N American Class 8 production on track to grow 12.5% in 2015 – PSR

PSR’s latest Class 8 production forecast sees 2015 ending at 332,000 units, up 4% over its earlier forecast thanks to higher freight rates and lower fuel costs. By Chris Fisher, Senior Market Analyst at Power Systems Research

This article was first published in Automotive World's exclusive special publication, 'The auto industry in 2015: half-term report'

Overall, the North American medium and heavy commercial truck market has been very stable during the first half of 2015 and is expected to remain stable through the end of the year.

Commercial vehicle demand remained strong heading into the second quarter of this year. Demand for medium and heavy commercial vehicles was strong in 2014, primarily in the Class 8 segment, where production hit levels not seen since 2006. Higher order rates have been driven by an improved construction market, higher freight rates and tight trucking capacity. Higher freight rates and lower fuel costs are enabling transport companies to update their fleets. While orders have slowed in the Class 8 market, it appears this is driven by the seasonal slow-down along with fewer production slots.