Class 3-5:
Many Models, Good Deals, Cheap Financing
Tom Berg
Equipment Editor
You never had it so good - probably. If you run Class 3, 4 or 5 trucks that need replacement or you're looking to expand the fleet, you can choose from a wide variety of products from manufacturers competing aggressively for your business. If you're in a position to buy, there's hardly been a better time to do it.
The economy still seems poised for a rebound because the war in Iraq has gone well for our American-led forces. That has dissipated much of the uncertainty that bothered investors and business people in the months prior to the start of hostilities. Then again, the SARS scare might throw Asia into a recession, which could cause some economic coughing over here. That may or may not affect your business, and your ability to spend some capital.
Most manufacturers are cutting prices and offering generous financing terms. In the lighter classes, General Motors and others are offering so-called 0% financing for five years, which is like borrowing from a generous uncle. Where there is actual interest - and assuming you can get it - the numbers and costs are low, although the terms are sometimes shorter.
Most dealers are cutting prices, too. Class 3 is an especially competitive arena because many trucks are sold to consumers, boosting volume and attracting efforts from the automotive Big Three - DaimlerChrysler, GM and Ford. They scrap viciously for market share, and all have multiple dealers in most metro areas, further enhancing competition.
This is also somewhat true for Class 4, though prices here begin climbing steeply because the vehicles contain increasingly expensive components. And Class 5 is the beginning of what many consider the true medium-duty market, where costs are higher and players fewer.
Yet there are more than enough competitors to keep things hot, and Japanese importers of low-cab-forward vehicles continue to battle for the relatively few sales available in these three segments. GM Isuzu Commercial Truck claims it has increased its dominance in Class 3 to 5 LCFs, with 78.4% of market share. By contrast, Mitsubishi Fuso has about 12%, Nissan UD 6% and Hino 3%.
And now Hyundai, an increasingly serious contender in autos, has entered the Class 4 and 6 truck market following last year's collapse of Bering Truck, which sold Hyundai-built models. Hyundai is bringing in South Korean-built LCFs with high comfort and convenience content, and at prices that are likely to be highly competitive.
Hino, now majority owned by Toyota, sells premium LCFs that are highly prized by customers, and this fall will unveil a new line of Class 4 through 7 conventionals. These will be built for the first year in Japan, then at a new plant in Long Beach, Calif. Hino will thus compete where the big numbers are - conventional-cab trucks.
The domestic Big Three have traditionally dominated in conventionals and other models, and continue to, with fresh products at attractive prices. GM has pickup-based and medium-duty conventionals, vans and LCFs (thanks to its Isuzu sister), while Ford and Dodge field pickup-based conventionals and vans.
Sister companies Freightliner and Sterling dip into Class 5 with their Business Class M2 and Acterra products, both decidedly medium-duty in origin. And Freightliner Custom Chassis is perhaps the strongest player in the walk-in van segment (a story unto itself).
Like most segments of the truck-building industry, Classes 3 through 5 have been on a sales downer - along with the general economy to which they're tied - in recent years. And like the others, the 3 through 5 market appears to be coming back.
Sales in the first two months of this year were off from last year, but picked up in March and could accelerate slightly through the rest of this year. Many forecasters see a flat year overall, though it could be down somewhat - 6 to 7%, according to one prediction - compared to last year. This flat situation keeps pressure on manufacturers and dealers, and so it remains a buyers' market.
If buy you will, there are scores of models available from 10 builders (depending on how we count them). Here's a succinct roundup.
Dodge 3500
Like its 2500 brother, Dodge's Ram 3500 pickup has fresh styling, new frames, steering and suspensions and two cabs (a roomier regular and short four-door crew, with front and side air bags). It has a redesigned (and much quieter) 5.9-liter Cummins Turbodiesel, with 250 or 300 hp, and a new 5.7-liter (345-cubic-inch) Hemi Magnum V8 (replacing the old 5.9/360). Dodge will phase out its Ram Vans this summer in favor of the Mercedes-built Sprinter van, which comes in two series, two roof lines and with bus or panel sides.
