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The 2009 Global CommerCial VehiCle reporT i

2009 Global Commercial

Vehicle Report

2009 Global Commercial

Vehicle ReportIncludes:

Heavy Duty Maintenance in the USA SurveyHeavy Duty Distributor Survey

The 2009 Global CommerCial VehiCle reporTii

Terms of Use

Disclaimer. All content provided in this Publication is based upon information which we believe to be reliable and should be understood to be general industry information only. It is not intended to be taken as advice with respect to any individual situation and cannot be relied upon as such.

Intellectual Property. This publication, including but not limited to text, content, photographs, video, audio and graphics (the “Publication”), is protected by copyrights, trademarks, service marks, international treaties and/or other proprietary rights and laws of the U.S. and other countries. The Publication is also protected as a collective work or compilation under U.S. copyright and other laws and treaties. All individual articles, columns and other elements making up the Publication are also copyrighted works. The trademarks, service marks, trade names, trade dress, logos, and designs, associated with this Publication are owned by the Heavy Duty Manufacturers Association and the Motor & Equipment Manufacturers Association (collectively “HDMA/MEMA”), or third parties who have authorized their use. You must abide by all applicable copyright, trademark, and other laws, as well as any additional copyright notices or restrictions contained in the Publication.

Restrictions on Use. You may not use the Publication for any illegal purpose or in any manner inconsistent with these terms of use. You may use the Publication solely for your personal use and benefit or that of your organization, and not for resale or other transfer to, or use by or for the benefit of, any other person or entity. You may not use, transfer, distribute or dispose of any information contained in the Publication in any manner that could compete with the business of HDMA/MEMA. This Publication has been developed, compiled, prepared, revised, selected and arranged by HDMA/MEMA and others (including certain other information sources) through the application of methods and standards of judgment developed and applied through the expenditure of substantial time, effort and money and constitutes valuable intellectual property and trade secrets of HDMA/MEMA and such others. The proprietary rights of HDMA/MEMA and all others having rights in the Publication must be protected.

Further Restrictions on Use. YOU MAY NOT COPY, REPRODUCE, RECOMPILE, DECOMPILE, DISASSEMBLE, REVERSE ENGINEER, DIS-TRIBUTE, PUBLISH, DISPLAY, PERFORM, MODIFY, UPLOAD TO, CREATE DERIVATIVE WORKS FROM, TRANSMIT OR IN ANY WAY EX-PLOIT ANY PART OF THE PUBLICATION, EXCEPT THAT YOU MAY DOWNLOAD MATERIAL FROM THE PUBLICATION AND/OR MAKE PRINT COPIES FOR USE BY YOU AND/OR WITHIN YOUR ORGANIZATION, PROVIDED THAT ALL COPIES RETAIN ALL COPYRIGHT AND OTHER PROPRIETARY NOTICES, AND INCLUDE ATTRIBUTION TO HDMA/MEMA. MODIFICATION OF THE PUBLICATION’S CONTENT WOULD BE A VIOLATION OF HDMA/MEMA’S COPYRIGHT AND OTHER PROPRIETARY RIGHTS. ADDITIONALLY, YOU MAY NOT OFFER ANY PART OF THE PUBLICATION FOR SALE OR DISTRIBUTE IT OVER ANY OTHER MEDIUM INCLUDING BUT NOT LIMITED TO OVER-THE-AIR TELEVISION OR RADIO BROADCAST, A COMPUTER NETWORK OR HYPERLINK FRAMING ON THE INTERNET WITHOUT THE PRIOR WRITTEN CONSENT OF HDMA/MEMA. FURTHERMORE, YOU MAY NOT USE ANY OF HDMA/MEMA NAMES OR MARKS IN ANY MANNER THAT CREATES THE IMPRESSION SUCH NAMES OR MARKS BELONG TO OR ARE ASSOCIATED WITH YOU OR IMPLY ANY ENDORSEMENT BY HDMA/MEMA, AND YOU ACKNOWLEDGE THAT YOU HAVE NO OWNERSHIP RIGHTS IN AND TO ANY OF THESE NAMES OR MARKS. YOU WILL NOT USE THE PUBLICATION, THE INFORMATION CONTAINED THEREIN OR ANY OF HDMA/MEMA’S NAMES OR MARKS IN UNSOLICITED MAILINGS OR SPAM MATERIAL AND WILL NOT SPAM OR SEND UNSOLICITED MAILINGS TO ANY PERSON OR ENTITY USING THE PUBLICATION.

License. You acquire no rights or licenses in or to the Publication and materials contained therein other than the limited right to utilize the Publication in accordance with these terms.

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The 2009 Global CommerCial VehiCle reporT 1

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January 2009

Fellow Heavy Duty Industry Professional,

We are certainly in the midst of challenging economic times. The US and global commercial vehicle markets are experiencing tremendous change due to new environmental policies and regulations and a global slowing of com-merce and trade.

I am proud to introduce our new 2009 Global Commercial Vehicle Report which also includes Heavy Duty Truck Maintenance in the USA, as well as the 2008 HDMA Distributor Survey.

As the commercial vehicle supplier industry becomes more and more international in scope and growth, we felt it necessary to enhance our market research projects for our members and to expand our research from Heavy Duty Truck Maintenance in the USA and transition it into a global report. Other expanded features of the 2009 Global Commercial Vehicle Report include: l Special Sections on emerging markets that include China, India, Russia and Brazil l Global highway transportation reports l Truck exporting

Additional print or CD-ROM copies of the 2009 Global Commercial Vehicle Report are available and can be ordered online at www.hdma.org. The association member price is $99.95, and the non-member price is $695.00. Volume discounts are available. Please call 919.406.8847 for more details.

High resolution artwork in the 2009 Global Commercial Vehicle Report is available to HDMA members free of charge. Non-members who wish to obtain any of the artwork within the report can contact an HDMA representa-tive for pricing.

Your membership in HDMA is now more important than ever. For the past 25 years, HDMA has been the only non-profit manufacturers association that exclusively represents the strategic interests of the North American com-mercial vehicle supplier community.

With the full support and backing of the 105 year old Motor and Equipment Manufacturers Association (MEMA), HDMA provides its members with a range of services that include highly effective government representation in Washington, to the WTO and on the EU WP29. We offer a range of member services, including market research and economic reports, industry representation, timely information and news services, availability of the MEMA Financial Services Group, peer councils and forums, and premier industry events and conferences.

During these current times, membership in HDMA and the other two MEMA market segment associations, AASA and OESA, carry an even higher value to our members. With a full range of services that help to stretch your bud-gets, members save on DC lobbying expense, retainers on economic reporting and primary market research, registra-tion costs for events, shows and conferences and many other services. Please visit hdaw.org for additional HDMA membership benefit information.

If we can be of any assistance, please feel free to contact us. We look forward to serving your membership needs today and in the future.

Kind regards,

Timothy R. KrausPresident, Chief Operating OfficerThe Heavy Duty Manufacturers Association

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The 2009 Global CommerCial VehiCle reporT2

1 Executive Summary ................................................................................................................. 9

Heavy Duty Universe Estimates ..................................................................................... 10

Economic Situation ........................................................................................................ 12

2 Trucking Operators Survey .................................................................................................... 14

3 Heavy Duty Distributor Survey ............................................................................................. 27

4 Operating Factors .................................................................................................................. 30

5 Trade ................................................................................................................................ 36

6 US Motor Vehicle Industry Data ........................................................................................... 50

7 North American Industry ...................................................................................................... 54

A Transportation .......................................................................................................... 54

B Truck Sales .............................................................................................................. 58

C Vehicle Population ................................................................................................... 59

D Commercial Trailers ................................................................................................. 61

E Canada ..................................................................................................................... 63

F Mexico ..................................................................................................................... 65

8 Global Section ....................................................................................................................... 68

A Highway Infrastructure ............................................................................................ 68

B Highway Freight Movement ...................................................................................... 74

C Global Commercial Vehicle Population ..................................................................... 75

D Commercial Vehicle Sales ......................................................................................... 79

E World Commercial Vehicle Production and Assembly ............................................... 84

9 China Special Section ............................................................................................................ 94

10 Russia Special Section ........................................................................................................... 97

11 Brazil Special Section ............................................................................................................. 99

12 India Special Section ............................................................................................................ 102

13 Methodologies ..................................................................................................................... 108

14 Acknowledgements .............................................................................................................. 109

15 Appendix ............................................................................................................................. 110

16 HDMA Roster .................................................................................................................... 118

Table of Contents

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HDMA Membership BenefitsHDMA has grown from 41 inaugural members to 175 in 2008 and is poised for continued growth. HDMA members represent over $150 billion in yearly revenue, over 150,000 employees in all 50 states, and 55% of the US market for commercial vehicle parts. This business segment is a substantial portion of US manufacturing, representing significant jobs and employment, personal income and tax base generation. HDMA members are companies with manu-facturing facilities mainly located in North America, and include both large and small, publicly traded corporations and privately held firms.

HDMA’s membership services are focused on NAFTA-based suppli-ers to the global commercial-vehicle truck, bus, trailer and engine builder and replacement parts market segments. A growing number of HDMA members are becoming multi-national and in many cases, global in their approach to business. HDMA is striving to offer value to a changing market, and has and will continue to add benefits and services to reflect the needs of the members.

HDMA Membership Demographics l 175 NAFTA-BASED Supplier Members l Estimated 150,000 employees in 50 states l HDMA members comprise a large percentage (55%+) of the US market for HD commercial vehicle components l Publicly traded companies include: Accuride, ArvinMeritor, Dana, Eaton, Federal Mogul, etc. l Privately held firms include: Bendix, Bosch, MGM Brake, Haldex, Phillips Industries, Pressure Systems, International, etc. l Stable and growing base of members. l Active and involved long term members l 16 member board of directors consisting of industry leading executives.

Market Research l Heavy Duty Maintenance in the USA – unique to the industry l HDMA Quarterly Supplier Barometer l Monthly Market Analysis newsletter includes Economic & Industry information l Periodic and topical member surveys covering raw materials, healthcare, etc. l Timely special reports l Over $200,000 is spent annually on primary market research

Up-to-Date Industry Information l Weekly Diesel Download electronic newsletter l Weekly International Diesel Download electronic newsletter l Daily MEMA Industry News electronic newsletter l Weekly MEMA TopLineNews electronic newsletter l Bi-weekly Washington Insider newsletter l Monthly Personnel Insight newsletter l Real time Member-only web access with valuable information and links to industry indicators dashboard l Special reports on the heavy duty market by members of the financial community

l Industry experts providing market information business updates to the membership

Industry change agent - HDMA is a recognized change agent, hav-ing played an instrumental role in many industry initiatives, such as the formation of HDAW, influencing anti-counterfeiting law, the rewrite of FMVSS 121, and many other industry initiatives.

HDMA member and association executives regularly contribute quotes and guest columns for publications and the media. HDMA executives are available to present and speak at various HD industry conferences and events.

Industry Peer Business CouncilsHeavy Duty Brake Manufacturers Council (HDBMC) is com-prised of senior technical executives of member companies in the heavy duty brake components and braking systems market. Mem-bership in HDBMC is restricted to just those companies directly involved in OEM design and manufacturing of brake components and systems. Memberships are for the individual member company and are limited to a primary representative and a back-up delegate for council proceedings. This important council works toward the standardization of design envelopes for components, safety-related design issues, interaction with government regulatory agencies, as well as additional related items in common with SAE, TMC and TMA such as numbering systems and recommended practices. This council has a very strong interface with the MEMA Government Affairs office in Washington, D.C. and contributes frequently to offer industry insight in the instances of potential governmental regulations for this industry. All meetings of HDBMC are closed to non-council members.

Heavy Duty Business Forum (HDBF) is a group founded in 1978, and was the catalyst of the formation of Heavy Duty Manufacturers Association. The members are top executives of HDMA member companies and meet twice annually to discuss industry issues and challenges. Membership in HDBF is limited to 50 executives in the HD market, and individuals must be nominated for membership by three current members and elected by a simple majority of the Business Forum members. The Forum charter mandates the HDBF functions only as a platform for discussion, with no action taken on behalf of its members. Meetings are closed to non-members and anti-trust counsel attends all meetings and activities. There is cur-rently a waiting list for membership in this council.

Heavy Duty Marketing and Sales Forum (HDMSF) is a newly formed council comprised of sales and marketing executives of mem-ber companies with a primary emphasis on the OEM market. This council is designed to drive the direction and content of HDMA market research publications as well as to discuss industry trends and forecasts. HDMSF holds two meetings annually, and members par-ticipate in conference calls and webcasts as necessary to determine various survey details and results. Meetings of HDMSF are closed to non-council members.

The Intelligent Vehicle Electronics Technology Council, or 4TEC is also a newly formed technical council comprised of engineering executives from HDMA member companies. This council focuses on the needs of heavy duty electrical and electronics manufacturers

Heavy Duty Manufacturers Association

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regarding government representation and industry testing standards design compatibility issues. The main goal of 4TEC is to provide in-put to the various regulatory agencies regarding rule-making and to collectively serve as a technical resource to each other and govern-ment agencies when required.

Transportation Safety Equipment Institute (TSEI) is an inde-pendent association under HDMA and serves the needs of manu-facturers of OEM and aftermarket motor-vehicle safety devices and associated equipment. It provides government representation and market research services, monitors proposed and enacted legislation and regulations, and serves as a technical forum to resolve indus-try problems. This council also has extensive interaction with the MEMA Government Affairs Office and meets as often as necessary, or when potential legislation requires input by the council. TSEI meetings are closed to non-members.

The MEMA Human Resources Council (HRC) provides a forum for senior human resource executives to identify and address strate-gic issues, share best practices, recommend solutions and promote the welfare of the supplier industry by supporting the effective im-plementation of human resources practices. Eligibility is determined by the council board of governors based on the perceived ability of prospective members to participate and contribute in council discus-sions and activities. As a peer group comprised of senior human resources executives, industry and professional experience are im-portant determinants used by the board of governors in considering potential members. The council meets quarterly at member-selected times and locations. Meetings follow an agenda and feature a round table format to discuss previously identified issues. Council members discuss topics and exchange opinions and ideas resulting in either a resolution of the issue or a plan for investigation and analysis.

MEMA Brand Protection Council (BPC) is a membership peer-council of executives responsible for brand and intellectual property rights protection within their company. The Council focuses on best practices, solutions and information on counterfeit parts, black- and gray-marketed products and intellectual property issues.

MEMA Information Services Council (MIS Council) is a peer group of individuals from MEMA member companies who are responsible for their companies’ IS operations and serves as a forum for industry interaction, education and idea exchange.

MEMA Government Affairs Council is an HDMA board appoint-ed group of top executives that meet during HDMA board meet-ings and via conference calls. The group meets regularly to discuss potential and current priorities related to the heavy duty industry regulatory issue focus of the MEMA Government Affairs office.

MEMA Regulatory Affairs Council is an HDMA board appointed group of top executives that meet during HDMA board meetings and via conference calls. The group meets regularly to discuss potential and current priorities related to the heavy duty industry regulatory issue focus of the MEMA Regulatory Affairs office.

MEMA Financial Services Group (MFSG) provides member credit and financial executives with accurate, timely information relating to a customer’s trade payments and a detailed analysis of their opera-tions. MFSG has a staff of seasoned analysts who can communicate

the individual status of a specific customer or discuss industry condi-tions and trends. This information, along with the credit executive’s independent investigation, enables the company to make a more informed, educated credit decision. Trade clearances, credit reports and important news bulletins are provided to our subscribers, which range in size from the giants of the industry to the smaller manufac-turers serving niche markets. This service is available for one low annual fee and is accessible by traditional methods and through the internet.

Trade Shows and Special EventsHDMA is an owner and organizer of Heavy Duty Aftermarket Week, the premier heavy duty business conference for executives from the aftermarket supplier and distributor business segments. Held over 3 day period, the conference focuses on a planned educa-tion track, one-on-one meetings between suppliers and distributors, the HDAW Product Expo and many opportunities to build industry relationships at breakfasts, breaks, lunches and private receptions. The event culminates in an award luncheon with recognition of excellence for distributors and suppliers within the heavy duty industry. Considered by the entire industry as the main heavy duty aftermarket event to attend, HDAW is the only forum that brings the heavy duty distributor and supplier open and frank business discussion. HDMA membership benefit includes a 35% exhibitor discount for members

Heavy Duty Dialogue is a yearly conference positioned as a member and prospective member meeting. Content is developed to provide cutting edge information on industry and market trends, forecasts, presentations on strategy by industry leading executives and other experts. HD Dialogue is considered to be the premier business con-ference of the year in the commercial vehicle supplier industry. The exceptional content of the program is provided through the guid-ance of the HDMA board of directors and its executive committee, who plan the content for the program. The program begins with a 7 AM breakfast and concludes with an all-industry reception, begin-ning at 5:30 PM; luncheon and breaks are included.

HDMA Annual Breakfast & Briefing at Mid-American Truck-ing Show is a highly popular event that attracts a diverse audience of supplier, media and truck manufacturer executives and other personnel and is considered a “must-do” event at the Mid-American Trucking Show. Membership in HDMA allows members preferred seating at this event which attracts over 700 attendees yearly.

The MEMA Legislative Summit is an annual event open for HDMA members, with typically over 100 industry leaders partici-pating in this very popular member benefit. The program includes a keynote speaker who represents the interests of members within gov-ernment, a panel discussion of government relations best practices, as well as the ever popular Congressional reception and supplier fair, which typically has over 250 Congressmen, Senators and staff attending. The culmination of the event is pre-set appointments in both senate and congress offices, promoting industry issues such as patent reform, counterfeiting and trade issues, tax incentives for heavy duty vehicles and continued funding for advanced technology programs. Invitations are extended during these visits for the rep-resentatives to tour the companies’ manufacturing facilities, which continue the opportunity to build relationships and increase the exposure of our member companies to their elected leaders.

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Special savings on services, research, trade shows and events l 35% discounts on exhibit booth space at Heavy Duty Aftermarket Week l 20% discount on MEMA Financial Services credit reporting program l 15-20% discount on exhibit space at Automechanika shows worldwide l Reduced divisional membership rates for the Automotive Aftermarket Suppliers Association and Original Equipment Suppliers Association l Member discount on MEMA Financial Services Group

Representation by MEMA in Washington, DC l Only trade association office that exclusively represents the suppliers interests in Washington l Staffed and led by industry veterans from the heavy duty industry with a staff of highly qualified industry legislative and regulatory experts with experience in policy making l Government Affairs Committee (GAC) – a group of 35 member companies that work to define our industry focus and is open to all HDMA members l Legislation monitoring and advocacy l Regulatory watchdog and advocacy l Heavy Duty industry voice/representation on critical and/or sensitive issues l Annual Legislative Summit- Meet face-to-face with your Senator and Congressman in their Washington offices during our annual Summit and discuss the important issues facing your company & business environment

l Access to StateLink – State legislative monitoring web site, subscription value of over $30,000 (free access to HDMA members) l Utilization of the MEMA DC office typically saves HDMA member firms $30-100K on average per year in lobby firm fees and expenses

Government Issues covered by HDMA include: l Energy Policy (fuel efficiency/climate change/clean diesel engine standards) u Suppliers role in energy policy u Role of technologies to improve fuel economy and greenhouse gas emission u Need for one regulatory framework

l Highway Bill u Heavy Duty Tax Incentives u Aftermarket State Inspections u Other vehicle safety initiatives

l Coalitions – of key importance to suppliers u Research and development tax credit

l Level Playing field in Global Environment u Patent reform u Brand protection/Anti-Counterfeiting u WP29 Representation

l Stopping Distance Rule for Heavy Duty Trucks l Commercial Vehicle Safety Technology l Heavy Duty Diesel Rule l Right to Repair l CSA 2010

Heavy Duty Manufacturers Association

board of Governors – officers Dennis Michels – ChairmanPresident, CEOLink Manufacturing

Terrence Keating – 1st Vice ChairmanChairmanAccuride

Jack Shaffer – 2nd Vice ChairmanPresident, COOBergstrom

Joseph McAleese – Immediate Past ChairmanPresident, CEOBendix CVS

Timothy KrausPresident, COOHeavy Duty Manufacturers Association

Robert McKennaPresident, CEOMotor & Equipment Manufacturers Association

Wendy EarpVice President, Secretary, and CFOMotor & Equipment Manufacturers Association

Vicky BlackPresident, CEO Fabory North America

Pat CavanaughPresidentWilliams Controls

John CollVice President, Sales, Vehicle Solutions Eaton Corporation

Pedro FerroPresidentMarmon CV Undercarriage

Tim MeyerVice President, General ManagerAlcoa CV Wheel

Tim MusgravePresident, CEO Pressure Systems International

Edward OeltjenPresidentConsolidated Metco

Ron ParkerPresident, CEO, ChairmanMGM Brakes

Bob PhillipsPresident, CEOPhillips Industries

Joseph PlominVice President, Truck GroupArvinMeritor

Gary SmalleyPresident, CEODayton Parts LLC

Jim WojciehowskiVice President, General Manager of Marketing, Sales and ServiceDana Commercial Vehicle Products Group

board of Governors

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hdma Contact informationTimothy KrausPresident, Chief Operating [email protected]

Robert McKennaPresident, CEOMotor & Equipment Manufacturers [email protected]

Mark IasielloVice President, Member [email protected]

Jennifer HjalmquistDirector, Marketing & Member [email protected]

Wayne FulfordMember Services [email protected]

Tom HibbardCreative [email protected]

Zoltan BorsodiWeb Support [email protected]

hdma Government affairsAnn WilsonSenior Vice President, Government [email protected]

Leigh MarinoDirector, Federal and State Regulatory [email protected]

Nelson GarciaDirector, Federal and State [email protected]

hdma researchFrank HampshireSenior Director, [email protected]

Richard AndersonSenior Research [email protected]

mema financial services GroupDan PikeMEMA Financial Services Group (MFSG)[email protected]

hdma event ContactsHeavy Duty DialogueJennifer [email protected]

Heavy Duty Aftermarket WeekJennifer [email protected]

Breakfast & BriefingJennifer [email protected]

Washington Legislative SummitAnn [email protected]

PAACE Automechanika MexicoAnthony [email protected]

Expo TransporteEugenio Carillio52-55-5545-4488, ext. [email protected]

AASA Vision ConferenceChris [email protected]

Aftermarket eForumChris [email protected]

Automotive Aftermarket Products Expo (AAPEX)Chris [email protected]

hdma Council ContactsHeavy Duty Business Forum Tim [email protected]

Heavy Duty Brake Manufacturers CouncilMark [email protected]

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Heavy Duty Marketing and Sales ForumMark [email protected]

IVTECMark [email protected]

Brand Protection CouncilJack [email protected]

China Aftermarket Forum (CAF)Chris [email protected]

Credit Reporting GroupsDan [email protected]

Filter Manufacturers CouncilJeremy [email protected]

Human Resources Council (HRC)Jo Anne [email protected]

MEMA Financial Services GroupDan [email protected]

MEMA Information Services Council (MIS Council)Chris [email protected]

Motor Vehicle Lighting CouncilJeremy [email protected]

Overseas Automotive Council (OAC)Anthony [email protected]

Transportation Safety Equipment Institute (TSEI)Jeremy [email protected]

hdma servicesCollection ServicesCentral Mercantile Collection ServiceA licensed agency of MFSG800-223-6259Fax: 810-229-5540

ExecutiveTimothy [email protected]

Filter Recycling Hotline & DatabaseJeremy [email protected]

International Trade ShowsAnthony [email protected]

Media and Public RelationsJennifer [email protected]

MembershipMark [email protected]

Market ResearchFrank [email protected]

Publication OrdersWayne [email protected]

IT Related IssuesChris [email protected]

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The 2009 Global Commercial Vehicle ReportIntroductionThe Heavy Duty Manufacturers Association is proud to present this biannual report to our members. It reflects the long term commit-ment to the aftermarket series, while it continues to grow in scope to include information beyond previous editions including heavy duty original equipment. We have again expanded the publication to include more economic and international information while main-taining the continuity of the fleet maintenance section of the report. Additions to the report that were introduced in the last edition are again included; specifically, the survey of heavy duty distributors in the U.S. that explores aspects of the supply chain relationships with-in the heavy duty aftermarket, international trade in motor vehicle parts and exports of used trucks. The Global Commercial Vehicle Report includes our previous study, Heavy Duty Truck Maintenance in the USA, first published in 1978 and is the longest running study of the heavy duty aftermarket in the industry.

The 2009 edition of The Global Commercial Vehicle Report was designed to be a reliable tool for the analysis of heavy duty truck user repair factors, heavy duty truck use, changes in buying patterns, and service work performance. New sections include a global transporta-tion overview, special sections on China, Russia, India and Brazil, the world commercial vehicle populations and an expanded section on operating factors such as fuel efficiency and environmental im-pact. As in the previous reports, this volume contains estimates of the total heavy duty truck universe and market segments for heavy duty trucks with a gross vehicle weight (GVW) greater than 19,501 pounds (Classes 6,7, and 8).

The Heavy Duty Manufacturers Association is the heavy duty market segment association within the Motor & Equipment Manu-facturers Association. Funding for the publication of this report is provided by the Educational & Research Foundation of MEMA, Inc.

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Executive SummaryThe core of this report is the primary research examining truck maintenance practices in the United States. This study represents all heavy-duty class 6 through 8 trucks that are operated and main-tained by private sector businesses in the United States that were built for on highway use, including those used off-road or otherwise not registered for use on the road. Consequently, the total number of trucks and truck tractors covered by this study is greater than the population considered when the basis is vehicle registrations. The trucks represented in this study will generate annual maintenance costs totaling approximately $48.9 billion in 2008. This study excludes busses, equipment (stationary and mobile), and all govern-ment vehicles. Consequently, actual heavy-duty maintenance expenditures in the U.S. will easily exceed this figure.

These businesses represent the majority of the heavy-duty market for maintenance products, and almost all of the domestic market for new vehicles. EPA regulations on diesel fuel and emissions produced by new trucks have confounded the timing of new truck purchases for most of this decade. By pulling forward the sales of vehicles,that under normal conditions would have been purchased at a later time, the cycle of purchase and replacement has been com-pletely disrupted. With additional regulations around the corner, fuel price and availability problems, an economic turndown with global ramifications and the almost total uncertainty surrounding the future of our financial markets, trucking and transportation in the U.S. will be unsettled well into the next decade.

businesses planning to buy or lease new Trucks Average Number Percent of Trucks

Private Fleets 12.9% 103.2Commercial Fleets 7.1% 44.2Owner/operators 2.9% 7.5

Commercial Vehicles in operation

Jun-07 Jun-08 Change

Class 5 593 621 4.7%Class 6 1,554 1,562 0.5%Class 7 1,628 1,643 0.9%Class 8 3,581 3,608 0.8%Total Cl. 6-8 6,763 6,813 0.7%

businesses with Trucks on order

Commercial Vehicles in operation

Source: R. L. Polk & Co.

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Heavy Duty Universe EstimatesThe determination of the overall size and structure of the market is the starting point for any marketing plan or situation analysis. This is no different for the heavy duty aftermarket, and the estimates in this section of the report serve as a framework for using the results in the planning process of HDMA member companies. The descrip-tive data in the report can be used to explore the service practices of heavy duty vehicle maintainers. With these estimates a targeted market segment can be examined and benchmarks established.

All estimates are for private sector class 6 through 8 trucks in opera-tion and exclude all other vehicles and equipment as explained in the methodology section.

Agriculture, Forestry, Mining and Oil Field OperationsVehicles in this segment are not always registered for on highway use. They are primarily local use trucks and are frequently operated in moderately severe and extremely rugged environments. As a result, mileage is not the primary determinant of vehicle life. As much of their use may be entirely off-road, older vehicles are accept-able and sometimes preferred. Vehicles in this segment are generally operated until they are beyond economical repair.

Percent of Registrations ................................................... 11.5%Average Yearly Miles .................................................... 100,395Vehicle Population ......................................................... 414,920Total Maintenance (millions) ............................................ $1,875

ConstructionHeavy duty trucks in this segment are generally operated on public roadways, but work in harsh environments over rough terrain as well. The vehicles accumulate fewer annual miles than highway fleets, but maintenance is intensive due to the harsh conditions combined with the need to maintain them in a condition acceptable for on-highway use.

Percent of Registrations ................................................... 10.9%Average Yearly Miles ...................................................... 81,450Vehicle Population ........................................................ 393,272 Total Maintenance (millions) .......................................... $15,343

Production and DistributionThese are private fleets operated by manufacturers and distribu-tors and are used, and seen, on highways across the country. They accumulate fewer miles than commercial carriers, and the relatively clean operating environment helps them minimize maintenance costs. These trucks are highly visible and identifiable to the public while on the highway, consequently these fleets are less likely to use older poorly maintained vehicles.

Percent of Registrations ................................................... 23.7%Average Yearly Miles ...................................................... 65,010Vehicle Population ........................................................ 855,096 Total Maintenance (millions) ............................................ $7,727

heavy duty Universe

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Highway TransportationThis segment includes commercial carriers and owner/operators and is the primary mover of goods in the country. Although per-mile maintenance is much less than any of the other groups, their annual mileage is much higher. Bankruptcies and overall economic condi-tions have reduced the vehicles, while those vehicles remaining in use are driven more miles.

Percent of Registrations ................................................... 46.3%Average Yearly Miles .................................................... 106,766Vehicle Population ..................................................... 1,670,504 Total Maintenance (millions) .......................................... $20,635

OtherWithin this segment are utility and service industry fleets along with a small group of rental and other business types. Many of these

vehicles are unique and visible to the public. Annual mileage, despite the local service of most of these vehicles, is up consider-ably over last year, perhaps due to major winter storms. Their share of maintenance remains in line with their share of the heavy duty vehicle population.

Percent of Registrations ..................................................... 7.6%Average Yearly Miles ...................................................... 90,429Vehicle Population ........................................................ 274,208 Total Maintenance (millions) ............................................ $3,323

These industry groups maintain more than 3.6 million Class 6, 7, and 8 trucks at an estimated expense of $48.9 billion for service parts and labor. For the remainder of this document both the com-mercial carrier and owner/operator components of the Highway Transportation classification will be separate, while the remaining groups will be combined to form a single private fleet grouping.

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Economic SituationThe U.S. economy, made weaker by a global slowdown, has been struggling ever since the housing problems and mortgage crisis hit home in 2007. However, the fundamentals do not present a dire picture of continued contraction and, boosted by the federal stimu-lus payments, the economy managed to grow at a 3.3 percent annual rate last quarter. We should be able to avoid the worst scenarios, and rather than hitting a sharp drop-off, the economy will slip into long period of sluggish growth. Furthermore, having entered into what has become a global slowdown before the rest of the world saw it coming, the U.S. will be in a better position to expand when other countries are just beginning to emerge. The actions of the government and the results of the Presidential election will have a greater impact on the economy than in any time in recent history. The sources and uses of a bailout that could approach a trillion dol-lars will create uncertainty and confusion. One potential bright spot is the present sentiment towards energy independence and carbon reduction could result in investment in new energy technologies, construction of more and cleaner power generation and the acceler-ated development of highly efficient vehicles. With foresight all can provide growth opportunities for U.S. manufacturers.

Real gross domestic product (GDP) growth in the United States dipped slightly from 2006 to 2007, falling from 2.9 percent to 2.2 percent. The economic slowdown currently occurring in the U.S. is forecast to continue into 2009 when real GDP is expected to grow by just 1.9 percent. It is anticipated that the economy will regain some strength late in 2009, but any expansion will be sluggish at best.

Growth in business investment fell to 4.7 percent in 2007, the low-est growth rate recorded since 2003 when it reached 3.3 percent. At the same time, construction of non-residential projects exploded 13.0 percent in 2007, up from a growth rate of 8.4 percent in 2006 and representing the fourth straight year of positive growth. However, the effects of a slowing economy are likely delayed in this sector as forecasts indicate the possibility of negative growth rates in the coming two years.

Escalation of consumer expenditures is also slowing, falling to 2.9 percent in 2007 and 1.3 percent for 2008’s forecast. Growth in durable goods purchases increased 0.9 points to 4.7 percent in 2007, but as with construction, delayed effects are expected with 2008 and 2009 projected growth rates of -1.0 and 1.2 percent respectively.

U.S. exports confirmed another year of strong growth in 2007, rising 8.1 percent. They are expected to continue to show promis-ing growth over the next two years. At the same time, increases in imports fell 4.0 points to 1.9 percent in 2007 and are expected to slip further in 2008. As a result, the U.S. trade deficit has fallen to $739 billion, and is forecast to continue to do so, reaching $610 billion in 2009.

