1.877.gets.uta • www.uta.org Volume 15 • Issue 9 • September 2013

Used Truck Association Chartered May 16, 1988 UTA’s Mentoring Program Launches Published by the Used Truck Association 325 Country Club Drive, Suite A at Convention Stockbridge, GA 30281 Special Invitation extended to Younger UTA Table of Contents Members Board News and Views...... 2 Quips & Quotes...... 2 he Used Truck Association Dealer Group has a special invitation for UTA dealer members Face to Face with Roy Vaughan...... 4 Tbetween the ages of 25 to 35. You’re invited to attend the UTA Dealer Group Luncheon/ Meeting being held at this November’s convention at Orlando’s Walt Disney World Swan and New Members...... 6, 8 Dolphin Resort. The Truck Driver Shortage: The event will take place from 1 – 3 pm Can Women Help Fill the Gap?...... 12 on Wednesday, November 6 Medium Duty Corner...... 12 just a few hours before the “Meet & Greet” reception The Brooks Group Sales Tip of the Month...... 12 Attendees can look forward to the following: NADA Update: Class 8 Volume ■■ Mentoring from more experienced used truck professionals Rebounds in July ...... 14-16 ■■ A forum for getting questions answered about selling trucks, how to handle difficult customers, and so on Industry News Briefs...... 20-21, 23 ■■ Great networking opportunities Industry Events Calendar...... 22 ■■ The chance to tap into the expertise and knowledge of other younger members about things From Where We Sit...... 25 such as marketing to younger people, communications, and using Twitter and Internet sites

This UTA Dealer Group Meeting will be the first step in establishing the UTA Mentoring The UTA… Members Supporting Members! Program. The Dealer Group is launching this program to actively mentor, and reach out to younger members. We’re hoping that these members will then have more experienced members to contact about issues or concerns they have. If you’re a veteran UTA member we urge you to get younger members more involved in the Used Truck Association. These folks are the future of our Association! Everyone­—veteran and younger members alike—may contact one of our volunteers for more information:

Mike Mounsey Mike Thurston MHC Kenworth Nashville Larson Group [email protected] [email protected] SHARE YOUR news (615) 438-7080 (417) 827-9853 Jim Zimmerman Craig Kendall with the UTA Industry Watch. Kenworth of Pennsylvania The Peterbilt Store Send submissions, ideas and [email protected] [email protected] comments to: (717) 691-2212 (214) 789-7501 UTA Industry Watch Editors Brad and Deb Schepp and Jay Burgess We look forward to seeing you at the Convention, and working with you as the Dealer Group c/o Grace Management helps grow the UTA. 325 Country Club Drive, Suite A If you are not able to attend the 2013 UTA Convention, and would like to be involved in this Stockbridge, GA 30281 program—as either a younger or more experienced member­—please contact one the people listed Phone: 877-GETS-UTA (877-438-7882) above. Fax: 770-454-0029 Thank you! [email protected] Mike Thurston & Craig Kendall UTA Industry Watch 2013 Board Board News and Views of Directors Navistar MaxxForce 13 Powered International http://www.uta.org/directory ProStars and TranStar Tractors

governing board: avistar sold over 60,000 vehicles powered by MaxxForce 13 engines, primarily long haul Ntractors, in 2010, 2011, and early 2012. During this time, MxF 13 was the only engine available, President...... Rick Clark and International’s heavy duty diesel market share approached 20 percent (as the graph below shows.) This engine is also a major factor in the growth of 13L heavy duty diesels. Vice President...... Ken Kosic With MaxxForce 13 powered tractors showing up on the used truck market, information is Treasurer...... Tom Pfeiler needed in several areas: ■■ What drove the popularity and market acceptance of new MaxxForce 13 powered tractors? Secretary...... Sheri Aaberg ■■ Did first owners encounter field issues? If so, what has been done and what is the outcome? President Emeritus ■■ What should second owners know about MaxxForce 13 powered International ProStar and ...... Marty Crawford TranStar tractors? What drove the popularity and market acceptance of Committee Chairpersons: new MaxxForce 13 powered Affiliates & Benefits.... Bryan Boyd tractors? New truck buyers quickly adopted Convention...... Sheri Aaberg MaxxForce 13 due to four key & Rick Clark characteristics: Excellent fuel economy with no DEF, strong power UTA Jerome Nerman Family characteristics, high strength with Foundation Scholarship low weight, and extremely smooth ...... Tim Ronan, Jay Burgess and quiet operation. & Brock Frederick As they tested 2010 engines, major fleets quickly found they could get Elections...... George Barnett the same or better fuel economy with MaxxForce as with SCR engines, but Marketing...... Rick Clark MaxxForce needs no DEF. They also found MaxxForce’s high torque (up to 1,700 lbs. ft.) at low engine speeds provides excellent lugging power. MaxxForce was, and remains today, the lightest Medium Duty...... Amy Shahan weight 13L engine available. But it is extremely tough and durable because the block is made from an advanced iron formulation (compacted graphite iron). This is much stronger and stiffer Membership...... John Cosgrove, than the standard gray iron from which older engine blocks are made. Kenny Doonan & Bryan Boyd MaxxForce 13 weighs only 2,400 pounds, while other 13 liter engines are in the 2,600 pound range, Training...... Ken Kosic and 15 liter engines weigh about 3,000 pounds. Add another 400 pounds savings because of no & Brock Frederick SCR, and MaxxForce is about 1,000 pounds lighter than a 15 liter engine with the same power, and it’s likely to be more durable. MaxxForce remains the quietest heavy duty diesel available, Dealer Group...... Mike Thurston which is obvious at the first start up. & Bobby Williams Did 1st owners encounter field issues? If so, what has been done, and UTA.org Website...... Bobby Williams what is the outcome? The fuel economy, power, weight, and sound of 2010 MaxxForce 13 engines impressed both owners and drivers. Combined with the excellent ride, aerodynamics, and styling of the ProStar, or the maneuverability of the TranStar, MaxxForce 13 is playing a big part in establishing 13L engines as a major and growing segment of the long-haul truck market. However, within a year some issues with the EGR system began to crop up. These issues have been addressed and update improvements are already installed in Navistar Used Truck Center vehicles. The engine Air Control Valve determines turbocharger boost, and its electric power supply was Forget about the business originally hardwired to the valve housing. The connection could short circuit with engine outlook, be on the outlook vibration. This sometimes caused fractional second interruptions in turbo boost, resulting in for business. increased soot within the EGR system. Soot build-up could result in EGR valve plate shaft breakage. ~Paul J. Meyer

