Meritor HVS President Confident About Trucking's Future
18 March 1998
Meritor HVS President Confident About Trucking's Future; Shares Industry Observations with Media
LOUISVILLE, Ky., March 17 -- The heavy-duty truck and trailer
market continues to be strong, according to Prakash Mulchandani, president of
Meritor Automotive Inc.'s Heavy Vehicle Systems business, and
sales of Class 8 trucks in North America should exceed Meritor Automotive's
original projections for 1998. The company has increased its original
forecast of 238,500 units to 247,000 units (based on North American factory
sales). The company also increased its 1998 sales forecast of trailers from
250,000 units to 300,000 units.
This new unit production level is recognized in Meritor's projected
financial results.
Mulchandani also noted that heavy-duty truck sales are recovering in
Europe and Brazil, where promising sales are projected, as well as a
stabilized and improving truck market in Mexico.
Mulchandani made his remarks and observations during a news conference
here during the Mid-America Trucking Show today, as Meritor unveiled its new
SureShift(TM) transmission system.
"Today, the need for trucks has never been as important as a recent study
predicted a 21.4 percent increase in the volume of freight hauled in the U.S.
over the next 10 years," Mulchandani said, noting today's continuing influence
of strong overall industrial production data. "The study went on to reveal
that trucking's share of the domestic freight market is expected to rise from
60.3 percent in 1996 to 62.5 percent in 2006. So there is little question
that the need for trucks and trailers will remain strong," he said.
Other observations made by Mulchandani included:
The trucks of the future will be more driver-friendly:
Today, more than ever, the voice of the driver is heard. In most
instances, that voice is asking for comfort and safety enhancing products,
according to Mulchandani. In general, component manufacturers are working to
develop products that make the driver's job easier, more efficient and more
comfortable in terms of ride, noise and operational effort.
"The role of electronics is important in this trend, as fleets are
discovering that the use of electronics not only makes the driver's job
easier, but also helps contribute to a fleet's bottom line," Mulchandani said.
More components will be developed that require less maintenance:
Vehicle uptime will continue to be the top priority for truck operators.
According to Mulchandani, suppliers will continue to bring to market new
products that are maintenance-free, or require little maintenance. Extending
the times between required maintenance or visual inspections will contribute
to increased revenue-generating road-time.
The industry must take action to avoid a technician shortage and suppliers
must make more training materials available in a variety of modes:
According to industry statistics, the industry faces a shortage of
qualified truck technicians. The potential shortage should be seen as an
opportunity to make the job of a technician more attractive with improved work
characteristics and higher pay, according to Mulchandani.
"Training will continue to be critical as new technicians join the
industry and as new technologies are brought to market," Mulchandani noted.
"Training and technical information must be delivered in a format the user can
understand and in a variety of media including CD-ROM, video, on-line, real-
time assistance, and with 24-hour access." He commented on the increasing
number of dealers and truck operators who rely on more suppliers' websites for
practical, technical information.
"In addition, we are committed to education. We are currently in the
process of developing new programs to partner ourselves with vocational
schools and universities to help develop the truck technicians of the next
century," he added, noting other worthwhile industry efforts to address the
technician shortage.
Safety will always remain an important subject:
Components like anti-lock braking systems (ABS) will continue to play an
important role as the industry battles against negative public perceptions of
trucks. Meritor WABCO will continue to promote ABS as a safety-enhancing
device that provides the driver with increased control in an emergency or
panic situation. ABS has continued to gain widespread industry acceptance,
particularly with the recent mandate on new trailers. Mulchandani noted that
Meritor WABCO is one of the pioneers of electronic braking systems (brake-by-
wire), the next generation of braking systems.
He also noted the importance of other safety-related components like air
disc brakes, on-board computer systems, collision avoidance systems, and lane-
tracking systems, to name a few. "But they all must be the right products at
the right time at the right price."
Mulchandani concluded his remarks by reminding the media that even though
the trucking industry continues to evolve, the end-user customer -- the truck
operator -- must remain the top priority.
"With all of the changes that are taking place in the trucking industry,
we must remember that our ultimate goal remains the same: To listen closely to
our customers, to focus on the drivers' needs, and above all, to meet and
exceed the expectations of our customers," he concluded.
Meritor, with 1997 sales of $3.3 billion, is a global supplier of a broad
range of components and systems for commercial, specialty and light vehicles.
Meritor consists of two businesses: Heavy Vehicle Systems, a leading supplier
of drivetrain systems and components for medium- and heavy-duty trucks,
trailers and off-highway equipment and specialty vehicles including military,
bus and coach, and fire and rescue; and Light Vehicle Systems, a major
supplier of roof, door, access control and seat adjusting systems, electric
motors, suspension systems and wheels for passenger cars, light trucks and
sport utility vehicles.
SOURCE Meritor Automotive, Inc.