‘Modernize the Truck Fleet’ Coalition Launches

Industry alliance formed to advocate for repeal of the outdated federal excise tax on heavy-duty trucks

SAN FRANCISCO (Jan. 25, 2019) – Trade groups, equipment manufacturers and businesses representing broad sectors of the trucking industry announced the launch of a new coalition, Modernize the Truck Fleet (MTF).

The industry group will work to repeal the 102-year old federal excise tax (FET) levied on heavy-duty trucks originally imposed to help defray the cost of World War I. The FET discourages new heavy-duty truck sales and delays the deployment of cleaner, safer and more fuel-efficient trucks.

“This year, we have a unique opportunity to make the FET repeal a reality,” said Jodie Teuton, chairwoman of the American Truck Dealers (ATD), in keynote remarks today at the ATD Show in San Francisco.

“It has been 37 years since Congress changed the FET on trucks … it’s time for Congress to take the FET off cruise control,” added Teuton, vice president of Kenworth of Louisiana and Hino of Baton Rouge.

MTF members, a broad expanse of trucking industry leaders whose customers are negatively impacted by the FET include:

  • ATD;
  • NTEA – The Association for the Work Truck Industry;
  • Truck Renting and Leasing Association (TRALA); and
  • Truck and Engine Manufacturers Association (EMA).

MTF has two goals: Repealing the FET, and identifying an acceptable replacement to sustain the highway trust fund.

Jed Mandel, president of EMA, expressed strong support for the MTF coalition, stating, “The FET increases the cost of purchasing new, modern heavy-duty trucks, and as such we endorse repealing the FET to lower barriers to deploying the cleanest and safest trucks available. We are enthused to help lead this important effort to modernize the truck fleet.”

Steve Carey, president and CEO of NTEA, said, “Working to repeal the FET and stabilize the highway trust fund revenues will serve the needs of the nation’s economy and speed the integration of the latest safety and emissions technologies into the truck fleet.”

Jake Jacoby, TRALA president and CEO, said, “TRALA is excited to be part of the Modernize the Truck Fleet coalition. With an infrastructure bill as likely to pass as any piece of legislation in 2019, this is the time to put all of our combined energy into finding a way to replace the onerous FET. We are excited to be a part of such a collaborative effort working with truck companies, manufacturers, dealers and end users who all want to put the cleanest, most technologically advanced trucks onto our highways immediately.”

“As Congress moves forward with legislation addressing infrastructure needs, now is the time to ensure the outdated FET is repealed,” Teuton added.

For media inquiries, contact Chuck Cyrill, ATD/NADA Public Affairs, at 703.821.7121.

For more information about how to join the coalition, contact Laura Perrotta, ATD/NADA senior director of legislative affairs, at 202.547.5500.