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Will we be able to

22nd August 2013, Page 11
22nd August 2013
Page 11
Page 11, 22nd August 2013 — Will we be able to
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recover in time?

Boom and bust: where are all the Euro-5 truck deals?

This year was meant to see a boom in Euro-5 truck sales. Whether it had a new chassis or was second-hand, operators were meant to be crawling over broken glass just to be considered eligible for the soon-to-be-extinct trucks.

However, reality suggests otherwise. Figures for new registrations for the first half of this year from Brussels-based vehicle manufacturers' trade association ACEA show numbers were well down in almost every European country.

Across the EU, 100,456 LGVs (16-tonne GVW and over) were registered, 11.3% below last year's total at this point. This unexpectedly weak performance comes despite the pressure to pre-buy trucks ahead of the implementation of Euro-6 emissions limits at the end of this year, triggering an increase in list prices.

Behind Germany and France (both markets slipped by 13.3% respectively) — the UK is Europe's third largest heavy truck market, and has shrunk by 6.3%.

The used truck sector doesn't look any better. Dealers report slow demand with only those selling prime used stock gaining quick sales. Manufacturers that generated short-term deals to flood the market to meet the demand head on are now left with trucks on their hands.

Many operators have predicted manufacturers will see sales fall next year, but few expected the bust to start this year. There is time though. Derogation (order a truck and have it built before 30 September and defer delivery any time before the end of 2014) still exists, but most manufacturers claim all the production slots have been filled ahead of next month's deadline.

The second half of the year may recover, but will it recover enough to avoid the bust?