June 13, 2018
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American Truck Dealers (ATD) Applaud New Senate Bill to Repeal Federal Excise Tax on Heavy-Duty Trucks
U.S. Sen. Cory Gardner (R-Colo.) has introduced S. 3052, a bill to repeal the 12-percent federal excise tax (FET) on the sale of heavy-duty trucks and trailers. The FET, which was originally imposed in 1917 to help pay for World War I, has grown from 3 percent to 12 percent and adds $12,000 to $22,000 on the price of a new heavy-duty truck.

“This burdensome tax creates excessive costs that are passed on to truckers, who play an essential role in maintaining our nation’s economy,” said Sen. Gardner.  S. 3052 is similar to the “Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal Act” (H.R. 2946) introduced by U.S. Rep. Doug LaMalfa (R-Calif.) in June 2017. The House bill currently has 17 bipartisan cosponsors.

Next week (June 20-21), the American Truck Dealers (ATD) will host its annual ATD Legislative Fly-In to Capitol Hill to rally bipartisan support for S. 3052 and H.R. 2946.
Source: ATD

Rep. Doug LaMalfa Speaks on House Floor in Support of FET Repeal
On June 5, U.S. Rep. Doug LaMalfa (R-Calif.) gave a speech on the House floor in support of his bill, H.R. 2946, which would repeal the 12-percent federal excise tax (FET) on heavy-duty trucks. Click here to view the video.

“The financial and regulatory burden created by the FET hurts truck retailers, drivers and businesses across the country,” said Rep. LaMalfa, who is urging Congress to include FET repeal in an upcoming infrastructure funding bill, adding, “By incorporating this repeal effort into any future infrastructure funding measure, Congress can rebuild our crumbling road system while ensuring that our commercial truck fleet is both cleaner and safer.”
 
ATD applauds Rep. LaMalfa’s continued leadership on this issue and urges ATD members to ask their representative to cosponsor H.R. 2946.
Source: ATD

Top Stories

Truck Orders Double Amid Soaring Rates, Strong Freight Demand
Motor carriers are scrambling to buy heavy-duty trucks as a vigorous economy creates huge demands to haul goods. Sales of big rigs more than doubled in May, rising to 35,600, or up 110 percent over the same month a year earlier, according to ACT Research. It was one of the strongest May sales levels in decades, said Don Ake, vice president of commercial vehicles for FTR Transportation Intelligence. Motor carriers are adding to their fleets in an effort to keep up with the volume of cargo that needs shipping.
Source: Trucks.com

North American Class 8 Orders Continue Strong Growth in May
Orders for new Class 8 trucks more than doubled last month versus year-ago levels, according to preliminary data from ACT Research. Many Class 8 truck dealerships across the country said they have never been busier, and customers are coming in, not just to look around, but to do business. “We’re up about 40% year-over-year in orders, which is fantastic. We’re taking down a lot of new business and a lot of orders have been coming in steady. We’ve not seen anything falling off yet,” Kriete Group CEO David Kriete told Transport Topics in an interview from his Milwaukee Volvo dealership. “Business is very solid. A lot of business is being had because a lot of companies are replacing trucks.”
Source: Transport Topics

Strong Demand Keeps Used-Truck Pricing Stable
In the June edition of Guidelines, J.D. Power reports strong demand for used sleeper tractors with under 500,000 miles is keeping depreciation to a minimum. “We’ve been expecting an increase in off-lease trucks to hit the market, but most lower-mileage trucks that become available are sold before they even make it to auction,” says J.D. Power Senior Analyst Chris Visser. J.D. Power attributes healthy demand mainly to the accelerating economic rebound and the Electronic Logging Device (ELD) mandate that went into effect April 1. “Fleets are holding on to their trucks longer because the new truck lead time is now well into 2019 in most cases. Also, stricter enforcement of hours-of-service rules requires additional trucks to move the same volume of freight as before,” says Visser. To download the report, visit www.nada.com/b2b and click Market Outlook.
Source: J.D. Power

ATD NextGen Spotlight: William Thompson

TEC Equipment, a family-owned business founded in 1976, is operated by (left to right): David O. Thompson, David A. Thompson, William Thompson and Chris Thompson.

William Thompson from TEC Equipment in Portland, Ore., was selected to serve a two-year term as chairman of ATD NextGen. The NextGen program offers several initiatives for up-and-coming dealers and managers to become successful business leaders while getting involved with their national trade association.

“I’m honored to be part of an organization that leads by example, and one that dealerships across the country look to for guidance and support,” said Thompson, who works with his father and two brothers at the dealership group. “I’m proud to be involved and have the opportunity to work with some of the brightest minds in the industry. Most of all, I’m excited about the possibilities.”
 
Thompson is a graduate of Oregon State University where he earned a degree in Entrepreneurship; and he studied Supply Chain Management at Lund University in Sweden. He resides in downtown Portland.
 
TEC Equipment, founded in 1976, and its subsidiaries today have 26 locations along the west coast in Washington, Oregon and California, and Nevada and Arizona. TEC Equipment’s commercial franchises include  Mack, Volvo, Isuzu and Hino trucks; Cottrell and Sun Country car carriers; Wabash National, Benson and Transcraft trailers; and authorized service centers for Autocar, Cummins and CAT engines.
Source: ATD

Quotable 

"It is the highest excise tax Congress levies on a percentage basis on any product, including alcohol and tobacco. It’s time for Congress to repeal this tax, and we thank Sen. Gardner for his leadership on this important issue."

-- ATD Chairwoman Jodie Teuton, vice president of Kenworth of Louisiana and Hino of Baton Rouge, commenting on the introduction of S. 3052, a bill to repeal the 12-percent federal excise tax on the sale of heavy-duty trucks and trailers, ATD, June 13

OSHA Injury and Illness Electronic Reporting Deadline Looms
Dealerships required to electronically file 2017 employee workplace injury and illness records with the Occupational Safety and Health Administration (OSHA) must do so by July 1, 2018.

Dealerships required to electronically file Form 300A or equivalent include:

• Commercial-truck dealerships with 20 to 249 employees at a single "establishment," defined as "a single location where business is conducted or where services or industrial operations are performed"; and

• Light-duty and commercial-truck dealerships with 250 or more employees at a single establishment.

Electronic filing must be done using OSHA's Injury Tracking Application (ITA); An FAQ on the ITA submission process is available on OSHA's website. A North American Industry Classification System (NAICS) number is required for filing: commercial-truck dealerships are NAICS 42311; light-duty dealerships are NAICS 44111.

Light-duty dealerships with fewer than 250 employees at a single establishment must annually record workplace injuries and illnesses, but are not required to file electronically with OSHA.

For more information on OSHA's injury and illness recordkeeping and reporting mandates, visit NADA's injury and illness recordkeeping page or contact NADA Regulatory Affairs at regulatoryaffairs@nada.org.
Source: ATD