Ford SuperDuty
Ford's SuperDuty F350, F450 and F550 remain strong sellers, with many going for personal use or for dual business-personal uses. You can now buy F450 and 550 pickups, and some folks do, just to have the biggest truck on the block. Ford offers three cab styles (Regular, four-door King and four-door Crew), gasoline and diesel V8s (the International-built 6-liter Power Stroke is brand new, replacing the old 7.3) and a gasoline V10, with five- and six-speed manual transmissions and a new TorqShift automatic. Ford is now promoting its Econoline van-type chassis, including the new E550, as "short conventionals" especially useful in tight urban quarters.
General Motors Isuzu N Series
The 3500 series Chevrolet Silverado and GMC Sierra pickups have numerous safety and convenience improvements, and continued offering of Regular, Extended and Crew cabs. The C4500 (which replaced the 3500HD) and C5500 short conventionals have seen a spurt of sales since early this year, GM says. They share unique wide cabs (taken from G series panel vans) with heavier 6500, 7500 and 8500 models. The Express/Savana vans get 60/40 left-side entry load doors or fold-up access doors, which tradesmen should find useful. A new H series has all-wheel drive. Power in all three series is from Vortec gasoline and Duramax diesel V8s, mated to five- or six-speed manual and GM or Allison automatic transmissions. Isuzu makes N and F series low-cab-forward trucks sold by Isuzu's own dealers and W series sold by GM dealers. Lighter classes have Isuzu 4- and 6-cylinder diesels or GM gasoline V8s; the latter are now available with "0/5" loans (no interest for five years).
Freightliner M2 Trucks
Freightliner will soon replace its FL50 Class 5 model with the new Business Class M2-100, a 100-inch-BBC variant of the M2-106 introduced a year ago. It uses a roomy aluminum cab and smoothly contoured fiberglass hood. It's available as a day cab, or with 26-inch Extended or 48-inch 4-door Crew Cab. Only Mercedes-Benz MBE900 four- and six-cylinder diesels are offered, though others might become available if customers demand them, Freightliner says.
Hino Trucks USA
Hino continues into the 2003 model year with FA and FB series LCFs for Classes 4 and 5, while it prepares brand-new-for-North America Class 4-7 conventionals. FA and FB share a 4-cylinder diesel with 5-speed manual or Allison 4-speed automatic transmissions. The '04 models are due out by June, with few if any changes. Hino says it has stopped advertising and instead stuck the money in price reductions.
Hyundai Truck America
In addition to a Class 6 model, Hyundai offers a Class 4 HLD150 with a 3.7-liter 6-cylinder Detroit Diesel 638 with a 4-speed Allison AT545 automatic. Like the now-discontinued Berings, Hyundais come standard with air conditioning, power windows and door locks, tilt/telescoping steering column, cruise control, wood-grain dash with full instrumentation, tilt seats and other driver-pleasing amenities.
Mitsubishi Fuso
A 4-door crew cab, complete concrete mixer chassis and the only 4-wheel-drive LCF are among 10 models offered by Mitsubishi Fuso in Classes 3, 4 and 5. Rental fleets are among the buyers of the crew cab, which is about 40 inches longer than the regular cab, while heavy equipment servicers and landscapers are among customers for the FG 4x4. The mini-mixers are ideal for delivering concrete to home owners. FG, FE and FH models ascend in weight ratings, with HD (heavy duty) and SP (indicating a six-cylinder engine) variants; powertrains include 4- and 6-cylinder diesels and manual and Allison automatic transmissions.
Nissan Diesel America
Nissan's line of UD-brand trucks includes a UD1200, UD1400 and UD1800CS, with a 4-cylinder diesel and 5-speed manual or 5-speed Allison automatic; and 1800HD, with a 6-cylinder diesel and 6-speed manual or Allison automatic. All engines come standard with an exhaust brake that works well with the Allison 1000. Many driver amenities are standard or optional. Changes are slated for 2005 models.
Sterling Truck (Acterra)
All Sterling's Acterras, including the Class 5-6 model 5500, got major chassis enhancements last fall. Included are stronger frames, suspension refinements, and easier body hookups and mountings, thanks to rerouting of air lines and moving of battery boxes and tanks to "clean up" the frame. A new 4-door Crew Cab is available for municipal, fire-fighting, RV towing and other uses. The MBE900 is standard and the Cat 3126E is optional, with various manual and automatic transmissions available.
