GHG regs could do more harm than good: Truck seller
WEST VALLEY CITY, Utah. — You already know that truck fleets based outside of California who want to do business in that state must comply with California’s stringent emissions standards, right?
Some fleets have simply stopped going into California altogether. Others have established a second, more expensive fleet of trucks to operate within California only.
Still others are coordinating freight handling in and out of California by relay.
According to Kyle Treadway, chairman of the American Truck Dealers (ATD), "each of these choices increases the handling of freight, restricts competition, raises freight rates and ultimately increases fuel consumption per ton/mile."
And to think California’s rule was meant to decrease fuel consumption.
Treadway, who operates Kenworth Sales in West Valley City, Utah, was testifying at a joint meeting of the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) in Chicago when he made the remarks.
He told the commission that if the new federal fuel-consumption guidelines for commercial vehicles are not "appropriate, cost-effective and technologically feasible," they will backfire.
Like, arguably, like California.
If the restrictions are not cost-effective, many fleets will just avoid purchasing new equipment.
"My customers have options," he said. "Instead of choosing to buy new fuel-efficient vehicles, they can instead pay my service-and-parts operations to help them keep their existing vehicles on the road, up to and including re-building engines or vehicles."
Treadway added "cost is always a concern" and that his customers can buy used vehicles at a lower cost than new federally compliant ones.
"That is why new fuel economy mandates must be affordable; i.e., the cost must be justifiable up front, in order to have any chance at success in the marketplace."
"Some of the nation’s largest fleets can afford to be ‘early adopters’ and to experiment with new fuels and technologies, even when they cost significantly more," he said.
"However, the vast majority of prospective new truck buyers … rationally consider the up-front cost of vehicle features, especially during times when credit is relatively tight and/or freight rates and profit margins are relatively low."
Treadway stressed that the new rules be consistent across all the states.
"This prohibition of any patchwork of state laws related to fuel economy is critical to dealers like me who sell new vehicles in several states, yet is even more important to our customers, such as for-hire carriers, private companies, public fleets and owner operators who purchase trucks and engines in every state in the nation."
Duplicative, non-identical state rules, "would impose an untenable burden on the R&D resources, the manufacturing processes and the marketing and distribution systems of new truck and engine manufacturers," and "…ordering and stocking nightmares for dealers and their customers."
Finally, Treadway also cautioned that fuel economy mandates should never compromise or even appear to compromise performance, which occurred when emissions mandates took effect in 2002, 2007 and 2010, resulting in economic disruptions in the marketplace.
"Before my customers lay out the substantial investments necessary to purchase new vehicles, they want to be assured that they won’t be buying performance compromises, such as a decrease in freight hauling capability or an increase in maintenance and repair," he said.
"Especially with engines and other drivetrain components, improving one metric, such as fuel economy, must not diminish other critical performances metrics or result in higher vehicle costs. Otherwise, fuel-efficiency improvements won’t get bought and will fail in the marketplace."
Have your say
This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.