Five Tips to Remain Competitive in the Classes 4 and 5 Commercial Vehicle Market

In part 1 of this two-part miniblog series, we explored the overall state of the classes 4 and 5 commercial vehicle market, examined key use cases and top players, and looked at the future of conventional and low cab forward (LCF) trucks.

In this blog, we’ll cover the stripped chassis and cutaways segments, the top players in each segment and where the market is headed. We’ll wrap up the two-blog series with strategic recommendations to help OEMs, body companies and suppliers strengthen your commercial vehicle offerings and advance your market position.

The Current State of Stripped Chassis

Classes 4 and 5 stripped chassis are used in various industries, including in large fleet operations. These chassis are mostly used in package delivery, snack food services and linen services. In 2023, the top use cases were delivery, material handling and food distribution.

Stripped Chassis Preferred Body Types and Body Manufacturers

Ease of entry and egress have typically taken priority over driver comfort in classes 4 and 5 stripped chassis vehicles. However, upfitters are now revamping their decades-old designs in response to driver needs for comfort and productivity.

Stripped chassis are custom-fitted with fully integrated step van bodies to meet specific customer requirements. Unlike conventional and LCF trucks, the upfitter provides the driver environment, including driver seating, HVAC systems, instrument location, doors and windshields. These feature direct walk-in access from the driver’s or passenger’s side of the vehicle seat to the body.

The leading manufacturers for step vans and walk-in vans are Morgan and Utilimaster.

Stripped Chassis OEM Market Dynamics and Technological Progress

Ford, followed by Freightliner, currently leads the classes 4 and 5 stripped chassis market. Workhorse, Blue Arc, Xos and REE are also building a presence in this segment. While most powertrains are gasoline-powered, the shift to electric vehicles (EVs) is gaining momentum, with Xos in the lead.

Freightliner’s MT50e is in production and Workhorse is selling its W56, with EV conversions of Ford chassis by Motiv. Other new entries are coming from REE, Blue Arc and Blue Bird. In addition to these developments, stripped chassis are widely used in recreational vehicles (RVs), with prominent contributions from Ford and Freightliner.

What Lies Ahead for Stripped Chassis?

In the future, we’ll see a shift toward electric vehicles that offer cleaner transportation, better driving conditions and increased load capacity. They’ll incorporate additional sensors and advanced driver-assistance system (ADAS) technology, enhancing safety with elements such as collision avoidance, lane-keeping and adaptive cruise control.

Improved upfit bodies will feature more driver comfort, upgraded safety and modular shelving systems, allowing easy customization and reconfiguration to meet diverse operational needs.

The Current State of Cutaways

Cutaways, which are only available in class 4, are used in several key sectors, including construction trades, transportation, package delivery and the material supply industry. While in many ways they’re considered dated products, cutaways are highly cost-effective.

The top use cases for cutaways in 2023 were equipment transport, delivery, maintenance and repair, and transport.

Cutaway Preferred Body Types and Body Manufacturers

Class 4 cutaways are suited for a limited range of body types, with wider frame rails than chassis cabs, including:

• Van bodies: Ideal for basic van bodies, commonly used in rental truck fleets.
• Walk-in vans: Some vans are designed with walk-through capabilities to compete with stripped chassis, although the walk-in access is never as good. Most are standalone box configurations, typically 14 to 16 feet, with some rentals up to 20 feet.
• Service bodies: These include specialized service utility bodies, such as contractor and mechanic bodies.
• Bus and RV

Key Body Manufacturers of Class 4 Cutaways by Top Five Body Types

	Key body manufacturers
Body type	Rockport	Utilimaster	Morgan	Knapheide	Dejana	Smyrna Truck
Box van	X	X	X
Service utility van	X			X	X
Box truck				X		X
Shuttle bus
Step van/walk-in		X	X

Source: 2024 Escalent Commercial Vehicle Truck Insights

Cutaway OEM Market Dynamics and Technological Progress

Ford and General Motors (GM) dominate this market segment with gasoline-powered vehicles. Ford outsells GM due to the former’s superior dealer network and stronger relationships with upfitters. A limited number of EV conversions are available, mostly from Motiv and primarily for buses.

Companies such as GreenPower and Workhorse are making strides in the EV sector, contributing to the gradual shift to electric powertrains in this market.

What Lies Ahead for Cutaways?

Future models will integrate advanced tracking systems, enhancing efficiency and safety in applications such as school and airport shuttles. Improved upfit bodies will feature modular shelving systems, allowing for easy customization and reconfiguration to meet diverse operational needs.

With no immediate plans from Ford and GM to replace their 1990s-derived vehicles, we expect them to carry on. However, the segment appears ripe for alternative solutions to capture this sizeable customer base.

Five Recommendations to Remain Competitive in the Classes 4 and 5 Commercial Vehicle Market

1. Collaborate for stronger market position: OEMs and body companies should work together to deliver higher-quality vehicles that strengthen their position in the market. As GVWR increases, this integration of chassis and body becomes even more important, especially in commercial vehicles with equipment, such as a boom or crane, that could pose a risk if it doesn’t function properly.Of the Big Three, Ford leads the way in this area. Ford offers its Pro Upfitter program, which requires upfitters to demonstrate excellence in quality, compliance, manufacturing and customer service to improve vehicle quality and streamline the upfitting process.
2. Make way for electrification: As we move toward electrification, manufacturers and body companies must find ways to offset payload lost by heavy batteries. The battery pack of an average class 4 or class 5 rigid electric truck weighs about 2,200 pounds (1,000 kgs). To balance out this loss, companies should explore ways to reduce the vehicle’s weight in other areas, such as the cab, chassis and body, by using lighter materials like aluminum in place of steel.
3. Meet user needs through customization: Customers buy classes 4 and 5 commercial vehicles to help them get a job done and demand is on the rise for features to help make their work more efficient. For example, delivery drivers must be able to enter and exit vans easily. However, cargo is typically accessed from the rear using a tailgate. If the driver is in a confined space and can’t use the tailgate or is on a congested city street with parked cars, side access would be a better option.
4. Focus on safety: As in many commercial vehicle segments, the classes 4 and 5 segments have seen an increase in ADAS, vehicle cameras and lighting for improved safety. Many crew cabs are used in this market, often taking four to six people at a time to a job site, such as landscaping or municipal operations, making safety a priority.On the automation front, we see opportunity in mid-mile delivery in the short- to mid-term due to structured routes. For example, Isuzu is promoting autonomous delivery with its level 4 autonomous Gatik Carrier.
5. Address emissions regulations and sustainability goals: In addition to complying with emerging regulations, such as California’s Advanced Clean Fleets (ACF) Regulation and other state and country policies, companies are under pressure to reach their own sustainability goals while meeting consumer demand for clean vehicles. While some commercial vehicles, such as 4x4s, make the conversion to electric more complex due to space limitations, opting for biofuels and renewable diesel is a viable short- to mid-term solution, with hybrid vehicles a mid- to long-term opportunity and hydrogen coming in at long-term.

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