Buying at the right time could help avoid Euro-6 price rise

The added cost of purchasing first generation Euro-6 vehicles can be avoided, claim DAF trucks, by upgrading your fleet now, with Euro-5 vehicles. The new emissions control legislation becomes effective in September 2013, and a cunningly timed purchase will help operators to avoid the initial phase of introduction, and its associated costs.

Tony Pain, Marketing Director for renowned truck trader DAF, explained:

Historically there's been an upswing in sales in the run-up to a new Euro-standard, but the difference with the changeover from Euro-5 to Euro-6 will be the significant price increase on the trucks. This is due to the additional exhaust after-treatment systems needed to meet the strict legislation. So if operators renew their fleet now on a three-year lease and then upgrade again on a five-year lease just before September 2013, they will have missed the initial take-up, and added cost, of Euro-6.


The size of the investment that truck manufacturers have made in terms of the development of Euro-6 vehicles means that a price rise is inevitable. Renault UK's commercial director Nigel Butler said, For Euro-6 we are anticipating a pre-buy as operators look to capitalise on the run-out of Euro-5 vehicles in 2013. This surge in sales could mean longer lead times because manufacturers have to gear-up production cycles to meet the peak in demand.

South American markets are the future for US firms

As companies reveal their second quarter figures, it has become more apparent than ever that South America and its markets have been a huge part of the rising numbers. The economies of the US and Europe have begun to recover, but are doing so slowly, in minute increments. However, many European and US companies have been saved by large demand from South America, particularly Argentina and Brazil.

There are two saline treasons behind this: firstly, exports, particularly of agricultural and mineral products, have precipitated a growth in gross domestic product, and secondly, the factors which used to be prohibitive for American companies, such as hyperinflation and political volatility, are noticeably less pronounced.

Nicholas Heymann, an analyst for Sterne Agee and Leach, a brokerage firm, said, There's nowhere else in the world that's had the dramatic change in the middle class like Brazil, not even China. You've got an unfathomable amount of money there.

A variety of companies are either indebted to the Brazilian market, or are scrambling to become a part of it. PACCAR, makers of DAF trucks, has announced that it plans to construct an assembly facility in Brazil, in order to launch new and used DAF trucks across the continent of South America. They have decided that South America is actually a sounder investment than the vast emerging market of China, as the Chinese government often demands that Western companies enter into joint ventures with indigenous firms. Chairman and chief executive officer of PACCAR, Mark Pigott, said:

There's still been no Western truck manufacturer that's ever made any money in China in a partnership. Any of our competitors that are in South America seem to gain an inordinate amount of their net income from those markets. We're looking forward to growing in South America.

One company which demonstrates the potential of the Brazilian market is Whirlpool Corp., which manufactures appliances under the Brastemp and Consul brands, and have a huge market share in Brazil, with half of all Brazilian households, according to Whirlpool, owning a Consul appliance. Their rate of profit increase in South America was four times that of North America. Whirlpool chairman and chief executive officer Jeff Fettig said, In Latin America, the underlying economic fundamentals remain strong and we continue to see full-year growth [in appliance shipments] in the range of 10%.

Ryder acquires new vehicles for rental fleet

Ryder have acquired 100 new trucks, after investing £4 million in expanding their stock available for rental. These include a number of vehicles from renowned truck trader DAF.

The new acquisitions include 7.5 ton boxvans, 18 ton boxvans, 44-ton tractor unit lorries and curtainsiders. Ryder's commercial vehicles sales director, Nigel Martin, indicated that many firms are opting for renting vehicles as opposed to purchasing one of the DAF trucks for sale, primarily due to the impact of the economic climate upon the haulage industry, saying, The trend for operators renting vehicles for six to 12 months is growing at a phenomenal rate, with many extending contracts for much longer.

Ryder's fleet now stands at 2200 vehicles, following this purchase and the £18 million replacement programme that they undertook in the spring. The importance of these refresher programmes was underlined by David Hunt, the vice-president and MD of fleet management solutions for Ryder Europe, who said, We are seeing a significant uptake in demand for premium quality Euro-5 vehicles, and this additional investment will ensure that Ryder is in a position to fulfil this increased demand.

DAF CF85 wins Fleet Truck of the Year for the third time

The Motor Transport Awards have awarded the Fleet Truck of the Year to one of the DAF trucks for sale, the DAF CF85, for the third year in a row, and it is the tenth time overall that one of the CF series has won the award. It is the first time in the quarter of century that the awards have been running that a hat-trick of consecutive wins has been achieved.

The trophy was presented to Ray Ashworth, the managing director of DAF Trucks UK, at a dinner and reception for 1400 luminaries of the industry.
Ashworth was delighted, saying, We are proud that the DAF CF85 has earned this important industry award. Everyone in our industry and throughout the DAF team recognizes the significance of this award since it is an accolade from the fleet operators themselves. To win in 2008, 2009 and 2010 – three of the most challenging years the UK transport industry has ever experienced – underlines the value of this award. It highlights the exceptional fuel economy and overall efficiency of the CF85, together with the outstanding in-service support provided by our nationwide network of dedicated dealers.