The unemployment rate bottomed out at 4.6 percent through 2006 and 2007 after consecutive years of decline since reaching 6.0 percent in 2003. It is forecast to rise to 6 percent in 2008 and even higher in 2009.

real* Gdp Growth

Source: World Bank* GDP in 2000 constant dollarsF = forecast

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2006 2007 2008 2009

actual actual forecast forecast

production (% change)

Real GDP (Chain - weighted) 2.9 2.2 1.1 1.9

Final Domestic Demand 2.7 1.8 0.5 1.6

Personal Consumption Expenditures 3.1 2.9 1.3 2.0

Durable goods 3.8 4.7 -1.0 1.2

Nondurable goods 3.6 2.4 0.9 2.1

Services 2.7 2.8 2.0 2.2

Business Investment 6.6 4.7 1.7 0.3

Non-residential construction 8.4 13.0 1.8 -4.7

Equipment and software 5.9 1.3 1.2 1.8

Exports 8.4 8.1 7.0 5.3

Imports 5.9 1.9 0.8 3.4

financial (average for year)

90 Day T - Bill Rate 4.85 4.47 1.50 1.95

Bank Prime Rate 5.02 5.00 2.04 2.33

Long Bond Yield 4.79 4.63 3.60 3.98

foreign Trade

Current account Balance (billions of dollars) -811 -739 -650 -610

Exchange rate (Yen/US$) 116 118 103 107

Exchange rate (US$/Euro) 1.26 1.37 1.54 1.42

incomes (billions of dollars)

Pre-tax Profits with IVA and CCA 1554 1595* 1552 1551

After-tax Profits with IVA and CCA 1100 1129* 1085 1090

other indicators

Unemployment Rate (%) 4.6 4.6 6.1 5.9

Motor Vehicle Sales (millions) 16.5 16.1 15.1 15.6

Industrial Production 2.2 1.7 0.5 2.5

U.S. Major Economic Indicators

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Trucking Operators SurveyFleet Composition

In this section, purchasing and maintenance practices for three types of trucking operations are examined. The composition of the fleet and the average size of operations are the primary demographics necessary for understanding the magnitude of scope for maintenance activities.

The number of vehicles varies most significantly between fleet and owner/operators. The average number of class 6, 7, and 8 trucks in all operations in this survey was 168.5 vehicles. The average fleet maintains 243 heavy duty trucks, significantly more than owner/operators who average 19.6 trucks per business.

Single truck operations accounted for 63% of the owner/operators, while 21% operate 2 or 3 trucks and only 16% operate more than 3 trucks. Operations of the largest owner/operator businesses, those operating 10 or more vehicles, are indistinguishable in terms of maintenance practices from small fleets.

Small fleets, those with 25 or fewer vehicles, made up 25% of the combined fleet group, and another 25% of the fleets operate more than 150 vehicles. Small private fleets (10 and fewer vehicles) make up 28% of the fleet sample while 36.2% of the private fleets reported more than 100 trucks. Commercial fleets tend to be quite large with 24.5% operating more than 100 class 6 through 8 trucks and 8.5% of the total were over 500 vehicle fleets

number of Vehicles

number of Vehicles

owner/operator

all fleets

private fleets

Commercial Carriers

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Fleet managers have numerous other pieces of motorized equipment that must be maintained in addition to the road vehicles noted above. This is the third year we have asked the maintenance survey respondents to provide estimates of the total number of pieces of motorized equipment they are responsible for maintaining. In addition, we have again asked for the total number of heavy duty trailers in the fleet. These two variables, depending on your product lines, can shape the way you may target the different fleet types. For example, fleets with trailers are important to manufacturers of tires and suspension, and all motorized equipment, including stationary equipment, requires periodic engine maintenance, and fleets with high equipment counts would be important to filter or fuel system manufacturers.

Total pieces of motorized equipment maintained

Total heavy duty Trailers maintained

We have asked for the average per-mile maintenance expense for the Class-8 trucks that the survey respondents maintain. This is to get a better grasp of the value of the different heavy duty aftermarket segments, as well as to provide another useful demographic measure. Shown graphically below, it is apparent that the owner operator is not able to garner the economies of scale that are available to larger operations. However, construction fleets report the highest per mile costs due to their need to maintain road ready vehicles in an environment that may be nearly as extreme as some mining opera-tions. Other private fleet types include utility fleets that may have complex external components and generally make shorter trips than transportation fleets. Both factors increase their average per-mile maintenance expense.

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Owner Operator $0.18

Commercial Carrier $0.15

Private Fleet $0.17

Ag., Mining, Forestry, Oil Field. $0.18

Production and Distribution of Goods $0.14

Construction $0.27

Other $0.20

average per-mile maintenance expense

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Fleet Demographics and Purchase IntentRecent economic events and changes in EPA regulations have directly influenced new vehicle purchases well beyond the changes due to normal factors that define the market’s development. Truck and trailer purchase activity is the force that changes the nature of the vehicle population as it relates to trucking operations in this study. Other factors including diesel availability, high fuel prices and credit availability have shaped the near term purchase plans of the survey respondents participating in this study.

operations With Trucks on order Owner Operator 2.9%

For Hire Fleet 7.1%

Private Fleet 12.9%

number of new Trucks on order Owner Operator 7.5

For Hire Fleet 44.2

Private Fleet 103.2

planned purchase Trucks in the next year

Owner Operator 3.7%

For Hire Fleet 10.5%

Private Fleet 19.5%

number of Trailers plan to purchase in next year

Owner Operator 15.0

For Hire Fleet 43.4

Private Fleet 3.1

Geographical range of operation Local Regional Long Haul

Owner-Operators 50.0% 30.0% 20.0%

For Hire/Common Carrier 27.1% 37.1% 35.7%

Private Fleet 61.4% 32.9% 5.7%

Agriculture, Mining,

Oil-field. Forestry 61.9% 33.3% 4.8%

Production and

Distribution of Goods 47.1% 41.2% 11.8%

Construction 70.0% 30.0% 0.0%

Utility and All Other 66.7% 25.0% 8.3%

All Fleet Types Combined 46.2% 33.3% 20.5%

Half of owner/operators and nearly three-fourths of commercial car-riers are primarily regional or long haul operations. In addition, the majority of these transportation companies are truckload operations. Private fleets tend to be local or regional operations (94.3%) with a single load source and a set of destinations that are determined by the company so they are not as likely to characterize themselves as less-than-truckload fleets. Consequently, each fleet type will require different types of trucks with different accessories and power options.

logistical range of operation Truckload Less than Truckload

Owner-Operators 85.7% 14.3%

For Hire/Common Carrier 71.4% 28.6%

Private Fleet 77.1% 22.9%


Oil-field. Forestry 85.7% 14.3%

Production and

Distribution of Goods 64.7% 35.3%

Construction 70.0% 30.0%

Utility and All Other 91.7% 8.3%

All Fleet Types Combined 78.1% 21.9%

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Average Heavy Duty Vehicle Life Expected changes in the 2010 model year vehicles compound dis-ruption in the long-term trend for heavy duty vehicles precipitated by the changes in the 2007 model year vehicles. This trend, brought about by increasing component durability, has been for heavy duty vehicles to accumulate more miles over the course of their useful life. The average life of a fleet truck can vary considerably depend-ing on freight movement and the impact that external factors such as the pre-buy. Vehicle life, in total miles, had been trending up-wards at an annual rate of more than 25,000 miles a year. However, the influx of new vehicles caused by the pre-buy, and the reduction in the used vehicle population as the value of the dollar accelerates exports of used trucks, has lowered the average life from 1,100,000 miles in 2004, and 809,922 total miles in 2006, to 697,200 miles in 2008.

Current capacity utilization has also impacted vehicle life, and fleets reported an average vehicle life expectancy of 10 years in 2008, up considerably from 8.8 in 2006. Commercial carriers are expecting to keep their trucks an average of 8.9 years, and the private fleets in the survey reported that they intend to replace their trucks on average every 11.1 years. Owner/operators expected to keep their vehicles an average of 9.9 years, much longer than they did in 2002 when the life expectancy was 7.4 years.

Overall, the life expectancy of trucks in the sample was 10.0 years and 697,200 miles per vehicle, while truck utilization in the total combined sample averaged 97,504 miles per vehicle per year.

average Vehicle Use in miles per yearaverage years of Vehicle life

average Vehicle lifespan in miles

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Brand Versus Supplier Loyalty Measuring brand loyalty is generally an important marketing func-tion aimed at an attempt to determine the brand equity of a specific product or product line. Here we are attempting to measure the overall power of brands with respect to the heavy duty aftermarket. In the fleet maintenance survey we asked those responsible for heavy duty vehicle maintenance what they do when their desired brand for a replacement part is not available. Together, brand preference and supplier loyalty primarily compete in the decision process with the costs associated with equipment downtime. With the known and unknown costs associated with an out of service vehicle, both brand preference and supplier loyalty should, in most cases, take a back seat to downtime. Those who would elect to “wait for the part” are either very loyal to both brand and supplier, have so much slack that down time is not a problem, or are not in a position to change brands or suppliers.

Construction fleets, especially when building is booming, were most sensitive to down time and most brand loyal. For them, downtime costs can mount up rapidly as downstream tasks are delayed by any bottleneck. Owner operators are either more loyal to their supplier, or are unable to change suppliers easily.

Owner-Operators 35.7% 32.9% 31.4%

For Hire/Common Carrier 38.6% 35.7% 25.7%

Private Fleet 40.0% 38.6% 21.4%


Oil-field. Forestry 38.1% 33.3% 28.6%

Production and

Distribution of Goods 52.9% 35.3% 11.8%

Construction 30.0% 45.0% 25.0%

Utility and All Other 41.7% 41.7% 16.7%

All Fleet Types Combined 38.1% 26.2% 35.7%

Get It Take The From A Next Available Different Wait For Fleet Type Brand Supplier The Part

Owner/operator 52% 48%

For Hire Fleet 52% 48%

Agriculture & Mining 53% 47%

Production &

Distribution of Goods 60% 40%

Construction 40% 60%

Other 50% 50%

More Loyal More Loyal Fleet Type To Brand To Supplier

As in previous editions, brand preference and vendor loyalty are examined by assuming those electing to wait are insensitive to downtime and removing them from consideration. Therefore, “go elsewhere” is a clear signal of brand importance while a response of “take another brand” is interpreted as the equivalent of “brand is less important than supplier.”

Brand loyalty is more likely to be the deciding factor in decision making than is the supplier when downtime is more important because it is associated with quality. Because manufacturers and re-tailers tend to have newer fleets than other industries, more vehicles and components are under warranty, and the fleet manager may feel that OE branded parts are required.

In this study, fleet managers of construction fleets are the least loyal to brands, perhaps this is directly related to the economic downturn that began in the housing industry and has hit construction harder than any other sector. However, even in these difficult times, brand is still important to construction fleets with 40% more loyal to brand than their supplier. Private fleets associated with the production and distribution of goods are the most loyal to brand and the remaining fleet types are about evenly split between preference for a particular brand and loyalty to the supplier.

When a desired part is not available

brand loyalty

brand vs. supplier loyalty

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Brand Specification of Replacement Components A preferred brand is generally perceived as having the highest quality, and if the brand happens to be somewhat higher priced, the premium paid can be viewed as providing downtime protection. The influence of brands in the heavy duty aftermarket is not the same as it is in the light duty aftermarket. A single negative (costly) experi-ence may permanently eliminate the brand from consideration, while even the preferred brand must continuously meet or exceed expectations or face elimination from the set of acceptable brands, so it follows that brand importance must not be underestimated. Despite the economy, high diesel prices, consolidation and cost cut-ting in many fleets, most fleet managers and owner operators have strong preferences for branded replacement parts.

The majority of fleets (57%) specify the brand of replacement parts, and are much more likely to select products by brand than owner/operators (47%). The for-hire commercial carrier reports selecting the brand name of an aftermarket product 61% of the time, and a brand is specified in only 51% of the private fleet purchases. When combined, 53% of all fleets and owner/operators in the survey specify some replacement parts by brand.

The importance of quality as a product attribute is obvious, but price and availability are also part of the decision process. When a truck maintainer specifies a particular brand the products quality may have been the primary motivating force, but price, warranty and avail-ability have already been included in the decision process. When capacity is constrained during periods of prosperity the importance of branded products increases exponentially. The growth in brand specification of aftermarket products, by both fleets and owner/op-erators, is a gauge of the degree that buyers equate brand and quality. These generalizations, and the average rate of brand specification, vary substantially by product category for fleets and owner/operators.

To remain profitable, fleet managers must focus intently on the bot-tom line and the occurrence of specific brand requests has begun to decline for both fleets and owner operators. Slower business during a downturn means fewer loads and when combined with the high price of diesel, it puts considerable pressure on the profitability fleets and owner/operators. In these conditions, the growing availability of imported replacement products, with tremendous price advan-tages, could potentially erode brand importance.

brand specification of replacement Components

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Outsourcing: OverviewAlthough we can now break out private fleets, and even their indus-try segments, we have combined them here so that the historical es-timates from previous studies can be used for comparison. This gives readers the ability to look at long-term trends for fleets and owner operators, and still view current results with the detail provided by having the fleet types broken out by industry.

Fleet outsourcing averages 19.1% of all service jobs, this is the new low for the series. Outsourcing by owner operators had rebounded in 2006 from the low point of 39.3% set in 2004, and although down slightly from the last measurement, the level of outsourcing was at 47.5% in 2008, still well above the all time low.

In this survey, 64.2% of the total sample do not outsource any work at all, and perform all repairs and preventive maintenance in their own shop. The level of outsourcing with respect to the overall mag-nitude of the service job is shown in the accompanying pie charts.

owner operator

all fleets

private fleet

for hire fleet

levels of outsourcing

levels of in-house service of those operations that do not outsource all Work

(PM = Preventive Maintenance)

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Where Outside Repair is Performed The selection of a service provider depends upon vehicle and com-ponent warranties, vehicle age, leasing vs. owning, vehicle complex-ity, distance from an in-house repair facility, and overall cost.

In the studies since 2002, truck dealerships have maintained the largest share of the outsourced service work and in 2008 were cited as the service provider by nearly 43% of vehicle maintainers in this study. General repair shops are the second most frequently chosen service provider with a 39.7% share of outsourced repair. Truck stops are still an important service outlet, with 17.8% of outsourced

repair although they have lost share from the average 20% share since 1999. Vehicles used in long haul operations are more likely to be in use beyond the service radius of their home bases and account for most of this sustained market share.

The choice of outside service provider also depends on the nature of the operation. Commercial carriers and some private fleets tend to have newer vehicles and are more likely to utilize the truck dealer than owner operators who are more likely to frequent general repair shops.

Where outside repair is performed

overall 1978 1984 1990 1994 1999 2002 2003 2004 2006 2008

Dealerships 54.9% 45.7% 45.1% 42.1% 37.8% 45.9% 41.5% 42.0% 40.7% 42.5%

Truck Stops 6.2% 6.2% 5.7% 11.3% 20.4% 10.4% 20.6% 23.6% 22.6% 17.8%

General Repair 38.9% 48.1% 49.2% 46.6% 41.8% 28.9% 37.8% 34.4% 36.7% 39.7%

Fleets 1978 1984 1990 1994 1999 2002 2003 2004 2006 2008

Dealerships 59.7% 45.8% 48.8% 43.1% 35.1% 50.4% 47.1% 44.4% 43.3% 44.5%

Truck Stops 6.5% 9.3% 4.1% 11.9% 22.5% 5.3% 17.9% 21.3% 23.1% 16.0%

General Repair 33.8% 44.9% 47.1% 44.9% 42.4% 25.0% 34.8% 34.3% 33.6% 39.6%

Owner operators 1978 1984 1990 1994 1999 2002 2003 2004 2006 2008

Dealerships 50.0% 45.7% 41.5% 40.3% 40.4% 40.5% 39.1% 39.6% 37.6% 38.5%

Truck Stops 6.0% 4.5% 7.4% 10.1% 18.4% 17.2% 21.9% 25.9% 22.1% 21.1%

General Repair 44.0% 49.8% 51.1% 49.6% 41.2% 33.7% 38.9% 34.5% 40.2% 40.4%

dealership shares of outside repair

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overall owner/operators

Commercial Carriers private fleets


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Trends In OutsourcingAnticipating change in the level of maintenance outsourcing is key to marketing strategy. Outsourcing practices have traditionally re-volved around the distance from the vehicle to the home operation and the cost differences between in-house maintenance and outside service providers, the age of the vehicle and the availability of parts and access to properly trained technicians. Warranties, vehicle manufacturer up-time programs, and maintenance agreements at the


outsourcing outsourcing no Change

Will increase Will decrease in outsourcing net Change

Owner Operator 21.4% 20.0% 58.6% 1.4%

For Hire 20.0% 18.6% 61.4% 1.4%

Private Fleet 20.0% 27.1% 52.9% -7.1%

Total 20.5% 21.9% 57.6% -1.4%

Ag., Mining, Forestry, Oil Field 19.0% 33.3% 47.6% -14.3%

Production and Distribution of Goods 11.8% 41.2% 47.1% -29.4%

Construction 35.0% 15.0% 50.0% 20.0%

Other 8.3% 16.7% 75.0% -8.4%

time of vehicle acquisition may dictate the actions the fleet manager or owner/operator.

When asked about expected changes in the levels of service out-sourcing over the next three years, only 20.5% of the owner opera-tors and fleet managers said outsourcing was expected to increase, while the majority (57.6%) anticipate no change in their level of outsourcing.

expected annual Change in outsourcing expected annual Change in outsourcing for private fleets

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In-House Repair CapabilityThe ability to carry out routine preventive maintenance, minor repairs, and most major repairs requires both the assets and the need for heavy duty operations to bring these tasks in-house. Fleets and owner/operators indicate that 68% of their in-house repair facilities are capable of major repair tasks and that 43.9% are only capable of minor repairs. Very few operations (6.9%) with repair capability do not carry out routine preventive maintenance while only 1% of the respondents doing any in-house maintenance report performing only preventative maintenance.

A fully equipped machine shop reflects the type of repair not ability to perform major repairs. Unlike last year, owner operators have the greatest likelihood (19%) of having a fully equipped machine shop while only 12% of the commercial carriers and 17% of the private fleets report that they have a fully equipped machine shop.

owner / operator

private fleet

Commercial Carriers

levels of in-house service of those operations that do not outsource all Work

operations With a fully equipped machine shop

Owner-Operators 34.3%

For Hire/Common Carrier 32.9%

Private Fleet 27.1%

Agriculture, Mining, Oil-field. Forestry 23.8%

Production and Distribution of Goods 23.5%

Construction 30.0%

Utility and All Other 33.3%

All Operations s Combined 31.4%

preventive pm through pm and minor repairs only major repair repairs no pm

Owner/operator 1.0% 30.3% 61.2% 7.5%

Commercial carriers 1.2% 71.9% 26.9% 0.0%

Private Fleet 0.6% 71.0% 27.7% 0.6%

All Operations Combined 1.0% 71.4% 27.3% 0.3%

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Parts InventoriesAlthough heavy duty parts inventories are not always large, parts in-ventories are maintained by almost all of the vehicle maintainers in the survey. A substantial number of owner/operators (68.6%) main-tain an inventory of less than $10,000, and only 2.8% report service parts inventories greater than $50,000. A larger segment of the

dollar Value of parts inventory

size of parts inventory less than $10,000 $10,000 to $50,000 $50,001 to $100,000 over $100,000

Owner/Operator 68.6% 28.6% 1.4% 1.4%

Commercial Carrier 51.4% 27.1% 14.3% 7.1%

Private Fleet 44.3% 35.7% 7.1% 12.9%

private fleets (20.0%) are likely to have more than $50,000 invested in parts while 21.4% of the commercial carriers have inventories valued at that level. The largest fleets, in terms of parts inventory, maintain inventory levels in excess of $100,000 and consisted of 21.4% of the survey population.

dollar Value of parts inventory

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Heavy Duty Distributor SurveyIn the HDMA 2008 survey of heavy duty distributors, 69% were members of a marketing/buying group. However, only 12% of the members of marketing/buying groups purchase exclusively through the group. Of the distributors in the survey, 96% sell directly to municipal fleets and 91% provide remote jobsite deliveries or and services. In 2008, 35% of the distributors report that they purchase products directly from off-shore sources, up from 31% in 2006.

The distributors have increased their level of information sophistica-tion, and in 2008 28% reported using business intelligence or data mining software, this is up from 24% in 2006. Also, 38% (20% in 2006) report that they are involved with vendor managed inventory with their suppliers.

We asked heavy duty distributors again in 2008 about the single most important challenge facing the industry. The distributors provided numerous comments about specific issues. An example of the nature of the comments is: “making sure we on top of changing technology, and training our personnel for tomorrow’s challenges!” When the replies were grouped into broader topics, rising costs topped the list of things that “keep them up at night.” When rising costs and fallout from the economic downturn are combined, it becomes apparent that 42% of the troublesome issues are related to economic conditions.

We also repeated the question about the future of the heavy-duty parts and service business, and how it is expected to evolve in the next five to ten years. When the replies are grouped into categories, by far the most frequent assessment was for increased consolidation,

As anticipated, the most important benefit given for being a member of a marketing group was price and buying power. After price, access to national fleet customers and suppliers tied with general business support.

What kept you up at night in 2006

What kept you up at night in 2008

reflecting the level of uncertainty about most other factors in store for the industry. In t 2006, the most frequently mentioned expecta-tion was for a period of constant, but modest, growth over the next five to ten years.

evolution of the heavy-duty aftermarket as seen in 2006

evolution of the heavy-duty aftermarket as seen in 2008

most important benefit of membership in a marketing group

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distributor demographicsThe vast majority (91%) of the distributor companies in the survey provide remote jobsite deliveries or other services, but nearly one-third (32%) do not offer any shop services, not even machine shop services. Most of the distributors (64%) have a market area that ex-tends beyond their state border, and more than three-fourths (77%) operate from more than one location. Almost all (96%) of the distributors in the survey have customers who operate fleets of ten or more heavy duty vehicles, and an equal proportion have municipal fleets as customers.

The following tables present the demographic details of the heavy duty distributors who participated in the survey. They will be helpful in the decision to generalize from the survey data, but should not be interpreted as descriptive of the total population of heavy duty distributors.

distributor’s market area

Multi-state 55%

Statewide 23%

County or City wide 11%

National 9%

Local 4%

Vehicle and shop services are offered

Have service bay and perform

most maintenance and repairs 49%

Machine shop 34%

None 32%

Minor installations 13%

share of customers that are fleets of ten or more heavy duty vehicles

Less than half 36%

More than half 34%

Half 15%

All or almost all 11%

None 4%

number of locations distributor’s company operates

2 to 5 locations 34%

Single location 23%

6 to 10 locations 23%

More than 10 locations 19%

marketing/buying group affiliation

Vipar 41%

Heavy Duty America 35%

Truck Pride 14%

Power Heavy Duty 6%

Other, please specify 5%

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Heavy Duty Distributor-Supplier Relationship

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With the downturn in the economy and its impact on prices and growing competition, the relationship between the heavy duty sup-plier and the distributor is growing in importance. When faced with increasing prices, distributors who trust that the supplier is attempt-ing to cover increasing input costs will be more understanding, while those who do not may look elsewhere (offshore) for lower prices. The relationship between the distributor and the supplier is key as it relates to price/cost issues. Decisions on sourcing are greatly affected by a suppliers’ ability to justify price increases. With 84% of the chosen descriptors being positive, the results clearly show that most distributors feel that they have a good relationship with their suppliers.

distributor view of the relationship with suppliers.

Partner 50%

Adversary 2%

Necessary evil 7%

Supportive 21%

Part of the problem 4%

Collaborator 5%

No relationship 4%

Helping 4%

Part of the family 4%

distributors’ relationship with suppliers

information needs and Topics of interestHeavy duty distributors were asked about their needs for specific information or business assistance that could help them in their day-to-day operations. The scores are scaled to show any item below 50% has a below average level of interest, and the item with the maximum posible level of interest would score 100%.

importance of education and Training TopicsEducational resources ...................................................................83%

Best business practices .................................................................80%

Electronic Data Interchange (EDI) .............................................74%

Inside and outside sales training ..................................................73%

Technical and product training ...................................................69%

Credit reporting and financial rating services .............................64%

Business liability exposure ...........................................................60%

Detecting and reporting counterfeit parts ...................................56%

Barcodes and RFID ......................................................................54%

Compliance with local, state and federal laws ............................50%

important operational issues and information needs

Suppliers national warranties ......................................................80%

Key employee succession planning ..............................................79%

Inventory management ................................................................75%

Insurance, pension, worker’s comp and other benefit issues. ......73%

Obtaining the OE diagnostic information

required to service newer heavy duty vehicles. ...........................73%

Lean operations ............................................................................72%

Recruitment and retention ..........................................................72%

State safety and emissions inspection

programs for commercial vehicles. ..............................................71%

Federal Motor Vehicle Safety Standards (FMVSS) ....................66%

Industry wide standards for e-commerce .....................................66%

Promoting repair, safety, or decreased

emissions of commercial vehicles. ...............................................64%

specific areas Where assistance is neededSupplier help in finding new customers .......................................77%

Help with Barcode and RFID ......................................................63%

Logistics integration .....................................................................61%

Supplier assistance with merchandising

and floor space optimization ........................................................60%

Help with inventory management ...............................................60% Pr

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Overview of Fuel Related Issuesfuel pricesOn-highway diesel fuel reached three dollars per gallon for the first time at the end of September 2007, the end of February 2008 saw the first national average of $3.50, mid April the first four dollar average, and the end of May, $4.50 per gallon. Although prices have begun to abate, they are still about twice as high as they were in the beginning of 2003.

The persistent increase in diesel prices that began in 2002 is not simply the result of inflationary pressures. The real price of diesel,

with the pump price adjusted for inflation, reached a high in June that was 160% above the price in January 2002. In November 2008, despite some easing, the inflation adjusted price was still double that of the January 2002 price.

Diesel consumption is a function of the volume of freight transport-ed on America’s highways and even with high diesel prices con-sumption has continued to grow. With the rapid deceleration in the economy consumption has declined, even while diesel prices abated.

U.s. diesel price and Consumption

fuel TaxesDiesel is the dominant fuel for heavy duty trucks, having almost complete market dominance. There are emerging but limited alternative fuels in use, such as CNG, LNG and propane. These are concentrated in special purpose applications such as city buses and refuse fleets. Taxes on diesel are, therefore, a tax on all portions of all industries that contribute to the production, maintenance and operation of heavy duty vehicles.

Diesel taxes become an operating expense that is passed onto consumers. Every product that is shipped by truck has a portion of its price due to diesel taxes. Given the preponderance of truck ship-ping for consumer goods, diesel taxes cost even those people who never buy a single gallon of the fuel. It is surprising to see that diesel fuel taxes are higher than those for gasoline.

Diesel fuel and the taxes built into the pricing constitute the larg-est line item expense for any trucking operation. As fuel prices increase, cost recovery via surcharges are utilized. These increased costs eventually appear in the pricing of all consumer goods.

Source: Energy Information Administration and U.S. Department of Labor

Source: United States Department of Transportation (DOT) Federal Highway Administration (FHWA) Office of Highway Policy Information (OHPI) Highway Statistics 2006

Total fuel Taxes 2006 cents per gallon, state average is weighted

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Federal taxes make up 55% of total diesel taxes when combined with the weighted average of state taxes. However, there is great variance in the amount of state taxes, ranging from a low 7.5¢ in Georgia to a high of 38.1¢ in Pennsylvania. Considering the wide reaching impact of diesel taxes, it is disturbing to see an upward trend in state taxation levels. The weighted state average tax per gallon has grown by seven-and-a-quarter percent in the last decade. The highest state tax rate has jumped a shocking 31.3% in ten years.


state diesel Taxation levels, 1992-2005 cents per gallon, state average is weighted

national fuel UseThe first 8 years of this century have been proven to be a tumultuous time for oil prices. Crude oil, gasoline and diesel prices have experi-enced volatility never before seen. Yet demand for and consumption of petroleum products are vital to the well-being of all American citizens, so even in the face of unprecedented prices, petroleum use has not reported a significant decrease.

As petroleum consumption increases, the share of imported product has increased as well. Net domestic petroleum production was responsible for meeting just 40% of total consumption in 2006. In 1996, domestic supplies were almost 54% of consumption and in 1986, they covered approximately two thirds of all demand.

As the power source for the main economic activity of the sector, transportation dominates the use of petroleum. However, in spite of increasing vehicle travel that share has not risen greatly in the last ten years. For 2006, transportation consumed 68% of petroleum volume, up just 3% from 1996. Industrial petroleum use accounts 24% of the total, with the balance going to utility, residential and commercial use.

U.s. petroleum demand by sectorquadrillion BTUs annually

Source: U.S. Department of Transportation (DOT), Research and Innovative Technology Administration (RITA), Bureau of Transportation Statistics (BLS), National Transportation Statistics 2008

petroleum Consumption historymillions of barrels per day


fuel Use by Transportation modeThe breakdown of petroleum consumption by transportation mode follows readily observable trends. Light vehicles dominate as the most popular mode of travel, and, consequently, they dominate fuel consumption as well. More than two thirds of all petroleum fuels are consumed by light vehicles, dwarfing any other category. Of the remainder, heavy duty vehicles have the largest share, ac-counting for just over seventeen percent of the total US petroleum consumption. This number is primarily diesel fuel, while light vehicle consumption is concentrated in gasoline. Aviation, using mostly jet fuel, consumes about seven-and-a-half percent, and waterborne transport consumes about four percent of the total, the

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bulk of which is fuel oil. Rail transport, like heavy vehicles, uses diesel overwhelmingly, but only 2% of the total. Transit is powered by various fuels, including CNG (compressed natural gas), which register no presence in other groups. Yet at under half-a-percent, transit consumption is only a very small portion of use.

petroleum Consumption by Vehicle TypeMillions of gallons of fuel

* MEMA estimate for Amtrak


2005 Vehicle Type petroleum Consumption share

* MEMA estimate for Amtrak


Travel TrendsTotal vehicle travel has experienced declines in 2007 and 2008, bringing to an end the years of steady growth that were a hallmark of strong economic activity. Heavy vehicles contribute an estimated 7.6 to 7.8% of the total. Since data on year-over-year mileage

heavy Vehicle Travel by Typein millions of miles

Total single Combination buses

miles Unit Trucks Trucks

1997 7,015 182 344 21

1998 7,193 187 352 22

1999 7,341 191 360 22

2000 7,526 196 369 23

2001 7,659 199 375 23

2002 7,823 211 383 16

2003 7,919 214 380 16

2004 8,116 211 390 16

2005 8,199 213 394 16

2006 8,258 215* 396* 17*

2007 8,228 222* 395* 17*

daily motor Vehicle Travel

Source: U.S. Department of Transportation (DOT), Research and Innovative Technology Administration (RITA), Bureau of Transportation Statistics (BLS), National Transportation Statistics 2008 and TVT reports

* MEMA estimate Energy and Environmental Impact

decreases is difficult to find (it has been a rare occurrence) it is difficult to speculate how travel by different vehicle types will vary through the decline.

Since heavy vehicles are operated for business purposes, it is harder for companies to trim mileage. There are no pleasure drives to the mountains to cut out like a family can. However, as the economy slows, the demand for services declines, and the miles covered will logically decrease also. The difficulty is that a full truck, with orders from a booming economy, is often times covering the same mile-age as a half-full truck that is a reflection of less prosperous times. Scheduled, rather than volume dependent, freight is a variable that shows little or no change in mileage, despite shrinking volumes.A safe assumption is that the reports of increased ridership on city transit services will lead to an increase in bus mileage.


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Heavy Duty Fuel Economy ImprovementsWhile the reduced efficiency from the 2007 introduction of ULSD (ultra-low sulfur diesel) and EPA 2007 engines have caused concern among the heavy duty vehicle operators, heavy duty vehicles have been ahead of the curve when it comes to improving mileage. Ultra-low sulfur diesel is 15 ppm sulfer, while low sulfur diesel is 500 ppm.

Fleets with diesel fuel as their #1 expense have long identified fuel economy as one way to reduce operating costs. Unlike the consumer for whom fuel prices have meant little to their overall budget until recently, fleet operators responsible for millions of miles of opera-tions have always been aware that fuel efficient trucks and operating practices are a wise investment. As a result, long before the recent price increases, trucks have been improving their fuel economy.

Since 2000, straight trucks (not tractor trailers) have posted a nearly 11 percent gain in fuel economy. Tractor trailers are up just over 11 percent. In the same time period, car fuel economy rose by just 4.5 percent, while light truck fuel economy fell by nearly seven percent.

Heavy duty vehicles also play an important role in fuel use reduction through mass transit. Bus mileage declined around the turn of the millennium, but is in the process of regaining most of the amount lost. Registrations did not decline, and continue to grow. Increasing fuel prices are likely to place greater importance on mass transit and make bus travel more attractive.

fuel economy improvements by Vehicle Type2000 = 0

Source: U.S. Department of Energy, Transportation Energy Data Book: Edition 26–2007

U.s. bus operation and activity


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estimated emissions from heavy duty Vehicles

hydrocarbon emissions

Grams per mile

Carbon monoxide emissions

Grams per mile

oxides of nitrogen emissions

Grams per mile

particulate emissions

Millions of short tons from highway sources


Emissions standards for Heavy Duty vehicles have been established by the U.S. Environmental Protection Agency (EPA), and in just 20 years emissions from trucks have been drastically reduced. By 2010, the stunning progress made by the heavy duty vehicle in reducing their pollution goals will have reduced Nitrogen Oxides (NOx), created when fuel burns in motor vehicle engines, by 97%, and particulates (PM), essentially soot from the exhaust, by more than 98%.

