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Mar 30, 2007

Analysis * USA - Headwinds for truck engine makers getting stronger

Chicago,Ill,USA -Reuters, by Nick Carey & James B. Kelleher -Mar 28, 2007: -- Jim O'Neal says now is not a good time to be buying new trucks... "The economy is in a down cycle and the new trucks are more expensive," said the majority owner and president of Springfield, Missouri-based O&S Trucking Inc., which has a fleet of 350 trucks. "Where is the incentive to buy in an environment like that?"... After a stellar 2006, 2007 was always going to be a tough year for the U.S. heavy duty truck makers because of tough new clean-air standards... The question is: Just how bad will it be? While most truck and diesel engine makers insist 2007 is meeting admittedly low expectations, DaimlerChrysler AG's truck-making unit Freightliner LLC and truckers tell a very different story... (Photo by Gene Blevins, REUTERS: A line of trucks along the Interstate 5 wait for the freeway to reopen after a winter storm dumped snow and closed the freeway January 17, 2007. After a stellar 2006, 2007 was always going to be a tough year for the U.S. heavy duty truck makers because of tough new clean-air standards)

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