Opinion: One too many?

How many truck manufacturers can Australia's road transport industry support? The recent announcement of the rebirth of International in Australia once more prompts this question.

It's not hard to imagine the groans coming from the marketing honchos of Australia's truck manufacturers: ‘Not another one!’ The launch of any new truck model increases competition for sales just that little bit more…

But does all this competition in a saturated market make for cheaper trucks and more economical trucking businesses?

Not really. The tonne-per-kilometre cost remains reasonably static, with running costs controlled by the cost of the truck, the cost of finance and insurances, the cost of maintenance and service, labour costs and consumables such as fuel, oils, rubber and so on.

Increased competition may benefit a few windfall operators who will get discounted trucks as manufacturers strive to secure or maintain sales as the industry makes room for a newcomer. The beneficiaries are usually the big players in the field – your Lindsay Foxes and their ilk.

For a new truck to be successful in the Australian market it must be durable, the service and maintenance arrangements must be secure and the running efficiencies must be competitive. Different manufacturers move the scale of the cost burden back and forth along the line, meaning that a higher-priced truck often means better warranty and service, while a lower-priced truck can mean the operator will spend more dollars in that area. The tonne-per-kilometre cost is reasonably standard, with a bigger variation coming from the productivity of the configuration in which the truck is operating.

This is the environment into which the marketing team at Navistar Auspac is launching its new product, starting with the ProStar before looking at further International model introductions. (Click here to read all about International's plans to re-enter the Australian market.)

It's not quite jumping into the deep end for the company, which has four years of selling Cat Trucks and getting industry knowledge under its corporate belt.

The rebirth of International comes only a relatively short time since the phasing out of the International Eagle, a one-time favourite at the heavy end of the market. The Eagle fell into market disaffection when Caterpillar pulled its C15 engine from the OEM market.

There is a little irony in that the withdrawal of the Cat engine from the OEM manufacturers saw the emergence of Cat Trucks through the NC2 coalition of Caterpillar and Navistar. In turn this has led to the reintroduction of International and one more opportunity for Cummins in the marketplace.

Once more it is a matter of wait and see, to see just how the new International models will be received by industry.

Taking a glance back into recent history we have watched Cat Trucks struggle for a hand grip on the steep slope of market Oz. NC2, which was renamed Navistar Auspac in May last year, has had as many difficulties and 'nights of the long knives' as the Rudd-Gillard-Rudd affair. Blood was spilt.

It was a difficult birth for a new truck with its very different corporate midwives. But on the ground sound marketing principles and solid engineering development saw a plain-Jane truck out of the 'States take on a personality and a model range far exceeding what is available in the US.

The NC2 coalition broke down just over a year ago, with Navistar taking total control. This came at a time when Navistar was emerging from its own corporate problems. The mega-company was knocked to its knees by the failed but unshakeable belief that EGR engine technology was the only way forward.

Navistar has a wide range of trucks available in the US but they will be limited in Australia. Immediate plans are to launch the ProStar this year with the WorkStar and potentially the flagship LoneStar to follow, probably later in 2016. Other models such as the DuraStar and the TerraStar are all down and dirty construction workers, with no word yet on whether or not they will have a future here in Australia.

These decisions are yet to be made as the big Navistar mother hen shuffles its feathers and tries to settle into the smaller but solid niche made by Cat Trucks.

One too many? As always, time will tell.