Board News and Views continued on page 8

2 September 2013 www.UTA.org

UTA Industry Watch

Roy Vaughan

oy Vaughan, Sales Manager for Allstate and working on trucks I found that I liked down the drain when the first customer, RPeterbilt Group in Youngstown, OH, people just as much, if not more than, trucks.” employee, or vender stops by the office. The began his career in retail truck sales in 1984 And, that’s when Roy made the switch and new list starts then and goes into the next when he started selling International and Ford put his people skills to good use in truck sales. day!” Despite the hectic pace Roy still enjoys heavy trucks. He can’t quite remember when Now, 29 years later, Roy still enjoys the “people” the excitement of the sale and the realization he joined UTA, but he’s been here long enough parts of his job. “As the sales manager, the most that a used truck is going to make a profit. for the group to include what he calls, “lifetime important part of my job is to assist the sales In looking toward the future, Roy has some friends and business associates.” Both Roy and staff in any way possible to complete a sale,” he concerns about the challenges the industry his wife Linda enjoy the devotion of the friends explained. “The aspect that I most enjoy about will face. “One of the biggest challenges will they’ve made through UTA. Roy tells us his wife my current position is the relationships with all be to find and maintain a customer base as has found friends she swaps recipes and the people who come by the office and/or the the size of the larger fleets is getting bigger grandchildren photos with! The couple feels dealership, and the challenge to make them and the owner/operators are getting smaller,” especially blessed to have had the comfort smile and enjoy life a bit more. I like to make a he explained. Roy then went on to discuss and support of their UTA friends during difference, plant the seed and watch it grow.” how younger people just starting out in the times when both suffered serious illnesses. Over the years, Roy has judged his success by the industry will need to keep up with their Roy told us of the comfort and prayers that reputation he has among his peers. He knows educations. “The market today holds many came from UTA members. “The difference they have a good opinion of the manner in which new secrets and changes as technology and between any organization and UTA,” he he has conducted his business over the course regulations change,” he said. “My advice explained, is “organizations care about the of the last 29 years, and a lot of respect for the would be to get well educated and keep number of members they have and the UTA companies he deals with. “Twice I’ve been educated on these changes to better inform cares about their members and their spouses.” nominated as Dealer of the Year, and I am very your potential clients. Get up early, stay late, Roy’s first job was the inspiration behind his proud to be included in such an elite group.” and do something that no other dealership is successful career in truck sales, but not in the In addition to his management responsibilities doing for the customer.” way you would normally think. He recalled to his sales staff, Roy is also responsible for When we asked Roy to tell us a bit about his his early years growing up on the farm in sourcing the used inventory for his dealership. life outside of work he enthusiastically replied. southeast Ohio. “Shoveling ear corn into the “I am responsible for the purchase of all used “This is the point in the interview that I’ve truck and unloading bags of fertilizer and inventory and the work involved to get them most been waiting for, to talk about my wife feed from the truck made me a believer,” he home, inspected, reconditioned, and Linda and my family.” It seems Linda has put said. “I wanted to drive the truck instead of marketed ready for sale,” Roy said. He also up with a lot from Roy over the last 41 years. do the manual labor.” That led Roy to oversees and assists with the ordering of new The list includes lots of traveling for Roy, become a truck driver, which led to yet Ford and Peterbilt inventory for the working on the farm, working away from home, another revelation. “After years of driving dealership. This unfinished projects in the shop that hang keeps Roy hopping around for “a while,” cleaning guns in the through most of kitchen and, “lots of other stuff I don’t want his days in the to mention,” Roy said. Together the two have office. “Each day raised two beautiful daughters. They have two starts with a list of devoted sons-in-law, three granddaughters, things you want to and a grandson. “Linda and I travel between accomplish, the Richmond, KY and Savannah, GA to visit the calls you didn’t grandkids and their parents,” Roy confessed. get to the day When they’re not on the road, they still maintain before, the emails the family farm where they raise corn, soybeans, that have been wheat, and hay. They also maintain a small left unopened,” Black Angus beef herd. “I do enjoy shooting, he said. “All of doing some vehicle renovation, and wood those items go projects,” Roy added. n

4 September 2013 www.UTA.org

UTA Industry Watch 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 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 enjoy about the work you do, why you joined the UTA, New and what gets your gears going as a person. So please return your questionnaire so your fellow UTA members can get to know you! Members If you’d like a copy of the new member brochure handed out at the convention, please contact David Grace at [email protected] or 770-389-6528 ext. 404.

