International Truck & Engine Corp. is offering free breakdown service and zero percent financing on new trucks purchased in the first three months of 2003.

Truck Group President Steve Keate said the programs are designed to address two issues customers some most worried about today: reliability of heavy duty engines designed to meet new emissions standards, and uncertainty regarding the economy.
Keate told the truck press at a recent teleconference that feedback from those who have tested the new engines has generally been positive, but concerns regarding reliability are still a big obstacle for new Class 8 sales. Thus International is offering its Diamond PLUS Support package free of charge for every new International 8000 and 9000i series Diamond SPEC truck sold or ordered between now and March 31, 2003. In addition to a 2-year, 200,000 warranty, the package includes 24-hour emergency breakdown repair assistance for as long as the customer owns the truck. If a truck purchased under the program breaks down, the nearest International dealer will repair it within 24 hours or provide a replacement truck for three days or 1,500 miles at no charge. If a qualified part isn't delivered to the dealer within 24 hours, the customer will receive a $100 International Advantage Card.
To help customers weather the cash crunch and other problems caused by economic uncertainty, International is bringing back its "Catch it While You Can" program offering qualified buyers zero percent financing for the first 12 months of a 60-month contract,and up to 8.60% on the remaining 48 months. That translates to an effective APR of 4.99 or 5.49%, depending on the model.
Monthly payments will be constant throughout the loan period, but the first 12 months of payments will reduce principal with no interest assessed. That program is available on all International trucks except those with pre-emissions engines, purchase during the first three months of 2003. Buyers may instead choose $2,500 parts and service credit, or a $2,500 trade-in allowance.
Keate called 2002 one of the worst periods in the history of the truck industry, citing high fuel and insurance costs, the used truck glut early in the year, the overall economic conditions, and the EPA '02 disruptions to the heavy truck market. Nevertheless, he stressed that International continued to move forward with several new products, the restructuring of manufacturing operations which brought "dramatic" improvements in product quality and reliability.
The Blue Diamond joint venture with Ford began producing medium-duty trucks this month and expects to have a new Class 3-5 low cab forward line late in 2004. Keate said the company strengthened its dealer network with two major new operations in Denver and Jacksonville, Fla., plus a successful Diamond Standards program that sets performance and service standards for dealers. The program offers financial incentives and Keate said they'll pay out over $2 million to dealers who met the standards.
Looking ahead, he noted a "fair amount of good news with regard to the economic situation," including recent reports of increased productivity, factory orders, and durable goods orders. Truck tonnage "has stemmed the tide of decline" and is now showing growth, he added.
International expects 2003 Class 8 demand to be relatively flat in terms of total sales for the year. The company's forecast for its fiscal 2003 (ending Oct. 31) is 156,000 units, U.S. and Canada, down 5% from fiscal 2002. But Keate noted that first quarter sales will be affected by pre-October "pull ahead" buying. "When you wash that out, demand is going to grow pretty significantly in 2003," he said. By fourth quarter, he predicted that the industry could be up to an annualized sales pace of 180,000-190,000 units. For Class 6 and 7, International is forecasting industry sales of 82,000 units in its fiscal 2003 versus 73,000 units in fiscal 2002.