More evidence that hauliers in the US are being forced to reorganise or close automotive operations in line with the OEMs came last week when P.A.M Transportation Services announced it was reducing the automotive content of its business.
 
The Arkansas-based carrier suffered a net loss of $3.18 million for the quarter ending September 30 this year, the fourth consecutive quarter the company has suffered losses. It experienced an 11 per cent drop in revenue for automotive freight (compared with the same period last year) as carmakers slash production in the Midwest. The company’s fleet has been reduced by more than 100 trucks in the last year.
 
In 2007, GM accounted for 38 per cent of P.A.M’s total revenue but several plant shutdowns have taken their toll on suppliers, most recently at Janesville, Wisconsin.
 
The Janesville closure has also hit vehicle transport provider Allied Systems, which has been forced to close its facility there. Lear, Logistics Services Inc. and Flint Special Services are just three other automotive companies facing closure in Janesville as a consequence of the shutdown.
 
More than 1,900 trucking companies have become bankrupt in the US this year, the highest number in more than seven years. Analysts estimate 4.5 per cent of the US trucking fleet was idle in the first three quarters of 2008.