Teri Jones, Pricing Manager, Used Greg Lingner, Sales Ron O’Neill, President Truck Organization 7E Sales, LLC R & M Sales & Equipment, Inc. Navistar 425 Industrial Blvd. 514 S. Kansas Ave 2701 Navistar Drive McDonough, GA 30253 Olathe, KS 66061 Lisle, IL 60532 www.7esales.com www.rmsales-equip.com (331) 332-6310 (w) (770) 914-5151 (w) (913) 829-1606 (w) (331) 481-3478 (c) (404) 405-1750 (c) (913) 829-8143 (c) [email protected] [email protected] [email protected] Greg started in the truck industry in 1992, Ron got his start in our business back in working for Rollins Truck Rental and Leasing 1971, working in the parts warehouse of Rick Klemme, Used Truck Manager as a Rental Manager. Like many new UTA Borbein, Young & Company in Wichita, KS. Allstate Peterbilt-Eau Claire members he’s hoping to expand his network He’s hoping his UTA membership will bring 6500 Texaco Drive of contacts through his membership. him in contact with members who are truck Eau Claire, WI 54703 The “freedom” is what Greg likes most exporters. www.allstatepeterbilt.com about his job. “I can do business anywhere I (715) 874-4747 (w) While Ron tells us he’s spent most of his go,” he said. “I can always find a lead.” (612) 817-0674 (c) career in parts, working for factories as a [email protected] Greg is a salesperson by nature, and he’d representative, he’s recently achieved success probably still be in sales if he wasn’t in the in another part of the business. He’s developed We caught up with Rick one unusually crisp truck business. When we asked him about a system to convert over-the-road trucks to August morning. He said he’s been in the truck his other interests he said he was probably right hand drive for the export market. This business his whole working life, ever since like most UTA members. He enjoys golf and has “certainly has taken us away from the graduating from high school some 30 years fishing as well as kicking back with a beer. ‘me too’ part of the industry,” Ron says. ago. His dad owned a dealership, and taught him most everything he knows, Rick said. Gunsmithing is another field in which Ron can envision himself. He enjoys both As a new UTA member, Rick is hoping to Rob Nusca, Used Truck Manager collecting and shooting guns. A special expand his network, and really broaden his TEAM Truck Centres Limited interest of his is target shooting, a sport he horizons in the truck industry. 599 Wabanaki Drive finds both challenging and relaxing. When we asked Rick if there was anything Kitchener, Ontario N2C2G3 (CANADA) Looking ahead to November, Ron says he’s else he could envision himself doing www.teamtruck.com looking forward to meeting some of the besides working in the truck industry, he (519) 279-1493 (w) members face-to-face at the upcoming didn’t hesitate for a moment. “Anything (289) 259-6054 (c) convention. Lots of people feel the same outdoors,” he said. Rick is very interested [email protected] way as you Ron! in construction, especially new home construction. There’s one thing though that Rick’s just as passionate about as the truck business: NASCAR!

The truck shown was R & M Sales & Equipment Inc.’s 100th RHD conversion, which was finished in July 2012. “Miss Lexie” was 4 months old at that time, and has since been elected CEO, Ron said.

New Members continued on page 8 6 September 2013 www.UTA.org

UTA Industry Watch

Board News and Views continued from page 2 New Members continued from page 4

Debris might then flow into the EGR cooler causing coolant leaks. The terminal is now located Doug Rich, Manager, Used Truck Center further down the power supply wire so the wire absorbs engine vibration, leaving a secure terminal connection. Also, the EGR valve plate shaft diameter was increased 12 percent, and the Paccar Financial valve plate geometry was revised for improved operation and resistance to soot build-up. P.O. Box 1518 Bellevue, WA 98009 What should 2nd owners know about MaxxForce 13 powered International (425) 468-7100 (w) ProStar and TranStar tractors? [email protected] EGR system updates are installed in Navistar Used Truck Center MaxxForce 13s. Reliability, Doug is a newcomer fuel economy, and power are once again at the top-tier performance level for which MaxxForce to the truck 13 is known. n business, having started out in 2011 as a Transportation Funding Manager for CIT – Equipment Financing, Inc. He’s Brock Frederick joined UTA for four [email protected] reasons: knowledge, networking, friendships, and support. Doug really enjoys working in the truck industry. “It is often said we need to do what we love and I love working in the trucking industry,” he said. “There are so many great people and I am lucky enough to work for an incredible company in PACCAR Financial.” Before moving to trucking, Doug used to work in a corporate finance position, which he found fun. He enjoys spending time with his wife and three kids. The outdoors call to him as well. “I enjoy the outdoors­—running, camping, hiking, mountain biking, hunting, fishing, horseback riding, snow and water sports and team sports,” Doug said.

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UTA Industry Watch The Truck Driver Shortage: Can Women Help Fill the Gap?

n the news section of this month’s Inewsletter we reported that career website CareerBuilder recently released a study of the jobs managers find most difficult to full. Truck driver ranked 4th. As an industry member, you may not have found this news surprising. You know there’s an acute shortage of truck drivers. But we wondered what Ellen Voie, President/CEO of the trade Here’s what Ellen had to say: group Women in Trucking thought of this news. After all, the group was created to “I can understand why the position of truck driver ranks fourth on the HR Manager’s list of encourage “the employment of women in the most difficult jobs to fill. In addition to all of the industry standards to consider (driving trucking industry, promote their accom- record, felony activity, BMI, sleep apnea, years of experience, and turnover rate) it’s getting plishments and minimize obstacles faced by harder and harder to find qualified candidates for the position. Add to that an image stereotype women working in the trucking industry.” (white male in his forties or fifties) and the number of available drivers is diminishing. We asked Ellen to respond to CareerBuilders’ “We need to appeal to other segments of the population by attracting them to the industry, but finding, and discuss some of the hurdles the more importantly, by accommodating them and their work life needs. For women, we have to trucking industry may present to women. It start showing more females in our recruiting ads, featuring more women in mainstream media, would seem that if some of these hurdles and getting the word out to the general population that there are jobs available and that women could be addressed, the driver shortage may are not only needed and capable of doing the job, but they are wanted! Then, we need to change become a thing of the past. the work environment to accommodate the driver outside of the truck as well. “The Women in Trucking Association is doing this by featuring a member of the month, honoring female drivers at the Salute to Women Behind the Wheel, awarding an “Influential Woman in Trucking” each year, and honoring a carrier for the best recruiting ad (to reflect diversity). It’s all about showing the non-trucking public that this industry is important and the drivers are valued. As more and more women find a career path in trucking we will change the image to a more positive one. Sure, it takes a culture change, but we’ve started the process and will continue making the job of a professional driver one that instills respect and admiration for the skills these men and women have behind the wheel.”

