COLUMBUS, Ind. — Inventories of medium-duty trucks are falling but so are build rates, leaving inventory-to-sales ratios at more than double normal levels, according to the latest figures from ACT Research.
Class 5-7 retail sales were off 54% from May of 2008 and Class 8 retail sales were down 52% compared to last May, according to ACT. The inventory-to-sales ratio in the medium-duty market is at seven month but in the Class 8 market it’s only 3.4 months.
“Although the low inventory is a positive,” said Steve Tam, ACT vice-president, commercial vehicle sector, “at current depressed sales levels, the Classes 5-7 market will have to improve significantly to justify ramping up production.”
Class 8 orders remain soft in all three North American markets, but especially Mexico, ACT reports. Including Mexico and other export markets, Class 8 sales were down 89% compared to last May.
The latest findings are part of ACT’s Classes 5-8 Vehicles report. For more info, visit www.actresearch.net.
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