Two decades of epa diesel emissions regulations

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emissions reductionsAlthough heavy duty vehicles make up a relatively small portion of the highway vehicle population, like all vehicles, the industry has a responsibility to minimize their products’ impact on the environ-ment. In this, they are excelling. Every major category of pollutant has reported significant decreases in emissions from heavy duty truck sources.

l Hydrocarbon emissions cut in half in the last ten years l Carbon monoxide emissions down 30% in the last five years l Oxides of nitrogen emissions halved in the last eight years l Particulate emissions from all highway sources down by a third in the last decade

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Technology and innovationhybrid power - exploring heavy duty Vehicle optionsIn response to rising fuel prices, hybrid light vehicle have become increasingly popular. A hybrid vehicle is one that has two sources of power. The most common hybrid vehicles combine internal combustion and electric power in one vehicle. The internal combustion engine is used provide motive power, as in a conven-tional vehicle, but also generate electricity for the batteries. During electrical power generation, the internal combustion engine can be run at peak BSFC (brake specific fuel consumption) to maximize the energy content extracted from the fuel used. The batteries power an electric motor which can start the engine and provide power assist to reduce fuel consumption. The batteries can also be recharged by a regenerative system which captures energy from braking.

The prospects for hybrid power in the heavy duty market are mixed. Long-haul, over-the-road trucking is a relatively poor fit. With min-imal braking, there is little opportunity to capture braking energy for battery recharge and the large number of gears provides a ratio selec-tion to optimize fuel efficiency at most any legal speed. Conversely, city buses are a perfect fit. Frequent stops provide recharge opportu-nities while battery power assist during acceleration away from the stops would be equally commonplace and provide meaningful fuel consumption decreases. Furthermore, with bus operation principally in urban areas, the potential reduction in emissions will provide another incentive for hybrid buses.

Between these two extremes exist most heavy duty vehicles. The suitability of hybrid power depends on the use of the vehicle more so than the vehicle design itself. While a city bus is seemingly ideal for hybrid system, intercity bus-lines operate under conditions closer to those of long-haul trucks. Assuming all buses would benefit from hybrid power would thus be incorrect. Manufacturers, likewise, cannot make assumptions on integration of hybrid systems on a vehicle-by-vehicle basis.

For model year 2009, Peterbilt will offer the Model 330 Hybrid Electric medium-duty, van body truck. With a 26,000 pound GVW rating, Peterbilt describes the Model 330 Hybrid Electric as “a versatile, environmentally friendly and profitable performer in urban and congested areas”, showing how market, not model influences the selection of hybrid truck. The Model 330 is joined by the Class 7 Model 335, which is designed for sanitation and other city uses, which have significant idle times. The hybrid shutoff and restart allow for a claimed 80 percent idle time reduction in service.

The Peterbilt system employs 110 pounds of lithium-ion batter-ies, which the manufacturer claims equal the performance of 1900 pounds of sealed lead acid batteries. The hybrid motor generates up to 60 horsepower, to supplement the diesel engines output of 260. In addition to electric motors Peterbilt has announced a hydraulic energy recovery system that store braking energy in an accumulator and releases it under acceleration. In testing, the Hybrid Hydraulic Assist System provided a “28% improvement in fuel economy, 28% reduction in emissions, and 50% reduction in brake wear.”

GM Allison has demonstrated hybrid system capabilities that go far beyond what are found in currently available light vehicle applica-tions. The GM Allison HyGain System uses hybrid technology to allow fleet operators to electronically program vehicles to operate at a variety of calibrations for fuel-economy versus vehicle ac-

celeration. In addition, the Hybrid EP System can use the hybrid components to automatically determine when high idle is needed, and implement the change without input from the driver or inter-ruption of service. Finally, GM Allison uses hybrid power in concert with electronic traction control to enhance overall stability through torque output adjustment. Increasing capabilities allows for increas-ing number of customer who will see a positive return from purchas-ing a hybrid vehicle.

In November 2006, New York City Transit released their reportevaluating second generation hybrid diesel buses against CNG(compressed natural gas) buses. This report gives some of the most precise, quantifiable benefits from the use of hybrid buses to be found. The major findings include:

l 34% increase in fuel economy over conventional buses l 60 to 120% better fuel economy than CNG (co pressed natural gas) powered buses being evaluated at the same time. l 5% lower per mile maintenance costs than CNG buses l 79% in brake parts cost compared to CNG buses l Implementation costs of $70,000 (per bus) battery conditioning stations compared to $9.4 million in CNG facilities required

While city buses remain the optimal heavy-duty application for hybrids, the experiences of NYCT show that there are clear benefits when hybrid power is used.

other innovations Innovations in heavy duty don’t end with hybrids. Every year parts and vehicle manufacturers provide new ways to optimize operation of America’s heavy duty fleet. In recent years, all sectors have seen the proliferation of computer-based technology in new products, and the trucking industry is no exception.

Computerworld has even taken notice of the heavy duty truck innovations, reporting on Electronic Onboard Recorders (EOBR). An EOBR is a digital driver log that uses extra inputs not available when using traditional paper logbooks. Not only can an EOBR record all the information required for DOT logs, it can reference them to GPS (global positioning system) data and vehicle sensor data. For example, if the vehicle speed sensor indicates the truck is moving, a driver will not be able to input that he is on rest.

Beyond driver log entry, an EOBR will record truck location based on GPS feed. When a truck arrives at its destination on time, the EOBR will provide a record for both the fleet operator and his customer. Producing reports that show on-time delivery percent-age based on computer generated data rather than the traditional method of a receiving clerk entry or stamp, could be persuasive tool for demonstrating value to customers.

Looking ahead to 2010, companies are already investigating the abil-ity to exploit the EPA mandate for onboard diagnostic (OBD) sys-tems in heavy duty vehicles. Light vehicles have had standardized OBD systems for over a decade and the ability to diagnose problems by interfacing with the standardized port is now an indispensible tool for today’s technicians. OBD will bring that benefit to heavy duty technicians, but will also offer opportunities to fleet operators that are not part of light vehicle operation.

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Truck ExportsUsed TrucksTrade data for tables, charts and text is from the Trade DataWeb maintained by the United States International Trade Commission of the U.S. Department of Commerce. Export values are F.A.S. (Free Alongside Ship), which includes delivery to port, insurance and other charges needed to place the product ready for shipment.

Used road tractor exports have exploded in the past two years, doubling in number from 2006 to 2007. Estimates based on first half volume projects that used road tractor exports will eclipse the half-billion dollar mark in 2008. The growth of tractor exports has been nothing short of meteoric, increasing by a factor of ten in as many years.

The steady U.S. trading partners of Canada and Mexico are well represented in the used tractor trade; however, the most popular destinations are increasingly far flung. Russia and Nigeria are the two leading purchasers of used America road tractors, and signifi-cant growth has been reported in shipments to Vietnam and South Africa. Costa Rica and Mozambique, two countries that play a minor role in overall U.S. trade are important players in the used road tractor trade.

Studying the average value of the tractors exported can provide an indication of the age and condition of the vehicles. Mexico remains the destination for the cheapest used road tractors. Comparatively minimal transportation costs likely make purchase of the lowest value units a possibility for export to Mexico. Whether these trac-tors are run or used for parts is unknown.

European nations typically import the highest value used trucks. This likely reflects their more strident road worthiness criteria compared to less developed nations. Russian units are slightly above average in value as well. Buyers in African and Latin American na-tions typically purchase units of less than average value.

Vietnam is the anomaly. With an economic level more akin to the African and Latin American nations than those of Europe, it would be logical to presume that the used road tractors exported to Vietnam would be of similarly below average value. Quite to the contrary, Vietnam leads the world in per-tractor purchase price, with a 2008 average of over $29,000.

Country 2004 2005 2006 2007 2008 estimate 5 year Total

Russia 547 1,528 3,026 5,867 12,513 23,481

Nigeria 616 1,299 1,834 2,798 5,800 12,347

Mexico 202 211 469 5,377 633 6,892

Canada 307 541 826 2,017 1,998 5,689

South Africa 286 356 735 731 912 3,020

Panama 113 279 410 956 940 2,698

Vietnam 401 29 6 610 1,640 2,686

Mozambique 168 451 492 389 431 1,931

Costa Rica 101 203 384 564 478 1,730

Guatemala 192 182 172 199 122 867

Dominican Republic 78 83 117 157 201 636

Namibia 18 37 52 90 218 415

Germany 6 22 103 118 358 607

Finland 7 129 126 207 25 494

El Salvador 107 125 111 86 65 494

Netherlands 11 14 9 165 151 350

Haiti 116 70 40 56 14 296

Honduras 38 27 43 70 63 241

Belgium 6 12 72 63 59 212

Jamaica 28 56 50 48 21 203

Other 739 598 634 513 2,055 4,539

U.s. exports of Used road Tractors for semi-TrailersCountries Importing 200 or More Units between 2004 and 2008

Source: U.S. Department of Commerce, United States International Trade Commission, Trade DataWeb

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Russia ............................................................... $21,746

Nigeria ............................................................. $14,633

Mexico ............................................................. $12,221

Canada ............................................................ $18,659

Vietnam ........................................................... $29,203

Panama ............................................................ $14,765

South Africa ..................................................... $15,096

Costa Rica ........................................................ $14,928

Mozambique ................................................... $18,546

Finland ............................................................. $23,346

Netherlands ..................................................... $23,194

Germany .......................................................... $16,022

Guatemala ....................................................... $12,050

Dominican Republic ........................................ $14,594

Namibia ........................................................... $14,844

Belgium ........................................................... $29,176

Honduras ......................................................... $13,723

El Salvador ....................................................... $13,283

Chile ................................................................ $15,721

Haiti ................................................................. $17,657

All .................................................................... $19,426

average Used road-Tractor export Value, 2008


Used road Tractor Volume and Unit price Trend – 1996-2008*

* HDMA Estimate


new TrucksUnlike used road tractor exports, new unit exports suffered a sharp drop in 2007. With the 2007 emissions standards compliance caus-ing some uncertainty among fleet buyers, domestic sales dropped significantly at the same time. It is likely that the same issues caused the decrease in volume for 2007.

While 2007 sales dropped by 22.8% compared to 2006, the good news for the industry is that export sales of new road tractors in the first half of 2008 are up 22% versus same period 2007. Average unit value is also within $20, so there has been no drastic price reduction to entice the greater volume.

New road tractor exports are still overwhelmingly bound for Canada and Mexico. Clearly, the ease of shipment to those nations with which the United States shares a land border helps reduce total cost for the buyer and makes American made road tractors appealing in their markets. With approximately three-quarters of units sold to these two nations, road tractor export must remain concentrated on servicing these markets.

However, similar to the situation with used units, there are other nations emerging as good business partners for road tractor export-ers. In the first half of 2008, South Africa imported more new road tractors than Mexico. Australia imported almost 1000 new road tractors in 2007. Truck manufacturers and suppliers would be well served by keeping abreast of regulations in these markets in order to encourage this growth. Heavy duty vehicle parts manufacturers need to be sure that they have market penetration for the supply of replacement components as well. Along with South Africa and Australia, Russia is showing an increased desire for new American road tractors, which, based upon sales of used units, could offer significant potential. The United Arab Emirates and Saudi Arabia offer growth opportunities in the Middle East, while Chile, Peru and Colombia represent the strongest markets in South America.

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2007 2008 yTd 2008 yTd vs. 2007 yTd Units Value per Unit Units Value per Unit Units Value per Unit

World 15,924 $87,876 8,946 $87,858 22% -0.02%

Canada 10,070 $91,880 5,994 $92,350 13% 0.51%

Mexico 2,152 $72,294 664 $69,103 26% -4.41%

South Africa 1,756 $83,886 974 $73,585 62% -12.28%

Australia 932 $97,476 277 $100,300 -37% 2.90%

Chile 175 $75,950 252 $64,682 180% -14.84%

Russia 42 $75,513 120 $83,386 3900% 10.43%

United Arab Emirates 65 $77,717 96 $103,412 1820% 33.06%

Japan 0 N/A 50 $98,241 N/A N/A

Peru 131 $84,517 13 $72,506 -68% -14.21%

Saudi Arabia 102 $58,684 37 $55,714 -40% -5.06%

Colombia 28 $80,410 67 $118,881 1240% 47.84%

Costa Rica 18 $94,392 75 $87,274 N/A -7.54%

Ecuador 59 $88,435 34 $83,268 0% -5.84%

Israel 54 $97,252 22 $94,804 2100% -2.52%

Iraq 63 $73,225 0 N/A -100% N/A

New Zealand 43 $88,025 0 N/A -100% N/A

Afghanistan 43 $73,239 0 N/A -100% N/A

Dominican Republic 10 $117,418 27 $89,465 286% -23.81%

Venezuela 31 $76,935 6 $78,336 -73% 1.82%

Algeria 27 $110,943 6 $86,514 200% -22.02%

Nigeria 17 $85,063 11 $96,994 83% 14.03%

Tanzania 15 $75,671 8 $80,735 -27% 6.69

Guatemala 9 $65,029 7 $83,643 N/A 28.62%

Belgium 1 $91,885 14 $76,943 N/A -16.26%

Trinidad & Tobago 3 $54,297 12 $76,473 N/A 40.84%

Bahrain 0 N/A 13 $67,632 N/A N/A

Singapore 11 $72,537 0 N/A N/A N/A

Panama 3 $86,768 7 $50,574 N/A -41.71%

Germany 10 $79,186 0 N/A -100% N/A

Kazakhstan 0 N/A 8 $63,000 N/A N/A

Korea 4 $65,500 4 $67,500 0% 3.05%

Nicaragua 5 $109,159 3 $115,954 50% 6.23%

Bahamas 0 N/A 7 $73,965 N/A N/A

Jamaica 2 $39,250 5 $65,236 150% 66.21%

Ghana 0 N/A 5 $112,000 N/A N/A

Honduras 3 $82,273 2 $21,000 0% -74.48%

Indonesia 3 $61,400 2 $112,908 N/A 83.89%

Angola 5 $85,325 0 N/A N/A N/A

China 5 $71,200 0 N/A N/A N/A

Egypt 5 $66,471 0 N/A N/A N/A

U.s. exports of new road Tractors for semi-Trailersnations with seven or more units purchased, Jan 2007 to Jun 2007

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Total Value of new road Tractor exports

millions of dollars

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U.S. Motor Vehicle Parts TradeParts trade data presented is a group of ten NAICS codes selected by MEMA that best represent the motor vehicle parts trade with minimal inclusion of extraneous items not principally for motor vehicle use. Estimates presented here may not correlate to figures published elsewhere due to more discriminating methods employed in the selection of NAICS product categories.

parts exportsBased on first half 2008 data, HDMA forecasts that parts exports will see a slight increase in 2008, for a total of $55 billion. The growth level has slowed dramatically, to just 0.14%, compared to 5.86% in 2007 and 6.99% in 2006. The most notable occurrence is the drop in exports to Canada, the largest destination for American made parts. This is likely due to decreased volume by Detroit area manu-facturers that regularly engage in large scale cross-border shipments.

The Americas remain the dominant location for U.S. parts exports, accounting for about 80% of all parts exported. In 2007, for the first time, Europe was eclipsed by Asia and the Pacific as the region with second largest purchases of exported U.S, motor vehicle parts. This is due in large part to exports to China, which have more than doubled in the last five years. Japan remains the largest importer in the region, but volume is down by $200 million since 2003. In that same period, exports to China grew by $576 million.

In Europe, Germany is the only nation to which billion dollar U.S. motor vehicle part exports are made. The United Kingdom, Austria and France all receive over $600 billion, yet France is the only one

2001 2002 2003 2004 2005 2006 2007 2008*

africa $308,571,835 $118,117,176 $134,110,794 $146,444,035 $186,733,098 $290,042,942 $370,595,385 $369,726,922

South Africa $59,519,550 $58,492,662 $51,174,535 $67,956,044 $87,582,968 $139,056,717 $206,575,773 $221,299,120

Egypt $30,549,372 $24,750,981 $44,137,821 $47,176,891 $59,155,090 $62,210,536 $52,338,479 $47,937,795

Nigeria $10,056,072 $10,237,057 $10,249,753 $6,901,849 $6,795,992 $22,309,517 $29,584,807 $28,966,972

Algeria $7,458,261 $3,460,079 $6,481,840 $2,745,798 $5,857,902 $16,178,806 $13,950,226 $14,350,402

Angola $1,050,274 $1,122,833 $1,813,518 $1,648,625 $2,203,029 $7,005,715 $11,415,474 $9,874,780

Benin $38,700 $199,327 $60,853 $128,467 $86,987 $2,497,317 $5,116,214 $4,789,780

Libya $0 $0 $0 $254,083 $1,763,939 $3,466,901 $5,957,780 $4,716,372

Ghana $3,017,064 $1,877,319 $2,943,420 $2,365,086 $2,958,036 $2,613,646 $5,259,232 $3,497,184

Kenya $1,471,161 $1,116,526 $1,376,610 $1,441,359 $1,481,048 $4,673,303 $3,137,017 $3,221,320

Morocco $2,417,654 $2,228,696 $1,477,714 $3,185,689 $3,557,450 $4,037,312 $3,892,656 $2,650,157

Guyana $3,012,256 $3,136,027 $2,132,880 $2,901,601 $2,608,660 $2,979,177 $2,348,285 $2,547,224

Zambia $246,265 $255,841 $95,025 $205,117 $398,329 $2,002,799 $2,497,132 $2,160,678

Togo $32,249 $47,655 $96,679 $180,653 $55,996 $602,546 $1,649,679 $2,091,856

Tanzania $797,052 $917,964 $651,216 $988,415 $1,338,856 $1,196,864 $4,917,751 $2,042,674

Niger $2,596,068 $389,997 $438,136 $238,208 $333,550 $1,078,133 $1,529,500 $1,805,836

Namibia $174,220,850 $380,437 $136,478 $437,438 $395,663 $293,906 $1,887,838 $1,703,102

Congo (ROC) $375,870 $96,295 $89,049 $490,357 $1,114,504 $1,079,573 $1,180,297 $1,651,744

Equitorial Guinea $105,567 $288,760 $663,232 $616,930 $365,528 $1,615,452 $1,164,952 $1,278,858

Congo (DROC) $40,009 $44,234 $38,723 $17,160 $104,110 $1,784,915 $874,308 $1,217,086

Zimbabwe $523,317 $665,070 $1,293,073 $1,041,643 $1,199,039 $1,885,594 $1,666,525 $1,212,438

of the three to post growth since 2001. The almost $200 million increase in exports to France since 2001 falls half-a-billion dollars short of covering the over $700 decline in exports to Austria and the U.K. However, as the lack of movement in the total exports to Europe shows, this is more a case of diversification of production locations than decline of all European industries. Exports to Europe are up 2% since 2001.

africa

U.s motor Vehicle parts exportsmillions of dollars

* HDMA forecastSource: U.S. Department of Commerce, United States International Trade Commission, Trade DataWeb

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2001 2002 2003 2004 2005 2006 2007 2008*

americas $36,349,809,735 $36,363,928,307 $34,676,770,808 $37,648,567,723 $38,858,792,227 $41,429,415,269 $44,235,846,820 $44,222,533,939

Canada $24,165,568,848 $25,522,129,197 $25,020,938,349 $27,044,630,794 $27,943,852,395 $28,699,925,100 $30,259,759,911 $30,144,446,125

Mexico $10,565,775,988 $9,614,013,160 $8,472,869,406 $9,037,203,289 $9,123,240,519 $10,576,911,784 $11,386,390,492 $11,464,064,718

Brazil $406,198,688 $372,377,501 $405,645,856 $479,139,811 $461,258,811 $487,231,179 $601,269,490 $595,083,903

Venezuela $546,561,750 $263,882,299 $140,959,904 $327,644,870 $422,711,715 $536,818,842 $577,789,246 $551,427,590

Chile $80,678,019 $107,066,430 $105,007,920 $117,572,762 $146,305,058 $182,402,552 $243,058,866 $239,905,807

Argentina $134,093,923 $42,459,089 $116,755,927 $137,206,896 $164,594,405 $193,255,769 $232,072,985 $235,876,901

Honduras $27,963,066 $33,442,795 $33,263,969 $86,577,128 $115,406,433 $160,403,088 $176,814,186 $200,641,449

Colombia $62,997,713 $68,481,365 $61,802,502 $89,602,625 $102,826,299 $117,863,048 $132,728,962 $138,524,256

Guatemala $40,425,274 $45,806,673 $40,717,247 $37,916,807 $48,335,698 $65,089,466 $88,996,432 $94,829,772

Dominican Rep $70,172,789 $78,614,090 $60,861,160 $45,914,735 $45,443,908 $61,764,174 $81,100,209 $89,848,489

Peru $29,532,399 $31,376,317 $33,443,065 $32,374,226 $53,860,242 $56,137,975 $78,051,806 $80,356,521

Costa Rica $33,461,577 $34,570,935 $32,077,584 $26,265,028 $31,817,226 $42,395,690 $55,772,372 $61,217,124

Ecuador $54,171,995 $38,581,470 $38,867,465 $44,793,897 $45,992,979 $42,223,243 $44,290,007 $45,003,587

Panama $20,898,706 $13,823,093 $17,091,187 $16,586,257 $18,715,901 $25,212,795 $35,645,626 $35,043,571

Bahamas $11,214,832 $9,794,768 $10,898,554 $9,776,196 $11,775,676 $21,508,070 $24,564,590 $27,982,164

Jamaica $13,081,869 $13,513,136 $10,849,232 $12,647,224 $13,526,555 $17,659,252 $26,031,333 $27,026,816

El Salvador $14,501,298 $12,744,958 $14,362,273 $13,192,340 $11,541,498 $18,322,951 $26,200,615 $26,527,552

Paraguay $1,468,562 $1,870,363 $2,738,901 $7,203,974 $4,816,836 $8,964,449 $22,155,310 $24,966,788

Trin & Tobago $11,186,640 $10,207,282 $9,981,824 $12,579,505 $16,401,417 $18,143,530 $21,491,221 $19,559,951

Nicaragua $8,094,924 $6,870,859 $7,761,637 $17,697,137 $18,615,245 $8,528,282 $14,345,166 $12,943,654

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asia and the pacific

2001 2002 2003 2004 2005 2006 2007 2008*asia and

the pacific $3,893,772,130 $4,145,528,377 $4,142,537,407 $4,089,870,140 $4,197,471,696 $4,842,928,947 $5,361,958,428 $5,384,355,078

Japan $1,822,025,393 $2,059,118,740 $1,724,215,015 $1,207,299,627 $1,130,663,390 $1,407,107,183 $1,474,758,397 $1,559,107,112

China $264,173,292 $335,096,156 $473,718,098 $576,450,726 $608,050,175 $750,898,706 $1,014,260,588 $1,049,734,109

Australia $555,527,012 $579,065,518 $645,019,427 $771,314,195 $761,132,470 $790,727,031 $770,728,801 $773,922,163

Korea $338,911,670 $281,239,457 $274,151,575 $425,437,693 $504,303,171 $524,655,214 $519,242,286 $470,328,390

Singapore $118,798,137 $129,446,999 $137,694,227 $153,132,200 $158,774,140 $209,037,224 $237,404,319 $232,770,549

Saudi Arabia $166,162,926 $151,886,368 $154,841,872 $171,040,717 $165,022,130 $210,091,010 $221,522,490 $217,572,480

United Arab Em $44,459,324 $60,459,063 $70,071,944 $89,241,998 $88,939,444 $125,965,222 $173,592,709 $163,553,593

Philippines $37,528,567 $60,175,370 $86,063,034 $72,907,749 $109,031,789 $115,092,898 $114,916,410 $130,257,353

Hong Kong $112,799,933 $72,980,568 $90,110,630 $102,040,794 $109,129,185 $98,647,613 $118,385,955 $111,255,452

Thailand $82,697,838 $82,688,921 $95,484,593 $98,139,374 $98,533,780 $81,361,679 $113,299,311 $105,657,733

India $30,675,023 $22,239,157 $28,909,611 $46,397,251 $42,268,790 $67,458,129 $84,925,003 $85,733,638

Taiwan $85,847,403 $82,138,011 $127,044,539 $101,695,519 $101,481,774 $120,089,394 $81,554,865 $77,314,078

Kuwait $41,586,995 $40,066,211 $52,421,794 $56,217,129 $52,166,165 $45,723,094 $98,769,419 $74,590,343

Indonesia $17,781,910 $21,431,725 $22,412,474 $34,138,435 $32,022,382 $36,701,256 $46,450,407 $51,327,698

Turkey $17,712,712 $17,077,647 $13,754,907 $21,605,294 $35,672,507 $40,541,371 $50,979,159 $44,165,143

Israel $55,305,523 $54,346,021 $43,439,680 $43,085,095 $39,987,020 $44,783,344 $42,544,658 $41,495,978

New Zealand $16,487,416 $19,473,042 $16,687,256 $25,647,243 $29,173,128 $33,142,746 $39,469,189 $40,670,455

Malaysia $38,917,161 $28,637,236 $31,762,428 $21,760,800 $41,000,024 $28,803,814 $24,478,329 $24,331,796

Lebanon $7,687,122 $4,955,463 $7,827,662 $7,598,263 $6,022,150 $13,748,383 $22,135,166 $22,344,028

Iraq $2,583 $18,000 $956,433 $14,584,963 $13,735,287 $27,053,189 $20,822,830 $21,390,178

Oman $3,719,685 $4,168,733 $4,333,003 $5,234,593 $10,384,341 $8,225,086 $13,392,551 $10,704,328

Afghanistan $24,673 $147,531 $1,057,316 $1,273,323 $3,483,220 $14,972,661 $7,796,114 $10,173,738

Qatar $3,560,767 $5,059,004 $3,697,656 $5,283,303 $6,867,435 $7,576,850 $11,882,118 $9,703,310

Jordan $2,217,597 $2,017,047 $2,875,344 $5,520,011 $7,063,659 $6,353,466 $7,399,504 $6,826,524

Pakistan $2,211,945 $1,935,985 $3,065,820 $3,256,303 $3,355,139 $4,941,594 $9,298,408 $6,646,949

Bahrain $4,369,749 $2,895,572 $3,247,757 $2,172,977 $3,044,315 $2,492,259 $5,252,054 $6,379,904

Mauritania $11,115 $125,579 $51,541 $221,851 $5,259,433 $2,132,924 $2,017,942 $4,582,635

Vietnam $6,175,520 $4,606,174 $8,506,516 $8,996,307 $12,797,641 $3,594,521 $6,412,285 $4,560,921

Kazakhstan $821,232 $723,764 $1,497,784 $1,890,806 $1,603,300 $2,394,345 $4,811,816 $3,837,994

Kyrgystan $35,778 $511,809 $22,404 $68,124 $63,889 $233,401 $1,891,646 $3,546,458

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europe

2001 2002 2003 2004 2005 2006 2007 2008*

europe $4,972,103,017 $4,638,288,410 $4,285,443,868 $4,353,133,581 $4,893,364,509 $5,190,783,040 $5,005,053,842 $5,071,315,952

Germany $1,004,061,934 $865,984,185 $823,773,256 $975,920,350 $1,123,506,956 $1,247,342,440 $1,176,831,719 $1,193,443,070

United Kingdom $1,094,898,680 $977,063,829 $946,613,597 $846,370,481 $694,279,534 $680,699,099 $712,078,965 $708,835,885

Austria $1,075,976,765 $910,926,743 $517,654,732 $446,979,206 $741,240,616 $813,697,253 $566,636,169 $623,273,337

France $404,857,122 $313,869,814 $329,119,798 $399,381,608 $514,940,447 $550,618,080 $603,501,013 $600,951,065

Belgium $341,053,633 $379,484,853 $348,821,261 $305,913,657 $267,071,884 $337,284,458 $379,358,428 $395,378,953

Netherlands $333,342,011 $323,292,826 $317,142,799 $320,311,347 $347,563,385 $394,413,126 $356,799,171 $356,106,397

Sweden $104,500,664 $149,698,377 $214,240,623 $256,242,896 $219,495,887 $217,588,930 $233,116,693 $235,195,455

Spain $90,916,546 $100,061,292 $124,691,897 $120,282,256 $243,741,128 $240,633,394 $221,706,262 $218,349,521

Russia $20,075,401 $15,977,170 $22,839,118 $26,692,765 $38,959,323 $114,007,523 $136,148,009 $159,509,346

Italy $133,092,077 $122,290,239 $145,282,899 $134,180,640 $130,833,295 $139,405,860 $155,368,297 $157,587,090

Hungary $19,464,567 $53,215,755 $66,482,276 $60,622,250 $47,617,955 $62,396,323 $64,636,311 $64,125,008

Ireland $53,387,228 $73,865,946 $89,356,095 $74,517,277 $108,869,231 $59,003,301 $60,574,042 $59,374,484

Poland $9,496,949 $13,675,761 $16,570,542 $16,825,614 $26,152,696 $44,447,049 $57,063,972 $58,809,591

Switzerland $163,441,784 $238,201,250 $198,344,663 $218,570,723 $245,753,668 $123,967,072 $70,300,890 $56,382,163

Finland $14,122,981 $11,337,391 $20,721,150 $25,978,744 $23,119,190 $32,530,632 $40,898,690 $41,438,315

Norway $14,863,391 $16,635,175 $20,552,011 $21,022,433 $26,624,758 $28,533,397 $36,005,822 $35,416,160

Portugal $56,590,135 $26,701,246 $24,629,957 $19,068,579 $15,913,841 $12,596,306 $22,031,800 $21,379,233

Czech Republic $7,767,534 $8,950,027 $8,262,552 $5,910,953 $11,844,103 $12,878,341 $20,371,540 $19,270,174

Denmark $9,657,008 $8,009,657 $7,822,272 $12,194,700 $13,727,199 $15,268,499 $11,716,557 $12,707,428

Greece $5,380,177 $3,975,072 $5,911,974 $8,948,973 $7,695,916 $8,034,139 $8,944,878 $8,690,375

Ukraine $1,779,550 $1,913,439 $4,264,416 $5,281,670 $3,216,283 $9,112,504 $9,810,754 $7,263,903

Iceland $2,462,755 $2,724,699 $3,200,026 $4,657,385 $8,057,827 $7,453,306 $7,444,783 $7,074,870

Romania $727,302 $3,462,787 $10,971,596 $19,596,489 $12,650,525 $7,526,764 $3,602,957 $4,850,826

Luxembourg $1,855,037 $2,751,503 $1,810,649 $3,901,819 $2,162,833 $1,264,443 $22,650,820 $4,002,108

Slovenia $2,648,123 $2,619,146 $2,185,736 $2,885,504 $3,074,826 $4,397,561 $4,343,768 $3,941,528

Slovak Republic $675,608 $1,313,226 $2,650,725 $4,651,373 $2,983,951 $2,972,391 $2,728,824 $3,129,278

Estonia $712,080 $611,924 $623,977 $6,474,850 $1,149,383 $1,792,903 $4,036,141 $3,060,350

Latvia $472,760 $743,895 $1,721,090 $2,472,362 $2,579,283 $2,244,688 $3,644,369 $2,961,286

Lithuania $238,614 $3,427,973 $6,136,163 $4,156,689 $1,400,447 $4,259,098 $5,732,023 $2,592,662

Bulgaria $301,877 $458,997 $823,981 $900,986 $1,034,902 $1,176,546 $2,056,534 $1,646,760

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parts importsParts import values listed are for U.S. general customs value as defined by the United States Department of Commerce. Motor vehicle parts imports are forecasted to show a trend-breaking drop in 2008, falling two billion to a projected year-end total of $88 billion. In 2007, imports rose by $5.4 billion to reach $90 billion for the first time in a single year. As with exports, Canada and Mexico play the largest role in imported parts, representing the source nation of almost half of all imports.

Again mirroring imports, it is a drastic change in volume with Canada that stands out as the largest single change in the forecasted 2008 total. Based on data for the first half of 2008, imports from Canada are expected to decline by over $2.3 billion by year end. Along with the struggles of Detroit automakers, a less favorable ex-change rate has likely reduced the appeal of parts of Canadian origin and contributed to lower imports.

The forecast for overall import total may be lower, however this has not stopped all growth. Imports of parts from China are forecast to reach almost $10 billion. This is $8.2 billion higher than the amount reported in 2001, and means China is now fourth, behind Mexico, Canada and Japan on the list of sources for imported parts. Germany, fifth on the list, was surpassed by China in just 2005; yet by the end of 2008 is forecasted to have under two-thirds the volume of the Asian giant.