Now the obvious next question is: is there anything the UTA can do to make the job of truck driver more appealing to women? n

“Tips You Can Count On”

All inventory units, whether light, medium, or heavy duty, should be driven a few miles at True professional highway speeds every 10 days to two weeks. This will keep the seals lubed, the fuel system sales people use the working properly, and prevent lot rot. It will word “recommend” also give you an opportunity to look for any developing problems that might need to be when presenting addressed before delivery to a customer. a solution to a prospect/client. Signed, ~ The Medium Duty Counselor

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VISIT, BROWSE AND BUY TODAY! USEDTRUckINVENTORY.cOm UTA Industry Watch Class 8 Volume Rebounds in July. Mixed Results for Other Classes

Chris Visser, Senior Analyst and Product Manager, Commercial Trucks Summary June’s major drop in retail sales volume turned out to be a one-month We attribute the recent decrease in average mileage (outside of June) to pause, as predicted. Pricing remains little changed in most retail an increasing supply of newer trucks in the marketplace. As the segments, with Class 8 sleepers off the record high by a mere $64. “Monthly Retail Sales Volume by Model Year” graph illustrates, the Wholesale sleeper pricing was up mildly from last month, with 2009 and 2010 model years have really come on-line since mid-spring, average mileage trending back down after the historically high levels taking over from the waning 2007 model year. With these newer model seen earlier this year. The construction market continues to show years entering the meaty part of their trade-in curve, we expect the mixed results, with certain models selling in outsized numbers trend of lower average mileage combined with higher average pricing relative to the competition. Medium duty cabovers and conventionals to continue. Market appetite for trucks with under 600,000 miles have not yet recovered. should be more than enough to absorb increased supply of these trucks.

Sleeper Tractors – Retail Sleeper Tractors – Wholesale Retail pricing in this segment set a new record high every month from As usual, the wholesale channel is performing differently from the March through June. That streak came to an end in July, but just by a retail channel. Volume has fluctuated over the past few months, but hair. Retail sales data submitted by dealers and OEM’s to NADA shows remains higher than late 2012. After a dip in June, average pricing that the average price paid for a sleeper tractor in July was $52,609, off came back mildly with a $844 (or 3.3 percent) increase. Mileage was June’s record by a miniscule $64 (or 0.01 percent). Compared to July, comparable to last month, at 687,987 – a 3288 (or 0.5 percent) increase. 2012, this month’s result was $2542 (or 4.8 percent) higher. See the Age was one month older, at 86 months. “Average Retail Price and Mileage” graph for detail. Pricing in the first half of 2013 has been lower than the same period in 2012, as you can see from the “Average Wholesale Price and Mileage” Average Retail Price and Mileage -­‐ All Sleeper Tractors Under 1M Miles graph. However, what is also evident is that this lower average pricing $55,000 580000 is due mainly to a higher average mileage mix of trucks sold in 2013. 560000 There is still a strong correlation between price and mileage, which $50,000 540000 means that pricing for trucks at a given mileage level has not changed 520000 $45,000 appreciably in this period. As the “Average Wholesale Selling Price by 500000 Mileage Range” graph illustrates, only the 600-699K cohort has 480000 $40,000 depreciated notably in recent months. This behavior is most likely due 460000 to an increased number of trucks in this range introduced to the wholesale $35,000 440000 market during this period. We expect this downward trend to relax or Price 420000 Source: ATD/NADA Mileage even turn mildly positive as supply evens out in upcoming months. $30,000 400000 Average Wholesale Price and Mileage: All Sleeper Tractors Under 1M Miles Jul Jul Jul Jul Sep Sep Sep Sep Sep Sep Nov Nov Nov Nov Nov Nov Mar Mar Mar Mar May May May May May May May May $45,000 750000 Jan-­‐11 Jan-­‐10 Jan-­‐13 Jan-­‐12 $40,000 700000 $35,000 Mileage is exhibiting interesting behavior. June’s record pricing came 650000 despite the highest average mileage we’ve recorded since our current $30,000 data collection system began six years ago. Prior to June, average mileage $25,000 600000 had been trending downward, with three consecutive months below $20,000 550000 540,000. June looks to have been an anomaly, because July returned $15,000 500000 the average back to the trend, coming in at 536,623 – 29,869 (or 5.3 $10,000 2 per. Mov. Avg.(Price) 450000 percent) lower than June, and 20,741 (or 3.7 percent) lower than last July. $5,000 Source: ATD/NADA 2 per. Mov. Avg.(Mileage) $0 400000 Jul Jul Jul Jul Sep Sep Sep Sep Sep Sep Nov Nov Nov Nov Nov Nov Mar Mar Mar Mar May May May May May May Monthly Retail Sales Volume by Model Year: May Jan-­‐10 Jan-­‐11 Jan-­‐12 Jan-­‐13 Sleeper Tractors Under 1M Miles 500 Source: ATD/NADA 2 per. Mov. Avg.(2006) Average Wholesale Selling Price by Mileage Range (Sleeper Tractors) 450 2 per. Mov. Avg.(2007) $50,000 400 2 per. Mov. Avg.(2008) $45,000 2 per. Mov. Avg.(2009) 350 $40,000 2 per. Mov. Avg.(2010) 300 $35,000 2 per. Mov. Avg.(2011) 250 $30,000 200 $25,000 150 $20,000 $15,000 100 2 per. Mov. Avg.(500-­‐599K) $10,000 50 2 per. Mov. Avg.(600-­‐699K) $5,000 2 per. Mov. Avg.(700-­‐799K) 0 2 per. Mov. Avg.(800-­‐899K) Source: ATD/NADA and Auc1onNet $0 Jul Jul Jul 1 2 3 Sep Sep Sep Mar Mar Mar Nov Nov Nov May May May May Jun Jul Jun Jul Jan-­‐1 Jan-­‐1 Jan-­‐1 Feb Mar Apr May Aug Sep Oct Nov Dec Feb Mar Apr May Jan-­‐12 Jan-­‐13 14 September 2013 www.UTA.org UTA Industry Watch Class 8 Volume Rebounds in July. Mixed Results for Other Classes

Chris Visser, Senior Analyst and Product Manager, Commercial Trucks Average Retail + Wholesale Price of Construc7on Trucks by Model Year Retail Selling Price of 2008 Models Adjusted for Mileage Adjusted for Mileage $120,000 $80,000

