Oshkosh Truck Corporation (OSK)

[Investorman]

Shareholders Reports on Oshkosh and Wabash National -- Overview of the Trucks & Other Vehicles Industry

JOHANNESBURG, SOUTH AFRICA--(Marketwire - 07/30/10) - www.RothmanResearch.com undertakes intensive analysis of the trucks & other vehicles industry and provides systematic research on Oshkosh Corporation (NYSE:OSK - News) and Wabash National Corporation (NYSE:WNC - News).

The trucking industry is growing concerned over a new proposed bill that would place greater emphasis on non-highway freight movement. The bill wants to increase other means of freight movement, with rail being the primary alternative. Currently, 70% of America's freight is moved via truck and the bill wants to see an increase of 10% in other methods by 2020. Senator Frank Lautenberg is one of the chief proponents of the bill and explains, "This legislation will establish a national policy that improves safety, reduces congestion, creates jobs, and protects our environment."

The trucking industry is not immediately pleased with this proposal. There is some reason for optimism though. The increased emphasis on environmental protection and reduced carbon dioxide emissions is good news for leading truck manufacturers who have already begun to go green.

Hybrid truck sales are currently slow because they cost on average, $23,000-$45,000, more than regular models. Prices can't go down until volume goes up. The proposed bill, which is expected to be modified further, could create the favourable conditions needed to boost volume and lower hybrid truck costs.