FL price increases

[LDB]

I got this in a weekly industry email I subscribe to.


Freightliner Sets '07 Engine Premiums

LOUISVILLE, Ky. — The cost of developing and adding 2007 emissions-compliant engines and filtration systems will add $4,500 to $6,000 to Freightliner LLC's medium-duty trucks, the company's chief executive said last week.

The cost will apply to the Mercedes-Benz MBE900 as well as to the Cummins' mid-range engines the company offers in its medium-duty trucks, said Chris Patterson, Freightliner president and chief executive officer.

Patterson spoke during a press conference at the Mid-America Trucking Show here.

The cost increase for the company's heavy-duty engines will range from $7,000 to $10,000, depending on the engine and truck, Patterson said.


Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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[redytrk]

I bet there will be a lot more re-builds of existing engine's wonder if replacement engines will have to meet the new standards.

 

[ATeam]

Allow me to wonder out loud if the price increases, especially those on heavy-duty trucks, will benefit owner/operators running '06 and earlier trucks. The used truck market is already tightening. As OTR companies - the ones that buy 4,000 trucks at a time - rotate their old units out, price increases of up to 10,000 for the engines alone will not be easy for the big fleets to absorb. The increased maintenance costs will also come into play.

This will put upward pressure on freight rates in the next few years, would it not? If you can keep your Ol' Reliable, pre-2007 unit going, the new-engine news may not be all that bad.

 

[LDB]

I see it as a potentially positive situation for those with a truck to sell as well as those getting a new truck soon. All else being equal, a seller should be able to get an extra $1000-1500 for their truck since a new one will be $5000 or more higher. For a purchaser getting into a truck now the savings is equivalent to a couple hundred dollar a month lower payment. If a buyer goes with a 2006 class 8 there's no reason that truck can't be giving excellent service a decade from now with many good years still left in it. I agree as well that these major increases in costs should force the major players into raising freight rates and that, theoretically at least, will carry over to us.

Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.