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Paccar and Ryder System note that a major emissions update from the Environmental Protection Agency will likely spur more purchases of older trucks.
The EPA’s Phase Three greenhouse gas emissions standards, set for models from 2027 and beyond, set tougher standards for heavy-duty manufacturers, but many carriers see it as a sign to buy before the rules take effect.
“The industry generally expects some level of pre-purchase activity given the expected impact on upfront costs and the impact on maintenance costs,” Ryder CEO and President Robert Sanchez said on April 23. earnings call.
He said pre-purchase activity could begin as late as 2025, mirroring past trends in which fleets purchase equipment a few years before a mandatory changeover occurs.
Paccar echoed those comments, projecting strong years in 2025 and 2026.
“The question that everyone is trying to figure out is when will it start and how significant will that starting point start,” CEO Preston Feit said in an April 30 statement. earnings call.
In comments to the EPA last year, the National Automobile Dealers Association the agency warned that the new emissions rules may be counterproductive to the goals of the regulations because of pre-purchase activity, where carriers want to avoid issues such as the higher cost of new equipment. In the past, many fleets kept their older trucks longer than they otherwise would have, and others turned to the used truck market, the association said.
EPA’s previous research on prepurchases, however, would indicate a shorter timeline. Pre-purchase and suppression or delayed purchase limited to “one year or less before” the implementation of a regulation, according to this research. That proposed research paper an even tighter time frame of eight months as the maximum period during which significant change occurred.
A joint bill, introduced last week before the home and Senate, calls for rescinding the EPA’s phase three measure. Trucking groups say overturning the law’s congressional review is necessary.
“American Trucking Associations oppose EPA’s GHG3 rule in its current form because post-2030 goals remain completely unattainable given the current state of zero-emissions technology, lack of charging infrastructure, and constraints on the electric grid,” ATA Chief Advocacy and Public affairs officer Ed Gilroy said in a statement.
Todd Spencer, president of the Owner-Operator Independent Drivers Association, noted that small business truckers make up 96 percent of the trucking industry and “could be put out of business if the wrong EPA mandate goes into effect.”