Revolution Capital ................................. 13

Embark self-driving trucks to move freight between San Antonio and Houston

Interstate 10 between San Antonio and Houston will be the new stomping grounds for autonomous trucks from San Francisco-based software developer Embark Trucks. The selfdriving trucks will use one lane of the freeway for freight runs between the two Texas cities.

Embark hopes to start using the route next year. In the beginning, each truck will have a back-up driver. The number of trucks deployed or the type of freight they will carry has not yet been announced but it seems certain Embark will work with development partners Werner Enterprises, Mesilla Valley Transportation and Bison Transport. To support its footprint in Texas, Embark announced a partnership with the Texas A&M University Engineering Experiment Station. Embark will use Texas A&M’s test track and its Center for Autonomous Vehicles and Sensor Systems.

“Our new footprint in Texas will support our growing network of partners and fuel our rapid growth across the Sunbelt,” said Stephen Houghton, Embark’s chief operations and fleet officer.

Embark CEO Alex Rodrigues stated the new lane would not be segregated but rather a digital route on an existing road. He said that motorists will like sharing the road with Embark trucks. "I think the biggest thing you'll notice as a person driving on the road is that they're going to be a little bit more patient, a little bit more law-abiding because they don't have to get there under the same kind of time pressure. They don't have the hoursof-service limitations.” Rodrigues said.

In November, Embark merged with Northern Genesis Acquisition Corp. to go public. The deal is estimated to be worth $5 billion.

WWW.REVINC.US

INFO@REVINC.US 888-360-1511

Trust score: 4.9/5

INVOICE FACTORING YOUR GROWTH. OUR GROWTH.

Because of backlog, Class 8 truck orders drop to lowest rate in 26 years

Indicating a backlog of unbuilt trucks and not a serious demand issue, Class 8 truck orders in November plummeted to their lowest level in 26 years.

The backlog for manufacturers has now exceeded 14 months, meaning that an order placed today wouldn’t be ready until the first quarter of 2023. Orders in November were down 41% from October and a whopping 82% from last year.

Supply chain issues and a lack of everything from silicon and semiconductors have stymied manufacturers, leading to historic backlogs. These shortages have forced truck makers to build but then park new trucks while they wait for semiconductors, which are used in a variety of equipment now standard on Class 8 trucks.

Delivery of these important components has been intermittent since last spring. Manufacturers had expected to be at full capacity by now, but problems linger.

ACT Research President Kenny Veith said, “Long backlog lead times resulting from ongoing supply constraints continue to pressure new order activity. With backlogs stretching into late 2022 and still no clear visibility about the easing of the ‘everything’ shortage, modest November order results suggest the OEMs are continuing to take a more cautious approach to booking orders so as not to extend the cycle of customer expectations management.”

Analysts, however, see a bright future with manufacturers ready to ramp up production as soon as equipment is available.

The lack of new trucks has sent the price of late model used trucks sky high with pre-owned trucks commanding figures around $160,000.