2001 2002 2003 2004 2005 2006 2007 2008*

africa $258,197,568 $165,425,450 $175,405,675 $198,332,129 $286,551,274 $360,969,004 $446,504,811 $385,174,577

South Africa $255,012,545 $162,683,566 $170,030,353 $188,726,630 $269,028,142 $336,122,901 $420,918,154 $359,541,713

Morocco $888,021 $706,039 $2,493,233 $6,769,061 $13,268,029 $16,668,005 $19,576,609 $20,457,901

Tunisia $887,698 $1,162,956 $1,373,881 $761,087 $469,556 $574,970 $1,127,836 $1,668,160

Egypt $48,697 $52,167 $429,821 $847,229 $1,858,175 $2,741,921 $2,498,178 $1,616,783

Cameroon $0 $0 $32,563 $9,108 $50,395 $9,150 $312,404 $751,117

Sierra Leone $168,301 $208,233 $171,400 $268,110 $114,025 $223,328 $234,527 $182,047

Kenya $325,366 $36,398 $32,480 $353,028 $926,504 $3,361,701 $969,680 $138,657

Ghana $209,224 $0 $42,096 $28,862 $2,006 $0 $0 $137,742

Cape Verde $0 $0 $0 $0 $0 $3,496 $0 $129,988

Gabon $0 $13,357 $43,266 $0 $0 $24,943 $159,081 $125,783

Angola $0 $0 $0 $0 $7,610 $0 $0 $104,226

Guyana $298,014 $254,635 $173,102 $249,675 $232,498 $378,862 $212,316 $96,583

Niger $16,895 $6,072 $48,366 $0 $2,416 $102,164 $24,651 $87,438

Guinea $6,785 $17,493 $12,017 $0 $7,843 $0 $19,911 $29,654

Zambia $0 $0 $0 $0 $0 $0 $18,655 $28,788

Tanzania $0 $0 $0 $16,615 $0 $0 $69,962 $24,000

Djibouti $0 $0 $0 $0 $0 $0 $20,928 $11,338

Sao Tome & Prin $0 $0 $46,662 $5,924 $0 $0 $144,565 $10,572

Cote d`Ivoire $18,032 $235,316 $35,833 $81,972 $0 $0 $2,250 $9,822

Algeria $0 $2,379 $0 $0 $282,292 $142,453 $6,344 $7,980

While the growth of China as a source of parts is impressive, Mexico is still the undisputed leader of nations in motor vehicle parts exports to the U.S. Over a quarter of all imported parts come from Mexico, and with transportation costs becoming a greater determi-nant in sourcing decision, Mexico’s preeminence seems secure for some time to come.

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2001 2002 2003 2004 2005 2006 2007 2008*

americas $29,149,441,778 $32,634,024,438 $34,998,959,121 $38,741,010,021 $41,938,697,265 $42,574,082,527 $44,548,464,303 $41,782,527,897

Mexico $13,803,732,949 $15,694,328,151 $16,558,721,651 $18,469,397,039 $20,042,373,072 $21,516,367,361 $23,492,750,705 $23,133,331,201

Canada $14,369,049,032 $15,778,858,754 $17,063,957,180 $18,496,053,565 $19,751,697,740 $18,721,947,430 $18,846,888,202 $16,505,953,819

Brazil $595,340,016 $700,046,445 $806,237,269 $1,021,352,651 $1,218,372,190 $1,257,957,529 $1,194,203,192 $1,142,577,984

Honduras $52,229,417 $74,969,199 $98,553,761 $172,551,170 $269,762,880 $385,381,206 $394,750,773 $372,777,906

Nicaragua $8,174 $3,462,337 $38,692,908 $73,167,440 $121,007,000 $126,462,554 $165,338,677 $192,022,122

Argentina $64,693,793 $82,135,792 $99,904,793 $123,448,708 $122,971,344 $137,551,564 $118,878,421 $116,432,562

Costa Rica $14,346,918 $22,499,571 $28,347,436 $60,761,309 $71,472,489 $85,946,299 $104,786,557 $99,146,501

Chile $31,758,153 $30,257,935 $39,923,701 $57,930,394 $58,931,699 $54,867,012 $54,222,534 $57,190,674

Venezuela $157,169,382 $170,053,933 $189,685,123 $188,877,607 $211,036,334 $195,830,655 $86,254,885 $43,213,614

Dominican Rep $18,863,334 $26,450,210 $32,651,364 $41,483,425 $35,334,841 $39,445,435 $32,138,465 $41,333,277

El Salvador $1,617,850 $1,486,255 $825,162 $640,841 $608,725 $4,151,100 $16,721,232 $30,095,192

Colombia $7,269,747 $8,061,018 $9,243,386 $9,561,846 $16,283,367 $22,465,586 $19,744,917 $24,430,754

Peru $8,477,046 $10,494,814 $6,209,334 $7,649,498 $5,833,425 $9,035,534 $7,476,416 $14,772,089

Uruguay $5,725,041 $7,168,186 $2,196,811 $3,663,800 $3,567,225 $10,346,977 $8,336,313 $2,702,082

Suriname $56,534 $13,679 $81,036 $65,237 $575,918 $561,195 $973,801 $1,585,505

Panama $208,514 $293,584 $229,026 $238,425 $292,398 $339,132 $588,332 $1,017,823

Bolivia $452,253 $1,163,454 $350,645 $433,616 $812,044 $828,360 $776,600 $927,577

Jamaica $429,922 $665,920 $737,496 $1,064,957 $862,383 $1,120,626 $1,315,217 $799,397

Br Virgin Is $39,570 $67,704 $129,820 $8,822 $636,834 $698,786 $128,647 $716,160

Ecuador $258,367 $779,563 $818,710 $1,020,262 $885,811 $429,339 $584,590 $496,884

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2001 2002 2003 2004 2005 2006 2007 2008*asia and

the pacific $18,193,014,174 $19,485,187,823 $20,639,069,125 $24,562,867,206 $28,338,408,365 $30,603,692,221 $32,963,542,131 $34,392,280,455

Japan $12,889,408,329 $13,007,108,187 $13,109,509,334 $14,890,970,852 $15,885,282,774 $14,921,171,836 $14,506,681,225 $14,266,218,937

China $1,583,066,407 $2,106,200,407 $2,747,553,371 $3,943,736,321 $5,448,632,273 $7,152,253,336 $9,039,753,656 $9,745,880,037

Korea $1,001,087,101 $1,273,781,668 $1,455,509,737 $1,858,183,102 $2,703,324,204 $3,701,808,966 $3,926,942,239 $4,348,280,984

Taiwan $1,162,843,016 $1,368,211,203 $1,451,841,614 $1,700,595,341 $1,840,210,377 $1,937,986,307 $2,107,687,797 $2,245,392,891

Thailand $270,837,563 $328,249,831 $327,858,370 $390,342,525 $467,956,195 $637,763,739 $890,847,298 $1,135,377,690

Philippines $344,023,730 $328,476,563 $364,868,644 $393,912,704 $424,037,827 $505,721,673 $593,025,266 $658,408,120

India $165,092,557 $191,963,719 $212,525,529 $285,794,774 $369,906,923 $431,122,031 $493,484,401 $557,623,036

Indonesia $213,497,777 $224,070,822 $261,496,517 $286,607,159 $300,759,002 $456,586,495 $523,431,733 $492,826,693

Vietnam $506,954 $5,274,165 $15,927,321 $22,659,673 $33,516,285 $69,472,804 $115,209,773 $186,605,768

Israel $71,139,781 $77,732,676 $82,889,393 $85,182,676 $98,537,179 $105,679,480 $123,762,974 $164,763,951

Australia $174,135,491 $191,075,556 $203,101,829 $211,130,221 $162,726,349 $134,600,784 $134,310,342 $131,656,978

Malaysia $69,675,155 $92,498,809 $83,320,997 $83,725,062 $102,175,841 $134,582,559 $132,942,744 $103,084,182

Turkey $27,985,058 $31,397,233 $34,355,618 $65,120,104 $98,103,178 $111,459,119 $101,441,835 $99,160,883

Sri Lanka $41,441,606 $43,683,076 $48,379,146 $67,033,969 $82,046,898 $88,086,817 $92,286,720 $94,446,362

Hong Kong $41,916,638 $51,743,302 $57,288,606 $76,645,024 $80,998,801 $90,703,426 $70,254,401 $67,600,498

Singapore $80,859,637 $93,089,073 $93,570,613 $109,767,499 $143,914,679 $95,770,281 $84,815,378 $65,605,698

United Arab Em $1,612,035 $2,295,050 $1,799,473 $3,189,105 $5,667,277 $5,312,668 $6,895,722 $8,885,943

Saudi Arabia $424,007 $1,072,418 $2,516,250 $536,658 $663,247 $1,898,138 $2,461,295 $7,359,754

New Zealand $51,374,835 $64,841,608 $80,803,646 $82,975,460 $82,805,592 $12,673,816 $4,433,905 $4,076,036

Pakistan $799,589 $628,441 $659,689 $815,556 $1,178,473 $2,669,170 $7,127,146 $3,646,714

europe

2001 2002 2003 2004 2005 2006 2007 2008*

europe $7,264,014,308 $8,165,683,021 $9,461,483,885 $10,216,764,006 $10,880,085,130 $10,805,285,262 $12,041,808,602 $12,148,666,504

Germany $3,244,746,367 $3,710,726,005 $4,495,213,896 $4,972,152,126 $5,155,047,180 $5,129,351,176 $6,233,834,768 $6,347,908,545

France $1,197,957,841 $1,234,214,325 $1,350,490,160 $1,524,438,645 $1,538,309,809 $1,444,175,591 $1,364,561,007 $1,370,720,807

United Kingdom $972,074,977 $1,102,409,081 $1,073,147,051 $1,051,861,570 $1,126,430,768 $1,065,505,705 $1,113,967,250 $1,123,303,212

Italy $460,507,851 $547,414,606 $628,621,343 $710,367,692 $713,786,820 $699,528,597 $691,861,457 $817,324,475

Spain $341,931,418 $395,401,900 $453,297,674 $491,455,922 $552,800,613 $566,235,976 $493,676,950 $426,860,569

Czech Republic $63,841,838 $80,642,026 $104,464,262 $112,900,662 $164,832,947 $165,363,340 $275,619,509 $347,835,537

Austria $182,745,574 $187,251,543 $240,140,016 $192,925,397 $322,726,094 $306,998,980 $480,948,455 $225,316,763

Hungary $93,774,154 $171,736,148 $301,019,678 $203,598,238 $193,540,306 $197,548,193 $180,629,287 $204,323,088

Sweden $132,350,052 $146,127,381 $139,285,802 $161,098,263 $205,977,724 $221,080,360 $155,860,496 $175,741,268

Belgium $94,498,087 $92,764,334 $92,067,500 $95,423,768 $137,762,344 $172,271,792 $167,229,312 $136,425,815

Romania $6,875,590 $15,135,599 $37,541,777 $55,920,563 $56,345,016 $64,747,257 $106,222,689 $129,890,154

Portugal $48,659,881 $60,157,605 $57,730,568 $105,825,736 $128,407,135 $117,927,530 $108,395,162 $124,611,141

Switzerland $49,765,917 $45,947,968 $47,550,352 $47,386,992 $62,360,808 $69,306,297 $106,760,177 $116,078,495

Netherlands $55,686,510 $61,018,316 $60,272,951 $64,548,505 $73,161,769 $79,727,153 $74,329,942 $101,035,387

Poland $42,983,035 $46,216,407 $77,855,729 $75,193,322 $65,343,716 $88,350,593 $115,968,807 $91,880,557

Liechtenstein $124,207,006 $136,099,471 $149,187,917 $159,996,750 $141,206,665 $120,265,422 $110,934,004 $75,904,162

Ukraine $264,312 $340,598 $940,024 $4,856,989 $9,150,122 $27,735,644 $38,200,981 $69,282,073

Finland $25,842,794 $27,404,144 $33,854,869 $44,712,573 $56,610,387 $63,491,840 $49,580,177 $52,981,740

Slovak Republic $28,976,745 $20,246,984 $22,606,506 $31,155,047 $40,416,223 $38,493,823 $35,051,304 $36,226,440

Russia $589,273 $882,010 $1,694,963 $2,476,608 $1,975,646 $3,838,048 $13,489,748 $28,644,525

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motor Vehicle parts Trade balanceThe motor vehicle parts trade deficit is forecast to fall by $1.78 bil-lion in 2008. In the last four years, including 2008, there has been a pattern emerging where the trade deficit rises one year only to fall the next. The total parts trade deficit for 2008 is forecasted to be $33.25 billion.

Even though the growth of Chinese parts exports and the volume of Mexican made products are the most noteworthy import part newsmakers, it is Japan that remains the single largest contributor nation to the parts trade deficit. With a trade gap of -$12.7 billion, Japan accounts for over one third of the entire imbalance. The 2008 deficit with Japan is down almost 14% from the 2005 high of $14.75 billion.

Along with Japan, in line with from the volume of imports, Mexico contributes just about one third of the total trade deficit. Unlike Japan, however, Mexican trade deficit is rising rapidly. Since 2001, the trade gap has increased by $8.4 billion, or 460%.

Leader in the efforts to lower the trade gap is Canada, which reports a $13.6 billion in parts trade surplus from the U.S. The surplus with Canada is also trending upwards, however, even as America’s largest trading partner, it is unable to make up for the deficits with many other nations.

Trade with Europe has been contribution ever greater amounts to the deficit. Since 2001, parts trade with Europe has gone from -$2.2 billion to -$7.1 billion. More than half the gap is from Germany,

2001 2002 2003 2004 2005 2006 2007 2008*

africa and antarctica $50,374,267 -$47,308,274 -$41,294,881 -$51,888,094 -$99,818,176 -$70,926,062 -$75,909,426 -$15,447,655

Egypt $30,500,675 $24,698,814 $43,708,000 $46,329,662 $57,296,915 $59,468,615 $49,840,301 $46,321,012

Algeria $7,458,261 $3,457,700 $6,481,840 $2,745,798 $5,575,610 $16,036,353 $13,943,882 $14,342,422

Angola $1,050,274 $1,122,833 $1,813,518 $1,648,625 $2,195,419 $7,005,715 $11,415,474 $9,770,554

Ghana $2,807,840 $1,877,319 $2,901,324 $2,336,224 $2,956,030 $2,613,646 $5,259,232 $3,359,442

Kenya $1,145,795 $1,080,128 $1,344,130 $1,088,331 $554,544 $1,311,602 $2,167,337 $3,082,663

Guyana $2,714,242 $2,881,392 $1,959,778 $2,651,926 $2,376,162 $2,600,315 $2,135,969 $2,450,641

Zambia $246,265 $255,841 $95,025 $205,117 $398,329 $2,002,799 $2,478,477 $2,131,890

Tanzania $797,052 $917,964 $651,216 $971,800 $1,338,856 $1,196,864 $4,847,789 $2,018,674

Niger $2,579,173 $383,925 $389,770 $238,208 $331,134 $975,969 $1,504,849 $1,718,398

Morocco $1,529,633 $1,522,657 -$1,015,519 -$3,583,372 -$9,710,579 -$12,630,693 -$15,683,953 -$17,807,745

South Africa -$195,492,995 -$104,190,904 -$118,855,818 -$120,770,586 -$181,445,174 -$197,066,184 -$214,342,381 -$138,242,592

likely related to the supply of German brand vehicle manufacturers, such as BMW and Mercedes-Benz, which have set up factories in the United States. With Chrysler no longer owned by German Daimler, however, the deficit to Germany may decrease. While limited parts commonalities were achieved with Chrysler products during the time of ownership, there were some sourcing partnerships. With the relationship dissolved, the introduction of new Chrysler vehicles could bring a reduction in German parts imported.

africa and antarctica

U.s motor Vehicle parts Trade balancemillions of dollars


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2001 2002 2003 2004 2005 2006 2007 2008*

americas $7,200,367,957 $3,729,903,869 -$322,188,313 -$1,092,442,298 -$3,079,905,038 -$1,144,667,258 -$312,617,483 $2,440,006,042

Canada $9,796,519,816 $9,743,270,443 $7,956,981,169 $8,548,577,229 $8,192,154,655 $9,977,977,670 $11,412,871,709 $13,638,492,307

Venezuela $389,392,368 $93,828,366 -$48,725,219 $138,767,263 $211,675,381 $340,988,187 $491,534,361 $508,213,976

Chile $48,919,866 $76,808,495 $65,084,219 $59,642,368 $87,373,359 $127,535,540 $188,836,332 $182,715,134

Argentina $69,400,130 -$39,676,703 $16,851,134 $13,758,188 $41,623,061 $55,704,205 $113,194,564 $119,444,338

Colombia $55,727,966 $60,420,347 $52,559,116 $80,040,779 $86,542,932 $95,397,462 $112,984,045 $114,093,502

Peru $21,055,353 $20,881,503 $27,233,731 $24,724,728 $48,026,817 $47,102,441 $70,575,390 $65,584,431

Dominican Rep $51,309,455 $52,163,880 $28,209,796 $4,431,310 $10,109,067 $22,318,739 $48,961,744 $48,515,213

Ecuador $53,913,628 $37,801,907 $38,048,755 $43,773,635 $45,107,168 $41,793,904 $43,705,417 $44,506,702

Panama $20,690,192 $13,529,509 $16,862,161 $16,347,832 $18,423,503 $24,873,663 $35,057,294 $34,025,749

Jamaica $12,651,947 $12,847,216 $10,111,736 $11,582,267 $12,664,172 $16,538,626 $24,716,116 $26,227,419

El Salvador $12,883,448 $11,258,703 $13,537,111 $12,551,499 $10,932,773 $14,171,851 $9,479,383 -$3,567,640

Costa Rica $19,114,659 $12,071,364 $3,730,148 -$34,496,281 -$39,655,263 -$43,550,609 -$49,014,185 -$37,929,377

Honduras -$24,266,351 -$41,526,404 -$65,289,792 -$85,974,042 -$154,356,447 -$224,978,118 -$217,936,587 -$172,136,457

Nicaragua $8,086,750 $3,408,522 -$30,931,271 -$55,470,303 -$102,391,755 -$117,934,272 -$150,993,511 -$179,078,468

Brazil -$189,141,328 -$327,668,944 -$400,591,413 -$542,212,840 -$757,113,379 -$770,726,350 -$592,933,702 -$547,494,081

Mexico -$3,237,956,961 -$6,080,314,991 -$8,085,852,245 -$9,432,193,750 -$10,919,132,553 -$10,939,455,577 -$12,106,360,213 -$11,669,266,483

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2001 2002 2003 2004 2005 2006 2007 2008*asia and

the pacific -$14,299,242,044 -$15,339,659,446 -$16,496,531,718 -$20,472,997,066 -$24,140,936,669 -$25,760,763,274 -$27,601,583,703 -$29,007,925,377

Australia $381,391,521 $387,989,962 $441,917,598 $560,183,974 $598,406,121 $656,126,247 $636,418,459 $642,265,185

Saudi Arabia $165,738,919 $150,813,950 $152,325,622 $170,504,059 $164,358,883 $208,192,872 $219,061,195 $210,212,727

Singapore $37,938,500 $36,357,926 $44,123,614 $43,364,701 $14,859,461 $113,266,943 $152,588,941 $167,164,851

United Arab Em $42,847,289 $58,164,013 $68,272,471 $86,052,893 $83,272,167 $120,652,554 $166,696,987 $154,667,650

Hong Kong $70,883,295 $21,237,266 $32,822,024 $25,395,770 $28,130,384 $7,944,187 $48,131,554 $43,654,955

New Zealand -$34,887,419 -$45,368,566 -$64,116,390 -$57,328,217 -$53,632,464 $20,468,930 $35,035,284 $36,594,419

Pakistan $1,412,356 $1,307,544 $2,406,131 $2,440,747 $2,176,666 $2,272,424 $2,171,262 $3,000,234

Turkey -$10,272,346 -$14,319,586 -$20,600,711 -$43,514,810 -$62,430,671 -$70,917,748 -$50,462,676 -$54,995,740

Malaysia -$30,757,994 -$63,861,573 -$51,558,569 -$61,964,262 -$61,175,817 -$105,778,745 -$108,464,415 -$78,752,385

Israel -$15,834,258 -$23,386,655 -$39,449,713 -$42,097,581 -$58,550,159 -$60,896,136 -$81,218,316 -$123,267,973

Vietnam $5,668,566 -$667,991 -$7,420,805 -$13,663,366 -$20,718,644 -$65,878,283 -$108,797,488 -$182,044,847

Indonesia -$195,715,867 -$202,639,097 -$239,084,043 -$252,468,724 -$268,736,620 -$419,885,239 -$476,981,326 -$441,498,995

India -$134,417,534 -$169,724,562 -$183,615,918 -$239,397,523 -$327,638,133 -$363,663,902 -$408,559,398 -$471,889,398

Philippines -$306,495,163 -$268,301,193 -$278,805,610 -$321,004,955 -$315,006,038 -$390,628,775 -$478,108,856 -$528,150,767

Thailand -$188,139,725 -$245,560,910 -$232,373,777 -$292,203,151 -$369,422,415 -$556,402,060 -$777,547,987 -$1,029,719,957

Taiwan -$1,076,995,613 -$1,286,073,192 -$1,324,797,075 -$1,598,899,822 -$1,738,728,603 -$1,817,896,913 -$2,026,132,932 -$2,168,078,814

Korea -$662,175,431 -$992,542,211 -$1,181,358,162 -$1,432,745,409 -$2,199,021,033 -$3,177,153,752 -$3,407,699,953 -$3,877,952,595

China -$1,318,893,115 -$1,771,104,251 -$2,273,835,273 -$3,367,285,595 -$4,840,582,098 -$6,401,354,630 -$8,025,493,068 -$8,696,145,928

Japan -$11,067,382,936 -$10,947,989,447 -$11,385,294,319 -$13,683,671,225 -$14,754,619,384 -$13,514,064,653 -$13,031,922,828 -$12,707,111,825

europe

2001 2002 2003 2004 2005 2006 2007 2008*

europe -$2,291,911,291 -$3,527,394,611 -$5,176,040,017 -$5,863,630,425 -$5,986,720,621 -$5,614,502,222 -$7,036,754,760 -$7,077,350,552

Austria $893,231,191 $723,675,200 $277,514,716 $254,053,809 $418,514,522 $506,698,273 $85,687,714 $397,956,574

Belgium $246,555,546 $286,720,519 $256,753,761 $210,489,889 $129,309,540 $165,012,666 $212,129,116 $258,953,138

Netherlands $277,655,501 $262,274,510 $256,869,848 $255,762,842 $274,401,616 $314,685,973 $282,469,229 $255,071,010

Russia $19,486,128 $15,095,160 $21,144,155 $24,216,157 $36,983,677 $110,169,475 $122,658,261 $130,864,821

Sweden -$27,849,388 $3,570,996 $74,954,821 $95,144,633 $13,518,163 -$3,491,430 $77,256,197 $59,454,187

Finland -$11,719,813 -$16,066,753 -$13,133,719 -$18,733,829 -$33,491,197 -$30,961,208 -$8,681,487 -$11,543,426

Poland -$33,486,086 -$32,540,646 -$61,285,187 -$58,367,708 -$39,191,020 -$43,903,544 -$58,904,835 -$33,070,966

Slovak Republic -$28,301,137 -$18,933,758 -$19,955,781 -$26,503,674 -$37,432,272 -$35,521,432 -$32,322,480 -$33,097,162

Switzerland $113,675,867 $192,253,282 $150,794,311 $171,183,731 $183,392,860 $54,660,775 -$36,459,287 -$59,696,332

Ukraine $1,515,238 $1,572,841 $3,324,392 $424,681 -$5,933,839 -$18,623,140 -$28,390,227 -$62,018,170

Portugal $7,930,254 -$33,456,359 -$33,100,611 -$86,757,157 -$112,493,294 -$105,331,224 -$86,363,362 -$103,231,909

Romania -$6,148,288 -$11,672,812 -$26,570,181 -$36,324,074 -$43,694,491 -$57,220,493 -$102,619,732 -$125,039,328

Hungary -$74,309,587 -$118,520,393 -$234,537,402 -$142,975,988 -$145,922,351 -$135,151,870 -$115,992,976 -$140,198,081

Spain -$251,014,872 -$295,340,608 -$328,605,777 -$371,173,666 -$309,059,485 -$325,602,582 -$271,970,688 -$208,511,048

Czech Republic -$56,074,304 -$71,691,999 -$96,201,710 -$106,989,709 -$152,988,844 -$152,484,999 -$255,247,969 -$328,565,363

United Kingdom $122,823,703 -$125,345,252 -$126,533,454 -$205,491,089 -$432,151,234 -$384,806,606 -$401,888,285 -$414,467,327

Italy -$327,415,774 -$425,124,367 -$483,338,444 -$576,187,052 -$582,953,525 -$560,122,737 -$536,493,160 -$659,737,384

France -$793,100,719 -$920,344,511 -$1,021,370,362 -$1,125,057,037 -$1,023,369,362 -$893,557,511 -$761,059,994 -$769,769,742

Germany -$2,240,684,433 -$2,844,741,820 -$3,671,440,640 -$3,996,231,776 -$4,031,540,224 -$3,882,008,736 -$5,057,003,049 -$5,154,465,475

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US Motor Vehicle Industry DataThe U.S. Census Bureau conducts the economic census every five years, in years ending in a 2 or 7. Data is collected in the interim years via the Bureau’s Annual Survey of Manufacturers (ASM). The ASM is based on the sample framework of the Economic Census – Manufacturing. As 2002 was the last US census year, 2005 data, the most recent data available, is based on the ASM.

Employment in the U.S. motor vehicle manufacturing industry increased slightly in 2005, reaching 966,366 workers (+0.2%). Production workers accounted for 80.0% of the total automotive workforce. The largest sector, motor vehicle parts manufacturing, employed 612,873 people or 63.4% of the total.

Total motor vehicle industry payroll in 2005 remained stable, inch-ing up 0.3% from the year prior to settle at $49.6 billion. In general, employees in motor vehicle manufacturing tend to earn more than those in other sectors, accounting for 28.7% of the total payroll and only 21.1% of the total number of employees.

Manufacturer value added edged up from $160.6 billion in 2004 to $161.2 billion in 2005. Significant positive growth in value added was only seen in motor vehicle manufacturing (+1.3%). Body and trailer production (0.0%) remained at par while parts manufacturing (-0.4%) saw value added dip slightly. In accordance, year-over-year capital expenditure increases were only seen in the motor vehicle manufacturing sector, with a rise of 4.6% to $4.3 billion.

The total value of shipments produced within the U.S. motor ve-hicle industry slipped 1.8% in 2005 to settle at $490.2 billion. De-creases were evident across all segments, the largest coming in parts manufacturing which registered a 3.9% fallback to $198.2 billion.

On average, the motor vehicle industry in 2005 produced $166,798 in value added per employee, a slight 0.2% rise compared to 2004. Motor vehicle manufacturing recorded significantly higher levels than other sectors, with its $331,295 per employee nearly doubling the industry average. Total value of shipments per employee fell 2.0 % from 2004 to 2005, coming in at $507,213. Again, vehicle manufacturing dominated in this aspect, nearly quadrupling the closest segment, parts production. Overall, manufacturing value added made up 32.9% of 2005 total shipment value, up from 32.2% the year before.

The average hourly earnings of production workers remained at con-sistent levels from 2004 to 2005, inching up 0.3% to $23.68. This is in line with the similar rise in value added per employee, the affect being no year-over-year change in production wages as a proportion of value added – 23.2%. Production worker hourly wages are highest among employees of vehicle manufacturing ($34.02), followed by parts ($21.82) and body and trailer ($15.90) production.

all employees production Workers

naiCs payroll hours WagesCode number ($000) number (000) ($000)

3361 Motor Vehicle Manufacturing 204,065 14,231,237 176,346 354,803 12,069,111

336111 Automobile Manufacturing 71,479 5,353,182 60,819 124,406 4,502,483

336112 Light Truck and Utility Vehicle Manufacturing 99,568 7,432,378 88,724 183,454 6,517,139

336120 Heavy Duty Truck Manufacturing 33,018 1,445,677 26,803 46,943 1,049,489

3362 Motor Vehicle Body and Trailer Manufacturing 149,428 5,280,917 118,486 234,972 3,735,679

336211 Motor Vehicle Body Manufacturing 48,396 1,807,769 36,344 72,823 1,199,069

336212 Truck Trailer Manufacturing 30,016 1,014,704 24,888 50,428 770,910

336213 Motor Home Manufacturing 22,059 777,865 17,965 33,547 552,086

336214 Travel Trailer and Camper Manufacturing 48,957 1,680,579 39,289 78,174 1,213,614

3363 Motor Vehicle Parts Manufacturing 612,873 30,040,188 478,679 987,766 21,552,379

33631 Gasoline Engine and Engine Parts Manufacturing 73,016 4,223,110 56,589 120,731 3,096,566

33632 Electrical and Electronic Equipment Manufacturing 80,892 3,566,419 58,317 116,662 2,150,513

336330 Steering & Suspension Components (except Spring) 37,399 1,857,880 29,583 59,014 1,341,599

336340 Brake System Manufacturing 37,198 1,524,768 28,675 59,251 1,018,321

335350 Transmission & Power Train Parts Manufacturing 80,494 5,200,870 66,210 147,312 4,121,431

336360 Seating & Interior Trim Manufacturing 47,106 1,975,503 34,304 66,063 1,268,654

336370 Motor Vehicle Stamping 99,365 5,461,140 81,004 170,906 4,274,659

336391 Motor Vehicle Air-Conditioning Manufacturing 17,011 822,909 13,107 26,370 568,714

336399 All Other Motor Vehicle Part Manufacturing 140,392 5,407,589 110,890 221,457 3,711,922

Total U.s. auto industry 966,366 49,552,342 773,511 1,577,541 37,357,169

employment dataAnnual Survey of Manufacturers

Source: U.S. Census Bureau and U.S. Department of Commerce

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($000)naiCs Value added by Cost of Value of Total capitalCode manufacture materials shipments expenditures

3361 Motor Vehicle Manufacturing 67,605,759 194,435,553 259,449,261 4,283,061

336111 Automobile Manufacturing 24,517,958 63,817,188 86,778,640 2,541,981

336112 Light Truck and Utility Vehicle Manufacturing 39,200,693 108,615,417 147,463,247 1,544,154

336120 Heavy Duty Truck Manufacturing 3,887,108 22,002,948 25,207,374 196,926

3362 Motor Vehicle Body and Trailer Manufacturing 12,292,508 21,403,421 32,493,277 391,167

336211 Motor Vehicle Body Manufacturing 4,411,842 6,490,485 10,237,275 149,836

336212 Truck Trailer Manufacturing 2,291,959 4,898,765 6,915,888 108,168

336213 Motor Home Manufacturing 2,138,264 4,124,442 6,109,655 53,262

336214 Travel Trailer and Camper Manufacturing 3,450,443 5,889,729 9,230,459 79,901

3363 Motor Vehicle Parts Manufacturing 81,289,767 125,157,004 198,211,020 6,759,388

33631 Gasoline Engine and Engine Parts Manufacturing 13,918,889 21,271,073 34,431,273 1,428,428

33632 Electrical and Electronic Equipment Manufacturing 10,000,102 12,422,295 19,928,496 715,593

336330 Steering & Suspension Components (except Spring) 4,331,640 6,486,497 10,586,622 334,317

336340 Brake System Manufacturing 5,277,446 8,239,542 12,388,807 360,423

335350 Transmission & Power Train Parts Manufacturing 14,169,532 20,844,233 34,266,112 1,367,138

336360 Seating & Interior Trim Manufacturing 4,335,304 13,699,517 17,796,096 276,847

336370 Motor Vehicle Stamping 12,065,687 14,758,641 25,729,385 946,200

336391 Motor Vehicle Air-Conditioning Manufacturing 2,092,620 3,708,437 5,184,068 132,318

336399 All Other Motor Vehicle Part Manufacturing 15,098,547 23,726,769 37,900,161 1,198,124

Total U.s. auto industry 161,188,034 340,995,978 490,153,558 11,433,616

manufacturing dataAnnual Survey of Manufacturers


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Value of Value Value Value added shipments per ValuenaiCs added added per per production employee added per dollarCode per employee production Worker Worker hour paid (all employees) of shipments %

3361 Motor Vehicle Manufacturing $331,295 $383,370 $191 $1,271,405 26.1%

336111 Automobile Manufacturing $343,009 $403,130 $197 $1,214,044 28.3%

336112 Light Truck and Utility Vehicle Manufacturing $393,708 $441,827 $214 $1,481,031 26.6%

336120 Heavy Duty Truck Manufacturing $117,727 $145,025 $83 $763,443 15.4%

3362 Motor Vehicle Body and Trailer Manufacturing $82,264 $103,747 $52 $217,451 37.8%

336211 Motor Vehicle Body Manufacturing $91,161 $121,391 $61 $211,531 43.1%

336212 Truck Trailer Manufacturing $76,358 $92,091 $45 $230,407 33.1%

336213 Motor Home Manufacturing $96,934 $119,024 $64 $276,969 35.0%

336214 Travel Trailer and Camper Manufacturing $70,479 $87,822 $44 $188,542 37.4%

3363 Motor Vehicle Parts Manufacturing $132,637 $169,821 $82 $323,413 41.0%

33631 Gasoline Engine and Engine Parts Manufacturing $190,628 $245,965 $115 $471,558 40.4%

33632 Electrical and Electronic Equipment Manufacturing $123,623 $171,478 $86 $246,359 50.2%

336330 Steering & Suspension Components (except Spring) $115,822 $146,423 $73 $283,072 40.9%

336340 Brake System Manufacturing $141,874 $184,043 $89 $333,050 42.6%

335350 Transmission & Power Train Parts Manufacturing $176,032 $214,009 $96 $425,698 41.4%

336360 Seating & Interior Trim Manufacturing $92,033 $126,379 $66 $377,788 24.4%

336370 Motor Vehicle Stamping $121,428 $148,952 $71 $258,938 46.9%

336391 Motor Vehicle Air-Conditioning Manufacturing $123,016 $159,657 $79 $304,748 40.4%

336399 All Other Motor Vehicle Part Manufacturing $107,546 $136,158 $68 $269,960 39.8%

Total U.s. auto industry $166,798 $208,385 $102 $507,213 32.9%

Value addedAnnual Survey of Manufacturers


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production Workers production Wages production Wages average hourly production as a % ofnaiCs as a % as a % earnings of Wages TotalCode of Value added shipments production Workers per Worker employment

3361 Motor Vehicle Manufacturing 17.9% 4.7% $34.02 $68,440 86.4%

336111 Automobile Manufacturing 18.4% 5.2% $36.19 $74,031 85.1%

336112 Light Truck and Utility Vehicle Manufacturing 16.6% 4.4% $35.52 $73,454 89.1%

336120 Heavy Duty Truck Manufacturing 27.0% 4.2% $22.36 $39,156 81.2%

3362 Motor Vehicle Body and Trailer Manufacturing 30.4% 11.5% $15.90 $31,528 79.3%

336211 Motor Vehicle Body Manufacturing 27.2% 11.7% $16.47 $32,992 75.1%

336212 Truck Trailer Manufacturing 33.6% 11.1% $15.29 $30,975 82.9%

336213 Motor Home Manufacturing 25.8% 9.0% $16.46 $30,731 81.4%

336214 Travel Trailer and Camper Manufacturing 35.2% 13.1% $15.52 $30,889 80.3%

3363 Motor Vehicle Parts Manufacturing 26.5% 10.9% $21.82 $45,025 78.1%

33631 Gasoline Engine and Engine Parts Manufacturing 22.2% 9.0% $25.65 $54,720 77.5%

33632 Electrical and Electronic Equipment Manufacturing 21.5% 10.8% $18.43 $36,876 72.1%

336330 Steering & Suspension Components (except Spring) 31.0% 12.7% $22.73 $45,350 79.1%

336340 Brake System Manufacturing 19.3% 8.2% $17.19 $35,513 77.1%

335350 Transmission & Power Train Parts Manufacturing 29.1% 12.0% $27.98 $62,248 82.3%

336360 Seating & Interior Trim Manufacturing 29.3% 7.1% $19.20 $36,983 72.8%

336370 Motor Vehicle Stamping 35.4% 16.6% $25.01 $52,771 81.5%

336391 Motor Vehicle Air-Conditioning Manufacturing 27.2% 11.0% $21.57 $43,390 77.1%

336399 All Other Motor Vehicle Part Manufacturing 24.6% 9.8% $16.76 $33,474 79.0%

Total U.s. auto industry 23.2% 7.6% $23.68 $48,296 80.0%

productivity ratiosAnnual Survey of Manufacturers


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U.S. Transportation Impact and InfrastructureU.s. Transportation systemFor hire transportation represented 3.2% of the U.S. total GDP in 2006 based on data from the United States Department of Transpor-tation (DOT) Administration Research and Innovative Technology (RITA) Administration, Bureau of Transportation Statistics (BTS) Transportation Statistics 2008. 3.2% of the 2006 GDP is $366.2 billion.

