# Heavy **- Duty**  **Vehicle Market**  **Analysis Vehicle Characteristics & Fuel Use**  **Ma nufacturer**  **Ma rket**  **Shares**

May 1, 2009

# Agenda

1 Executive Summary 2 Heavy Duty Tr ucks 3 Commercial Trailers

2 

### APPENDIX Data Sources & Methodology

# Executive Summary

# Executive Summary

 Data confirms that the HDV fleet is extremely diverse  With respect to annual fuel use, most important vehicle is CLASS 8 TRACTOR pulling a 40 - 53 ft V AN - ty pe trailer  Approx 67% of annual fuel use by the entire HDV fleet  Most important target for HDV fuel ef ficiency regulation  Likely that >50% of STRAIGHT TRUCKS are equipped wi th a 

### High Level Insights

4  Likely that >50% of STRAIGHT TRUCKS are equipped wi th a box, flat bed, or stake bed body  Used to haul various types of freight  “V ocational trucks” (dump trucks, refuse haulers, utility trucks, vehicle haulers, etc.) are <15% of new H DV sales  CLASS 3 vehicles are 30% of new H DV sales, but use only about 10% of annual fuel  Of these smaller HDVs, most important type is PICK UPtruck

# Executive Summary

 Manufacturing of the most numerous and important HDVs is concentrated to only a few c ompanies  Largest Class 8 HDVs dominated by 6, mostly U.S., “heavy truck” manufacturers  Smallest HDVs (Class 3 - 4) dominated by the “big 3” U.S. auto manufacturers 

### High Level Insights

5  Both “truck” and “auto” manufacturers produce significant numbers of Class 6 HDVs  Manufacturing of the most numerous types of commercial trailers (V ANs) is dominated by only five trailer manufacturers  The concentration of manufacturing may make implementation of HDV fuel ef

ficiency standards easier?

# Executive Summary

 More than half of all in - use HDVs are registered to fleets w ith ten trucks or less  Includes 35% w hich are registered to ow ner- operators wi th only a single truck  Limited available data suggests that larger fleets buy a greater percentage of new

v ehicles, and that smaller fleets (<10 trucks) 

### High Level Insights

6 are more likely to buy used trucks  These ow nership patterns may make imposition of HDV fuel ef ficiency standards more dif ficult due to the perceived hardship that they wo uld impose on small businesses  Somew hat mitigated by buying habits?

# Heavy Duty T **rucks** Approximately 521,000 Class 2B trucks sold in 1999

 Approximately 6.4% of all Class 1 & 2 trucks sold  Virtually all were pick - ups, SUVs and large vans  82% were pick - ups  Virtually all manufactured by Chevy, Ford, GM, or GMC  Approximately 1/3 had diesel engines 

# Class 2B T **rucks** 8,500 – 10,000 lb GVWR

8  Approximately 1/3 had diesel engines  Class 2B trucks are generally 1 ton or 3⁄4 ton “Heavy Duty” or “Super Duty” models  In most cases very similar to Class 2 models from the same manufacturer  May have a larger engine  Will likely have heavy - duty s prings, suspension, and transmission SOURCE: Davis, S. and Tr uett, L., Investigation of Class 2b T rucks , Oakridge National Laboratory, ORNL/TM - 2002/49, March 2002

# Heavy**D uty** **T rucks** 

Most Popular Class 8 Tractor Models

**#1** Vo lvo VN Series **#2**

Peterbuilt 379 (discontinued in 2007) Peterbuilt 389 **#3**

11 Freightliner Columbia

Freightliner Century **#4** International 9200 **#7**

Kenworth T660 **#6**

Kenworth W900

**#8**

# Heavy**D uty** **T rucks** 

Example of V

ariety of Configurations within a Single “Model”

