects of customer satisfaction and maintaining high quality in their engines,” said Markusic.

The 2010 U.S. Medium-Duty Truck Engine and Transmission Customer Satisfaction Study is based on responses from 1,255 primary maintainers or one-year-old conventional cab medium-duty trucks. ■

Carriers Concerned about Driver Wages and Contractor Availability What are carriers thinking about these days? The recent Business Expectations Survey from Transport Capital Partners, LLC (TCP) found both drivers and independent contractors (IC) are on carriers’ minds.  About three fourths of the fleets responding use contractors. Of these fleets, 57% saw their IC counts remaining steady, about 29% are using various means to recruit and finance fleet additions, and the rest are seeing declining numbers. “Lease purchase plans by 1 in 10 fleets are popular along with ICs who finance elsewhere or use a combination of methods to attract contractors,” said Richard Mikes, TCP Partner. “With credit conditions expected to remain the same over the next year, it is understandable that carriers are interested in building IC numbers as both a source of drivers and capital,” added Lana Batts, TCP Partner.

Over three fourths of the responding carriers said they are recruiting for driver openings that represent zero to ten percent of their driver force. This response reinforces expected increases in freight over the year ahead while slightly more than one in six are recruiting for 11-20% of their driver force. “The uncertainty about the impact of CSA 2010 may be accelerating recruiting efforts,” observed Lana Batts.

A second question queried carriers about increased driver wages in the year ahead and two-thirds anticipate increases of zero to five percent.  “Even with a weak economy approaching 10% unemploy-ment, this increase affirms an underlying capacity constraint. Only 20% expect driver wages to be flat,” commented Mikes. The survey again asked carriers if they have given any consideration to leaving or liquidating and for the second quarter in a row the number saying “yes” rose slightly to 18%.  When broken down by carriers above and below $25 million in revenue, the smaller fleets who said “yes” were at 25% compared to only 10 percent of the larger ones. Both Batts and Mikes caution, “In general carriers under $25 million are less optimistic on volumes, rates, and credit availability.  This indicates a sizable portion of carrier capacity may be vulnerable to a sluggish economy and increased fuel prices unless rates increase quickly and broadly.

More information is available at TCP’s website: www.transportcap.com. ■

fEbRuARy 20115-7 • NADA Convention & Expo http://www.nada.org/TrainingEvents/Convention/

MARCH 20117-8 • The Green Truck Summit www.ntea.com/worktruckshow/index.aspx?=18868

8-10 • The Work Truck ShowIndianapolis, IN www.ntea.com/worktruckshow/

22-26 • CONEXPO-CON/AGGLas Vegas, NVLas Vegas Convention Center http://www.conexpoconagg.com/

March 31 - April 2 • 2011 Mid-America Trucking Show Louiville, KY www.truckingshow.com

APRIL 201115-18 • ATD Convention & Expo Phoenix, AZPhoenix Convention Centerhttp://tinyurl.com/2fkeorj

MAy 201117-18 • The Truck blue book Conference New Orleans, LAHilton New Orleans Riversidehttp://truckbluebook.com/conference/

JuNE 20119-11 • The Great West Truck Show 2011 Las Vegas, NVLas Vegas Convention Center http://www.greatwesttruckshow.com/2011-great-west-truck-show-information/

Do you know of an event that should be added to this list? Please send the details to editor@uta.org.

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ACT: Class 8 Sales Down; Prices Up

Well you can’t have everything. But these days any good news is welcomed, and we’re happy to report we have some from ACT. First, the bad news: sales activity for used Heavy-duty Class 8 commercial vehicles is slowing down. But, the good news is that prices are continuing to rise.

October saw a significant drop in sales over the same month last year, yet the average price increased four percent “as buyers focused on the limited supply of low-mile-age vehicles available,” ACT reported.

“Tighter supplies of equipment of all sizes continue to be a boon for selling prices,” said Steve Tam, ACT’s Vice President commercial vehicle sector. “With the focus on late-model equipment, the average miles for Class 8 units sold were down 13 percent month over month and 14 percent compared to October of 2009, Tam added.

The figures were reported in the latest release of ACT’s State of the Industry: U.S. Classes 3-8 Used Trucks. The report also includes stats on the average used price for best-selling Class 8 models from each of the major Truck OEMs: Freightliner (Daimler); Kenworth and Peterbilt (Paccar); Interna-tional (Navistar); and Volvo. More information is available at ACT’s website, http://www.actresearch.net/. ■

New Commercial Vehicle Registrations Rebound; Used Market Hits Record Levels: Polk

U.S. Commercial vehicle (GVW Class 3-8) registrations during the first nine months of 2010 were at 269,650 units, up 9.6 percent over the same period last year, according to Polk, a leading provider of transportation industry intelligence. The used commercial vehicle (GVW Class 3-8) market achieved record growth levels as measured by registrations during this time period, at 524,500 units. “This historic volume represents 66 percent of the commer-cial vehicle market and an increase of 18.7 percent over the same timeframe in 2009,” Polk reported in a release. “Combined registrations of new and used commercial vehicles in the first nine months of 2010 were 794,200, representing a 15.5 percent increase over the same period last year.”

New Trailer Registrations Show Significant GrowthThere was more good news as new commercial trailer (24+ foot length) registrations during this period grew 42.2 percent over the same period last year, to 76,125 units. “The strength of the new trailer market is strongly influenced by dry and refriger-ated van trailers, which typically account for about 64 percent of total new trailer registrations,” according to Polk. New van trailer registrations grew 75.2 percent, representing about 72 percent of new trailer registrations. Polk noted that grain, flatbed, and hoppers rounded out the top four trailer types registered during the first nine months of 2010.

