Truck OEM reveals EPA ’07 impact

Sweden’s Volvo Group is reporting that total global deliveries of trucks from its four truck companies--- Volvo Trucks, Mack, Renault and Nissan Diesel-- through May amounted to 82,865 units, a decrease of 10% compared with the year-earlier period

Sweden’s Volvo Group is reporting that total global deliveries of trucks from its four truck companies--- Volvo Trucks, Mack, Renault and Nissan Diesel-- through May amounted to 82,865 units, a decrease of 10% compared with the year-earlier period. Volvo Group said that, excluding Nissan Diesel, deliveries amounted to 76,635 units—a 17% drop compared with the year-earlier period. Deliveries from Nissan Diesel only include the period of April to May 2007, since the company was consolidated as of April 1st.

The company laid the blame for that worldwide performance on the diesel emission regulations imposed for 2007 by the U.S. Environmental Protection Agency.

For Mack, worldwide deliveries through May totaled 7,179 units, down 55% compared with the year-earlier period. “The slowdown is attributable to the expected temporary decline driven by new emission regulations which became effective on January 1, 2007,” stated Volvo Group. In North America alone, Mack delivered 5,433 units compared to the 14,412 posted for the year-earlier period, amounting to a 62% drop.

Volvo Trucks’ worldwide deliveries during the period January-May amounted to 38,799 vehicles, down 9% compared with the year-earlier period. However, deliveries increased in all markets except North America. “The total decrease in Volvo Trucks’ sales was fully attributable to the expected temporary decline in North America, where new emission regulations became effective on January 1, 2007, Volvo Group said. During the first five months of the year, deliveries in North America for its Volvo Trucks North America operation declined by 60%-- 6.088 units vs. 15,036 in the year-earlier period.

To date from April 1, said Volvo Group, Nissan Diesel delivered 504 units in North America.

“Year-over-year growth in North America remains negative largely due to the effects of the 2005/2006 pre-buy ahead of the 2007 EPA emissions standard,” stated Bear Stearns equity research analyst Peter Nesvold in an emailed release. “On an absolute basis, this was the second lowest North American delivery month [for Volvo and Mack] going back to December 2002 — only April was lower.” On the other hand, according to Nesvold, “Volvo [Group] appears [to] have regained some lost market share North America.”

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