Freightliner Columbia 21% market share new tractor registrations

12 

### Freightliner **Columbia Cab Options**

# Heavy**D uty** **T rucks** 

Most Popular Class 3 - 4 Straight Tr uck Models

Ford E450 **Class 3 Class 4** 

Ford F350 Ford E350 Ford F450

15

Chevy 3500

Chevy 4500

Chevy G30 GMC WSeries Isuzu NPR

Mitsubishi FE GMC 3500

# Heavy**D uty** **T rucks** 

Most Popular Class 6 Straight Tr uck Models **International**

4300 4400 **#1**
FL70 M2 - 106 **Freightliner #2** 
**GMC**

17 **Ford F650 #3**  7500 8500 **GMC #4** 
**Hino 268 #5** 

**Sterling Ac**  **terra**

**#10**

# Heavy**D uty** **T rucks** 

Most Popular Class 8 Straight Tr uck Models

**Kenw orth T800**  **#2**
Te rraPro Refuse **Mack**

Granite **#1**

21 **Sterling Ac**  **terra #3** 

**Intl 7400 #7**  FLD **Freightliner**

M2 - 106 **#4**
M2 - 11 2

**#15**

### Summary of Manufacturer Market Shares

# HDV Manufacturer **Corporate Structure** 

 **Daimler T rucks NA**   Freightliner  Freightliner Custom Chassis  Sterling Tr uck  Western Star  **General Motors**  Chevrolet  **PA CCA**  **R**  Kenworth  Peterbilt  **Vo lv**  **o**  Vo lvo  Mack

23  Chevrolet  GMC  **Nav istar**  **International**  International Tr ucks  Workhorse Custom Chassis  **Parent**  Subsidiary

# Corporate Parent HDV Market Share

**CLASS 6 -**  **8**

24 

## CLASS 3 **- 8** 

# Heavy**D uty** **T rucks** 

Fleet Size of In - use Tr ucks

26

# Heavy**D uty** **T rucks** 

Fleet Purchase Behaviour

27

# Heavy**D uty** **T rucks** 

Fleet Age Distribution

28

# Heavy**D uty** **T rucks** 

Estimated VMTand Fuel Use by Class/T ype

29

# Heavy**D uty** **T rucks** 

Estimated VMTand Fuel Use by Class/T ype

30

# Commercial **Tr ailers** 

# Commercial T **railers**

Trailer Ty pes

**VA N**  **FLA T BED**  **DUMP**

32 **REFRIGERA**

**TED VA**  **N**
**CONT AI**  **NER CHA** **SSIS FLA**  **T BED DROP DECK** 

**LOW BED**  **TA NKS** [1] Ta nks hauling hazardous chemicals [2] dry bulk (i.e. cement) [3] Wood chips**TOP 5: 74% o**  **f total**  **market and 89%**  **of V AN**  **t yp**  **e trailers**  **Next 5: 10% of**  **total market**  **and 7% of**  **VA N**  **ty pe**  **trailers To**  **p 10 manufacturers don’t**  **make “specialty ”**  **trailers other than FLA TBEDs**  **Specialty**

**t railer manufacturers**  **ty pically**  **only m**  **ake one ty pe**  **of trailer In each specialty** 

**c ategory** 

**T op 2 manuf generally** 

**h av** **e 50%**  **+ market**  **share**

# Summary

 Analysis covers all HDVs greater than 10,000 lb GVWR (Class 3

– Class 8) registered between 2003 and 2007  On average 684,000 new H DVs registered each year  Class 3 trucks, 30% of new registrations  Class 8 trucks, 30% of new registrations  Class 4 – 7 trucks, each between 6% and 11% 

### Heavy Duty Tr uck Ty pes/Uses

36  Class 4 – 7 trucks, each between 6% and 11%  The largest subset of new ly registered HDVs were Class 8 TRACTORS (713,000), followed by large (Class 3) PICK UP trucks (573,000)  Class 8 tractors represent 22% of new H DV registrations and 68% of new

C lass 8 truck registrations

# Summary

 Of all STRAIGHT TRUCKS, more than 50% are likely equipped wi th some kind of box or flat bed body and are used to haul freight  Tr ucks registered to CONSTRUCTION companies represent 13% of straight trucks (6% of all HDVs)  Tr ucks registered to SANIT AT ION/REFUSE companies 

### Heavy Duty Tr uck Ty pes/Uses

37  Tr ucks registered to SANIT AT ION/REFUSE companies represent 2% of straight trucks (1% of all HDVs)  Other HDV types wi th large numbers of new registrations include -  MOTOR HOME (Class 3 – 8): 262,000 (8% of all HDVs)  SCHOOL

BUS (most Class 7): 148,000 (4% of all HDVs)