“While new trailer registrations remain below record levels set in 1995, this improvement is significant and indicates that the market for both commercial power units and trailers has turned around after three consecutive down years,” said Gary Meteer, director, sales and client services, at Polk. “There is a strong correlation between GVW 8 registrations and the registration of new commercial trailers through the first nine months of 2010 – as both have shown increases,” he added.

Used Market Hits Historic Levels, Creates Opportunities for AftermarketPolk feels the strong used commercial vehicles market is most evident when you look at GVW 8 vehicles. These represented about half of all used commercial transactions during the period measured, compared to about 42 percent in 2009. Used GVW 8 transactions were 37 percent higher during the first nine months in 2010 versus the same period last year.

Polk notes that this growth is at historic levels considering the growth in the registra-tions of used commercial vehicles. “The significant increase in used commercial vehicle registrations so far this year is indicative of an improving business climate as companies update their equipment with newer models,” said Meteer. “Large fleet owners and operators are upgrading to new vehicles, and therefore the smaller fleet companies and independent owner operators have great opportunities to find available clean used equipment.” ■

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Bobby Williams wrote quite an interesting piece this month about the UTA’s new Facebook Group. Since we’re actually kind of relics in the online world, having been working there since 1984, Brad and I were very happy to see the UTA and Bobby take this next step. We first became fascinated by cyberspace when Brad managed a monthly publication for McGraw-Hill about online databases. In the early summer of 1985 he brought home a tiny terminal with a screen capable of showing about four lines of text at a time. He unplugged the phone in the kitchen, set up the terminal and disappeared while in plain view into a world of endless information possibilities. He kept saying, “Deb, you’ve got to come see this. It’s going to change everything we do from shopping to research to banking!” I admired his enthusiasm, but, as it happens, we had just been blessed with the world’s most nearly perfect newborn baby girl, and I had very little interest in anything but her!

In time, we settled into our new role as parents and began exploring the online world together. We’ve been writing about it ever since, and I couldn’t be happier to have spent the last 25 years in cyber-space. Our daughter, as a college student, introduced us to Facebook at a time when only students could join. She took us on a tour of her page, her friends, her photo albums, and it looked like fun. When Facebook opened to people beyond college campuses, I joined right away. The kids were not too pleased, and told me straight out to forget about being Facebook friends with them. So, instead, I “friended” all my kids’ friends! These kids were happy to share the online world with me, and I learned a lot from watching them.

Why spend time on Facebook? Well, that’s easy. I have found old friends from school, college, and long ago jobs. I get to share photos with my Facebook friends. I keep up to date with family changes, and I gain access to some very interesting things my friends are doing online. For example, I have some friends who are very devoted to charitable works. Not only do they post news from the charities they support, they often post links to articles and videos that provide interesting insights into subjects I couldn’t possibly know about all on my own. Sure, there are the ones who post about the kids getting the stomach flu (just gross, in my opinion) or sign on to grumble about a traffic jam or unpleasant encounter with a store clerk. But mostly my friends share interesting news, views, and thoughts.

Facebook is only as interesting as you and your friends make it. With the new UTA group page, the Used Truck Association has created a virtual “conference.” Now it is simple to share information requests, achievements, challenges, or news and it can happen daily instead of annually. So, don’t hesitate to sign on and join the group. You can easily set your account settings to protect your privacy. Just go to the drop down menu under “Account” click on Privacy Settings and configure your account to give access only to people you accept as your friends. Then, get busy sharing ideas and

expertise! You have the power to make the UTA’s Facebook experience dynamic and valuable. I know I’m certainly glad I let Brad convince me we should live in cyberspace all those years ago. It has enriched our lives in many ways. Let’s be Facebook friends!

Deb and Brad Schepp editor@uta.org

Last notes

Quintessential Quote

Setting an example iS not

the main meanS of influencing otherS; it iS the only meanS.

ALBERT EINSTEIN

Moving on Down the Road: Checking in with Lee Wallace

After nearly 20 years selling used trucks, Lee

Wallace had achieved the position of Senior Vice President of Sales for Arrow Trucks. Just a few months ago, Lee decided to pursue a new venture, and today he is the President of Vehicle Inspection Pro’s, a company dedicated to inspect-ing used trucks. This nationally based company has been in operation now for about three months and currently employs about 250 inspectors, who Lee hired and trained. As an introductory offer, Lee and his company are offering UTA members truck inspections at an extremely low price for the first three months. This offer is good within 75 miles of any major city in the United States.

When we asked Lee what led to his new business venture he said, “I guess I saw a need in the industry to supply lower-cost inspections. Prospective customers can email or call Vehicle Inspection Pro’s and the company will complete the inspection typically within 72 hours. “Time is important,” explained Lee, “because truck deals need to go down quickly. If there’s a delay, the buyer can lose the equipment. We’re going for speed, accuracy, efficiency, and cost savings.”

So far, Lee is very pleased with what the new company has achieved. Lee believes that his years of experience from the dealer’s perspec-tive give him insight into what dealers want in an inspection. He is making plans to expand his service to the insurance industry. Vehicle Inspection Pro’s is part of a family of companies that serve the transportation industry. That family also includes Transit Pro’s, who provide inexpensive short hauls, wreck or breakdown recovery, and storage for the trucking industry. ■

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UTA Industry watch

January 2011 www.UTA.orgSee you in Scottsdale!

The 11th Annual UTA ConventionBooT CAmp 2010