Survey: MD market gaps leaves truck buyers uncertain

WESTLAKE VILLAGE, Calif. — The recent shakeup of North America’s medium-duty truck market has left midrange buyers undecided about which brand they plan to purchase to replace discontinued models from Chevrolet, GMC Trucks and Sterling.

And, not surprisingly, manufacturers that are still in that business stand to reap the benefits, according to a study by J.D. Power and Associates.

About 47 percent of customers who have purchased or leased trucks from one of the General Motors brands are undecided about what brand to turn to next. Among former Sterling customers, 36 percent do not know what brand to switch to, while 46 percent of owners of trucks with Caterpillar engines have not made up their minds.

(Caterpillar has announced that it will stop producing engines for the U.S. commercial vehicle market starting in 2010, when new emission regulations take effect).

"While the down economy and low sales levels in the commercial-vehicle market present considerable challenges to OEMs and their suppliers, this is also a time of opportunity," said Brian Etchells, senior research manager in the commercial vehicle group at J.D. Power and Associates. "Companies that position themselves well by building high-quality trucks and keeping their dealer body healthy stand to increase their market share as brands choose to or are forced to exit the marketplace."

According to the study, 28 percent of Sterling customers said they would buy or lease a Freightliner truck, while 34 percent of Caterpillar customers indicated they would go for a Cummins engine. Among owners of GMC Trucks and Chevrolet medium-duty trucks, more than one-fifth said they would purchase or lease a Ford medium-duty truck.

"We expect that many of Sterling’s customers may switch to Freightliner trucks, since many Sterling dealers also sell Freightliners," said Etchells. "However, with truck OEMs introducing their own proprietary engines or expanding their model lineup, there remains some uncertainty about which engines Caterpillar customers will migrate to."