Within the $366.2 billion GDP, the largest sector by far is truck transportation. With a 28.3% share of all for-hire transportation GDP dollars, truck transportation was valued at $103.5 billion dollars in 2006. Growth in trucking GDP slowed to 2.07% when comparing 2006 to 2005, trailing the transportation sector growth of 5.23%t.

Gdp share of Transportation sector 2006

Source: United States Department of Transportation (DOT) Administration Re-search and Innovative Technology (RITA) Administration, Bureau of Transporta-tion Statistics (BTS) Transportation Statistics 2008

Ton miles per year by mode, CumulativeBillions of ton miles

Air freight omitted due to scale. Contribution of air freight is ap-proximately one third of one percent


In ton-miles, trucking now trails only railroads, having surpassed pipeline shipments almost 15 years ago. Along with a 28.3% GDP share, trucking accounts for a very comparable 28.5% of ton-miles. Railroads, by contrast, control 38.2% of ton-miles, yet account for a much smaller nine percent of transportation GDP. Railroads have the advantage in the carriage of exceptionally heavy loads over long distances, with few stops. These characteristics, when compared to trucking which has a greater variety of loads and distances, provide railroads an impressive ton-mile total.

The economic impact of trucking goes beyond the United States borders. While the popular image of export involves giant container ships being loaded in America’s harbors, the role of the truck is not limited to delivery of those containers to port. Trucks play an essential and dominating roll in the export of products to America’s two largest trading partners – Canada and Mexico.

Annual U.S. Canada border crossings by truck outnumber those Source: United States Department of Transportation (DOT) Administration Re-search and Innovative Technology (RITA) Administration, Bureau of Transporta-tion Statistics (BTS) Transportation Statistics 2008

Truck border Crossings, 2002-2006

by rail by more than three-to-one. Border crossings with Mexico, trucks hold nearly a six-to-one advantage. All told, in 2007, border crossing points with Canada and Mexico counted 11.4 million trucks. The value of the export portion of these crossings is estimated at $267 billion. When total 2007 export value to Canada and Mexico is estimated at $345 billion, the over 75% share controlled by trucking underscores the important international trade role played by an industry which is most commonly considered a domestic enterprise.

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export Values to Canada

export Values to mexico

highway infrastructure and CongestionNo roads means no trucks. That statement may be an oversimplifi-cation that ignores the large and healthy off-highway truck segment, however, for the majority of trucking enterprises, it remains true. The national road infrastructure is of critical importance to the trucking industry, and with significant investment made by users through payment of diesel taxes (see section 4 for more details), heavy duty industries have an undeniable interest in the nation’s highway systems.

The DOT reported 4,016,741 miles of road in 2006. This is an increase of 21,106 miles, or 0.53%, compared to 2005. In the last five years, total road miles have grown by just 1.73%, while the past decade has seen growth of just 2.48%. By comparison, total vehicle travel grew by 7.81% in the same five year span, and 21.43% from 1997 through 2006. Infrastructure is clearly not keeping pace with traffic demand.

The news is only slightly better when the comparison is made on the basis of lane miles. The layout of the U.S. road system is mostly complete, and completely new roads may not be needed in many cases. Augmenting existing roads to handle increased road traffic is often the best solution. Furthermore, new roads may be built multi-lane in anticipation of future needs. Lane miles grew by 48,871 in 2006, or .58%. The five and ten year increase levels were 2.04 and 2.96%, respectively; above the roadway miles, but still far below the increase in traffic volume during the same time period.

The lack of growth in road infrastructure its impact on heavy duty vehicle industries can be underscored and quantified through a comparison of Interstate motor carriers per unit of road way. The Federal Motor Carrier Safety Administration records Interstate motor carriers, and for 2005 reported 679,744 in operation. This is an increase of over 300,000 from 1996 levels or about 80%. Clearly this far exceeds the rate of road infrastructure growth.

A method of simplifying this relationship is to state the number of Interstate motor carriers per 1000 miles of roadway. In 1995, there were 88 carriers per 1000 miles, and in 2000 142. By 2003, the ratio had reached 170 carriers per 1000 miles, the same level as the most recently reported data, 2005. With 2 years of no growth, the pos-sibility of a saturation of existing infrastructure is a possibility.

The concern for quantity of roads is joined by a need for quality. DOT data grading the quality of America’s roads on the Internation-al Roughness Indicator (IRI) has shown a slow, but steady increase in overall quality. Perhaps most importantly for trucking, the DOT has decreased the number of Interstates and other major expressways rated poor (the worst category) significantly in the last ten years. Unfortunately, it appears that this effort has allowed maintenance of small roads to fall, compromising their condition.

rUral 1996 2006 Urban 1996 2006

Interstates 3.9 1 Interstates 8.6 2.4

Other principal arterials 1.4 1.7 Other freeways and expressway 3.4 2.9

Minor arterials 2.3 3.3 Other principal arterials 11.8 17.5

Major collectors 6.7 6.2 Minor arterials 6.9 12.2

Collectors 9.7 18.8

percent of roads rated poor on iri scale

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Also of concern, as the previous page table shows, is the difference in quality between urban and rural roads; a difference that continues to widen. Rural road quality is better in every category, when mea-sured by percent listed as poor. For Interstates, the gap is evident in all quality levels. Nine percent of rural Interstates are listed as me-

interstate motor Carriers per 1000 miles of highwayannual new U.s. road mileage



diocre (second worst) while 19% of urban roads are so graded. The highest grade, very good, is awarded to 30.7% of rural Interstates, but only 18.7% of urban ones. In light of increasing urbanization, this is a troubling trend.

Quality of rural road surfaces by functional systemInternational Roughness Indicator quality grades



Quality of Urban road surfaces by functional systemInternational Roughness Indicator quality grades

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Traffic CongestionThe most immediate impact deficiency of road infrastructure com-pared to vehicle travel is congestion. In fact, due to the daily ebb and flow of traffic volume, crashes and road maintenance, a highway infrastructure capable handling all situations without congestion is not a realistic expectation.

While a 100% solution is unattainable, the impact of congestion re-mains. The International Road Transport Union (based in Europe) estimates that fifty percent of annual fuel use is attributable to traffic congestion. For 2006, the Texas Transportation Institute reports the economic impact of congestion in 75 metro areas to have reached $73.846 billion (2002 dollars). That amounts to $250 per United States resident. Traffic congestion amounts to a $1000 per year cost to the average American family of four. The cost of congestion is estimated with a value for each hour of travel time and each gallon of fuel.

Not surprisingly, the biggest cities have the largest economic impact due to congestion. Leading the list is Los Angeles, which based on DOT data, had $9324 million lost due to congestion in 2005. Second is New York City, with a total of $7383 million, followed by Chicago at $3968 million. The very large city average, those areas with populations over three million, was $3205 million in 2005. Large urban areas, those with between one and three million resi-dents, logged an average congestion loss of $628 million. Medium

Source: Texas Transportation Institute

annual Costs of Congestion from 75 metropolitan areas(billions of constant (2002) dollars)

The cost of congestion is estimated with a value for each hour of travel time and each gallon of fuel

urban areas (500,000 to one million residents) and small urban areas (population under 500,000) reported averages of $206 million and $56 million respectively.

Source: United States Department of Transportation (DOT) Administration Research and Innovative Technology (RITA) Administration, Bureau of Transportation Statistics (BTS) Transportation Statistics 2008

average Congestion Cost by metro area size

Millions of dollars, logarithmic axis scale

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Truck SalesSales of medium and heavy duty and trucks have reported declines of over fifty percent and higher since the end of the 2006 pre-buy, according to Ward’s Automotive AutoInfoBank figures. In the 20 months starting with January 2007, the first month after the pre-buy, 500,028 Class 5, 6, 7 and 8 trucks have been sold. By comparison, in the 20 months prior to the pre-buy, sales of Class 5, 6, 7 and 8 trucks totaled 798,099.

Judging the impact on 2008 sales of the model year 2007 EPA man-dates, the driving force behind the massive changes in truck sales volume, is difficult to quantify. 2006 sales are inflated due to the pre-buy activity, so offer a poor basis for comparison. 2007 sales are depressed due to orders being filled in 2006. Further complicating

matters is another large change for model year 2010. Are 2008 sales driven down by fleet manager anticipation of buying 2009 models to avoid the price increases and uncertainty of 2010? This doesn’t appear to have been the case in 2005, but unlike 2008, 2005 was only before a pre-buy year, not both before and after. With the pace of change and frequency of pre-buy activity, comparing current sales to previous years may not longer be meaningful.

2008 Class 8 trucks have seen the longest hangover since the pre-buy of 2006, still averaging under half the same month sales of 2005. Class 8 posted the largest increase in sales for model year 2006, so if history were to repeat itself, 2009 could be a recording setting year in for Class 8 sales.

heavy Vehicle sales in the United states – 1997-8/2008

Source: Ward’s Automotive AutoInfoBank

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Based on R.L. Polk data, at year end 2007, there were 7.21 mil-lion heavy trucks (Classes 5 through 8) in operation in the United States. The population is dominated by Class 8 trucks, which account for 48.65% of heavy trucks. Of the remainder, 22.24% are Class 7, 21.17% Class 6 and 7.94 percent are Class 5.

Distribution of truck registrations in the United States is far from uniform. Using 2005 U.S. Census data, it is possible to count the number of trucks per 1000 state residents. On the low end, we find Hawaii, with just 10.77 trucks per 1000 residents, and with the largest number of trucks per 1000 residents is North Dakota, 93.05. The high truck-to-resident ratios are dominated by the states of the Great Plains and Rocky Mountains. Along with North Dakota, Montana, Nebraska, Oklahoma, South Dakota and Wyoming all have more than 50 heavy duty trucks per 1000 residents. By con-trast, the lower count states are dominated by states with extensive urban areas; California, District of Colombia, Massachusetts, New York and Rhode Island.

Vehicle PopulationAge distribution of heavy trucks varies by class. The median age of Class 5 trucks is lowest, at just 8.47 years. Classes 6, 7 and 8, have median ages of 12.35, 10.77 and 9.22 year, respectively. Beyond the median, the trend for Class 6 vehicles to be older becomes more pronounced. The eightieth percentile, the age at which 80 percent of all trucks registered are newer than, is 28.87 years for Class 6. For Class 5, it is 17.9, for Class 7 it is 19, and for Class 8, it is 17.6. Ser-vice requirement of Class 6 vehicles will likely represent a different breadth of product than for other classes as a result.

The large discrepancy between Class 5 and 6 median ages likely relates to the uses of each vehicle type. Class 5 vehicles are often used for services such as beverage and product delivery, both mileage intensive activities. By contrast, Class 6 vehicles are often outfitted with specialized equipment that is used while the vehicle is station-ary, reducing mileage. Class 7 and 8 are the heaviest units used in long haul trucking, and therefore follow more the pattern of Class 5 units.

state Class 5 Class 6 Class 7 Class 8 Total

Alabama 9,875 28,901 32,321 69,615 140,712

Alaska 2,734 4,738 4,516 9,426 21,414

Arizona 25,346 44,438 24,794 67,901 162,479

Arkansas 4,598 14,190 15,097 49,021 82,906

California 65,452 140,753 117,191 186,646 510,042

Colorado 11,156 27,946 21,775 49,831 110,708

Connecticut 6,938 14,097 20,311 26,184 67,530

Delaware 1,557 9,088 6,548 9,216 26,409

District Of Columbia 655 1,055 1,254 2,977 5,941

Florida 31,620 71,159 83,876 139,651 326,306

Georgia 18,330 56,497 58,072 117,678 250,577

Hawaii 1,009 2,097 3,760 6,883 13,749

Idaho 4,719 11,821 10,057 28,839 55,436

Illinois 20,471 69,978 87,139 224,026 401,614

Indiana 11,491 39,833 50,778 100,433 202,535

Iowa 8,000 27,496 25,828 86,920 148,244

Kansas 10,093 31,510 23,922 53,551 119,076

Kentucky 7,837 29,435 28,322 48,204 113,798

Louisiana 6,798 20,378 21,304 44,504 92,984

Maine 2,638 6,377 11,572 20,353 40,940

Maryland 11,117 28,734 25,366 41,065 106,282

Massachusetts 8,636 18,895 22,586 34,872 84,989

Michigan 15,243 41,104 51,219 109,780 217,346

Minnesota 13,281 37,396 38,652 101,305 190,634

Mississippi 3,649 12,274 12,896 36,719 65,538

Missouri 12,422 37,493 38,249 96,474 184,638

state Class 5 Class 6 Class 7 Class 8 Total

Montana 5,106 13,885 12,273 32,159 63,423

Nebraska 6,822 24,439 13,484 70,857 115,602

Nevada 5,399 11,568 9,233 17,639 43,839

New Hampshire 3,004 7,014 9,469 15,791 35,278

New Jersey 14,063 34,645 45,359 81,832 175,899

New Mexico 4,394 9,509 9,874 18,738 42,515

New York 33,064 51,966 91,377 119,600 296,007

North Carolina 16,608 55,392 59,143 113,433 244,576

North Dakota 3,917 17,584 7,016 30,615 59,132

Ohio 20,236 64,494 71,408 153,546 309,684

Oklahoma 9,962 32,095 24,619 110,969 177,645

Oregon 12,439 21,565 24,693 44,172 102,869

Pennsylvania 22,614 70,892 82,932 183,643 360,081

Rhode Island 1,486 3,789 4,827 9,000 19,102

South Carolina 6,929 22,882 19,691 44,180 93,682

South Dakota 3,992 14,650 9,007 25,783 53,432

Tennessee 7,524 23,329 30,329 73,936 135,118

Texas 29,945 88,877 98,033 259,859 476,714

Utah 5,115 11,647 11,311 41,245 69,318

Vermont 1,672 2,991 5,021 9,160 18,844

Virginia 10,903 37,123 46,079 66,735 160,840

Washington 17,399 35,761 27,812 72,011 152,983

West Virginia 2,994 9,437 10,933 19,146 42,510

Wisconsin 9,078 28,000 38,112 117,544 192,734

Wyoming 2,413 6,232 5,853 17,620 32,118

Grand Total 572,743 1,527,449 1,605,293 3,511,287 7,216,772

heavy duty Vehicle registrations by Class and state

Source: © 2008, R. L. Polk & Co. Reproduction in whole or in part is prohibited without written permission of R. L. Polk & Co. 248-728-7000, www.polk.com

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age structures of Class 5-8 Vehicle registrations


median age of heavy Vehicles registered, by Class


Truck age population percentile by ClassAge breaks for percentiles in multiples of 20, newest first


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Trailer builds reached 282,750 in 2006, a 12.66% increase over 2005, but slipped 21.63% in 2007, to 221,599 units, according to data from Trailer/Body Builders’ Trailer Output Report. Until the 2007 decline, trailer builds had posted five consecutive years of growth after losing 45% in 2001. Total 2006 trailer builds represent-ed a complete recovery of the 2001 drop, by surpassing 2000 build levels by 21,861 units, or 8.4%. However, that was negated by the sharp drop in 2007, which returned build quantities to a level lower than 2000, 2004, 2005 and 2006.

Trailer manufacture is dominated by Wabash, Great Dane and Utility, controllers of over 50% of the market. Their dominance does not, however, seem to deter competition. Over 30 different companies have registered trailer builds of more than 2000 since the

Commercial Trailersstart of the third millennium. While individual company market penetration is limited, their overall impact is quite large. One-in-six trailers built from 2000 to 2007 were built by companies that record yearly averages of under 3000 units.

2008 new trailer registrations using R.L. Polk data show a 30% decrease in the first seven months, compared to 2007. Trailer manufacturers are also feeling pressure from increased commodity costs, such as steel and aluminum. With declining housing starts, a key segment for trailer sales, the recovery is unlikely to be immedi-ate. MEMA estimates that total 2008 trailer registrations will fall to approximately 192,000, marking the second consecutive year of decline. Registrations will, therefore, fall by 43% in two years, based on this projection.

Trailers 2003 2004 2005 2006 2007 5 year Total

Great Dane 41,000 55,000 55,000 60,300 48,000 259,300

Wabash 36,230 47,744 51,808 59,900 45,524 241,206

Utility 23,688 30,802 34,333 36,636 30,648 156,107

Stoughton 9,900 14,850 17,005 18,900 11,400 72,055

Hyundai 8,871 9,270 11,514 14,498 12,950 57,103

Fontaine 4,700 7,357 8,478 11,041 7,221 38,797

Trailmobile Canada 5,479 7,943 8,246 8,400 5,682 35,750

MANAC 6,300 6,500 6,600 6,800 5,600 31,800

Strick 6,000 6,208 6,023 5,150 3,222 26,603

Vanguard - 2,910 4,903 8,113 6,189 22,115

Heil Trailer 2,300 3,000 4,000 4,500 4,750 18,550

Wilson Trailer (est) 3,000 3,500 3,500 4,000 3,500 17,500

Trail King 2,677 3,191 3,510 3,800 3,774 16,952

Lufkin 2,206 3,135 3,501 3,331 1,539 13,712

Road Systems 1,815 2,115 3,083 4,491 1,735 13,239

Timpte 1,774 2,336 2,746 3,090 3,000 12,946

Kentucky 2,085 2,798 2,595 2,122 1,515 11,115

Reitnour 812 1,685 2,577 3,738 1,985 10,797

East Manufacturing 1,360 1,925 2,500 2,740 1,625 10,150

MAC 1,158 1,582 2,162 2,574 2,643 10,119

Polar Tank 1,200 1,575 1,782 2,344 2,502 9,403

Other* 13,493 13,265 15,106 16,282 16,595 74,741

Top 20 five year Trailers builds by manufacturer* - Other includes discontinued operations. Discontinued operations are not included in top 20.

Source: Trailer/Body Builders’ Trailer Output ReportProp

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2004 2005 2006 2007 2008*Auto Transporter 398 339 464 518 230Beverage 716 652 668 621 511Chip 628 749 577 593 324Container Chassis 21,725 19,212 11,315 4,385 6,262Curtainside 416 393 419 304 95Dolly 112 649 229 364 226Dump 5,811 8,326 9,631 8,187 5,398Enclosed Body Cargo 596 557 506 528 407Enclosed Tag-A-Long 5,605 5,230 5,130 4,446 2,958Enclosed Utility 36,684 36,036 34,310 28,998 19,132Flatbed 15,584 20,445 25,222 17,669 9,862Flatbed Drop Deck 3,243 3,834 5,255 4,520 3,036Grain 3,581 4,053 4,615 5,899 6,752Hopper 1,655 1,641 1,637 2,174 3,144Livestock 5,276 4,472 4,222 4,052 3,710Logging 437 466 452 1,296 1,445Lowbed 2,277 2,524 2,898 3,370 2,949Lowbed Drop Deck 896 856 872 1,019 997Livestock Gooseneck 1,820 1,735 1,562 1,533 1,422Roll-Off 66 52 45 72 44Special 791 1,435 897 437 274Tagalong 8,750 8,951 8,541 7,384 6,995Tank 5,374 5,798 6,632 7,297 6,486Transfer 1,519 1,685 1,767 1,471 788Unknown 9,876 11,432 11,891 10,244 9,589Utility 37,865 28,701 30,524 21,824 18,399Van 148,164 161,996 166,449 130,946 80,890Total 319,865 332,219 336,730 270,151 192,324

2003-2008 Trailer registrations*MEMA estimate


Total north american Trailer builds, 2000-2007

Source: Trailer/Body Builders’ Trailer Output Report

2000-2007 Total Trailer Construction market share

Source: Trailer/Body Builders’ Trailer Output Report

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Increases in trade with nations that offer lower cost manufactur-ing often dominates perceptions of the U.S. international trade situation, causing the role of Canada to be often forgotten. Despite increases in trade with China and other nations, Canada is the leading trade partner for the United States as a whole and for the transportation industry in particular. It is perhaps the proximity and level of integration that leads people to not consider Canada as part of international trade.

Based on Statistics Canada data, the GDP of Canada surpassed the $1.2 trillion mark in 2007, however figures for 2008 are unlikely to show the same rate of improvement as in previous years. As of September 2008, the GDP was increasing at a rate of only one half of one percent.

Trade Stats Express™ provided by the US Department of Com-merce reports that 2006 United States exports to Canada totaled

Canada$248,437,163,758, and is on schedule to exceed $275 billion in 2008. 20% of that total was transportation industry related. At the same time, Canadian exports amounted to $ 313,110,879,133, with an almost identical percentage as result of transportation industries. While heavy duty vehicles are not enumerated separately in the available data, total motor vehicle parts are the largest contributor to the transportation industry sector exports at $27,862,790,019 or 43.5% of the total value. Transportation related imports from Canada reflect greater value in finished motor vehicles, however 2006 parts imports accounted for 23.3%, worth $17,190,075,754.

The trade of parts with Canada has fallen in 2008, likely due in part to currency fluctuations, but also reflective of the overall economic slowdown. Through three quarters, the value of parts exports to Canada fell by 11.9%. Parts imports fell 17.22% through the first three quarters. If the rate holds, that will be a decrease of $3 billion for the year.

Value of one U.s. expressed in Canadian dollars

Source: Published End of Day Bank Rate

Canada Gdpmillions of chained dollars (2002)* - MEMA estimate based on 2008 through September

Source: Statistics Canada

U.s. automotive parts imports from Canada in millions

Source: U.S. Census Bureau and U.S. International Trade Administration

U.s. automotive parts exports to Canada in millions

Source: U.S. Census Bureau and U.S. International Trade Administration

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Statistics Canada publishes a report called “Trucking in Canada” about the for-hire trucking industry; the most recent edition covers the year 2005. The industry in 2005 was experiencing a decline in profitability, margins dropping from just over 6% to just under four in one year. Other highlights of the Canadian for-hire trucking industry: l In 2005, there were about 3,360 Canadian-based for-hire carriers. l In 2005, 50% of trucking companies expenditures were related to labor. l General freight transportation accounted for 60% of total revenues. Long-distance trucking captured 78% of total transportation revenues. l Overall, total assets were $13.5 billion. l The top 3% of all carriers accounted for nearly one third of total operating revenues. l Domestic transportation now accounts for two thirds of all shipments.

Canadian for-hire Trucking Company revenues and expenses


Canadian for-hire Trucking Company revenues by freight Category


sales of Trucks by Class

Source: DesRosiers Automotive Consultants Inc. and CVMA

2007 Canadian Class 8 Truck sales market share

Source: Automotive Consultants Inc. and CVMA

New truck sales in Canada for 2007 mirrored the trends in the U.S. market, showing a sharp decline after a record setting 2006 sales year. Sales fell to 34,999 based on DesRosiers Automotive Consul-tants Inc. and CVMA figures, a 30.74 percent decline. The hardest hit were sales of Class 8 units, which dropped by 35.5 percent com-pared to the previous year.

2005 Canadian Trailer inventory by Type and ownership


In 2005, less than one quarter of all truck trailers in Canada were leased. Of the major types, lease rates were highest, 31.7 percent, for flat-deck trailers, and lowest for tank trailers, 8.3 percent. The trailer fleet of Canada is dominated by vans which made up 46.78 percent. No other type of trailer reaches the level of one third that number.

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Mexico is home to 109,555,400 persons (July 2008 estimate) based on the CIA World Factbook and has an estimate 2008 Gross Domestic Product (GDP) of over 12 trillion pesos according to Instituto Nacional de Estadísticas Geografía y Informática (INEGI) Sistema de Cuentas Nacionales de México. Overall economic growth slowed, based on INEGI figures, from a 5% annual rate in 2006 to 1.6% in the third quarter of 2008. Manufacturing has been particularly hard hit, showing 0.2% lost in annual percentage change in the third quarter of 2008. Adding to the uncertainty for companies in Mexico is a currency that is rapidly losing value. Against the US Dollar, the Mexican Peso has lost ap-proximately 17% of its value in 2008.

A declining Peso may help Mexico regain some of the labor price advantage it has lost to other areas of the world. Based on BLS data, Mexican labor remains competitive against Eastern European and other Latin American nations, but the gap with Asian nations is shrinking. Between 2000 and 2007, Mexican labor lost about one quarter of its price advantage over Taiwan. While geographic proximity to the United States remains an advantage for Mexico, as the currency dips in value, the ability of Mexico to remain a viable source of low cost labor is enhanced.

Mexico

mexico GdpBillions of Pesos, Current Prices

Source: Instituto Nacional de Estadísticas Geografía y Informática (INEGI)

Value of one U.s. expressed in mexican pesos

Source: Published End of Day Bank Rate

Freight transportation in Mexico is dominated by over the road activities. Quantified in ton/miles, road transportation accounted for 81% of the total in Mexico, based on the North American Trans-portation Statistics Database (NATS). Unlike in the United States where gross tonnage totals are largest for rail travel on account of their dominance in shipments of grains and minerals, in Mexico, road transport dominates by that measure as well, increasing share to over 86% of the reported total. The final measure, by shipment value, road freight is responsible for 54% of the total in Mexico.

In 2007, NATS data showed a significant shift in heavy vehicle mileage in Mexico: the Class 8 tractor mileage surpassed that of the fixed chassis truck. A large contributor to this trend is the continu-ally increasing amount of international merchandise trade in which Mexico participates. In 1997, the total trade was valued at $220 billion. In 2007, one decade later, it was $553 billion. The amount of road trade has surged to $312 billion, from $135 billion in 1997. Trailers are going to provide efficiencies that fixed chassis trucks simply cannot in any type of long haul service.

Unfortunately, Mexican infrastructure is struggling to keep up. Paved road mileage has grown by just 18% since 1995, while ton miles of freight have increased by over double that amount in the same timeframe. Government spending reflects these priorities as well, providing little to roads as compared to other modes and com-pared to their relative share of traffic.

billions of Ton miles of freight in mexico

Source: North American Transportation Statistics Database

The North American Transportation Statistics Database is a collaboration between the U.S. Department of Transportation; Research and Innovative Technology Administration; Bureau of Transportation Statistics; U.S. Department of Commerce, Census Bureau, Statistics Canada; Transport Canada and Insti-tuto Mexicano del Transporte; Instituto Nacional de Estadís-tica, Geografía e Informática, Secretaría de Comunicaciones y Transportes.

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millions of heavy Vehicle milesAnnual Total by Vehicle Type

mexican Government spending by Transportation mode2006, Millions of Dollars

Thousands of miles of roads in mexico

Heavy vehicle production in Mexico has grown rapidly in the third millennium. Based on data provided by Industria Nacional de Autopartes, A.C. (INA), 91,711 trucks, Class 8 tractors and buses were produced in Mexico. While the total is still small compared to the United States and Canada, the growth rate is impressive. In just the past five years, heavy vehicle production has increased by 90%. Even with the growth, however, Mexican vehicle production is still dominated by light vehicles. Heavy vehicles account for less than one in twenty produced.

production of heavy Vehicles by year

Source: Industria Nacional de Autopartes, A.C. (INA)

2007 Vehicle production by Type with heavy Vehicle breakout


mexico producer price index for Class 8 Trucks


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Source: Auto Strategies Inc.




January 2008 age distribution by Vehicle TypeFor vehicles twelve years old and newer

medium Truck population age distributionFor vehicles twelve years old and newer

heavy Truck population age distributionFor vehicles twelve years old and newer

bus population age distributionFor vehicles twelve years old and newer

The North American Transportation Statistics Database, a collaboration between the U.S. Department of Transportation; Research and In-novative Technology Administration; Bureau of Transportation Statistics; U.S. Department of Commerce, Census Bureau, Statistics Canada; Transport Canada and Instituto Mexicano del Transporte; Instituto Nacional de Estadística, Geografía e Informática, Secretaría de Comunica-ciones y Transportes.Pr

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Highway transportation provides the lifeblood of the industrialized nations and for much of the world. Clearly, access to food is the most important service provided by transportation, but the develop-ment of the necessary highway infrastructure in itself provides addi-tional employment, a framework for development, access to markets and a means for developing countries to enter the ranks of industri-alized nations. In a world that strives towards equality, opportunity and individual freedom, the primary goal, before free digital televi-sion or even web access, should be the development of a highway transportation system that links all the villages of the world. In developing nations, rail system development is non-existent due to costs to implement. Roads are being built for trucks to move goods throughout these developing nations.

Global Highway TransportationIt is the role of the heavy duty industry to provide the trucks to accomplish this goal, and it is the role of the heavy duty parts and components manufacturer to make it possible to build and maintain those trucks.

Presented here is useful information about the roads and vehicle penetration and production around the world. Wherever possible, the attempt was made to insure comparability of the data between nations. The nature of personal and commercial transportation in the United States and Canada prevent a direct comparison with the rest of the world. However, the source of the estimates is consistent with the methodologies used in this section, and accurate U.S. statistics are presented elsewhere in this report.