$100,000 $70,000

$60,000 $80,000 $50,000 $60,000 $40,000

$40,000 3 per. Mov. Avg.(386) 3 per. Mov. Avg.(2006) $30,000 3 per. Mov. Avg.(VNL 730/780) 3 per. Mov. Avg.(2007) $20,000 $20,000 3 per. Mov. Avg.(2008) 3 per. Mov. Avg.(T660/600) Sources: ATD/NADA and Auc2onNet 3 per. Mov. Avg.(2009) $10,000 3 per. Mov. Avg.(Cascadia) $0 Source: ATD/NADA

Jul Jul $0 Feb Mar Apr May Jun Aug Sep Oct Nov Dec Feb Mar Apr May Jun Jan-­‐12 Jan-­‐13 Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May Jan-­‐11 Jan-­‐12 Jan-­‐13 Class 8 Construction Trucks Retail Selling Price of 2008 Models The “Average Retail + Wholesale Price of Construction Trucks” graph Adjusted for Mileage shows average retail and wholesale selling price by model year for $70,000 construction models. Prices have been adjusted for mileage. Again, since we’re tracing directional movement rather than absolute $60,000

numbers, we’ve combined retail and wholesale sales data. $50,000

The data shows little change vs. last month. Pricing for the 2007, 2008, $40,000 and 2009 model years remained locked in the low-$70K range. Average 3 per. Mov. Avg.(387) mileage for 2013 to date remains similar for the 2008 and 2009 model $30,000 3 per. Mov. Avg.(CX) years, although the gap widened moderately in July. However, this gap $20,000 – currently at 16,297 - is still small enough to result in similar pricing. 3 per. Mov. Avg.(Century) $10,000 As for 2007’s, average mileage for that model year is only 54,495 higher Source: ATD/NADA 3 per. Mov. Avg.(VNL 630/670) than for 2008’s. That manageable difference, combined with the lack of $0

DPF for 2007’s, makes that year’s competitive pricing logical. Newer Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May model years (2010 and newer) are performing well, but they are Jan-­‐11 Jan-­‐12 Jan-­‐13 currently present in the market in such low numbers that including them in the graph is of limited use. Retail Selling Price of 2008 Models Adjusted for Mileage Mack leads this segment in volume, with the CV713 the highest seller $80,000 from the 2006 model year, the CT713 the highest seller from the 2007 model year, and the GU713 the highest from 2008 and 2009. Peterbilt $70,000 also makes a strong showing, with the 2006 357 and 2008 367 performing $60,000 second-highest behind the Macks. The International 7600 gets an honorable mention for the 2006 and 2007 model years. With other $50,000 models turning in notably lower volume, these models are largely $40,000 dictating average pricing. $30,000 Model vs. Model Competitive Comparison $20,000 3 per. Mov. Avg.(Columbia) To switch things up a bit, this month we’ll look specifically at the 2008 3 per. Mov. Avg.(ProStar) $10,000 model year instead of an average of 3-6 year-old trucks. As you can see 3 per. Mov. Avg.(T2000) Source: ATD/NADA from the “Retail Selling Price of 2008 Models” graphs, the 2008 model $0 year on average shows noticeable but not substantial depreciation. An Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May extremely basic linear trendline tells us that 2008’s decreased $581 per Jan-­‐11 Jan-­‐12 Jan-­‐13 month from January, 2011 to July, 2013 on average. This figure compares favorably with the typical used truck payment, which should be a in in the $40,000 range. It is possible that the industry is increasingly positive factor for businesses involved in lending. comfortable with the ProStar. Certain trucks of course returned results substantially outside that Overall, performance of this model year is evidence that our averages average. Our simple trendline tells us that the model with the lowest are impacted by the increasing supply of 2009-2011 model years in the depreciation during this period was the Volvo VNL730/780, at $355/ marketplace. We will continue to share selected results of our ongoing month, while the truck with the greatest depreciation during the period monthly analysis with the industry. was the International ProStar, at $1137/month. It must be pointed out that the ProStar’s depreciation was heaviest from January, 2011 through March, 2013, after which that model recovered a bit to settle NADA continued on page 16 www.UTA.org September 2013 15 UTA Industry Watch NADA continued from page 15

Medium Duty Cabovers and Conventionals Sales Volume Looking first at conventionals, Class 4’s outperformed Class 6’s in July, As mentioned, the major drop in June retail sales per dealership was a with 4’s up after a June dip and 6’s dropping for the second month in a one-month cyclical event. Volume rebounded in July to match May. As row. See “Average Wholesale Selling Price – 4-6 Year Old Conventionals” we’ve mentioned in our Commercial Vehicle Blog, the reasons behind graph for detail. this annual late spring/early summer “pause” are likely that truck operators shift their focus from acquiring equipment to digesting first Average Wholesale Selling Price: 4-­‐6 Year-­‐Old Conven:onals by GVW Class quarter earnings and ramping up for the busy shipping months. 2013 Adjusted for Mileage is somewhat unique in that the dip happened one month later than $25,000 2010-2012, and to a moderately greater degree. The industry should expect this behavior to recur every year. See the “Average Number of $20,000 Used Trucks Sold per Rooftop” graph for detail.

