Truck builders respond to low demand
Nov 07, 2012 | 04:08 PM
| Corinna Petry
Tags
trucks,
Navistar,
Cummins,
Paccar,
Volvo,
Lewis Campbell,
Tom Linebarger,
Mark Pigott
engines
CHICAGO — Truck and engine builders and suppliers of axles, wheels and other components are working quickly to cut production, trim work forces and lower costs as demand for Class 5 to 8 trucks has fallen precipitously in the second half of 2012.
"Demand has dropped sharply over the last three months, reflecting a high degree of uncertainty among customers in most geographic markets," Cummins Inc. chairman and chief executive officer Tom Linebarger told investors recently.
Columbus, Ind.-based Cummins’ engine sales fell 14 percent in the third quarter compared with the same period last year. "We have been responding ... by delaying or canceling projects, flexing production at some of our manufacturing plants, reducing discretionary expenses and reducing our work force by 1,000 to 1,500 people by the end of this year," Linebarger said.....
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