Country miles of roadways population land area persons/ landarea/ roads/ (square miles) roadmile roads landarea

World 20,098,354 6,677,563,921 196,939,905 332.2 9.8 0.10

United States 3,995,644 303,824,646 3,794,083 76.0 0.9 1.05

European Union 3,274,106 491,018,677 1,669,808 150.0 0.5 1.96

India 2,102,313 1,147,995,898 1,269,346 546.1 0.6 1.66

China 1,199,584 1,330,044,605 3,705,407 1,108.8 3.1 0.32

Brazil 1,088,560 191,908,598 3,286,488 176.3 3.0 0.33

Japan 741,296 127,288,419 145,883 171.7 0.2 5.08

Canada 647,655 33,212,696 3,855,103 51.3 6.0 0.17

France 590,915 64,057,790 248,429 108.4 0.4 2.38

Russia 530,651 140,702,094 6,592,772 265.1 12.4 0.08

Australia 505,157 20,600,856 2,967,909 40.8 5.9 0.17

Spain 423,293 40,491,051 194,897 95.7 0.5 2.17

Italy 301,171 58,145,321 116,306 193.1 0.4 2.59

Turkey 265,267 71,892,807 301,384 271.0 1.1 0.88

Sweden 264,050 9,045,389 173,732 34.3 0.7 1.52

Poland 263,460 38,500,696 120,726 146.1 0.5 2.18

Indonesia 242,962 237,512,355 741,100 977.6 3.1 0.33

United Kingdom 241,097 60,943,912 94,526 252.8 0.4 2.55

South Africa 224,998 43,786,115 471,011 194.6 2.1 0.48

Mexico 221,795 109,955,400 761,606 495.8 3.4 0.29

Pakistan 161,406 167,762,040 310,403 1,039.4 1.9 0.52

Bangladesh 148,648 153,546,901 55,599 1,033.0 0.4 2.67

Germany 143,847 82,369,548 137,847 572.6 1.0 1.04

Argentina 143,769 40,677,348 1,068,302 282.9 7.4 0.13

Vietnam 138,056 86,116,559 127,244 623.8 0.9 1.08

Philippines 124,297 92,681,453 115,831 745.6 0.9 1.07

Romania 123,539 22,246,862 91,699 180.1 0.7 1.35

Nigeria 120,049 138,283,240 356,669 1,151.9 3.0 0.34

Iran 111,467 65,875,223 636,296 591.0 5.7 0.18

highway infrastructure

Source: CIA World Factbook July 2008

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Ukraine 105,308 45,994,287 233,090 436.8 2.2 0.45

Saudi Arabia 104,142 28,161,417 830,000 270.4 8.0 0.13

Colombia 102,065 45,013,674 439,736 441.0 4.3 0.23

Hungary 99,151 9,930,915 35,919 100.2 0.4 2.76

Congo, DR 95,379 66,514,506 905,568 697.4 9.5 0.11

Belgium 93,558 10,403,951 11,787 111.2 0.1 7.94

Netherlands 83,873 16,645,313 16,033 198.5 0.2 5.23

Austria 83,208 8,205,533 32,382 98.6 0.4 2.57

Czech Republic 79,452 10,220,911 30,450 128.6 0.4 2.61

Greece 73,032 10,722,816 50,942 146.8 0.7 1.43

Algeria 67,296 33,769,669 919,595 501.8 13.7 0.07

Korea, South 63,562 49,232,844 38,023 774.6 0.6 1.67

Malaysia 61,342 25,274,133 127,317 412.0 2.1 0.48

Zimbabwe 60,546 12,382,920 150,804 204.5 2.5 0.40

Sri Lanka 60,451 21,128,773 25,332 349.5 0.4 2.39

Ireland 60,026 4,156,119 27,135 69.2 0.5 2.21

Venezuela 59,748 26,414,815 352,144 442.1 5.9 0.17

Syria 58,962 19,747,586 71,498 334.9 1.2 0.82

Belarus 58,904 9,685,768 80,155 164.4 1.4 0.73

New Zealand 58,073 4,173,460 103,738 71.9 1.8 0.56

Norway 57,754 4,644,457 125,021 80.4 2.2 0.46

Burkina Faso 57,474 15,264,735 105,869 265.6 1.8 0.54

Egypt 57,396 81,713,517 386,662 1,423.7 6.7 0.15

Zambia 56,818 11,669,534 290,586 205.4 5.1 0.20

Kazakhstan 55,935 15,340,533 1,049,155 274.3 18.8 0.05

Libya 51,698 6,173,579 679,362 119.4 13.1 0.08

Uzbekistan 50,704 28,268,440 172,742 557.5 3.4 0.29

Cote d’Ivoire 49,710 18,373,060 124,503 369.6 2.5 0.40

Lithuania 49,700 3,565,205 25,212 71.7 0.5 1.97

Chile 49,464 16,454,143 292,260 332.6 5.9 0.17

Tanzania 49,021 40,213,162 364,900 820.3 7.4 0.13

Peru 48,982 29,180,899 496,226 595.7 10.1 0.10

Finland 48,977 5,244,749 130,559 107.1 2.7 0.38

Portugal 48,759 10,676,910 35,672 219.0 0.7 1.37

Uruguay 48,300 3,477,778 68,039 72.0 1.4 0.71

Denmark 44,964 5,484,723 16,639 122.0 0.4 2.70

Yemen 44,304 23,013,376 203,850 519.4 4.6 0.22

Switzerland 44,302 7,581,520 15,942 171.1 0.4 2.78

Uganda 43,960 31,367,972 91,136 713.6 2.1 0.48

Latvia 43,390 2,245,423 24,938 51.8 0.6 1.74

Kenya 39,311 37,953,838 224,962 965.5 5.7 0.17

Bolivia 38,823 9,247,816 424,164 238.2 10.9 0.09

Ghana 38,662 23,382,848 92,456 604.8 2.4 0.42



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Cuba 37,815 11,423,952 42,803 302.1 1.1 0.88

Azerbaijan 36,749 8,177,717 33,436 222.5 0.9 1.10

Morocco 35,807 34,343,219 172,414 959.1 4.8 0.21

Thailand 35,669 65,493,298 198,457 1,836.2 5.6 0.18

Estonia 35,428 1,307,605 17,462 36.9 0.5 2.03

Angola 31,956 12,531,357 481,354 392.1 15.1 0.07

Cameroon 31,069 18,467,692 183,568 594.4 5.9 0.17

Madagascar 30,961 20,042,551 226,657 647.3 7.3 0.14

Mongolia 30,603 2,996,081 603,909 97.9 19.7 0.05

Iraq 28,303 28,221,181 168,754 997.1 6.0 0.17

Guinea 27,557 10,211,437 94,926 370.6 3.4 0.29

Bulgaria 27,361 7,262,675 42,823 265.4 1.6 0.64

Ecuador 26,841 13,927,650 109,483 518.9 4.1 0.25

Slovakia 26,715 5,455,407 18,859 204.2 0.7 1.42

Namibia 26,245 2,088,669 318,696 79.6 12.1 0.08

Taiwan 25,018 22,920,946 13,892 916.2 0.6 1.80

Slovenia 23,959 2,007,711 7,827 83.8 0.3 3.06

Cambodia 23,772 14,241,640 69,900 599.1 2.9 0.34

Serbia 22,913 10,159,046 29,913 443.4 1.3 0.77

Ethiopia 22,661 78,254,090 435,186 3,453.3 19.2 0.05

Costa Rica 21,953 4,195,914 19,730 191.1 0.9 1.11

Oman 21,726 3,311,640 82,031 152.4 3.8 0.26

Afghanistan 21,613 32,738,376 250,001 1,514.8 11.6 0.09

Chad 20,754 10,111,337 495,755 487.2 23.9 0.04

Laos 19,393 6,677,534 91,429 344.3 4.7 0.21

Mozambique 18,890 21,284,701 309,496 1,126.8 16.4 0.06

Paraguay 18,330 6,831,306 157,047 372.7 8.6 0.12

Croatia 17,888 4,491,543 21,831 251.1 1.2 0.82

Tajikistan 17,254 7,211,884 55,251 418.0 3.2 0.31

Burma 16,777 47,758,181 261,970 2,846.6 15.6 0.06

Puerto Rico 15,991 3,958,128 5,324 247.5 0.3 3.00

Korea, North 15,879 23,479,089 46,541 1,478.7 2.9 0.34

Botswana 15,196 1,842,323 231,804 121.2 15.3 0.07

Central African Republic 15,104 4,434,873 240,535 293.6 15.9 0.06

Turkmenistan 14,913 5,179,571 188,456 347.3 12.6 0.08

Somalia 13,732 9,558,666 246,201 696.1 17.9 0.06

Bosnia and Herzegovina 13,574 4,590,310 19,772 338.2 1.5 0.69

Jamaica 13,392 2,804,332 4,244 209.4 0.3 3.16

Georgia 12,581 4,630,841 26,911 368.1 2.1 0.47

Papua New Guinea 12,179 5,931,769 178,704 487.1 14.7 0.07

Tunisia 11,950 10,383,577 63,170 868.9 5.3 0.19

Nicaragua 11,828 5,785,846 49,998 489.1 4.2 0.24

Mali 11,625 12,324,029 478,767 1,060.1 41.2 0.02



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Kyrgyzstan 11,495 5,356,869 76,641 466.0 6.7 0.15

Niger 11,448 13,272,679 489,191 1,159.4 42.7 0.02

Albania 11,185 3,619,778 11,100 323.6 1.0 1.01

Israel 10,990 7,112,359 8,019 647.2 0.7 1.37

Congo, Republic of the 10,743 3,903,318 132,047 363.3 12.3 0.08

Nepal 10,737 29,519,114 56,827 2,749.2 5.3 0.19

Benin 9,942 8,294,941 43,483 834.3 4.4 0.23

Malawi 9,601 13,931,831 45,745 1,451.1 4.8 0.21

Cyprus 9,091 792,604 3,571 87.2 0.4 2.55

Guatemala 8,758 13,002,206 42,043 1,484.6 4.8 0.21

Rwanda 8,704 10,186,063 10,169 1,170.3 1.2 0.86

Honduras 8,451 7,639,327 43,278 904.0 5.1 0.20

Senegal 8,436 12,853,259 75,749 1,523.7 9.0 0.11

Macedonia 8,191 2,061,315 9,781 251.7 1.2 0.84

Iceland 8,114 304,367 39,769 37.5 4.9 0.20

Moldova 7,870 4,324,450 13,067 549.5 1.7 0.60

Dominican Republic 7,829 9,507,133 18,815 1,214.3 2.4 0.42

Burundi 7,657 8,691,005 10,745 1,135.1 1.4 0.71

Sudan 7,394 40,218,455 967,499 5,439.1 130.8 0.01

Panama 7,235 3,292,693 30,193 455.1 4.2 0.24

Sierra Leone 7,021 6,294,774 27,699 896.5 3.9 0.25

El Salvador 6,764 7,066,403 8,124 1,044.7 1.2 0.83

Liberia 6,587 3,334,587 43,000 506.3 6.5 0.15

Gabon 5,698 1,485,832 103,347 260.8 18.1 0.06

Trinidad and Tobago 5,170 1,047,366 1,980 202.6 0.4 2.61

Bhutan 5,002 682,321 18,147 136.4 3.6 0.28

Guyana 4,952 770,794 83,000 155.6 16.8 0.06

Qatar 4,822 928,635 4,416 192.6 0.9 1.09

Armenia 4,785 2,968,586 11,484 620.5 2.4 0.42

Mauritania 4,760 3,364,940 397,956 707.0 83.6 0.01

Jordan 4,723 6,198,677 35,637 1,312.4 7.5 0.13

Togo 4,673 5,858,673 21,925 1,253.8 4.7 0.21

Montenegro 4,578 678,177 5,415 148.1 1.2 0.85

Lebanon 4,331 3,971,941 4,015 917.1 0.9 1.08

Timor-Leste 3,753 1,108,777 5,794 295.4 1.5 0.65

Lesotho 3,691 2,128,180 11,720 576.6 3.2 0.31

Kuwait 3,572 2,596,799 6,880 726.9 1.9 0.52

New Caledonia 3,375 224,824 7,359 66.6 2.2 0.46

Luxembourg 3,248 486,006 998 149.6 0.3 3.25

West Bank 3,104 2,611,904 2,263 841.4 0.7 1.37

Suriname 2,674 475,996 63,039 178.0 23.6 0.04

Haiti 2,585 8,924,553 10,714 3,452.6 4.1 0.24

Eritrea 2,492 5,028,475 46,842 2,018.1 18.8 0.05



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Gambia, The 2,325 1,735,464 4,363 746.4 1.9 0.53

Brunei 2,268 381,371 2,228 168.2 1.0 1.02

Swaziland 2,233 1,128,814 6,704 505.5 3.0 0.33

Bahrain 2,174 718,306 257 330.5 0.1 8.47

Guinea-Bissau 2,147 1,503,182 13,946 700.2 6.5 0.15

Fiji 2,138 931,741 7,054 435.9 3.3 0.30

Singapore 2,027 4,608,167 268 2,273.5 0.1 7.58

Djibouti 1,905 506,221 8,880 265.8 4.7 0.21

Equatorial Guinea 1,790 616,459 10,831 344.5 6.1 0.17

Belize 1,785 301,270 8,867 168.8 5.0 0.20

Bahamas, The 1,673 307,451 5,382 183.7 3.2 0.31

French Polynesia 1,609 283,019 1,609 175.9 1.0 1.00

Samoa 1,452 217,083 1,137 149.5 0.8 1.28

Malta 1,384 403,532 122 291.6 0.1 11.34

Mauritius 1,260 1,274,189 788 1,011.1 0.6 1.60

Marshall Islands 1,260 63,174 70 50.1 0.1 18.03

Hong Kong 1,248 7,018,636 422 5,622.4 0.3 2.96

Kosovo 1,196 2,126,708 4,203 1,778.9 3.5 0.28

Barbados 994 281,968 166 283.6 0.2 5.97

Solomon Islands 864 581,318 10,985 672.6 12.7 0.08

Cape Verde 839 426,998 1,557 509.0 1.9 0.54

Virgin Islands 781 108,210 737 138.5 0.9 1.06

Antigua and Barbuda 724 69,842 171 96.5 0.2 4.23

Grenada 700 90,343 133 129.0 0.2 5.27

United Arab Emirates 676 4,621,399 32,278 6,835.9 47.7 0.02

Vanuatu 665 215,446 4,710 324.0 7.1 0.14

Guam 607 175,877 209 289.7 0.3 2.91

Saint Lucia 565 172,884 238 305.7 0.4 2.38

Comoros 547 731,775 838 1,338.3 1.5 0.65

Saint Vincent and the

Grenadines 515 118,432 150 229.9 0.3 3.43

Isle of Man 497 76,220 221 153.3 0.4 2.25

Cayman Islands 488 47,862 101 98.1 0.2 4.82

Dominica 485 72,514 291 149.6 0.6 1.66

Tonga 423 119,009 289 281.7 0.7 1.46

Kiribati 416 110,356 313 265.1 0.8 1.33

Northern Mariana Islands 333 86,616 184 260.1 0.6 1.81

Faroe Islands 288 48,668 540 169.2 1.9 0.53

Seychelles 285 82,247 176 289.0 0.6 1.62

Bermuda 278 66,536 20 239.6 0.1 13.57

Falkland Islands

(Islas Malvinas) 273 3,140 4,700 11.5 17.2 0.06

Macau 239 460,823 11 1,931.3 0.0 22.07



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Cook Islands 199 21,923 92 110.3 0.5 2.17

Sao Tome and Principe 199 206,178 386 1,036.9 1.9 0.51

Saint Kitts and Nevis 199 39,619 101 199.3 0.5 1.97

Andorra 168 72,413 181 431.6 1.1 0.93

Micronesia, Federated

States of 149 107,665 271 722.0 1.8 0.55

Niue 145 1,444 100 9.9 0.7 1.45

Montserrat 141 9,638 39 68.3 0.3 3.58

Saint Helena 123 7,601 159 61.8 1.3 0.77

American Samoa 115 57,496 77 500.2 0.7 1.50

British Virgin Islands 110 24,004 59 218.3 0.5 1.86

Anguilla 109 14,108 39 129.7 0.4 2.76

Christmas Island 88 1,402 52 15.9 0.6 1.69

Turks and Caicos Islands 75 22,352 166 297.3 2.2 0.45

San Marino 65 29,973 24 463.8 0.4 2.74

Maldives 55 379,174 116 6,934.3 2.1 0.47

Norfolk Island 50 2,128 14 42.8 0.3 3.68

Monaco 31 32,796 1 1,055.6 0.0 40.23

Gibraltar 18 28,002 3 1,554.0 0.1 6.67

Cocos (Keeling) Islands 14 596 5 43.6 0.4 2.53

Tuvalu 5 12,177 10 2,449.6 2.0 0.50



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highway freight movementFreight Transport by Roadway for Selected Countries

Million of ton-miles percent Change 1990 2000 2005 2006 2005 to 2006Albania 819 1,482 2,199 2,264 3.0%Australia 61,863 93,495 115,499 137,504 11.6%Austria 6,175 11,750 11,568 12,908 11.6%Azerbaijan 2,251 2,585 5,391 5,869 8.9%Belarus 21,952 34,948 30,032 31,273 4.1%Belgium 9,432 2,096 3,456 3,977 15.1%Bosnia-Herzegovina 2,100 218 301 343 13.9%Bulgaria 15,316 6,152 5,987 5,822 -2.8%Switzerland 7,910 15,034 16,685 17,368 4.1%Czech Republic 15,965 26,737 29,759 34,500 15.9%Germany 116,372 192,263 212,411 226,037 6.4%Denmark 6,406 7,534 7,574 7,852 3.7%Spain 62,008 101,861 155,743 161,503 3.7%Estonia 3,089 2,693 5,234 5,958 13.8%Finland 17,398 18,984 19,050 17,459 -8.4%France 78,632 126,182 132,299 136,187 2.9%United Kingdom 91,029 105,279 109,803 114,434 4.2%Georgia 1,765 325 396 466 17.8%Greece 8,552 9,789 10,864 11,308 4.1%Croatia 1,953 1,929 6,389 6,969 9.1%Hungary 10,383 8,319 7,808 8,506 8.9%Ireland 3,514 8,458 12,433 12,114 -2.6%Italy 121,882 108,606 111,038 115,556 4.1%Japan 187,842 214,468 229,442 234,867 2.4%Lithuania 5,025 5,321 10,896 12,421 14.0%Luxembourg 262 307 365 403 10.3%Latvia 4,009 3,280 5,854 7,491 28.0%Moldova 4,319 686 1,575 2,464 56.5%Mexico 74,579 132,915 139,877 143,422 2.5%FYR Macedonia 1,499 532 2,692 4,611 71.3%the Netherlands 15,679 21,617 23,290 24,277 4.2%Norway 5,638 8,916 10,868 11,297 4.0%New Zealand 9,826 12,588 12,678 0.7%Poland 27,598 51,387 82,015 93,488 14.0%Portugal 7,481 10,241 11,935 12,451 4.3%Romania 3,567 6,767 13,287 15,559 17.1%Russia 205,046 104,615 132,603 136,144 2.7%Slovakia 9,823 15,445 15,147 -1.9%Slovenia 3,347 1,327 1,617 1,561 -3.5%Sweden 17,568 21,476 23,755 24,285 2.2%Turkey 45,008 110,654 114,270 118,943 4.1%Ukraine 10,133 5,166 13,356 17,261 29.2%United States 848,779 1,192,824 1,293,325 1,243,075 -3.9%European Union 644,326 888,181 1,030,790 1,087,120 5.5%

Source: The International Transport Forum and MEMA estimates

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Global Commercial Vehicle population Trucks and busses in operation 2005 2006 Growth

afriCa 5,570,847 5,938,062 6.6%

Algeria 829,600 829,591 0.0% Angola 29,000 139,556 381.2% Benin 96,600 96,600 0.0% Botswana 111,503 116,082 4.1% Burkina Faso 9,100 9,144 0.5% Burundi 9,300 9,500 2.2% Cameroon 68,000 68,000 0.0% Central African Republic 6,300 6,300 0.0% Congo Democratic Rep (Zaire) 41,600 41,800 0.5% Congo, Republic 23,100 23,100 0.0% Ethiopia 53,600 110,079 105.4% Ghana 142,300 142,300 0.0% Ivory Coast 54,900 57,094 4.0% Kenya 124,600 124,559 0.0% Liberia 12,800 12,800 0.0% Libya 183,900 191,900 4.4% Madagascar 54,200 54,500 0.6% Malawi 57,600 57,600 0.0% Mali 31,700 31,700 0.0% Mauritania 18,300 18,500 1.1% Mauritius 41,910 46,385 10.7% Morocco 327,173 355,201 8.6% Mozambique 50,700 50,741 0.1% Niger 18,300 18,329 0.2% Nigeria 327,500 327,458 0.0% Reunion 37,800 39,706 5.0% Senegambia 48,200 50,859 5.5% Sierra Leone 7,800 7,800 0.0% South Africa 2,186,161 2,269,573 3.8% Sudan 63,600 98,000 54.1% Tanzania 98,800 104,927 6.2% Togo 24,500 24,500 0.0% Tunisia 189,000 188,986 0.0% Uganda 79,700 100,865 26.6% Zambia 32,100 34,413 7.2% Zimbabwe 79,600 79,614 0.0%

Caribbean 1,060,854 1,137,933 7.3%

Bahamas 36,535 40,201 10.0% Barbados 18,340 20,600 12.3% Bermuda 5,376 6,100 13.5% Cuba 45,800 47,600 3.9% Dominican Republic 231,790 241,820 4.3% Guadeloupe 31,400 31,400 0.0%

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Haiti 30,800 31,500 2.3% Jamaica 73,800 78,100 5.8% Netherlands Antilles 33,777 34,277 1.5% Puerto Rico 504,542 550,900 9.2% Trinidad and Tobago 30,594 36,435 19.1% Virgin Islands (United States) 18,100 19,000 5.0%

CenTral & soUTh ameriCa 9,177,276 10,747,447 17.1%

Argentina 1,282,357 1,956,954 52.6% Belize 7,703 8,278 7.5% Bolivia 57,900 58,464 1.0% Brazil 4,764,656 5,004,915 5.0% Chile 632,000 761,206 20.4% Colombia 352,195 355,943 1.1% Costa Rica 163,771 172,290 5.2% Ecuador 209,510 240,758 14.9% El Salvador 101,883 111,303 9.2% French Guiana 11,900 11,900 0.0% Guatemala 170,664 192,561 12.8% Guyana 15,500 15,500 0.0% Honduras 101,397 107,916 6.4% Nicaragua 91,985 98,841 7.5% Panama 140,032 144,299 3.0% Paraguay 79,777 81,188 1.8% Peru 183,200 195,417 6.7% Suriname 29,946 29,900 -0.2% Uruguay 84,100 87,714 4.3% Venezuela 696,800 1,112,100 59.6%

norTh ameriCa 105,276,946 119,995,272 14.0%

Canada 5,475,558 6,700,097 22.4% Mexico 4,081,265 4,451,671 9.1% United States 95,720,123 108,843,504 13.7%

asia - far easT 55,181,610 59,409,041 7.7%

Afghanistan 49,800 49,800 0.0% Bangladesh 103,499 103,499 0.0% Brunei 23,000 23,000 0.0% Burma 85,000 85,000 0.0% Hong Kong 114,400 132,000 15.4% India 4,088,700 4,702,500 15.0% Indonesia 2,584,993 2,645,735 2.3% Japan 18,661,469 18,595,667 -0.4% Korea, South 3,728,600 4,288,317 15.0%

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asia - far easT (continued)

Malaysia 1,192,456 1,243,929 4.3% Pakistan 433,100 433,135 0.0% Peoples Republic of China 17,332,293 19,858,838 14.6% Philippines 828,752 862,657 4.1% Singapore 107,900 141,413 31.1% Sri Lanka 455,387 455,400 0.0% Taiwan 1,023,069 1,052,000 2.8% Thailand 4,164,570 4,515,651 8.4% Vietnam 204,622 220,500 7.8%

asia - middle easT 7,456,487 8,087,918 8.5%

Bahrain 47,535 55,848 17.5% Cyprus 125,053 127,185 1.7% Egypt 517,104 550,360 6.4% Iran 410,568 469,201 14.3% Iraq 300,000 300,000 0.0% Israel 327,100 364,242 11.4% Jordan 103,453 152,441 47.4% Kuwait 289,034 335,899 16.2% Lebanon 245,400 245,367 0.0% Oman 224,002 249,019 11.2% Qatar 130,057 148,977 14.5% Saudi Arabia 1,346,200 1,365,470 1.4% Syria 248,200 266,177 7.2% Turkey 2,192,449 2,387,499 8.9% United Arab Emirates 663,386 758,922 14.4% Yemen 286,946 311,311 8.5%

easTern eUrope 45,509,815 48,065,618 5.6%

Bulgaria 142,200 200,035 40.7% Czechoslovakia (former) 647,800 647,775 0.0% Hungary 676,949 900,197 33.0% Poland 1,304,238 1,378,412 5.7% Romania 653,896 814,654 24.6% Soviet Union (former) 5,119,500 5,538,672 8.2% Yugoslavia (former) 508,406 709,414 39.5%

WesTern eUrope 28,480,250 29,778,237 4.6%

Austria 362,463 367,350 1.3% Belgium and Luxembourg 659,199 675,666 2.5% Denmark 437,100 470,300 7.6% Finland 376,809 384,900 2.1% France 6,139,000 6,198,000 1.0%

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Germany 2,878,700 3,172,041 10.2% Gibraltar 1,600 2,124 32.8% Greece 964,300 1,213,681 25.9% Iceland 58,962 58,863 -0.2% Ireland 275,300 318,604 15.7% Italy 4,250,898 4,274,096 0.5% Malta 46,725 51,681 10.6% Netherlands 1,068,500 1,095,000 2.5% Norway 480,000 493,932 2.9% Portugal 1,305,700 1,323,270 1.3% Spain 4,660,375 4,907,867 5.3% Sweden 475,194 474,638 -0.1% Switzerland 342,979 353,049 2.9% United Kingdom 3,696,446 3,943,175 6.7%

paCifiC area 3,256,398 3,319,500 1.9%

Australia 2,570,900 2,601,772 1.2% Fiji 22,800 23,600 3.5% French Pacific Ocean 27,731 30,400 9.6% Guam 3,800 6,800 78.9% New Caledonia 37,700 42,000 11.4% New Zealand 497,667 518,428 4.2% Papua New Guinea 87,800 88,100 0.3% Samoa (American) 3,300 3,500 6.1% Vanuatu 4,700 4,900 4.3%

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Commercial Vehicle sales 10 year 2005 2006 Growth TrendWorld summary Africa 396,545 455,083 14.8% 8.4% America, Caribbean 113,797 98,908 -13.1% 1.7% America, Central & South 1,033,236 1,146,735 11.0% 4.7% America, North 10,865,900 10,400,227 -4.3% 2.9% Asia, Far East 6,141,450 6,271,018 2.1% 4.6% Asia, Middle East 1,136,050 1,078,082 -5.1% 10.5% Europe, East 916,912 1,071,872 16.9% 9.9% Europe, West 2,248,087 2,480,032 10.3% 0.6% Pacific 423,307 406,494 -4.0% 7.1% Other 43,546 54,550 25.3% 0.3% World 23,318,830 23,463,001 0.6% 3.8%

africa Algeria 56,331 54806 -2.7% 21.3% Angola 7,904 12609 59.5% 13.7% Benin 327 270 -17.4% 0.8% Botswana 763 152 -80.1% -25.9% Burkina Faso 374 368 -1.6% -3.2% Burundi 466 86 -81.5% 17.5% Cameroon 976 1081 10.8% -5.8% Central African Republic 36 27 -25.0% -14.4% Congo Republic 340 457 34.4% 13.3% Ethiopia 2,921 4141 41.8% 2.4% Ghana 3,984 4526 13.6% 7.8% Ivory Coast 1,286 2113 64.3% -10.2% Kenya 8,669 9265 6.9% 6.3% Liberia 177 214 20.9% 1.1% Libya 13,479 17,732 31.6% 16.2% Madagascar 1,958 1,291 -34.1% -1.5% Malawi 989 1,524 54.1% 11.4% Mali 379 361 -4.7% 5.2% Mauritania 737 503 -31.8% 5.0% Mauritius 2,989 2,708 -9.4% 1.1% Morocco 37,237 41,512 11.5% 10.7% Mozambique 1,717 2,258 31.5% 11.5% Niger 48 30 -37.5% -15.3% Nigeria 10,641 16,449 54.6% 12.3% Reunion 1,820 1,556 -14.5% -2.5% Senegambia 2,580 3,046 18.1% 6.5% Sierra Leone 136 107 -21.3% 7.0% South Africa 188,129 219,744 16.8% 6.7% Sudan 8,629 9,938 15.2% 21.0% Tanzania 2,541 3,146 23.8% 3.4% Togo 65 79 21.5% -15.0% Tunisia 13,541 15,406 13.8% 2.0% Uganda 1,522 1,704 12.0% -7.4%

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Commercial Vehicle sales 10 year 2005 2006 Growth Trendafrica (continued)

Congo Dem Rep (Zaire) 1,430 1,129 -21.0% 13.5% Zambia 2,240 2,854 27.4% 17.6% Zimbabwe 3,233 4,171 29.0% -7.0% Other 15,951 17,720 11.1% 5.8% Africa 396,545 455,083 14.8% 8.4%

america, Caribbean Bahamas 2,259 2,429 7.5% 5.7% Barbados 3,405 2,559 -24.8% 4.7% Bermuda 890 752 -15.5% 1.7% Cuba 3,063 2,428 -20.7% 3.3% Dominican Republic 20,465 16,783 -18.0% -0.6% Guadeloupe 276 460 66.7% -21.8% Haiti 1,631 2,294 40.6% -1.1% Jamaica 2,724 3,581 31.5% 5.2% Martinique 0 0 -48.0% Netherlands Antilles 2,707 2,654 -2.0% 1.5% Puerto Rico 61,477 49,709 -19.1% 1.4% Trinidad & Tobago 7,260 7,948 9.5% 13.6% Virgin Islands (US) 2,143 1,766 -17.6% 5.9% Other 5,497 5,545 0.9% 3.5% America, Caribbean 113,797 98,908 -13.1% 1.7%

america, Central & south Argentina 131,891 142,602 8.1% 1.2% Belize 197 241 22.3% -3.2% Bolivia 2,510 2,006 -20.1% -15.8% Brazil 493,295 495,209 0.4% 5.8% Chile 119,692 121,689 1.7% 7.9% Colombia 49,299 65,100 32.1% -1.2% Costa Rica 10,264 11,600 13.0% 7.9% Ecuador 44,999 62,090 38.0% 10.0% El Salvador 9,352 8,891 -4.9% 7.5% French Guiana 97 98 1.0% -33.0% Guatemala 16,715 17,819 6.6% 11.0% Guyana 110 250 127.3% -0.7% Honduras 7,312 9,060 23.9% 2.0% Nicaragua 4,937 4,468 -9.5% 1.6% Panama 11,554 14,944 29.3% 0.1% Paraguay 4,683 5,357 14.4% -7.8% Peru 12,887 16,461 27.7% 3.2% Suriname 615 649 5.5% 4.2% Uruguay 3,511 8,412 139.6% -17.0% Venezuela 101,162 152,503 50.8% 11.6% Other 8,154 7,286 -10.6% -22.1% America, Central & South 1,033,236 1,146,735 11.0% 4.7%

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Commercial Vehicle sales 10 year 2005 2006 Growth Trendamerica, north Canada 785,088 803,166 2.3% 1.3% Mexico 511,354 585,783 14.6% 12.3% United States 9,569,439 9,011,242 -5.8% 2.6% Other 19 36 89.5% -10.3% America, North 10,865,900 10,400,227 -4.3% 2.9%

asia, far east Afghanistan 3,133 4,324 38.0% 45.1% Bangladesh 2,499 2,225 -11.0% 1.5% Brunei 3,667 3,331 -9.2% 8.9% Burma 270 310 14.8% -9.8% Hong Kong 17,484 16,484 -5.7% -1.3% India 571,187 708,515 24.0% 11.0% Indonesia 496,364 304,952 -38.6% 8.3% Japan 1,103,658 1,097,774 -0.5% -7.8% Korea, South 520,521 495,973 -4.7% 6.3% Malaysia 150,207 123,263 -17.9% 9.4% Pakistan 31,598 16,353 -48.2% 13.5% Peoples Republic of China 2,385,625 2,749,924 15.3% 10.6% Philippines 61,432 61,062 -0.6% 1.8% Singapore 13,198 11,735 -11.1% -0.6% Sri Lanka 2,378 2,628 10.5% -2.2% Taiwan 237,535 168,212 -29.2% 6.5% Thailand 515,221 490,398 -4.8% 12.2% Vietnam 21,902 9,132 -58.3% 15.2% Other 3,571 4,423 23.9% -10.1% Asia, Far East 6,141,450 6,271,018 2.1% 4.6%

asia, middle east Bahrain 10,455 13,024 24.6% 15.9% Cyprus 8,119 5,882 -27.6% -0.1% Egypt 46,459 58,025 24.9% 1.4% Iran 162,792 148,812 -8.6% 21.0% Iraq 6,616 8,071 22.0% 16.9% Israel 36,390 33,937 -6.7% -3.0% Jordan 13,968 19,330 38.4% 12.9% Kuwait 56,026 46,431 -17.1% 12.6% Lebanon 4,839 4,408 -8.9% -5.5% Oman 45,367 52,979 16.8% 9.7% Qatar 24,219 35,545 46.8% 15.5% Saudi Arabia 198,984 184,528 -7.3% 8.1%

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Commercial Vehicle sales 10 year 2005 2006 Growth Trendasia, middle east (continued)