$15,000 Average Number of Used Trucks Sold per Roo8op (NADA Repor;ng Dealers) 8 $10,000 7 $5,000 2 per. Mov. Avg.(Class 4) 6 Sources: ATD/NADA and Auc2onNet 2 per. Mov. Avg.(Class 6) $0 5 Jul Jul Feb Mar Apr May Jun Aug Sep Oct Nov Dec Feb Mar Apr May June Jan-­‐12 Jan-­‐13 4

3 Retail Wholesale Specifically, compared to June, Class 4 was up $1472 (or 10.1 percent), 2 and Class 6 was down $1204 (or 7.5 percent). Year-over-year, Class 4 was up $128 (or 0.9 percent), and Class 6 was up $503 (or 3.4 percent). 1 Source: ATD/NADA In terms of mileage, Class 4 was down 16,575 (or 14.6 percent) 0 Mar May Nov Mar May Nov Mar May Nov Mar May Nov Mar May Jul Jul Jul Jul Jul Jul Jan-­‐09 Jan-­‐10 Jan-­‐11 Jan-­‐12 Jan-­‐13 month-over-month, and up 1463 (or 1.5 percent) year-over-year. Class Sep Sep Sep Sep 6 was up 19,956 (or 11.4 percent) month-over-month, and up 2917 (or 1.7 percent) year-over-year. Class 4’s performance appears due mainly to a lower volume of Conclusion lower-mileage trucks cycling through the market. Similarly, Class 6’s performance is likely due to a slightly larger pool of higher-mileage The retail sleeper market continues to become stratified, with newer, trucks cycling through. Both segments are still buyer’s markets, so lower-mileage iron bringing extremely high money and trucks with swings in volume and mileage of available trucks should continue to 600K and up showing more depreciation. As for the construction substantially impact pricing. market, current residential, industrial, and infrastructure activity has not been enough to move the bar appreciably, at least in the used As for cabovers, average mileage was down mildly, as was volume. market (with the exception of extremely new equipment). Similarly, However, pricing was also down, by $773 (or 5.9 percent) vs. June and strength in medium duty segments on the new side has not yet $177 (or 1.4 percent) vs. last July. Lower pricing on lower mileage and translated into increased used truck pricing. volume points to an oversaturated market. See “Average Wholesale Selling Price – 4-6 Year Old Class 3-4 Cabovers” graph for details. Going forward, the steadily improving economy should support gradual improvement in the construction market. Highway tractors with under 600K will continue to bring extremely strong money, Average Wholesale Selling Price: 4-­‐6 Year-­‐Old Class 3-­‐4 Cabovers despite a steadily increasing supply of 2009 and newer trucks. n Adjusted for Mileage $20,000 $18,000 $16,000 $14,000 Reprinted with permission from the ATD/ $12,000 NADA Official Commercial Truck Guide® $10,000 $8,000 www.nada.com/b2b $6,000 $4,000 $2,000 Sources: ATD/NADA and Auc2onNet $0

Jul Jul Feb Mar Apr May Jun Aug Sep Oct Nov Dec Feb Mar Apr May Jun Jan-­‐12 Jan-­‐13

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July’s Class 8 Orders Down Penske Used Trucks Offer Roadside July’s Class 8 orders will come in at their lowest level since September 2012, according Assistance & to FTR. The market research company pegged Warranty Program preliminary data for July’s Class 8 truck net Penske Used Trucks now offers complimentary warranties and orders at 17,307. This number is also down 7 percent from June’s emergency roadside assistance services when customers buy “select” number. Still, the tally was 38 percent better than July 2012’s figure. used trucks and tractors. FTR now projects that for all of 2013, Class 8 orders will come in at 251,700 units, as compared to 2012’s 224,600 units. Those buying Penske trucks and tractors will receive both a complimentary one-year membership to The drop in numbers is nothing new for the summer months, emergency breakdown services from although July did come in toward the lower end of FTR’s expectations. RoadsideMASTERS.com, and a limited-time The company said it will watch August’s order numbers closely. “Any warranty (Class 3 to Class 7 trucks, 6 further softening in the numbers would suggest that FTR would likely months/25,000 miles; Class 8 tractors, 3 need to lower the Q4 production forecast. However, the recent uptick months/25,000 miles) from National Truck in manufacturing keeps us optimistic that order activity will remain Protection. at healthy levels,” said Eric Starks, FTR’s president. Restrictions apply, so be sure to call 888-803-5675 for more details, or For further details contact FTR Associates at [email protected], go to www.PenskeUsedTrucks.com. n or 1-888-988-1699 ext. 1. n

Navistar And Cummins Partnership Reaches 10,000 Order Milestone Navistar, Inc. said it’s received more than 10,000 orders for International® Trucks that include the Cummins ISX15 engine and Cummins SCR aftertreatment system. It took seven months to reach this tally. Navistar also said the future is looking even better. “The International ProStar with ISX has a strong reputation within the industry and we are seeing increased interest for this configuration across our key segments,” says Bill Kozek, a Navistar executive. Besides International’s ProStar model, the engine was also Freightliner’s 2014 Cascadia® Evolution Tops “re-launched” in the International® PayStar® 5900 Set-Back Axle and the International® 9900i back in April. 15,000 Orders Navistar said its orders have come from such top fleets as Knight, Freightliner said it’s received more than 15,000 orders for its 2014 Penske, Ryder, and Swift. In July, Navistar announced its on-highway Cascadia® Evolution. The model’s been in production since March of Class 8 order share was at a three-year high. this year. “The Cascadia Evolution is pacing the industry in terms of order intake for long-haul applications that demand the highest level “Increasing acceptance from our large fleet customers who conduct of fuel efficiency,” the company said in a release. rigorous analysis prior to purchase is evidence of the value our vehicles deliver,” added Kozek. The truck is powered by the Detroit™ DD15® engine. It features aerodynamic and efficiency improvements “that deliver up to an Navistar started its move to SCR-based technology with Cummins’ additional 7 percent improvement in fuel economy over an EPA ISX15 engine in late 2012. Navistar said that most of the configuration 2010-compliant Cascadia, and up to 5 percent improvement in fuel options for SCR-powered International heavy-duty vehicle models efficiency over the 2013 Cascadia with first-generation aerodynamic n were “nearing completion.” enhancements,” according to Freightliner. The company added that achieving the 15,000 milestone highlights the demand from its customers for “today’s vehicle benchmark in terms of fuel efficiency.” For more information go to www.FreightlinerTrucks.com. n

