With the backing of new research, the Owner-Operator Independent Drivers Association is asking U.S. policymakers to delay or phase in 2010 emissions standards in light of the current economic situation.
A study of the implications of 2010 emissions requirements for diesel engines, done by NERA Economic Consulting, indicates truckers and fleet managers will decide to not buy new engines and trucks because of financial reasons and user uncertainties. This will eventually mean huge job losses and a lack of choices for trucking equipment consumers of all sizes, OOIDA says.
"With record-high diesel fuel prices earlier this year, trucking companies have already faced nearly insurmountable challenges trying to stay in business," said Todd Spencer, OOIDA executive vice president of OOIDA. "It's the worst possible time for the trucking industry to take on a high-stakes gamble with no known level of reliability of the technologies or return on investment."
The association would like the presidential administration and Congress to push for a restructured timeline, phasing in the new emission standards to allow ample breathing room and build confidence within the trucking industry. This would provide time to prove the worthiness of new engines, give the economy an opportunity to recover and explore new fuel alternatives.
"With more time, the solutions will become much clearer and environmentally much cleaner," added Spencer. "Otherwise, there will be a delay in the intended environmental benefit because there is a disincentive to purchasing the new technology. Truckers and fleets are simply going to hold onto their equipment for a longer period of time, if they are able to hold onto it at all."
OOIDA notes that recent news reports show that sales and production of diesel engines and trucks have begun to slow dramatically. Manufacturers are laying off workers and closing production lines in anticipation of lower sales. Fleets, both small and large, are signaling that they will hold on to existing, older equipment, instead of making purchases of newer technology.
Among other things, the NERA study concluded:
* Trucks that meet the new standard will have substantially higher purchase prices.
* Trucks that meet the standard will entail technological uncertainties from the perspective of the customer, including uncertain increases in operating and maintenance costs.
* The net result of these customer reactions (pre-buy and low-buy) to the 2010 standards would be reduced environmental benefits and less cost-effective standards.
Maintenance and operational costs will be substantially higher than current model engines. According to the NERA report, costs of trucks coming off the assembly line, in complying with 2010 emission standards, will run between $7,000 and $10,000 more per vehicle. This is nearly $21,000 more per truck higher than in 2004. Furthermore, there will be an additional weight of between 300 and 500 pounds for some models utilizing new technology.
Click here for the full NERA report in PDF format, or click here for the executive summary.
A study of the implications of 2010 emissions requirements for diesel engines, done by NERA Economic Consulting, indicates truckers and fleet managers will decide to not buy new engines and trucks because of financial reasons and user uncertainties. This will eventually mean huge job losses and a lack of choices for trucking equipment consumers of all sizes, OOIDA says.
"With record-high diesel fuel prices earlier this year, trucking companies have already faced nearly insurmountable challenges trying to stay in business," said Todd Spencer, OOIDA executive vice president of OOIDA. "It's the worst possible time for the trucking industry to take on a high-stakes gamble with no known level of reliability of the technologies or return on investment."
The association would like the presidential administration and Congress to push for a restructured timeline, phasing in the new emission standards to allow ample breathing room and build confidence within the trucking industry. This would provide time to prove the worthiness of new engines, give the economy an opportunity to recover and explore new fuel alternatives.
"With more time, the solutions will become much clearer and environmentally much cleaner," added Spencer. "Otherwise, there will be a delay in the intended environmental benefit because there is a disincentive to purchasing the new technology. Truckers and fleets are simply going to hold onto their equipment for a longer period of time, if they are able to hold onto it at all."
OOIDA notes that recent news reports show that sales and production of diesel engines and trucks have begun to slow dramatically. Manufacturers are laying off workers and closing production lines in anticipation of lower sales. Fleets, both small and large, are signaling that they will hold on to existing, older equipment, instead of making purchases of newer technology.
Among other things, the NERA study concluded:
* Trucks that meet the new standard will have substantially higher purchase prices.
* Trucks that meet the standard will entail technological uncertainties from the perspective of the customer, including uncertain increases in operating and maintenance costs.
* The net result of these customer reactions (pre-buy and low-buy) to the 2010 standards would be reduced environmental benefits and less cost-effective standards.
Maintenance and operational costs will be substantially higher than current model engines. According to the NERA report, costs of trucks coming off the assembly line, in complying with 2010 emission standards, will run between $7,000 and $10,000 more per vehicle. This is nearly $21,000 more per truck higher than in 2004. Furthermore, there will be an additional weight of between 300 and 500 pounds for some models utilizing new technology.
Click here for the full NERA report in PDF format, or click here for the executive summary.
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