Syria 17,703 20,441 15.5% -1.8% Turkey 408,782 341,869 -16.4% 12.9% United Arab Emirates 88,595 96,067 8.4% 12.5% Yemen 6,186 8,508 37.5% 2.2% Other 550 225 -59.1% 0.9% Asia, Middle East 1,136,050 1,078,082 -5.1% 10.5%

europe, east Bulgaria 8,984 10,978 22.2% 5.8% Czechoslovakia (former) 60,362 77,571 28.5% 5.7% Hungary 21,698 22,779 5.0% 0.4% Poland 97,271 109,052 12.1% 9.8% Romania 40,882 40,798 -0.2% 7.8% USSR (former) 642,219 780,825 21.6% 12.1% Yugoslavia (former) 44,961 29,401 -34.6% 5.1% Other 535 468 -12.5% -22.5% Europe, East 916,912 1,071,872 16.9% 9.9%

europe, West Austria 39,023 41,291 5.8% -0.8% Belgium & Luxembourg 79,570 76,378 -4.0% -1.3% Denmark 62,210 69,114 11.1% 7.2% Finland 19,960 20,982 5.1% 0.9% France 480,122 498,389 3.8% 2.5% Germany 272,776 304,433 11.6% -4.9% Gibraltar 477 511 7.1% 2.3% Greece 25,540 26,690 4.5% 4.0% Iceland 7,102 6,746 -5.0% 6.1% Ireland 41,974 46,857 11.6% 3.4% Italy 222,778 249,179 11.9% 1.7% Malta 1,559 1,293 -17.1% -11.7% Netherlands 80,411 84,761 5.4% -3.4% Norway 42,681 49,243 15.4% 2.5% Portugal 75,097 70,472 -6.2% -6.3% Spain 329,195 454,016 37.9% 3.5% Sweden 41,807 47,194 12.9% -2.7% Switzerland 24,568 28,935 17.8% -6.5% United Kingdom 385,969 386,968 0.3% 2.8% Other 15,268 16,580 8.6% 10.1% Europe, West 2,248,087 2,480,032 10.3% 0.6%

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Commercial Vehicle sales 10 year 2005 2006 Growth Trendpacific Australia 379,465 364,272 -4.0% 7.6% Fiji 1,444 1,302 -9.8% 3.4% French Pacific Ocean 3,659 3,162 -13.6% 4.2% Guam 2,932 2,790 -4.8% 35.4% New Caledonia 5,513 6,437 16.8% 9.7% New Zealand 25,623 23,182 -9.5% 4.5% Papua New Guinea 2,943 3,933 33.6% -7.5% Samoa ,American 335 208 -37.9% 32.9% Vanuatu 293 220 -24.9% -4.6% Other 1,100 988 -10.2% -9.8% Pacific 423,307 406,494 -4.0% 7.1%

oTher 43,546 54,550 25.3% 0.3% World 23,318,830 23,463,001 0.6% 3.8%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 Growthargentina Mercedes Benz 17,357 19,775 13.9% Ford 41,776 46,512 11.3% Chevrolet 6,188 8,410 35.9% Suzuki 807 279 -65.4% IVECO 3,193 3,414 6.9% Citroën 1,805 2,736 51.6% Peugeot 5,545 6,668 20.3% Renault 9,745 13,245 35.9% Toyota 46,162 64,334 39.4% Volkswagen 4,416 3,608 -18.3% Argentina Total 136,994 168,981 23.3%

australia (retail sales) Ford 58,149 47,966 -17.5% Hino 4,674 5,161 10.4% IHC 2,288 2,267 -0.9% Kenworth 2,283 2,053 -10.1% Mack 1,126 1,102 -2.1% MAN 179 237 32.4% Mercedes Benz 5,476 6,422 17.3% Mitsubishi 28,520 26,471 -7.2% Nissan Diesel 991 1,039 4.8% Scania 389 429 10.3% Holden 51,634 38,119 -26.2% Volvo 3,155 3,489 10.6% Australia (retail sales) Total 158,864 134,755 -15.2%

austria BMW/Chrysler/Jeep/Mercedes/Saab 178,106 181,603 2.0% MAN 12,774 26,873 110.4% Austria Total 200,795 208,476 3.8%

belarus BELAZ 1,452 1,659 14.3% MAZ 21,398 22,970 7.3% MOAZ 6 14 133.3% Belarus Total 22,856 24,643 7.8%

belgium Mol 13 11 -15.4% Van Hool 1,040 1,143 9.9% Volvo(assembly) 30,366 34,973 15.2% Belgium Total 31,419 36,127 15.0%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 Growthbrazil Agrale 5,191 4,425 -14.8% Mercedes Benz 53,072 50,329 -5.2% Fiat 79,442 81,979 3.2% Ford 144,987 143,603 -1.0% Chevrolet 89,808 87,267 -2.8% International 1,016 1,389 36.7% IVECO 4,631 3,505 -24.3% Mitsubishi 20,153 20,171 0.1% Nissan 10,306 8,661 -16.0% Citroen 1,318 610 -53.7% Peugeot 3,972 5,338 34.4% Renault 3,776 5,290 40.1% Scania 14,371 16,094 12.0% Volkswagen 74,050 81,048 9.5% Volvo 12,122 9,322 -23.1% Brazil Total 518,806 519,031 0.0%

Canada Chevrolet (assembly) 189,997 196,598 3.5% Chrysler 247,674 192,550 -22.3% Dodge 112,319 99,022 -11.8% Ford 79,365 60,898 -23.3% Lincoln 0 2,615 Mercury 4,991 3,379 -32.3% Chevrolet 224,088 173,631 -22.5% GMC 90,722 77,294 -14.8% Acura (assembly) 67,592 54,338 -19.6% Honda (assembly) 126,256 132,791 5.2% International 26,372 33,498 27.0% Kenworth 6,386 6,904 8.1% Sterling 26,480 25,982 -1.9% Lexus 73,104 76,939 5.2% Canada Total 1,275,346 1,136,439 -10.9%

Chile Isuzu 6,660 6,660 0.0% Chile Total 6,660 6,660 0.0%

Colombia (assembly) Mazda 3,632 4,951 36.3% Mitsubishi 2,125 2,477 16.6% Chevrolet 11,601 14,693 26.7% Toyota 13,606 8,445 -37.9% Colombia (assembly) Total 30,964 30,566 -1.3%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 GrowthCzech republic Magma 46 13 -71.7% AUTO-Tech Vinor 590 559 -5.3% AVIA 553 482 -12.8% Mobilní Jeraby 21 20 -4.8% CTS servis 511 616 20.5% Daewoo, Tatra 345 298 -13.6% Hagemann Motoren 312 133 -57.4% Karosa 1,897 2,477 30.6% Karoseria 36 47 30.6% KH 49 45 -8.2% Navara Novosedly 212 196 -7.5% PANAV 0 162 SOR 247 411 66.4% Tatra 1,497 1,511 0.9% Tedom 5 15 200.0% Liaz,Tatra,Dennis Scania,Avia 83 92 10.8% Czech Republic Total 6,787 7,077 4.3%

egypt (assembly) BMW 0 220 Jeep 522 826 58.2% Fiat 71 0 -100.0% IVECO Magirus 60 60 0.0% TAM 100 0 -100.0% Zastava 0 0 Tata 5 1 -80.0% Chevrolet 14,647 18,215 24.4% Hyundai 0 55 Mercedes Benz 801 1,392 73.8% MAN 60 11 -81.7% Mitsubishi 405 2,859 605.9% Nissan 1,940 2,995 54.4% Scania 9 9 0.0% Ssangyong 196 327 66.8% Suzuki 934 2,252 141.1% Volvo 2 7 250.0% Other 72 1,443 1904.2% Egypt (assembly) Total 20,068 30,672 52.8%

finland Sisu 411 353 -14.1% Finland Total 411 353 -14.1%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 Growthfrance Etalmobil 27 26 -3.7% EvoBus 527 522 -0.9% Heuliez 291 420 44.3% Renault 2,869 3,130 9.1% Citroen 58,223 64,794 11.3% Peugeot 68,166 62,903 -7.7% Renault 225,648 226,537 0.4% Renault Trucks 50,225 56,682 12.9% Scania 9,391 10,133 7.9% Ulysse, Scudo 20,680 20,874 0.9% France Total 436,047 446,021 2.3%

Germany Mercedes Benz 229,649 218,585 -4.8% Setra/Mercedes 5,258 0 -100.0% Ford 8,742 10,081 15.3% Neoplan 538 0 -100.0% IVECO Magirus 16,267 17,507 7.6% ERF 0 382 MAN 49,469 54,041 9.2% Multicar 1,105 1,542 39.5% Volkswagen 96,495 109,343 13.3% Germany Total 407,523 411,481 1.0%

hungary Fiat 350 24,943 7026.6% Justy 6,511 4,494 -31.0% Czepel 600 600 0.0% Ikarus 200 200 0.0% Raba 100 100 0.0% Schwarzmüller 2,500 2,500 0.0% Hungary Total 10,261 32,837 220.0%

india Ashok Leyland 63,981 77,985 21.9% Canter 24,066 26,988 12.1% Bajaj 16,276 14,412 -11.5% Ford 2,025 1,892 -6.6% Chevrolet (GM-DAT) 18,013 21,330 18.4% Hindustan 447 1,038 132.2% Hyundai 215 0 -100.0% Mahindra 129,381 136,194 5.3% Maruti 74,682 80,277 7.5% Mazda 12,607 10,524 -16.5% Telco 263,743 363,571 37.9%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 Growthindia (continued) Tatra Udyog 127 84 -33.9% Toyota 36,760 37,497 2.0% Volvo 963 897 -6.9% India Total 643,286 772,689 20.1%

indonesia (assembly) Daihatsu/Isuzu/Mitsubishi/Suzuki/Toyota 168,120 89,687 -46.7% Indonesia (assembly) Total 168,120 89,687 -46.7%

iran (assembly estimate) Kia/Paykan/Nissan/Rover 104,000 152,000 46.2% Iran (assembly estimate) Total 104,000 152,000 46.2%

italy Bremach - FB 0 310 Fiat 126,258 129,796 2.8% IVECO 86,052 92,562 7.6% Piaggio 7,487 6,284 -16.1% PSA 90,611 88,524 -2.3% Italy Total 312,824 317,476 1.5%

Japan Daihatsu 185,303 164,349 -11.3% Fuji 83,544 79,722 -4.6% Hino 96,985 100,122 3.2% Honda 48,642 55,767 14.6% Isuzu 210,253 230,807 9.8% Mazda 58,865 59,685 1.4% Mitsubishi Fuso 132,274 141,503 7.0% Mitsubishi 109,360 101,134 -7.5% Nissan Diesel 41,071 42,833 4.3% Nissan 230,126 213,808 -7.1% Suzuki 169,778 168,509 -0.7% Toyota 415,056 367,369 -11.5% Other 1,667 2,110 26.6% Japan Total 1,782,924 1,727,718 -3.1%

korea, south Daewoo 4,626 5,900 27.5% Daewoo 13,930 22,403 60.8% Hyundai 214,003 231,364 8.1% Kia 105,030 83,828 -20.2% Tata 4,657 7,471 60.4% Korea, South Total 342,256 350,966 2.5%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 Growthmalaysia Ford/Nissan/Perodua/Proton/Toyota 158,837 125,096 -21.2% Malaysia Total 158,837 125,096 -21.2%

mexico Dodge 186,745 153,890 -17.6% Mercedes Benz 27,821 29,591 6.4% Ford 32,423 37,190 14.7% Buick 59,485 53,599 -9.9% Cadillac 18,361 11,827 -35.6% Chevrolet 166,456 208,792 25.4% GMC 19,920 40,028 100.9% International 32,858 39,214 19.3% Kenworth 10,474 12,946 23.6% MAN 319 303 -5.0% Volvo Bus 590 833 41.2% Nissan 42,441 50,776 19.6% Otros 113 135 19.5% Scania 509 383 -24.8% Toyota 23,670 34,465 45.6% Volkswagen 1,004 1,308 30.3% Mexico Total 623,194 675,280 8.4%

morocco (assembly) Citroën/Fiat/Peugeot/Renault 12,829 12,194 -4.9% Morocco (assembly) Total 12,829 12,194 -4.9%

netherlands DAF 40,528 43,420 7.1% Ginaf 140 186 32.9% Scania 22,000 25,700 16.8% Terberg 795 896 12.7% vdl Bus International 1,240 1,110 -10.5% BOVA 744 810 8.9% Netherlands Total 65,447 72,122 10.2%

peoples republic of China Isuzu/Other 328,502 373,593 13.7% Changan Suzuki/Other 453,289 179,936 -60.3% Changzheng/Huanghe/Other 42,066 59,610 41.7% Changhe/Suzuki 115,652 136,739 18.2% Changhe/Songhuajiang 175,367 196,894 12.3% Dongfeng/Wukiang/Other 102,072 99,251 -2.8% Hongqi/Suzuki/Other 71,773 61,757 -14.0% JAC 90,421 115,314 27.5% JMC/Isuzu/Ford 68,837 77,846 13.1%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 Growthpeoples republic of China (continued) Iveco 58,618 58,207 -0.7% Isuzu 32,284 35,725 10.7% Wuling 38,407 38,877 1.2% Mitsubishi 13,482 7,765 -42.4% Other 186,200 605,080 225.0% Peoples Republic of China Total 1,776,970 2,046,594 15.2%

poland Volkswagen 69,167 78,050 12.8% Fiat 13,872 26,651 92.1% Lublin 1,863 1,356 -27.2% Star 254 274 7.9% Poland Total 85,156 106,331 24.9%

portugal Citroën/Peugeot (assembly) 21,144 23,368 10.5% Mitsubishi (assembly) 8,556 9,267 8.3% Isuzu (assembly) 1,925 2,214 15.0% Opel (assembly) 47,904 45,167 -5.7% Toyota (assembly) 3,929 3,831 -2.5% Portugal Total 83,458 83,847 0.5%

romania Aro/Dacia/Daewoo/Rocar/Roman 20,264 11,934 -41.1% Romania Total 20,264 11,934 -41.1%

russia (estimate) BMW/Kia/Hummer/Chevrolet/Cadillac/Great W 110 512 365.5% BAZ 55 92 67.3% Mercedes, Aka,Ford 208 421 102.4% GAZ 165,358 185,316 12.1% Izhmach 7,220 12,267 69.9% KAMAZ 31,988 42,836 33.9% KAVZ 2,230 3,425 53.6% LIAZ 2,485 2,995 20.5% Other 5,120 5,856 14.4% PAZ 13,681 14,215 3.9% Hyundai 2,311 7,162 209.9% UAZ 32 53 65.6% UAZ 39,546 35,140 -11.1% Ural 7,683 9,952 29.5% VAZ 3,569 3,379 -5.3% Volvo 362 397 9.7% ZIL 6,976 6,408 -8.1% Russia (estimate) Total 288,934 330,426 14.4%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 Growthsouth africa Fiat 1,426 1,985 39.2% Mitsubishi 9,608 8,279 -13.8% Delta (GM) (Opel/Isuzu) 21,532 24,090 11.9% Ford 31,439 27,434 -12.7% Mazda 5,994 6,133 2.3% Hummer 0 725 MAN 2,178 2,511 15.3% Nissan 32,412 33,667 3.9% Nissan Diesel 3,374 4,102 21.6% Scania 822 814 -1.0% Toyota 58,396 97,742 67.4% International Harvester 832 989 18.9% Volkswagen 817 916 12.1% South Africa Total 169,804 209,387 23.3%

spain Opel 73,770 5,682 -92.3% IVECO Pegaso 50,006 53,000 6.0% Mercedes Benz 75,181 76,586 1.9% Nissan (assembly) 166,505 142,062 -14.7% Citroën 256,830 158,036 -38.5% Peugeot 0 104,164 Renault (assenbly) 11,623 71,048 511.3% Renault (assembly) 7,963 5,617 -29.5% Suzuki/Santana 12,454 8,681 -30.3% Spain Total 654,332 624,876 -4.5%

sweden Volvo 24,080 26,604 10.5% Scania 10,841 12,155 12.1% Sweden Total 34,921 38,759 11.0%

Taiwan Mitsubishi/Chrysler (assembly) 47,234 38,730 -18.0% Ford/Mazda (assembly) 26,198 21,885 -16.5% Toyota/Hino (assembly) 18,688 14,153 -24.3% Suzuki (assembly) 3,180 1,796 -43.5% Isuzu (assembly) 4,072 4,680 14.9% Nissan/Buick 23,154 10,679 -53.9% Taiwan Total 122,526 91,923 -25.0%

Thailand (assembly) Ford/Honda/Isuzu/Mitsubishi/Nissan/Opel/Toyo 845,277 895,084 5.9% Thailand (assembly) Total 845,277 895,084 5.9%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 GrowthTurkey Isuzu 6,762 7,445 10.1% Hino 2,439 1,309 -46.3% BMC 12,500 11,679 -6.6% Ford 243,423 258,126 6.0% Hyundai 28,618 18,545 -35.2% Peugeot 13,146 12,524 -4.7% MAN 2,030 2,501 23.2% Mercedes Benz 13,916 15,209 9.3% KHD/Land Rover 2,590 2,775 7.1% IVECO Fiat 3,634 4,165 14.6% Mitsubishi 8,161 8,915 9.2% Fiat 88,570 98,705 11.4% Turkey Total 425,789 441,898 3.8%

Ukraine (estimate) Bogdam 2,007 2,687 33.9% KRAZ 3,411 3,486 2.2% LUAZ 1,059 1,261 19.1% LAZ 449 555 23.6% Other 160 126 -21.3% Ukraine (estimate) Total 7,086 8,115 14.5%

United kingdom Dennis Eagle 900 877 -2.6% Foden 0 264 Ford 71,885 70,890 -1.4% IBC 90,456 0 -100.0% LandRover 11,747 13,663 16.3% Leyland 16,277 16,954 4.2% Leyland Daf Vans 10,175 6,990 -31.3% Nissan 0 13,354 Peugeot 3,097 3,803 22.8% Renault 0 36,524 Vauxhall/Opel 0 43,118 United Kingdom Total 206,753 206,437 -0.2%

United states Hummer 28,266 15,636 -44.7% BMW 104,986 65,876 -37.3% Chrysler 61,367 69,654 13.5% Dodge 683,720 630,692 -7.8% Jeep 595,730 526,513 -11.6% Mercedes-Benz 95,558 173,600 81.7% Mitsubishi 9,631 4,546 -52.8% Ford 2,014,307 1,636,886 -18.7%

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World Commercial Vehicle production and assembly all trucks and busses, Class 1-8. 2005 2006 GrowthUnited states (continued) Lincoln 56,532 37,303 -34.0% Mazda 48,511 21,770 -55.1% Mercury 63,669 60,480 -5.0% Buick 38,368 19,802 -48.4% Cadillac 52,183 90,777 74.0% Chevrolet 1,327,197 1,132,007 -14.7% GMC 510,744 477,153 -6.6% Hummer 53,271 56,806 6.6% Isuzu 10,477 7,620 -27.3% Pontiac 48,798 29,210 -40.1% Saab 5,795 5,645 -2.6% Saturn 104,207 118,589 13.8% Acura 0 18,788 Honda 358,805 349,034 -2.7% Hyundai 0 61,618 Mitsubishi/Chrysler/Dodge 22,660 17,687 -21.9% Toyota/Pontiac 168,927 170,765 1.1% Nissan/Infiniti 452,759 395,865 -12.6% Subaru 27,481 21,022 -23.5% Toyota (assembly) 364,983 327,708 -10.2% Other 383,409 436,041 13.7% United States Total 7,692,341 6,979,093 -9.3%

Venezuela (assembly) Chrysler/Jeep/Mercedes 7,669 10,509 37.0% IVECO 2,167 3,074 41.9% Ford 18,681 15,603 -16.5% Chevrolet/GM/Isuzu/Suzuki 21,454 23,271 8.5% Mack 700 943 34.7% Mitsubishi/Hyundai 1,833 2,727 48.8% Toyota/Daihatsu 5,538 4,490 -18.9% Venezuela (assembly) Total 58,042 60,617 4.4%

Sources: Compiled from various sources by Auto Strategies International Inc. primarily based on data from motor vehicle manufacturer associations in the respective countries. May include double counting (vehicles counted as KDK and assembly).

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With the opening of the Chinese economy and the move to a mod-ern industrial infrastructure, freight transportation has exploded in the past few decades.

Similarly, truck transport has grown dramatically, but, as yet, remains a niche transportation mode in China, one that is used primarily for short-haul routes with empty backhaul. One reason for this is that Chinese investment in the underlying transportation infrastructure has failed to match the growth in transportation, and road quality remains poor in much of the country. At this time, freight transportation by road is characterized by the use of gasoline powered light duty trucks, however, the Chinese government has mandated the shift to larger, more efficient diesel in an attempt to improve the energy profile of transportation.

China

China’s heavy Truck sales

Source: China National Bureau of Statistics and CAAM* MEMA Forecast

heavy Truck sales in China2004 370,7952005 236,6002006 307,3002007 487,5002008* 604,500

China’s Truck Classifications andVehicle populations

GVW UIO (millions)Light Duty 1.8 to 6.0 metric tons 4.26Medium Duty 6.1 to 14.0 metric tons 2.34Heavy Duty Abobe 14 metric tons 1.54

Source: China National Bureau of Statistics and CAAM

* MEMA Forecast

Source: U.S. Department of Energy, Office of Scientific and Technical Information

share of Trucks in Use


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Ch

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2002 2003 2004 2005 2006Population, total (billions) 1.28 1.29 1.30 1.30 1.31Population growth (annual %) 0.7 0.6 0.6 0.6 0.6

GDP (current US$ billions) 1,453.8 1,641.0 1,931.7 2,243.9 2,644.7GDP growth (annual %) 9.1 10.0 10.1 10.4 10.7Inflation, GDP deflator (annual %) 0.6 2.6 6.9 4.2 3.6GNI per capita, Atlas method (current US$) 1,100.0 1,270.0 1,500.0 1,740.0 2,000.0GNI, Atlas method (current US$ billions) 1,406.8 1,631.4 1,938.0 2,275.7 2,621.0

Industry, value added (% of GDP) 44.8 46.0 46.2 47.5 48.4Exports of goods and services (% of GDP) 25.1 29.6 34.0 37.3 40.1Imports of goods and services (% of GDP) 22.6 27.4 31.4 31.7 32.2Gross capital formation (% of GDP) 37.9 41.2 43.3 43.9 44.6

Merchandise trade (% of GDP) 42.7 51.9 59.8 63.4 66.6Foreign direct investment, net inflows (BoP, current US$ billions) 49.3 47.1 54.9 79.1 78.1Long-term debt (DOD, current US$ billions) 120.5 120.4 131.9 133.3 149.5Present value of debt (% of GNI) - - 14.5 14.2 -Total debt service (% of exports of goods, services and income) 8.3 7.3 3.4 3.1 2.5

Time required to start a business (days) - 48.0 48.0 48.0 35.0Market capitalization of listed companies (% of GDP) 31.9 41.5 33.1 34.8 91.7Roads, paved (% of total roads) 78.3 79.5 81.0 81.6 -High-technology exports (% of manufactured exports) 23.3 27.1 29.8 30.6 -

China economic summary

Source: World Development Indicators Database, May 2008

China overviewChina’s population has shown a consistent annual growth rate of 0.6 percent since 2003, reaching 1.31 billion in 2006. During the same period, China’s Gross Domestic Product (GDP) has grown by at least 10 percent each year. This equates to an increase of $1 trillion over the four years as its GDP reached $2.6 trillion in 2006. GDP climbed $881 per capita from 2002 to 2006.

China’s trade in merchandise goods continues to accelerate, helping to fuel its economic expansion. In 2002, merchandise trade was

measured at 42.7 percent of GDP, compared to 66.6 percent in 2006.

The country also has seen significant increases in foreign direct investment as net inflows have risen 58.4 percent from 2002 to 2006, settling at $78.1 billion. A likely contributor to this is the at-tractiveness of China’s emerging middle class, the demographic that is realizing a new consumer spending power for the first time in its modern history.

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China engine productionOn-highway vehicle engine production reached an estimated 4.6 million units in 2007, up 10 percent over 2006. The production ratio of gasoline to diesel engines was split 70:30.

Chinese engine production increased 54 percent from 2002 to 2007, driven primarily by gasoline engine manufacturing. Engines in the

101-300 horsepower range grew 248.9 percent over the period. Pro-duction of large diesel engines (301-700 horsepower) expanded in 2007 as output reached 140,369, up 314.3 percent over 2006 levels.

Looking ahead, total engine production is forecast to rise slightly to 4.7 million units in 2008. Of these, 1.7 million will be 51-100 horsepower gasoline engines.

diesel 2002 2003 2004 2005 2006 2007e 2008f0-50 hp 181,443 194,824 244,126 35,507 34,561 37,719 19,94751-100 hp 371,135 420,968 439,989 405,934 434,430 500,971 472,763101-300 hp 500,230 597,493 663,645 483,178 599,704 715,664 710,645301-700 hp 33,882 71,366 102,682 41,315 59,797 140,369 155,758Total Diesel 1,086,690 1,284,651 1,450,442 965,934 1,128,492 1,394,723 1,359,113

Gas/Gasoline 2002 2003 2004 2005 2006 2007E 2008F0-50 hp 365,830 406,574 460,005 426,278 451,208 481,765 555,77751-100 hp 1,210,003 1,390,054 1,759,038 1,423,085 1,543,011 1,615,786 1,660,609101-300 hp 313,016 583,218 863,871 967,657 1,044,362 1,091,918 1,116,040301-700 hp - - - - - - -Total Gas 1,888,849 2,379,846 3,082,914 2,817,020 3,038,581 3,189,469 3,332,426

Grand ToTal 2,975,539 3,664,497 4,533,356 3,782,954 4,167,073 4,584,192 4,691,539

China engine production for on highway Vehicles

Source: Power Systems Research

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ssia

Russia has grown from a struggling minor player in the world economy to the tenth largest in terms of purchasing power. This growth was facilitated by its stable politics, predictable economic growth and firm state control over natural resources. The fact that it is the second largest oil producer and the top producer of natural gas has helped considerably, especially with the global growth in energy consumption and high oil prices. The Russian economy grew to just over $2 trillion (GDP purchasing power parity) in 2007. This was the ninth straight year of growth

Russiathat has averaged 7% per year. Granted, the high oil prices and the value of the ruble initiated this growth, but consumer demand, and new investment activity, have recently played a major part as well.Fixed capital investments have averaged real gains greater than 10% per year for six years, while personal income has increased by an average of just over 12% annually. In this time, Russia has been able to decrease the amount of poverty and has continued to in-crease the size of its middle class. With a labor force of approximate-ly 74 million workers, Russia’s unemployment rate was estimated at 6.2% at the end of 2007.

2007 2008 2009 2010 2011 2012Real GDP growth (%) 8.1 7.4 6.5 6.0 5.5 5.0Inflation - consumer prices (av; %) 9.0 14.1 11.5 9.4 7.6 7.1Budget balance (% of GDP) 5.4 4.5 3.3 2.2 1.7 1.1Current-account balance (% of GDP) 6.1 6.1 3.5 2.3 1.6 0.9Central bank refinancing rate (end-period; %) 10.0 11.3 10.0 9.0 8.0 7.5Exchange rate Rb:US$ (av) 25.6 24.1 24.5 25.3 26.0 26.5Exchange rate Rb:€(av) 35.0 37.1 37.2 36.7 35.6 35.0

russia key economic indicators and forecasts

Source: The Economist

road Transportation in russiaRoad transport in Russia is responsible for moving approximately 17 million tons of freight per day, about six times then the volume moved by rail. In 2006, trucks moved more than 136 billion ton-miles of freight, supporting the economy while providing employ-ment for more than four million people who were employed in road transport operations.

Transportation by road has provided the necessary mobility that was a requisite for Russia’s economic growth in the last decade. Unfor-tunately, the nature and condition of the domestic truck fleet, road conditions, and the level of highway infrastructure development do not reflect the level of dependence Russia has on the sector.The existing road transportation system barely meets the growing demand for its services, and although tasked with enhancing Rus-sian interests in international trade, serious shortcomings encumber operations. The Russian government is attempting to address some of the problems and to modernize the transportation system.

russia’s road Transportation system at a Glance• TrucksandBussesinOperation 5,538,672• RoadFreightTransport(millionton/miles) 136,144• MilesofRoadway 530,651• MilesofPavedRoads(85%) 448,630• MilesofExpressway 18,020

heavy duty Truck market in russiaThe Russian market for heavy duty trucks amounted to 128,000 vehicles in 2007, and the expectation is that the market will have grown by another 14%, reaching 146,000 heavy duty trucks in 2008.

russian heavy duty Truck sales (1,000)

2007 2008* GrowthNew 103 118 15%Used 25 28 12% Total 128 146 14%

US Share of Used Truck Sales in Russia 24% 46%

* = projection

HDMA Estimates

russian Truck manufacturersThere are four predominant truck manufacturers in Russia. The largest is GAZ, with a strong presence in the light commercial vehicle segment, but second in heavy duty trucks with about 11% share. The second largest is KAMAZ, the leader in the heavy duty segment with a 30% share of market. The other two, Sollers (mostly light commercial vehicles) and ZIL (medium duty trucks) are not significant participants in the heavy duty truck segment.

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russian Truck sales and forecast by GVW

(Thousands) 2000 2005 2010* 2015*Up to 3.5t 136 152 204 2753.5 to 9t 20 27 39 509 to 12t 9 9 10 1212 to 18t 20 35 31 3818 to 20t 8 7 9 920 to 26t 21 23 23 28Over 26t 1 3 4 5Total 215 256 320 417

* = forecastSource: Association of Automotive Producers and HDMA estimates

russian Truck mix by GVW

Note: 1 Metric ton (t) = 2,205 lbs.

share of Trucks in Use


Most domestic vehicle manufacturers actively import key compo-nents for their truck production, and there is significant pressure on foreign suppliers to establish manufacturing facilities in Russia, with an aim towards cutting costs. According to KAMAZ, a lead-ing heavy duty truck manufacturer, the company’s global suppliers provide a broad range of parts and components.

According to KAMAZ, these include: l Transmissions and clutches from ZF l Engines from Cummins l Filters from Mann Hummel l Piston rings from Federal Mogul l Fuel injection pumps from Bosch l Brake systems from Wabco, Knorr l Fan clutches from Borg Warner

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Brazil is the largest and most populous nation in Latin America, and, based on CIA World Factbook data, has over one million miles of roads, rich mineral resources and a population growing 50% faster than that of the United States. All of these factors make Brazil an important market for American products. In 2007, $24.6 billion was imported by Brazil from the United States. That total was surpassed in the first three quarters of 2008, putting total exports to Brazil on pace to eclipse $34.5 by year end. This makes Brazil the ninth larg-est purchaser of American products, beating out traditional partners

Brazil

Source: Foreign Trade Division, U.S. Census Bureau.

Source: Foreign Trade Division, U.S. Census Bureau.

Value of motor Vehicle exports to brazil

In millions of US Dollars

distribution of 2008 Transportation sector exports

All Exports (World) and Brazil

like France and Belgium, based on figures reported by the Foreign Trade Division and U.S. Census Bureau.

For the transportation sector, Brazil ranks eighth largest as a destina-tion for exports. The penetration of American products into the Brazilian market is minimal for the road transportation sub-segment. Consisting of vehicles, parts, trailers and bodies, only 9.6% of transportation product dollars exported to Brazil are for this group of on-road products. By contrast, 51.4% of US transportation exports as a whole are in the on-road segment.

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The production of heavy trucks in Brazil has surpassed the 100,000 units mark for three consecutive years (2004 through 2006) based on Brazilian Automotive Industry Yearbook, 2007. Annual bus produc-tion was over 30,000 units, bringing total heavy vehicle production for 2006 to 139,810.

In 2006, there was an estimated 1.4 million trucks on the roads of Brazil, out of a total vehicle population of about 24 million. Ve-hicles listed as light commercial vehicles, or light trucks, including SUVs are just twice the number of heavy trucks. The bus fleet of 386,000 is expected to rise based on new registrations that have increased by 22% in the last decade as compared to the previous ten years.

Source: ANFAVEA - Anuário da Indústria Automobilística Brasileira / Brazilian Automotive Industry Yearbook, 2007

annual new heavy Vehicle registrations


heavy Vehicle production in brazil by year

New registrations for trucks and buses were 76,258 and 19,768 respectively in 2006, an increase of only 0.34% over 2005, and down 4.6% compared to 2005 new registrations. This dip in registrations is largely due to the surge in 2005 of nearly 20 thousand units rather than a weakness of recent years. The overall growth is being main-tained through the recent peaks and valleys.

The larger number of units produced as compared to registrations creates an opportunity for Brazilian manufacturers. Exports by the motor vehicle industry of Brazil have grown by 184% in the last de-cade, to peak at almost 900, 000 units shipped. Heavy truck exports in 2006 were 447% of the 1996 level, reporting 38,188 units shipped in 2006. Bus exports were just under 16,000 units in 2006, down from the record 18,969 in 2005, but still and increase of over 200% versus 1996.

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heavy Vehicle registrations by Vehicle Type


brazilian motor Vehicle fleet Composition


Three decades of brazilian heavy Vehicle exports

Tonnes pounds

Semi-light GVW 3.5 - 6 7,716 - 13,227

Light GVW 6 - 10 13,228 - 22,046

Medium GVW 10 - 15 22,047 - 33,069

Semi-heavy GCW* < 40 < 88184

Heavy GCW* > 40 > 88184

* For tractors. Fixed chassis are 5t higher

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Beginning in the early 1990s, India’s growing economy has witnessed a 10% annual increase in demand for a transport infrastructure; unfortunately, development has not kept pace with this demand growth. Major improvements in transportation infrastructure are a prerequisite for India’s continued economic growth. Roads carry about 65% of its freight, but one quarter of all India’s highways are so congested that truck speeds are held between 20 to 25 miles per hour, and rush-hour speeds average less than 10 miles an hour in the central areas of Mumbai and other metropolitan areas.