20 September 2013 www.UTA.org UTA Industry Watch

Mack Trucks Names Top Bulldog in Walk the Rush to buy Bulldog Competition Dealerships in Forth Worth, TX Salesperson named Top Dog Kansas, Missouri and Virginia Tom Tenseth of Bruckner Truck Sales of Fort Worth, Texas was judged the best at delivering Mack’s “value proposition to customers,” during Despite Rough Quarter, Rush is still Expanding the company’s annual Walk the Dog competition. As such, he earned It was a case of good news/bad news the right to be top bulldog as the winner of the 2013 competition. when Rush announced its second The competition pits sales professionals from across the U.S. against quarter results. each other to determine who most effectively presents what Mack First, the bad news. Net income fell to trucks offer customers. Competitors must do a truck “walkaround,”--a $5.6 million compared with net hands-on presentation of the income of $17.4 million for the same MACK® Granite® model to a quarter in 2012. (The drop was mostly due to a pre-tax charge of $10.8 customer. Judges evaluate million in selling, general, and administrative expenses related to its competitors on how well they “Retirement and Transition Agreement” with W. Marvin Rush.) Rush also communicate product said a “lackluster new truck sales environment and increased overhead features and benefits, based related to substantial investments made to support the continued on customer requirements. growth of our organization contributed to the tough quarter.” They also evaluate them on how well they present service The good news came when Rush elaborated on its immediate growth and support solutions offered plans. The company announced it completed acquisitions in North under Mack’s Pedigree Carolina and Ohio, and entered into agreements with two dealer Uptime Protection™ program. groups to acquire locations in Kansas, Missouri, and Virginia. Tenseth placed third at last Rush said it reached agreements with Midwest Truck Sales to acquire year’s competition. He started locations in St. Peters and St. Louis, Missouri; and Olathe, Kansas. at Bruckner’s as a truck Rush also reached an agreement with TransAuthority to acquire Tom Tenseth of Bruckner Truck Sales technician in 1995, and began International dealerships in Richmond and Suffolk, Virginia; and of Fort Worth, Texas takes top honors selling Mack trucks in 1999. parts and service locations in Fredericksburg and Chester, Virginia. at the Mack Trucks 2013 Walk the Twelve sales professionals The agreements were a part of Rush’s overall plan to expand service Bulldog competition competed in the competition, locations along the I-95 corridor and into the midwest United States. all of whom were top finishers “Importantly, these acquisitions also continue our growth plan with at regional competitions. One hundred and eight sales professionals Navistar, expanding the Company’s Navistar Division to 32 Rush Truck participated overall. n Centers and two collision centers in eight states,” the company noted. n

CareerBuilder Releases List of Hardest-to-Fill Positions Truck Driver Ranks 4th As an industry professional you know there’s a shortage of truck drivers. But did you know just how bad that shortage was? Recently, Internet job site CareerBuilder ranked careers by how difficult a time employers had in filling openings. Truck Driver ranked 4th, just below Sales Representative, Machine Operator/Assembler/Production Worker, and Nurse. Overall, a third of hiring managers said they had positions open 12 weeks or more, despite the upsurge in available workers since the Great Recession. “Employers are struggling to find new employees for gap that exists for high-growth, specialized occupations will become technology-related occupations, sales, healthcare, and a variety of even more pronounced in the years to come, prompting the need to other areas,” said Brent Rasmussen, President of CareerBuilder North place a greater emphasis on reskilling workers through formal America. “Two in five employers (41 percent) reported that they education and on-the-job training,” Rasmussen said. n continuously recruit throughout the year, so that they have candidates in their pipeline in case a position opens up down the road. The skills Industry News Briefs continued on page 23 www.UTA.org September 2013 21 UTA Industry Watch Industry Events Calendar 2013

September novemBER 6 – 9 • 14th Annual UTA Convention 16 – 17 • UTA Sponsored Seminar Training: Orlando, FL Selling for Success at The Walt Disney World Swan and Dolphin Resort Los Angeles, CA www.UTA.org www.UTA.org

18 - 19 • 2013 Great Lakes Truck Expo Cleveland, OH Cleveland Medical Mart & Convention Center (CMMCC) http://greatlakestruckexpo.com/

27 – 28 • Guilty By Association Truck Show Sponsored by Chrome Shop Mafia Joplin, MO 4 State Trucks I-44, Exit 4 http://chromeshopmafia.com/ events/gbats/

OCTOBER 1 - 2 • Green Fleet Conference & Expo Phoenix, AZ Phoenix Convention Center www.greenfleetconference.com

9 - 11 • National Trailer Dealers Association Naples, FL DECemBER The Waldorf Astoria www.ntda.org/ntda/Convention.aspx 4-6 • 2013 ATA Executive Summit Irving, TX 14 – 15 • UTA Sponsored Seminar Training: Four Seasons Resort & Club Dallas at Las Colinas Selling for Success http://www.trucking.org/Events.aspx Dallas, TX www.UTA.org

19 – 20 • Golden State Trucking Expo 2014 MARCH Sponsored by CAP Companies, LLC 5-7 • The Work Truck Show 2014 Pomona, CA Indianapolis, IN Fairplex Indiana Convention Center www.goldenstatetruckingexpo.com http://www.ntea.com/worktruckshow/

19 – 22 • 2013 ATA Management Conference & Exhibition Orlando, FL Orlando World Center www.trucking.org

