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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

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