Here at VanQuoteDirect we regularly update our readers with all the hottest news and rumours from the commercial vehicle sector, and it seems as though the last couple of weeks have been very busy for some! Naturally, there has been some good news as well as some bad, as while a number of newer van models have been recalled, older vehicles are apparently retaining their value. Here we look at the stories in more detail:
Major Van Recalls
It’s something that every single commercial vehicle manufacturer dreads, as recalling a large amount of vehicles not only leads to your company losing a considerable amount of money but also its reputation as a manufacturer of high quality vehicles. Last week it was announced that Honda Motor Co is recalling nearly nine hundred thousand Odyssey minivans due to concerns that they could catch fire while on the road. Even though there have been no reported incidents of Odysseys catching alight so far, the company has claimed that many have a faulty fuel-pump part which could crack and cause an oil leak, ultimately leading to a fire. To make matters worse, as the company is recalling such a large number of vehicles they will not have the proper repair parts until April, so until then they will be providing interim parts to their customers.
General Motors is also struggling with recall issues, as they are currently trying to recall around 1.2 million sports utility vehicles for having defective side airbags. It is expected that the company will have to pay out around three hundred million dollars this quarter alone in order to cover the costs of the recall, however there are also issues with a previous recall it made concerning the ignition switches of 1.6 million of their small cars.
Used Van Market Improving
Considering that they are cheaper to buy and easier to find cheap van insurance quotes for, it’s not surprising that many people are more inclined to purchase second hand commercial vehicles. According to automotive products and services specialist Manheim, during the month of February the wholesale market moved considerably towards second hand vehicles over five years old. Discussing the news, Matthew Davock, head of LCV at Manheim, said: “These older vans are, without doubt, the tail end of extensions and deferred replacement programmes resulting from the economic downturn. Anything sub four years in auction today is seeing significant interest, from both online and physical buyers. Fewer than three in 10 vans sold in February fell into this age bracket.
“This is not bad news for the market. Older and higher mileage vans will always find homes as they are at an attractive price point and represent excellent value. Mileage is now seemingly less of a mental barrier in retail buyers’ minds; this is likely against a backdrop of modern reliability and a comprehensive maintenance history.”
25,000th Volvo Truck with Remote Diagnostics Delivered
It’s not all doom and gloom for commercial vehicle manufacturers at the moment, especially for Volvo Trucks who have announced that they have delivered their twenty five thousandth truck equipped with Remote Diagnostics to haulage company Averitt Express. Steve Maxson, vice president of equipment for Averitt Express, said: “The Remote Diagnostics feature allows our corporate maintenance team to work with our drivers and in-house shops, to proactively assess and address issues. This dramatically reduces downtime, which keeps our equipment on the road delivering the freight on time. This contributes to driver and customer satisfaction; as well as reducing costs associated with road breakdowns and towing.”
Meanwhile, Göran Nyberg, president, Volvo Trucks North American sales & marketing, said: “Fuel efficiency and vehicle uptime remain two of our greatest focal points as we continually work to increase the value of ownership for Volvo customers. A single day of additional uptime delivers about the same cost savings as a 2 percent fuel efficiency improvement yields during the course of a year. Knowing the tremendous value of uptime, we continue to invest heavily throughout our organization to help keep our customers on the road and making money.”
As you can see, even though it’s only been a few weeks a lot has happened in the commercial vehicle sector. With the seasons changing we expect for even more stories (and even a few new models) to hit the headlines soon, and as usual we will be here to provide all the most important information.