22 September 2013 www.UTA.org UTA Industry Watch

Industry News Briefs continued from page 21

NADA, ATD to Host Service Dealer Academy Event NADA instructor Robert Atwood promises to trans- form your service department into an industry leader, as part of NADA/ATD’s Special Ops Service Seminar. The seminar is scheduled to run from September 23-27 in McLean, VA. The weeklong seminar will cover: Current Situation Assessment ■■ Departmental Analysis ■■ Profit-centering and Expense Analysis ■■ Service Analysis Using ELR Production Begins on Navistar’s TranStar Personnel Techniques with 13-Liter SCR Diesel Engine ■■ Proficiency Assessment and Staffing Requirements ■■ Customer Handling and Write-up Procedures Navistar, Inc. has officially launched its International® TranStar® ■■ Repair Order and Warranty Management regional haul tractor with MaxxForce® 13 engine, with Selective Production Techniques Catalytic Reduction (SCR) emissions technology. The TranStar is ■■ Conventional Navistar’s fifth heavy-duty International® truck model that’s moved to ■■ Work Groups SCR technology since December 2012. ■■ Teams “We continue to rapidly increase our 15-liter and 13-liter product Legal Requirements in Service coverage and we remain on track to complete the SCR transition of ■■ Lemon Law our heavy-duty truck offerings,” said Navistar’s Bill Kozek. “The ■■ Mechanic’s/Garageperson’s Lien trucks we are building today are the highest quality trucks Navistar ■■ Bailment, OFAC/GLB has ever built and they offer improved fuel economy with the same off-the-line responsiveness.” Shop Scheduling and Loading ■■ Appointment and Scheduling Procedures Navistar’s lineup of SCR-based heavy-duty trucks includes the ■■ Hours-available Calculations International ProStar®, International PayStar® 5900 Set-Back Axle and ■■ Comebacks International 9900i with the Cummins ISX15 engine. In addition, the International ProStar, International WorkStar® and the International Idea Session and SWOT Analysis TranStar are available with the MaxxForce 13 engine with SCR. ■■ Bring an idea pertaining to your department that will contribute to greater profits/savings International TranStar® Features ■■ In-depth homework assignment using skills acquired throughout The TranStar has a setback axle and a 50-degree wheel cut “to give the week drivers one of the tightest turning radiuses in its class,” Navistar said. “With the shortest bumper-to-back-of-cab (BBC) length in the Managing by Objective industry of 107 inches, and an available electronic stability control ■■ Leadership Techniques solution, the TranStar is a highly maneuverable, regional transport ■■ Practical Job Aids and Tools solution,” the company added. ■■ Service Manager’s Quick-check Other features: For registration details, call (703) 821-7216 or email academy@nada. org. You can also visit the NADA Academy’s website at http://www. ■■ Wheelbase options from 140-295” nada.org/nadauniversity/academy/. n ■■ Available 4x2 and 6x4 axle configurations ■■ Available MaxxForce 13 SCR engine with 370 hp and 1,350 lb.-ft torque up to 410 hp and 1,900 lb.-ft torque ■■ Available Cummins Westport ISL G natural gas engine with 320 hp and 1,000 lb.-ft. torque ■■ 72” of cab headroom and 82” of interior width for enhanced driver comfort ■■ Extended cab option with available bunk for storage and rest ■■ Wrap-around windshield, sloping hood and available fender mirrors for excellent visibility For details go to http://www.navistar.com/navistar/news. n

www.UTA.org September 2013 23 UTA Industry Watch

24 September 2013 NeXt stop ORLANDO...Imagine the Possibilitieswww.UTA.org UTA Industry Watch From Where We Sit

Summer is winding down and the kids have returned to the schools behind our house. It won’t be long before our little town will be deep into the harvest, and the days will move fast again. But for now, the farm markets are bursting with fresh produce, the peach crop is mostly in, and it’s time to enjoy a bit of the beautiful late-summer weather that makes the end of August so special. Just this past weekend, we enjoyed a fantastic antique car show held just around the corner at the firefighter’s carnival grounds. For several days leading up to the show we’d seen pickup trucks go past the house towing trailers that looked to be holding other vehicles. As Saturday approached we started to see a few older cars coming down Main Street like they’d done in their prime. It probably shouldn’t have surprised us, but it did, that by the time we arrived at the show on Saturday afternoon, we found hundreds of old vehicles, mostly in beautifully restored condition lined up proudly and neatly across the carnival fairgrounds. For every color you could remember or imagine cars to have been in the last 100 years, there was a color to match. The day was so beautiful that the green of the fairgrounds and the crystal blue of the sky made the perfect backdrop to the rainbow of human creation displayed between them. It was a little hard to imagine those cars having ever looked better! We set about trying to be sure we’d see everything from the 1950 tractor we saw on a flatbed go by the house the day before, to the street hotrods of the 50s, the muscle cars of the 70s, the coupes of the 30s, oh, you know what we felt! We wanted to be sure to see every bit of it. Before too long, we began to notice our fellow car-show guests. We came in all ages, and all backgrounds, but despite our diversity, we all shared a pretty common thing. We were captivated by many of the cars in the show, but the ones that truly held our imaginations came from certain parts of our lives. It was almost universal! The visitors who were much older spent most of their time enjoying the cars they’d had as young adults. They seemed to be caught in the memories of their first taste of freedom, and what a vital part of that freedom came in the shape of that car. It was fun to watch older is modeled from a drive-in restaurant near his home that has been in couples remembering events with friends and family long ago. For businesses since the 50s. They still serve the same food, so his display those visitors who were young enough to have always remembered the is authentic! As Brad listened to him describe the years of devotion family car, there were two categories of vehicles that grabbed at their and dedication he’s put into restoring this beautiful old car, it was so hearts. Of course, they were passionate about the Mustangs, Camaros, clear that in all that effort, he’s also preserving a part of his life that and Pontiac GTs, but their hearts also settled close to the big sedans of was happy. He’s sharing with us his glimpse of a world when a the 50s that were their first homes away from home. drive-in meal in a great looking car was a reason enough to be happy. Truth be told, that’s where I lingered. My dad was the world’s greatest It still sounds like a pretty good reason, at least that’s the way it looks do-it-yourselfer. He fixed everything, and well into his 70s, it was an from where we sit exception when he turned our car over to a mechanic. So, he always had great used cars that he kept in awesome shape. My heart still goes back to the 1955 Buick Roadmaster —two-toned green— that was the first car of my memory. I can still feel the warmth of my brothers as we cuddled on her backseat, safe as if you were home in bed, is how Dad described it. And, that’s how that wonderful car was, safe and big and warm. Sadly, I couldn’t find a 1955 Buick Roadmaster at this show, but we did find this beautiful two-toned Chevy that had some of the same feel. Brad got to talking about the car with the older man who’d owned it Deb and Brad Schepp for more than 50 years. He said that the food on the tray at the window [email protected] www.UTA.org September 2013 25 certified to go the distance INVEST IN THE BEST WITH VOLVO PREMIUM CERTIFIED TM USED TRUCKS.

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