Furthermore, most roads are of poor quality, and 40% of India’s rural villages do not have access to all-weather roads and remain cut-off during the monsoon season during the summer months.

India

india’s Transportation infrastructure Length of Roads 2,185,022 milesMain Roads 4,141,143 milesPaved Roads 47%Access to All-Season-Roads 61%

Rail Track Length 39,350 miles

economyIt is estimated that the population of India reached 1.13 billion in 2007, the second largest of any country. Though China boasts the highest number of residents, India’s annual population growth has consistently doubled that of China in recent years, measuring 1.4% in 2007.

India’s Gross Domestic Product (GDP) grew to $983 billion in 2007, representing a 7.8% rise over 2006 and the fifth straight year of GDP growth above 7%. Inflation has abated somewhat to 4.5% compared to 5.9% in 2006.

2007 2008 2009 2010 2011 2012 2002 2003 2004 2005 2006 2007*Population, total (billions) 1.05 1.06 1.08 1.09 1.11 1.13Population growth (annual %) 1.6 1.5 1.4 1.4 1.4 1.4 GDP (current US$ billions) 507.8 601.8 695.8 805.7 911.8 983.0GDP growth (annual %) 3.7 8.4 8.3 9.2 9.2 7.8Inflation, GDP deflator (annual %) 3.9 3.8 4.4 4.4 5.9 4.5 Industry, value added (% of GDP) 26.4 26.2 27.5 27.6 27.9 27.1Exports of goods and services (% of GDP) 15.3 15.5 18.2 20.3 23.0 18.5Imports of goods and services (% of GDP) 15.7 16.1 20.0 23.3 25.8 20.2Gross capital formation (% of GDP) 25.6 27.5 31.0 33.4 33.9 30.2 Merchandise trade (% of GDP) 20.8 21.3 25.3 29.6 32.4 25.9Foreign direct investment, net inflows (BoP, current US$ billions) 5.6 4.6 5.8 6.7 17.5 8.0Long-term debt (DOD, current US$ billions) 100.9 107.8 116.9 114.3 141.1 167.9Total debt service (% of exports of goods, services and income) 17.3 19.1 13.8 13.2 7.7

india economic summary

Source: World Development Indicators database, May 2008* HDMA Estimate

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medium and heavy duty Trucks and bussesLike many newly emerging countries, India’s highway infrastructure promotes the use of light commercial vehicles. However, its large manufacturing base and export markets create the need to use larger, more efficient trucks to move goods from the production centers to the port facilities. Despite the lack of rural infrastructure, India is one of the world’s largest truck markets and, until the last half of 2008, projections were for continued long-term growth. However,

the current global economic situation has also been felt in India, and medium and heavy commercial vehicles are suffering from a lack of demand for goods transport, drop in road freight rates and high financing costs. As a result, Tata Motors, by far India’s largest truck maker, has already had to cut production at its plants to avoid a buildup in inventories, while Ashok Leyland, India’s second-largest commercial vehicle maker, had likewise cut shifts in the last quarter of 2008.

india medium and heavy Truckproduction and Growth

2006 2007 ChangeVolvo Truck 606 806 33.0%Mazda 4,127 4,235 2.6%Eicher Motors 17,013 21,461 26.1%Ashok Leyland 62,991 59,876 -4.9%Tata 161,594 157,162 -2.7%TOTAL 246,331 243,540 -1.1%

india medium and heavy Trucksales and Growth

2006 2007 ChangeVolvo Truck 610 802 31.5%Mazda 4,297 3,935 -8.4%Eicher Motors 16,648 20,023 20.3%Ashok Leyland 60,384 57,424 -4.9%Tata 150,580 148,371 -1.5%TOTAL 232,519 230,555 -0.8%

Source: Ward’s Automotive Reports Source: Ward’s Automotive Reports

Trucks

india medium and heavy Truck production shares (2007)

india medium and heavy Truck share of sales (2007)

Source: Ward’s Automotive Reports Source: Ward’s Automotive ReportsProp

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india bus production and Growth

2006 2007 ChangeVolvo Truck 290 175 -39.7%Mazda 1,549 2,649 71.0%Eicher Motors 1,404 2,179 55.2%Ashok Leyland 14,510 22,530 55.3%Tata 12,546 16,896 34.7%TOTAL 30,299 44,429 46.6%

india bus sales and Growth

2006 2007 ChangeVolvo Truck 248 229 -7.7%Mazda 1,439 1,967 36.7%Eicher Motors 1,388 1,816 30.8%Ashok Leyland 11,064 17,749 60.4%Tata 14,785 15,576 5.4%TOTAL 28,924 37,337 29.1%


busses

india bus production shares (2007)


india bus share of sales (2007)

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engine productionIndia’s on-highway vehicle engine production increased to an estimated 1.8 million units in 2007, up 5.7% compared to 2006. The split of gasoline to diesel engine production was 60:40.

The majority of gasoline engines manufactured in India were in the 51-100 horsepower range, accounting for 58.4% (642,290 units). Engines in the 0-50 horsepower range made up 40.7% of total gaso-

line engine production. The majority of diesel engine production was split between the 101-300 (46.7%) horsepower and 51-100 horsepower (43.8%) ranges.

Forecasts indicate that India’s engine production will be stepped up again in 2008 by 1.7%, the lowest increase in recent history. An estimated 1.9 million engines are expected to be manufactured, with the only reduction among 101-300 horsepower diesel engines (down 3%).

diesel 2002 2003 2004 2005 2006 2007e 2008f0-50 hp 14,583 12,885 14,159 27,274 52,793 69,491 71,44051-100 hp 234,619 252,701 261,941 287,487 291,999 323,811 329,236101-300 hp 99,513 109,451 114,696 283,428 329,013 345,460 335,001301-700 hp - - 141 187 225 554 586Total Diesel 348,715 375,037 390,937 598,376 674,030 739,316 736,263

Gas/Gasoline 2002 2003 2004 2005 2006 2007e 2008f0-50 hp 411,875 425,881 436,610 398,214 433,761 447,336 461,33851-100 hp 369,562 511,650 591,461 573,005 623,188 642,290 662,052101-300 hp 14,909 18,227 19,162 8,542 9,237 9,839 9,932301-700 hp - - - - - - -Total Gas 796,346 955,758 1,047,233 979,761 1,066,186 1,099,465 1,133,322

Grand Total 1,145,061 1,330,795 1,438,170 1,578,137 1,740,216 1,838,781 1,869,585

india engine production for on highway Vehicles

Source: Power Systems Research

india’s light duty backdrop In India, 30% of light vehicle production and 32% of light vehicle sales are trucks, and very few of these are SUVs or pickups and vans that are used for personal transportation. These are truly commer-cial vehicles, and dramatically impact the demand for medium and heavy duty trucks. It is therefore relevant when accessing the heavy duty market to examine the light vehicle sector.

light Vehicle salesA total of 1.5 million light vehicles were sold in India in 2006, up 20.8% compared to 2005’s total of 1.2 million. Looking ahead, India’s light vehicle sales are expected to increase an average of 11% a year, reaching 2.4 million in 2011.

Suzuki Motor Corp. dominates India’s new light vehicle market, with 2006 sales figures reaching 596,005 units or 40.9% of the

country’s total. The company’s sales growth has been strong with an average annual growth rate of 15% from 2003 to 2006. Forecasts indicate that Suzuki’s accelerated sales pace will slow in the coming years, growing an average of 5.8% annually from 2006 to 2011.

Hyundai-Kia Automotive placed second on the sales list with 186,174 units delivered, 19.1% higher than the year prior. Honda Motor Co. was next with 56,184 units purchased. The “Other” cat-egory was responsible for 470,709 units sold. This category includes companies with traditionally high sales, including former second place Tata Motors Ltd. and the former number four, Mahindra & Mahindra. Specific volumes of these companies were unavailable at the time of this publication.Pr

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india Vehicle sales history and forecast by manufacturer

2003 2004 2005 2006 2007 2008 2009 2010 2011

forecast forecast forecast forecast forecast

BMW Group – – – – 1367 1786 1,994 2,171 2,599

DaimlerChrysler AG 1,497 1,727 1,799 1,849 2,606 2,799 2,983 3,523 4,051

Fiat Group 11,909 6,706 2,130 2,028 2,160 8,802 9,472 10,414 11,070

Ford Motor Co. 18,987 27,161 22,385 42,061 51,192 40,288 34,515 39,631 50,226

General Motors 15,155 26,166 30,837 35,828 55,209 68,106 69,949 68,557 79,823

Honda Motor Co. 16,721 35,354 40,579 56,184 71,325 72,992 116,418 129,704 140,979

Hyundai-Kia

Automotive 120,291 139,629 156,269 186,174 224,672 256,596 244,560 255,588 277,298

Mitsubishi Motors

Corp. 3,042 2,620 1,788 3,778 6,086 7,462 7,734 8,579 9,060

Renault-Nissan – – 119 189 717 12,145 20,325 27,219 27,429

Suzuki Motor Corp. 392,177 479,548 516,712 596,005 661,861 669,578 702,435 718,125 789,543

Toyota Motor Co. 39,916 47,123 42,022 48,468 77,740 118,196 126,923 211,933 227,240

Volkswagen AG 5,527 7,206 8,953 12,327 14,381 22,788 28,580 36,623 41,081

Other 279,142 344,821 381,771 470,709 495,288 577,502 679,328 731,525 788,359

Total 904,364 1,118,061 1,205,364 1,455,600 1,664,604 1,859,040 2,045,216 2,243,592 2,448,758

Note: Reflects passenger car and light commercial vehicles; excludes medium and heavy trucks and buses; forecast data (2007-2011) based on 2007 first-quarter projections

Source: Automotive News Europe and J.D. Power Automotive Forecasting

light Vehicle productionIn 2006, more than 1.6 million light vehicles were manufactured in India. Production has stepped up in the country, growing an average of 17.7% from 2003 to 2006. Moving forward, annual production is expected to grow an average of 12.5% per year until reaching 3 mil-lion vehicles in 2011.

Suzuki Motor Corp. produced 628,355 vehicles in India in 2006, the most of any manufacturer. Since 2003, the company’s production has increased an average of 12.8% each year. Looking ahead, production

growth will slow to an average annual rate of 6.9% until reaching 877,735 assembled units in 2011.

Hyundai-Kia automotive placed second on the list of top produc-ers in India with 301,289 vehicles assembled in 2006, while Honda was next with 54,429 units. As with sales, some manufacturers have been lumped into the “Other” category, including Telco and Ma-hindra & Mahindra, the former second and fourth place producers respectively.

india Vehicle sales history and forecast

Source: Automotive News Europe and J.D. Power Automotive Forecasting Source: Automotive News Europe and J.D. Power Automotive Forecasting

2006 india sales by manufacturer – Top 10

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india Vehicle production history and forecast by manufacturer

2003 2004 2005 2006 2007 2008 2009 2010 2011

forecast forecast forecast forecast forecast

BMW Group – – – – 1,182 1,611 1,782 1,875 2,157

DaimlerChrysler AG 1,396 1,777 1,775 1,951 2,329 2,558 2,647 3,095 3,430

Fiat Group 12,979 8,078 3,330 1,990 1,881 8,089 8,701 9,615 10,157

Ford Motor Co. 18,790 27,266 22,652 40,644 49,660 40,374 34,481 39,345 48,917

General Motors 14,482 26,124 29,398 37,832 50,547 66,267 66,959 64,708 74,012

Honda Motor Co. 15,737 34,535 38,570 54,429 64,876 69,061 111,652 124,341 134,429

Hyundai-Kia Automotive 153,600 216,592 250,703 301,289 430,670 543,917 538,189 574,836 596,534

Mitsubishi Motors Corp. 3,528 2,805 2,991 4,494 4,116 5,892 6,266 7,111 7,332

Renault-Nissan – – – – – 18,807 57,921 98,904 108,882

Suzuki Motor Corp. 437,507 537,727 555,315 628,355 690,834 738,316 798,220 813,745 877,735

Toyota Motor Co. 37,481 47,628 45,695 44,310 74,984 117,795 127,025 211,693 224,167

Volkswagen AG 1,916 7,050 8,455 12,544 15,519 23,241 28,952 36,949 41,023

Other 311,028 395,747 430,918 514,969 538,141 627,841 727,847 778,291 833,303

Total 1,008,444 1,305,329 1,389,802 1,642,807 1,924,739 2,263,769 2,510,642 2,764,508 2,962,078

Note: Reflects passenger car and light commercial vehicles; excludes medium and heavy trucks and buses; forecast data (2007-2011) based on 2007 first-quarter projections

Source: Automotive News Europe and J.D. Power Automotive Forecasting

india Vehicle production history and forecast

Source: Automotive News Europe and J.D. Power Automotive Forecasting Source: Automotive News Europe and J.D. Power Automotive Forecasting

2006 india production by manufacturer – Top 10

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fleet surveyThe fleet study is based on data collected from three separate samples of fleets and owner/operators. Maintenance and purchasing practices were obtained from survey data and used to construct a profile of the business type and, where appropriate, compared to data collected in previous studies. Specific information was gathered on individual heavy duty trucks, Class 6, 7 and 8. Both gasoline and diesel powered vehicles with a GVW of greater than 19,501 pounds were included in the analysis. Trucks not in actual use at the time the information was gathered were not included in the sample or the universe estimates.

The survey was conducted using direct phone interviews and self administered web-based Internet survey tools. A drawing for $500 was offered, the winner to be selected from among the survey par-ticipants. The overall in tab sample for the three portions was 210.

Not included in these estimates is a significant portion of the vehicle population operated by the federal government and the military as well as the various local and state governments. Also excluded from the study are buses (of all types), equipment (including heavy equipment, agricultural machinery, material handling equipment, and unregistered road vehicles), and those new and used vehicles at dealerships or otherwise not in service.

distributor surveyThe distributor study was conducted using a commercial on-line survey service. The total invited sample pool consisted of individu-als from 283 heavy duty distributors who were invited to participate. Each was sent an e-mail invitation with a hyperlink that would open a web browser and begin the automated survey presentation. No in-centive was offered for taking the survey. The survey was completed by 77 representatives of distributor operations from the total invited sample for a survey response rate of 27.2%.

samplingAll estimates are based on a sample survey and will differ from the real universe because of sampling variability, non-sampling error, and non-response error. Sampling variability is that error due to not measuring the entire universe. Non-sampling errors are those errors due to the methodology, coding, and reporting of the survey results. Every effort has been taken to minimize error from these sources within the time and budget limitations of the study. For more infor-mation, contact Frank H. Hampshire, Senior Director of Research, the Motor & Equipment Manufacturers Association.

Methodology

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The edUCaTional and researCh foUndaTion of mema, inC.The Educational and Research Foundation of MEMA, Inc., was established by the association in 1983 to provide and promote research work and educational projects to benefit the automotive and heavy duty industries and their consumers.

Foundation-published research projects have included studies of consumer car and truck maintenance practices and buying preferences, detailed reports and analyses of the industry distribution systems and studies of what factors influence consumer purchase decisions.

Tax-deductible contributions may be made to the foundation to support its research and educational work for the industry and U.S. motorists.

markineTiCs, inC. The survey fielding and data entry for fleet maintenance section of this study was done by Markinetics, Inc. They were also responsible for arranging for the survey to be available on several Internet web sites. Markinetics provides a wide range of marketing-related services including research, strategic planning, integrated marketing communications and training. Researchers assist companies in finding new markets, better penetrating existing markets, new product development, creating effective promotions and improv-ing sales and distribution. Research methods available include expert interviews, focus groups, personal intercepts, computerized interviews, web research, telephone interviewing, trade show research, and self-administered surveys. Markinetics Inc. is in Marietta, OH and can be reached at 800-552-2510.

Acknowledgments

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Appendix

number of class 6, 7 and 8 vehicles in fleet.

Owner-Operators 19.6For Hire/Common Carrier 241.3Private Fleet 244.7 Agriculture, Mining, Oil-field. Forestry 63.0 Production and Distribution of Goods 390.5 Construction 26.3 Utility and All Other 117.2 All Fleet Types Combined 243.0

daTa Tables from fleeT sUrVey

Total pieces of motorized equipment maintained.

Owner-Operators 35.8For Hire/Common Carrier 266.4Private Fleet 385.7 Agriculture, Mining, Oil-field. Forestry 57.9 Production and Distribution of Goods 481.5 Construction 117.8 Utility and All Other 313.3All Fleet Types Combined 303.8

Total number of trailers owned or operated.


average miles per year heavy duty vehicles are driven.

Owner-Operators 98,213For Hire/Common Carrier 109,617Private Fleet 84,680 Agriculture, Mining, Oil-field. Forestry 100,395 Production and Distribution of Goods 65,010 Construction 81,450 Utility and All Other 90,429All Fleet Types Combined 97,504

average heavy duty vehicle life (years).


average heavy duty vehicle life (miles).

Owner-Operators 688,429For Hire/Common Carrier 862,500Private Fleet 540,671 Agriculture, Mining, Oil-field. Forestry 641,667 Production and Distribution of Goods 515,294 Construction 452,350 Utility and All Other 547,083All Fleet Types Combined 697,200

average cost per mile for maintenance (Class 8, excluding fuel costs).

Owner-Operators $0.18 For Hire/Common Carrier $0.15 Private Fleet $0.17 Agriculture, Mining, Oil-field. Forestry $0.18 Production and Distribution of Goods $0.14 Construction $0.27 Utility and All Other $0.20 All Fleet Types Combined $0.17

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Geographical range of operation.

Local Regional Long Haul

Owner-Operators 50.0% 30.0% 20.0% For Hire/Common Carrier 27.1% 37.1% 35.7% Private Fleet 61.4% 32.9% 5.7% Agriculture, Mining, Oil-field. Forestry 61.9% 33.3% 4.8% Production and Distribution of Goods 47.1% 41.2% 11.8% Construction 70.0% 30.0% 0.0% Utility and All Other 66.7% 25.0% 8.3% All Fleet Types Combined 46.2% 33.3% 20.5%

logistical range of operation.

Truckload Less than Truckload

Owner-Operators 85.7% 14.3% For Hire/Common Carrier 71.4% 28.6% Private Fleet 77.1% 22.9% Agriculture, Mining, Oil-field. Forestry 85.7% 14.3% Production and Distribution of Goods 64.7% 35.3% Construction 70.0% 30.0% Utility and All Other 91.7% 8.3% All Fleet Types Combined 78.1% 21.9%

outside service performed at a Truck stop?

Yes No


outside service performed at a General repair shop?

Yes No


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outside service performed at a Truck dealer?

Yes No


operations with in-house maintenance capabilities for most preventative maintenance tasks.

Yes No


operations with in-house maintenance capabilities for most minor repairs.

Yes No


operations with a fully equipped machine shop. Yes No


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Value of in-house parts inventory.

Less than $11,000 to $51,000 to More than $10,000 $50,000 $100,000 $100,000

Owner-Operators 68.6% 28.6% 1.4% 1.4%For Hire/Common Carrier 51.4% 27.1% 14.3% 7.1%Private Fleet 44.3% 35.7% 7.1% 12.9% Agriculture, Mining, Oil-field. Forestry 50.0% 40.9% 4.5% 4.5% Production and Distribution of Goods 29.4% 41.2% 5.9% 23.5% Construction 50.0% 25.0% 15.0% 10.0% Utility and All Other 41.7% 33.3% 8.3% 16.7%All Fleet Types Combined 54.8% 30.5% 7.6% 7.1%

purchasing behavior when specified brand is not available from a supplier.

Take the next Get it from Wait for the part available brand a different supplier

Owner-Operators 35.7% 32.9% 31.4%For Hire/Common Carrier 38.6% 35.7% 25.7%Private Fleet 40.0% 38.6% 21.4% Agriculture, Mining, Oil-field. Forestry 38.1% 33.3% 28.6% Production and Distribution of Goods 52.9% 35.3% 11.8% Construction 30.0% 45.0% 25.0% Utility and All Other 41.7% 41.7% 16.7%All Fleet Types Combined 38.1% 26.2% 35.7%

Change in outsourced maintenance and repair in the next three years.

More Less About the Same Owner-Operators 21.4% 20.0% 58.6%For Hire/Common Carrier 20.0% 18.6% 61.4%Private Fleet 20.0% 27.1% 52.9% Agriculture, Mining, Oil-field. Forestry 19.0% 33.3% 47.6% Production and Distribution of Goods 11.8% 41.2% 47.1% Construction 35.0% 15.0% 50.0% Utility and All Other 8.3% 16.7% 75.0%All Fleet Types Combined 20.5% 21.9% 57.6%

operations with trucks on order. Yes No


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of those with new trucks on order, average number on order.

Owner-Operators 7.5 For Hire/Common Carrier 44.2 Private Fleet 103.2 Agriculture, Mining, Oil-field. Forestry 1.5 Production and Distribution of Goods 268.7 Construction 6.0 Utility and All Other 54.0All Fleet Types Combined 72.8

of those planning to acquire new trucks in the next 12 months, average number intending to purchase or lease.


average number of new trailers planning to purchase or lease in the next 12 months.


daTa Tables from 2008 heaVy dUTy disTribUTor sUrVey

distributor company provides remote jobsite deliveries or services.

Yes No

91% 9%

distributor company’s market area.

Local 4% County or City wide 11% Statewide 23% Multi-state 55% National 9%

Vehicle and shop services offered at distributor location.

None 32% Machine shop 34% Minor installations 13% Have service bay and perform most maintenance and repairs 49%

proportion of customers that are fleets with ten or more heavy duty vehicles.

None 4% Less than half 36% Half 15% More than half 34% All or almost all 11%

number of locations company operates.

Single location 23% 2 to 5 locations 34% 6 to 10 locations 23% More than 10 locations 19%

proportion of distributors with municipal fleet customers.

Yes No

96% 4%

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interest level for supplier provided assistance. Not 2 Would welcome 4 Need interested any help immediate help

Help with Barcode and RFID 13% 17% 28% 30% 13%Supplier assistance with merchandising and floor space optimization 11% 19% 32% 36% 2%Help with inventory management 17% 19% 26% 30% 9%Logistics integration 11% 20% 35% 26% 9%Supplier help in finding new customers 6% 4% 21% 34% 34%

distributor use of business intelligence or information mining software.

Yes No

28% 72%

distributors using vendor managed inventory with one or more suppliers.

Yes No

38% 62%

distributor view of the relationship with suppliers. Partner 50% Adversary 2% Necessary evil 7% Supportive 21% Part of the problem 4% Collaborator 5% No relationship 4% Helping 4% Part of the family 4%

distributor members of marketing/buying groups. Yes No

69% 31%

distributor members ofmarketing/buying groups by group. Heavy Duty America 35% Power Heavy Duty 6% Truck Pride 14% Vipar 41% Other, please specify 5%

distributors purchasing exclusively through group. Yes No

12% 88%

distributors sourcing products directly from off-shore manufacturers or importers. Yes No

35% 65%

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distributors’ interest in educational topics. Not Interestedl Neutral A little Interested Very at all interested interested

Credit reporting and financial rating services 26% 23% 30% 19% 2% Barcodes and RFID 17% 23% 15% 34% 11% Business liability exposure 17% 17% 36% 28% 2% Compliance with local, state and federal laws 13% 26% 40% 19% 2% Detecting and reporting counterfeit parts 13% 13% 34% 26% 15% Best business practices 6% 11% 19% 36% 28%

Educational resources 4% 6% 28% 43% 19% Inside and outside sales training 2% 9% 11% 49% 30% Technical and product training 2% 0% 9% 57% 32% Electronic Data Interchange (EDI) 11% 13% 22% 35% 20%

distributors’ ratings of the importance of selected issues and topics. Not Important Neutral Slightly Important Very at all important important

Industry wide standards for e-commerce 0% 6% 38% 47% 9% Insurance, pension, worker’s comp and other benefit issues 6% 2% 32% 36% 23% Inventory management 2% 13% 26% 32% 28% Key employee succession planning 4% 6% 32% 36% 21% Lean operations 7% 4% 26% 41% 22% Obtaining OE diagnostic information to service new vehicles 6% 11% 15% 19% 49% Promoting repair, safety, or decreased emissions 13% 13% 28% 30% 17% Recruitment and retention 4% 4% 13% 40% 38% Federal Motor Vehicle Safety Standards (FMVSS) 9% 9% 40% 30% 13% State safety and emissions inspection programs 9% 13% 37% 30% 11% Suppliers national warranties 4% 9% 37% 28% 22%

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3M Automotive www.mmm.comAccuride Corporation www.accuridecorp.comAffinia Group - Under Vehicle www.affiniagroup.comAffinia Group Inc. www.affiniagroup.comAftermarket Technology Corp. www.goatc.comAIAG - Automotive Industry Action Group www.aiag.orgAlcoa www.alcoa.comAlcoa Electrical and Electrical Solutions www.aflauto.comAmerican Forge & Foundry, Inc. www.affjaxx.comANXeBusiness Corp. www.anx.comArvinMeritor CVS www.arvinmeritor.comASC Industries, Inc. (A UCI Company) www.asc-ind.comAutomotive Research & Consulting Group www.arcg.co.ukAxleTech International www.axletech.comBaldwin Filters www.baldwinfilter.comBar’s Products www.barsproducts.comBBB Industries www.bbbind.comBehr America, Inc. www.behrgroup.comBelmor Products Division Lund International www.belmor.comBendix Commercial Vehicle Systems, LLC www.bendix.comBendix Spicer Foundation Brake, LLC www.foundationbrakes.comBergstrom, Inc. www.bergstrominc.comBetts Spring Company www.bettspring.comBezares USA www.pto-usa.comBGP Marketing Solutions, Ltd. www.bgpmarketing.comBlachford, Inc. www.blachford.comBorg Warner Torque Transfer www.turbodriven.comBreeze Industrial Products Corp. www.breezeclamps.comBuffers USA www.buffersusa.comCARDONE Industries, Inc. www.cardone.com

Carlisle Motion Control Industries www.carlislemotion.comCentral Screw Products www.centralscrewproducts.comChampion Laboratories, Inc., Division of United Components, Inc. www.champlabs.comCole Hersee Company www.colehersee.com Commercial Vehicle Group, Inc. www.cvgrp.com Commercial Vehicle Systems www.cvgrp.com Compressor Works, Inc. www.compressorworks.com Consolidated Metal Products, Inc. www.cmpubolt.com Consolidated Metco www.conmet.com Contech Marathon Automotive Group Company www.contech-global.com Continental www.continental-corporation.com Continental, ContiTech Power Transmission Group www.contitech-usa.com Conway MacKenzie & Dunleavy www.c-m-d.com Custom Sensors and Technologies www.cstsensors.com Cyclo Industries LLC / Pidilite Industries www.cyclo.com Dana Corporation/Heavy Vehicle & Technology Systems Service/Dana Corporation www.dana.comDana Holding Corporation www.dana.com Dana Spicer Service Parts www.dana.com Dayton Parts, LLC www.daytonparts.com Defiance Metal Products www.defiancemetal.com Delphi Corporation www.delphi.com DENSO Sales California Inc. www.densoaftermarket.com Donaldson Company, Inc. www.donaldson.com East Coast Brake Rebuilders www.eastcoastbrake.com Eaton Corporation www.automotive.eaton.com ECCO Group www.eccogroup.com EnerSys (Odyssey Batteries) www.odysseyfactory.com Espar Products Inc www.espar.com Evora Enterprises Dba: Tarps and Beyond www.tarpsandbeyond.com

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AExide Technologies www.exide.com Fabory North America www.fabory.com Federal-Mogul Corporation www.federal-mogul.com Firestone Industrial Products Bridgestone/Firestone Inc. www.firestoneindustrial.com Five Star Manufacturing Company www.fivestarmfg.com Fleet Locks International Div of Ra-Lock www.ralock.com Flex-a-lite Consolidated www.flex-a-lite.com Flexfab, Inc. www.flexfab.com Flight Systems Electronics Group www.dana.com FPPF Chemical Company, Inc. www.fppf.com Fras-Le North America, Inc. www.fras-le.com Freudenberg-NOK www.freudenberg-nok.com Gates Corporation www.gates.com Gent-L-Kleen Products, Inc. www.gentlkleen.com Globe Specialty Company www.glo-brite.com GM Service & Parts Operations - AC Delco www.gm.com Grote Industries, Inc. www.grote.com Guardian Automotive www.guardian.com Haldex Brake Products Corporation Commercial Vehicle Systems Division www.haldex.comHaldex Commercial Vehicle Systems North American Sales Division www.hbsna.comHayden Automotive Div. of Standard Motor Products www.haydenauto.com Heavy Duty Manufacturing, Inc. www.heavydutymfg.com Heavy Motions, Inc. www.heavymotions.net Hella Corporate Center USA, Inc. www.hellausa.com Hendrickson www.hendrickson-intl.com Henniges Automotive www.hennigesautomotive.com Honeywell Consumer Products Group www.honeywell.com Horton Holding, Inc. www.hortonww.com Index Sensors & Controls www.indexsensors.com Indian Head Industries, Inc. www.indianheadindustries.com

Interstate-McBee, LLC www.interstate-mcbee.com IPD, LLC www.ipdparts.com Jacobs Vehicle Systems, Inc. www.jakebrake.com Karmak, Inc. www.karmak.com Kit Masters, Inc. www.kit-masters.com KPMG, LLP www.kpmg.com Leece-Neville Heavy Duty Systems Division, Prestolite Electric www.prestolite.comLincoln Industries www.lincolnplating.com Link Manufacturing, Ltd. www.linkmfg.com Lubrizol Corporation www.lubrizol.com Lucas Oil Products, Inc www.lucasoil.com MacKay & Company www.mackayco.com MacLean Vehicle Systems www.maclean-fogg.com Mahle Inc. www.mahle.com MANN+HUMMEL USA, Inc. www.mann-hummel.com Marathon Brake Systems www.marathonbrake.com Mark IV Automotive,Dayco Products, LLC www.markivauto.com Meridian Automotive Systems, Inc. www.meridianautosystems.com Meritor WABCO Vehicle Control Systems www.meritorwabco.com Metaldyne www.metaldyne.com National Rubber Technologies, Inc. www.nrtna.com NEXIQ Technologies www.nexiq.com Noregon Systems Inc. www.noregon.com Norgren Global Vehicle Technologies www.norgren.com Parker Hannifin Corporation www.parker.com Permatex, Inc. www.permatex.com Peterson Manufacturing Company www.pmlights.com Phillips and Temro Industries, Inc. www.phillipsandtemro.com Phillips Industries www.phillipsind.com Pressure Systems International www.psi-atis.com

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Prestolite Wire LLC www.prestolitewire.com Progressive Insurance www.progressive.com Pulltarps Mfg. www.pulltarps.com Purosil Mission Rubber-Aftermarket www.purosil.com Quick Cable Corporation www.quickcable.com R. L. Polk & Company www.polk.com Radiator Works Inc. www.radiatorworks.com Remy International, Inc www.remyinc.com Robert Bosch LLC www.bosch.us Roll Rite, LLC www.rollrite.com SAF Holland Inc. www.safholland.com Schrader Bridgeport International, Inc www.schrader-bridgeport.com Seaway Bolt & Specials Corp. www.seawaybolt.thomasregister.com SKF www.skfusa.com Sloan Transportation Products www.sloantrans.com Spray Control System -- The Minimizer www.minimizer.com States Friction Group www.statesfriction.com STEMCO, LP www.stemco.com Stoneridge, Inc. www.stoneridge.com SuperFlow Technologies Group www.superflow.com Tendeco Sales, Inc. / Litens Automotive Group www.tendeco.com Tenneco, Inc. www.tenneco.com The Timken Corporation www.timken.com

Thermal Dynamics International (TDI) www.tdi-corp.com Timbren Industries Inc. www.timbren.com TMD Friction, Inc. www.tmdfriction.com Transmission Technologies Corp. www.ttcautomotive.com Triangle Suspension Systems www.trianglegroup.com Tridako Energy Systems, Inc. www.tridako.com TRISEAL Corporation www.triseal.com Truck Parts & Service www.truckpartsandservice.com Truck-Lite Company, Inc. www.truck-lite.com TruckEx Fleet Exhaust www.goerlichs.com TRW Automotive www.trwauto.com TRW Commercial Steering Systems www.trucksteering.com U.S. Manufacturing Corporation www.usmfg.com United Components Inc. www.ucinc.com Uzel Automotive, LLC. www.uzelautomotive.com Valeo Inc. www.valeo.com Vehicle Safety Manufacturing, Inc. www.vehiclesafetymfg.com Webb Wheel Products, Inc. www.webbwheel.com Wescon Products www.wesconproducts.com Weyforth-Haas Marketing www.whmdelivers.com Whitley Products www.whitleyproducts.com Williams Controls www.wmco.com ZF Group North American Operations www.zf.com

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www.randallreilly.com

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