### Heavy Duty Tr uck Market Share

 Manufacturing of larger trucks is dominated by a few, mostly American, “truck” manufacturers  Class 8 TRACTOR: Freightliner, International, Peterbuilt, Kenworth, Vo lvo (90% for top 5)  Class 8 STRAIGHT/VOCA TIONAL: Mack, International, Sterling, Peterbuilt, Kenworth, Freightliner (88% for top 6) 

# Summary

38  Manufacturing of smaller trucks (Class 3 and 4) is dominated by the “Big 3 auto” manufacturers:  Ford, Chevrolet, GMC, Dodge (89%)  Isuzu, Mitsubishi (10%)  Class 6 trucks are produced in significant numbers by both the “truck” and “auto” manufacturers

### Heavy Duty Tr uck Fuel Use

 Class 8 tractors account for approximately 57% of annual VMT and 67% of annual fuel used by new C lass 3 - 8 HDVs  Other Class 8 trucks & buses account for about 13% of annual VMT and fuel  School Buses 1.9% of fuel  Transit buses 1.5% of fuel 

# Summary

39  Transit buses 1.5% of fuel  Vo cational T rucks 2.8% of fuel  Other Straight trucks 6.0% of fuel  Class 3 trucks account for 30% of new H DV sales, but only 17% of annual VMT and 10% of annual fuel use

### Heavy Duty Tr uck Fleet Size

 At the end of 2007 there were 11 .6 million HDVs registered in the U.S.  51% of this current in - use fleet are Class 8 trucks  Class 8 TRACTORS represent 21% of all in - use HDVs and 39% of in - use Class 8 trucks  Ow ner- operator trucks represent 35% of the total in - use fleet, but 

# Summary

40  Ow ner- operator trucks represent 35% of the total in - use fleet, but only 18% of in - use Class 8 trucks  61% of all in - use HDVs are in fleets w ith less than 10 trucks  45% of in - use Class 8 trucks are in fleets w ith less than 10 trucks Between 2003 - 2007 1.1 million commercial trailers were

registered in the U.S. (average 215,000/year)  1.5x as many new

t railers as new

C lass 8 tractors  Dry VA NS and REFRIGERA TED VA NS together accounted for 68% of new

t railer registrations  FLA TBED and FLA

T BED DROPDECK trailers = 10% 

### Commercial Trailer Ty pes/Uses 

# Summary

41  FLA TBED and FLA

T BED DROPDECK trailers = 10%  CONT AINER CHASSIS = 7%  All other “specialty” trailers (DUMP , TA NK, GRAIN, HOPPER, etc.) = 15%  55% of new ly registered trailers are 53 feet long, and virtually all others are shorter (24 – 52 feet)  75% of new ly registered VA NS are 53 feet long, and virtually all others are shorter (24 – 52 feet)

# Summary

 74% of trailers built by 5 manufacturers  Great Dane, Wabash National, Utility T railer Manufacturing, Hyundai, and Stoughton T railers  Primarily build V

AN, REFRIGERA

TED VA N, CONT

AINER CHASSIS and FLA

T BED trailers  89% market share for “box type” trailers 

### Commercial Trailer Market Share

42  89% market share for “box type” trailers  The next 5 largest trailer manufacturers have only 10% market share  Primarily build V

AN, CONT

AINER CHASSIS, FLA T BED and FLA T B ED DROPDECK trailers

# Summary

 Most “specialty” trailers are built by manufactures that specialize in only one or two ty pes of trailer  Specialty trailer manufacturers do not build V AN or FLA

T BED trailers  50 dif ferent companies have top - 10 market share in at least on ty pe of trailer  For all types of trailers except FLA T BED and DUMP

, the top two 

### Commercial Trailer Market Share

43  For all types of trailers except FLA T BED and DUMP

, the top two manufacturers have 55% - 99% market share  Market for FLA

T BED and DUMPtrailers is more fragmented  Larger number of manufacturers and more evenly distributed market shares  No manufacturer of DUMPtrailers has more than 12% market share

# Appendix

Data Sources & Analysis Methodology

44

# Main Data Source

Polk Automotive TIPNETTM Database – Industry Sales Data  Database of all heavy - duty v ehicles registered in the U.S.  Can track vehicles currently registered (current fleet)  Can track new

registrations in any year (sales)  Individual vehicles identified by their V ehicle Identification Number (VIN)  Encodes information such as MODEL Y EAR, WEIGHT CLASS,

