Net orders totaled just 8,649 units, FTR Associates said, the lowest level for orders since September 2006.
FTR said that order weakness remained in all geographic areas but a noticeable decline in non-U.S. orders (Canada, Mexico, and Exports) suggests that there is significant downward pressure on the forecast for 2009.
“In the last quarter of 2008, orders for non-U.S. markets came in at an annual rate of 19,080 compared to the current new factory shipments forecast of 40,231 units for Canada, Mexico and Exports,” said Eric Starks, president of FTR Associates. “This just adds to the already negative outlook for Class 8 production in 2009.”
On the plus side, FTR said that U.S. order activity seems to have stabilized (albeit at low levels) in the last four months of the year with average order activity of 8,031 units (compared to 8,548 units in December). And backorders fell further to 52,703 units, its lowest level since early 2003.
North American truck production stabilized in December with 13,214 units built, FTR said, down slightly from November levels of 13,872. However, November is when the industry saw a substantial drop in output as build fell 26% from October levels. Further reductions in build are expected over the next several months. (Tire Review/Akron)
