Western Star, after a run of just six-year, is shelving its model 5700XE, the company went and confirmed on Wednesday. “In fact, since 2015, the 5700XE did resoundingly answer the market need for the previous unaddressed premium on-highway segment. Thus, Western Star wants to continue to serve that segment. Also its valued and prized customers well into the future.
Western Star Choses to Focus on Other New Models
Last year, Western Star moved on to become Daimler Trucks North America vocational brand. It has debuted to new models in the last 12 months – the 49X and the 47X.
Imbalance of Supply and Demand
In fact, this situation does go ahead and put a face to the imbalance of supply and demand. There is much to be said about putting the blame on the pandemic-fueling shortage of semiconductors. They are critical to many operations from safety systems to power windows. Also, there are dozens of other parts and components that are in short supply. This has led to grim near-term projections from equipment manufacturers.
Winding Down Low-Volume 5700XE
Moreover, the company may discontinue the 5700XE which earlier is to use microchips and other components that are common with the Freightliner Cascadias. In fact, they are building on the same production line in Cleveland, North Carolina. The market-leading on-highway Cascadia is the foundation for the 5700EX this is an upscale version.
Finally, if that is the case that things are, in fact, happening like this, it would be a very difficult decision for any OEM to make, as it risks the loss of relationships that have been nurturing over the years and decades,” Kenny Vieth, president, and senior analysts at ACT Research said.
Also, small fleets go to the back of the line, with large customers that are really waiting for the trucks.