45 VEHICLE TYPE, CAB TYPE, MAKE & MODEL  Database populated by Polk based on “decoding” the VIN  Includes registering company information  Polk assigns a REGISTRA TION VOCA

TION based on the type of business the registering company is in  A separate database tracks commercial trailers  New registrations only - can not determine composition of actual current fleet

### Limitations of Polk Data

 VIN is generally assigned by the chassis manufacturer  For most trucks does not include the ty pe of vocational body installed (freight box, tank, dump, etc)  REGISTRA

TION VOCA

TION can be used to infer body ty pe, wi th limitations  Example : many

b ut not all trucks w ith registration vocation 

# Main Data Source

46  Example : many

b ut not all trucks w ith registration vocation SANIT AT ION/REFUSE wi ll be refuse trucks; some w ill be service trucks, freight trucks, etc.  VIN includes truck MAKE and MODEL, but “MODEL” is generally broadly defined by the manufacturer  Single MODEL

may i nclude a range of engine sizes  Single MODEL

may i nclude a number of cab types (including both day cabs and sleeper cabs for tractors)

### Estimates of VMT and Fuel Use

 U.S. Department of Energy, Energy E ff iciency & Renewable Energy, Tr

ansportation Energy Data Book, Edition 27, 2008; ORNL - 6981, T

ables 5.1, 5.2, 5.4  U.S. Department of Transportation, National T ransit Database, 2005; Ta ble 17 and 19  Nathan & Associates, Motor Coach Industry Census 2008, for the American Bus Association 

# Other Data Sources

47  Davis, S. and T ruett, L., Investigation of Class 2b T rucks, Oakridge National Laboratory, ORNL/TM - 2002/49, March 2002 

### Class 2b T

rucks

 Tr uck manufacturer web sites 

### Tr uck Model Data  U.S. Census Bureau, V ehicle Inventory & Use Survey, 2002 

### Fleet Purchase Behaviour

# Analy**sis Methodology** 

Polk Automotive TIPNETTM Database – Industry Sales Data  Ve hicles were separated into weight classes based on the VIN defined weight class assigned by the manufacturer  Ve hicles were separated by ty pe based on either the VIN - defined vehicle type assigned by the manufacturer, or based on the “registration vocation” assigned by Polk  Unambiguous VIN - defined vehicle types include: T ractor (combination truck), Pick - up, V an, Step V

an, Motor Home, Fire

48 (combination truck), Pick - up, V an, Step V

an, Motor Home, Fire Tr uck, Emergency Ve hicle, School Bus, and Bus Non - school (T ransit Bus or Coach Bus)  Other straight trucks (non - tractors) were separated into categories based on vocation registration (i.e. perceived use) – these categories are approximate only  Example: the majority of trucks w ith registration vocation “Sanitation/Refuse” w ill be refuse haulers, but some w ill be other ty pes of trucks used by sanitation companies

# Analy**sis Methodology** 

Estimated VMTand Fuel Use by Class/T ype  For each type of HDV , total annual fleet VMT and FUEL USE from new t rucks were estimated as follows:  VMT (miles) = # of Tr ucks x Av erage Annual Mileage (miles/truck)  FUEL (gallons) = VMT ÷ Av erage Fuel Economy (MPG)  For each type of HDV the number of trucks was taken from the Polk TIPNETTM database (new registrations last five years)

49  For each class/type of HDV average annual mileage and average fuel economy wa s taken from U.S. Department of Energy statistics or from other industry sources.

### Contact **ICCT**

1225 Eye Street, NW Suite 1000 The goal of the International Council on Clean Transportation (ICCT) is to dramatically reduce conventional pollution and greenhouse gas emissions from personal, public, and goods transportation in order to improve air quality and human health, and mitigate climate change. The Council is made up of leading government Suite 1000 Wa shington, DC 20005 (202) 204 - 2383 1 Hallidie Plaza, Suite 503 San Francisco, CA

94102 (415) 399 - 9019 www .theicct.org Council is made up of leading government officials and experts from around the world that participate as individuals based on their experience with air quality and transportation issues. The ICCTpromotes best practices and comprehensive solutions to improve vehicle emissions and ef ficiency, increase fuel quality and sustainability of alternative fuels, reduce pollution from the in - use fleet, and curtail emissions from international goods movement.