halt on New Internal Combustion Vehicle Orders
PORTLAND, Ore. — Daimler Trucks North America (DTNA) has announced a cessation of all new orders for internal combustion vehicles intended for registration in Oregon, as stated in their communication on December 20, 2024.
Official Statement
Mary C. Aufdemberg, Daimler’s general manager of product strategy and market development, conveyed this decision to Oregon truck dealers, emphasizing that “Effective immediately, DTNA is pausing all orders for new internal combustion vehicles.”
Daimler’s Market Position
According to the Willamette Week, Daimler’s Freightliner and Western Star brands lead the U.S. in large truck production, representing 40% of the new Class 8 truck sales in 2023, as reported by the American Truck Dealers Association.
Reason Behind the Decision
The Oregon Journalism Project uncovered that this decision correlates with a new regulation implemented by the Oregon Department of Environmental Quality (DEQ) that came into effect on January 1. The Advanced Clean Truck rule mandates that by 2025, out of every 100 Class 8 heavy trucks sold in Oregon, seven must be electric, with this percentage set to rise to 40% by 2032.
Environmental Goals
The Advanced Clean Truck rule was enacted to curtail tailpipe and greenhouse gas emissions using advanced clean technologies. It obligates manufacturers of medium- and heavy-duty vehicles (Class 2b to 8) to progressively sell zero-emission trucks as a growing fraction of their total sales from model years 2025 through 2035.
Details of the ACT Rule
Exemptions from the ACT rule apply to emergency vehicles and certain types of buses, yet it affects all manufacturers offering new medium- and heavy-duty vehicles for sale in Oregon. Companies selling fewer than 500 such vehicles in a model year may also be exempt. Flexibilities within the rule allow manufacturers to determine which models to transition to zero emissions, while still enabling the production of diesel-powered vehicles as needed.
Concerns from Daimler
Daimler’s decision was influenced by uncertainties around the accounting of electric truck sales in Oregon, raising concerns about potentially failing to meet sales quotas and incurring penalties, a risk deemed unacceptable by the company. Following the announcement, DEQ’s spokesperson, Susan Mills, reached out to Daimler to clarify what she described as “inaccurate” communication regarding how electric truck sales would be credited.
