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BUSINESS<br />
THETRUCKER.COM OCTOBER 1-14, 2021 • 17<br />
Parts shortages continue<br />
AUGUST DATA SHOWS TRUCK PRODUCTION<br />
STILL CONSTRAINED BY PARTS SHORTAGES<br />
CLIFF ABBO<strong>TT</strong> | SPECIAL CORRESPONDENT<br />
U.S. sales of Class 8 trucks remain subdued<br />
in August with sales of 18,176 reported<br />
by manufacturers, according to data received<br />
from Wards Intelligence.<br />
The August result was 8% higher than July<br />
sales of 16,824 and 2.8% better than August<br />
2020 sales, both well below normal production<br />
levels. In August 2020, only 17,685 Class 8<br />
trucks were sold as the industry was returning<br />
to normal after COVID-19 shutdowns and restrictions.<br />
For comparison, in 2019, an average of<br />
23,032 Class 8 trucks were sold each month,<br />
with 23,466 sold in August of that year — 5,290<br />
more than this year for a 2021 decline of 22.5%.<br />
There isn’t a direct correlation between<br />
sales and production, of course. When assembly<br />
lines are running at full capacity and sales<br />
aren’t keeping up, excess inventory builds up<br />
at dealers and factories. For months, the opposite<br />
occurred in the U.S. as truck sales exceeded<br />
production, relying on existing inventories<br />
to make up the difference.<br />
Currently, there isn’t much inventory left to<br />
draw from, and what’s left is often designed for<br />
unique applications, such as off-road.<br />
In the meantime, the backlog of orders extends<br />
well into next year, and build slots for<br />
2021 models are filling fast.<br />
“The order average, breaking through<br />
35,000 per month in July, is currently pointing<br />
to monthly build volumes that should be<br />
approaching 30,000 units per month. Instead,<br />
production through July has failed to crack<br />
the March build rate, and July build totaled<br />
just 14,920 units, or 710 units per day, as the<br />
OEMs resorted to down days and weeks,” said<br />
Kenny Vieth, president and senior analyst at<br />
ACT Research, regarding the Sept. 10 release<br />
of ACT’s latest “North American Commercial<br />
Vehicle OUTLOOK.”<br />
An earlier ACT release, on Sept. 2, reported<br />
31,900 North American orders in August, more<br />
than double the July build rate of 14,920 trucks.<br />
Shortages of parts and materials has been<br />
the biggest culprit. Semiconductors are in<br />
short supply around the world. Consumer<br />
electronics sales during the COVID-19 pandemic<br />
depleted existing supplies while plants<br />
were shut down due to the pandemic. Once<br />
the plants reopened, the demand far exceeded<br />
production abilities, and competition for chips<br />
became fierce.<br />
“In the current period of near-record demand<br />
for commercial vehicles of all stripes,<br />
the story the past few months has shifted from<br />
one of abundance to one of constraint,” Vieth<br />
said, noting that semiconductors are only one<br />
of many holdups in the supply chain.<br />
“In actuality there are scores of parts that<br />
continue to be impacted by the pandemic, by<br />
the lingering impact of steel tariffs, and even by<br />
iStock Photo<br />
Volvo sales jumped by 305 trucks from July to August, an increase of 34.3%. Compared to August 2020,<br />
however, results were down by 678 trucks (36.2%).<br />
the February storm that incapacitated Texas<br />
and shutdown swathes of the U.S. plastics<br />
industry for two-plus quarters,” he said.<br />
Manufacturers responded by partially<br />
manufacturing vehicles, omitting certain components<br />
with plans to add the missing parts,<br />
once they became available, to complete the<br />
build.<br />
Manufacturers of trucks in classes 5, 6 and<br />
7 had the option of diverting chips to Class 8<br />
models. This appears to have happened in August.<br />
For the year to date, Class 8 trucks have<br />
represented 70.2% of the Classes 5-8 market.<br />
In August, that percentage increased to 72.8%.<br />
Freightliner had the largest change, with<br />
sales of Class 8 trucks in August representing<br />
72.4% of monthly sales, compared to 64.7% for<br />
the year to date.<br />
Truck builders aren’t the only manufacturers<br />
dealing with slowed production. Their suppliers<br />
also depend on deliveries of the parts<br />
and materials they need, including those pesky<br />
semiconductors.<br />
Another reason for shortages of vehicle<br />
components is the rapidly increasing cost of<br />
container shipping. Parts and materials from<br />
Europe or China — including everything from<br />
SEE PARTS ON PAGE 19<br />
Drivers Legal Plan celebrates<br />
30 years of serving truckers<br />
Courtesy: Drivers Legal Plan<br />
Drivers Legal Plan is celebrating 30 years of providing legal services to truckers. Brad Klepper,<br />
son of company founder Jim Klepper, serves as president of the company.<br />
THE TRUCKER NEWS STAFF<br />
OKLAHOMA CITY — Drivers Legal Plan, a national<br />
law firm that defends truck drivers exclusively, celebrated<br />
more than a quarter-century of operation in<br />
September.<br />
Jim Klepper founded the company in 1991 with input<br />
from trucking industry executives who were concerned<br />
that the advent of CDLs could lead to unnecessary<br />
traffic convictions and have detrimental effects on<br />
driver safety profiles and retention records.<br />
“It gives me enormous pride to celebrate our 30th<br />
year in business,” said Brad Klepper, who is president of<br />
Drivers Legal Plan as well as Jim Klepper’s son.<br />
“We have been sincerely blessed to have longstanding<br />
relationships with trucking companies and a<br />
highly skilled, dedicated team of employees. Over the<br />
years, we have established ourselves as America’s most<br />
experienced CDL defense law firm,” he continued.<br />
According to the Drivers Legal Plan website, the<br />
company “comprises the only law firm in the country<br />
entirely dedicated to CDL defense. The driver gets a<br />
‘trucker’s attorney,’ whose livelihood depends solely on<br />
how well he represents truck drivers.”<br />
Drivers Legal Plan maintains a comprehensive<br />
database of more than 350,000 CDL legal cases, in essentially<br />
every court in the United States, the website<br />
continues. This database, coupled with access to current<br />
CDL requirements in each state, allows the firm to<br />
make “an immediate and accurate assessment of each<br />
legal situation. This often puts the odds of success in<br />
our driver/client’s favor,” the website touts.<br />
Drivers Legal Plan defends carriers and drivers in<br />
both CDL citations and CSA violations, including both<br />
moving and non-moving, throughout the 48 contiguous<br />
United States.<br />
“We know the courts well,” Brad Klepper said. “We<br />
excel at securing the best possible outcomes for our<br />
clients due to our extensive legal experience across<br />
the U.S., and we are continuously learning. Particularly<br />
during the pandemic, we have adapted to the changing<br />
rules and regulations while remaining vigilantly<br />
focused on representing our clients’ interests.”<br />
Brad Klepper’s column “Ask the Attorney” appears<br />
in the bi-monthly print edition of The Trucker (read it<br />
on Page 13). 8