kscarbel2

Saturday (buffet) dinner at the Holiday Inn (Routes 22 & 100) used to be the norm for many, but I always admired the folks who made a run down to Millers (http://www.millerssmorgasbord.com/).

Good for Navistar. But the cutaway market is so small, small shuttle buses are the only application that absolutely requires them. I honestly don't see how GM and Ford make any money at it. It's mostly an exercise for image. Anyone with a box body application (noting the photo in that article) would choose the vastly superior upcoming Chevrolet 4500 COE (Isuzu rebadge), or the GM version of the jointly designed Navistar conventional cab CV.

Emails in Clinton Probe Dealt With Planned Drone Strikes The Wall Street Journal / June 9, 2016 Some vaguely worded messages from U.S. diplomats in Pakistan and Washington used a less-secure communications system At the center of a criminal probe involving Hillary Clinton’s handling of classified information is a series of emails between American diplomats in Islamabad and their superiors in Washington about whether to oppose specific drone strikes in Pakistan. The 2011 and 2012 emails were sent via the “low side’’—government slang for a computer system for unclassified matters—as part of a secret arrangement that gave the State Department more of a voice in whether a Central Intelligence Agency drone strike went ahead, according to congressional and law-enforcement officials briefed on the Federal Bureau of Investigation probe. Some of the emails were then forwarded by Mrs. Clinton’s aides to her personal email account, which routed them to a server she kept at her home in suburban New York when she was secretary of state, the officials said. Investigators have raised concerns that Mrs. Clinton’s personal server was less secure than State Department systems. The vaguely worded messages didn’t mention the “CIA,” “drones” or details about the militant targets, officials said. The still-secret emails are a key part of the FBI investigation that has long dogged Mrs. Clinton’s campaign, these officials said. They were written within the often-narrow time frame in which State Department officials had to decide whether or not to object to drone strikes before the CIA pulled the trigger, the officials said. Law-enforcement and intelligence officials said State Department deliberations about the covert CIA drone program should have been conducted over a more secure government computer system designed to handle classified information. State Department officials told FBI investigators they communicated via the less-secure system on a few instances, according to congressional and law-enforcement officials. It happened when decisions about imminent strikes had to be relayed fast and the U.S. diplomats in Pakistan or Washington didn’t have ready access to a more-secure system, either because it was night or they were traveling. Emails sent over the low side sometimes were informal discussions that occurred in addition to more-formal notifications through secure communications, the officials said. One such exchange came just before Christmas in 2011, when the U.S. ambassador sent a short, cryptic note to his boss indicating a drone strike was planned. That sparked a back-and-forth among Mrs. Clinton’s senior advisers over the next few days, in which it was clear they were having the discussions in part because people were away from their offices for the holiday and didn’t have access to a classified computer, officials said. The CIA drone campaign, though widely reported in Pakistan, is treated as secret by the U.S. government. Under strict U.S. classification rules, U.S. officials have been barred from discussing strikes publicly and even privately outside of secure communications systems. The State Department said in January that 22 emails on Mrs. Clinton’s personal server at her home have been judged to contain top-secret information and aren’t being publicly released. Many of them dealt with whether diplomats concurred or not with the CIA drone strikes, congressional and law-enforcement officials said. Several law-enforcement officials said they don’t expect any criminal charges to be filed as a result of the investigation, although a final review of the evidence will be made only after an expected FBI interview with Mrs. Clinton this summer. One reason is that government workers at several agencies, including the departments of Defense, Justice and State, have occasionally resorted to the low-side system to give each other notice about sensitive but fast-moving events, according to one law-enforcement official. When Mrs. Clinton has been asked about the possibility of being criminally charged over the email issue, she has repeatedly said “that is not going to happen.’’ She has said it was a mistake to use a personal server for email but it was a decision she made as a matter of convenience. U.S. officials said there is no evidence Pakistani intelligence officials intercepted any of the low-side State Department emails or used them to protect militants. State Department spokesman Mark Toner said the agency “is not going to speak to the content of documents, nor would we speak to any ongoing review.’’ The email issue has dogged Mrs. Clinton for more than a year. Despite her success in nailing down the Democratic presidential nomination, polls show many voters continue to doubt her truthfulness and integrity. Her campaign manager has acknowledged the email matter has hurt her. Republican rival Donald Trump has attacked Mrs. Clinton repeatedly on the issue, calling her “Crooked Hillary,’’ saying what she did was a crime and suggesting the Justice Department would let her off because it is run by Democrats. Beyond the campaign implications, the investigation exposes the latest chapter in a power struggle that pits the enforcers of strict secrecy, including the FBI and CIA, against some officials at the State Department and other agencies who want a greater voice in the use of covert lethal force around the globe, because of the impact it has on broader U.S. policy goals. In the case of Pakistan, U.S. diplomats found themselves in a difficult position. Despite being treated as top secret by the CIA, the drone program has long been in the public domain in Pakistan. Television stations there go live with reports of each strike, undermining U.S. efforts to foster goodwill and cooperation against militants through billions of dollars in American aid. Pakistani officials, while publicly opposing the drone program, secretly consented to the CIA campaign by clearing airspace in the militant-dense tribal areas along the Afghan border, according to former U.S. and Pakistani officials. CIA and White House officials credit a sharp ramp-up in drone strikes early in Mr. Obama’s presidency with battering al Qaeda’s leadership in the Pakistani tribal areas and helping protect U.S. forces next door in Afghanistan. Targets have also included some of the Pakistan government’s militant enemies. In 2011, Pakistani officials began to push back in private against the drone program, raising questions for the U.S. over the extent to which the program still had their consent. U.S. diplomats warned the CIA and White House they risked losing access to Pakistan’s airspace unless more discretion was shown, said current and former officials. Within the administration, State Department and military officials argued that the CIA needed to be more “judicious” about when strikes were launched. They weren’t challenging the spy agency’s specific choice of targets, but mainly the timing of strikes. The CIA initially chafed at the idea of giving the State Department more of a voice in the process. Under a compromise reached around the year 2011, CIA officers would notify their embassy counterparts in Islamabad when a strike in Pakistan was planned, so then-U.S. ambassador Cameron Munter or another senior diplomat could decide whether to “concur” or “non-concur.” Mr. Munter declined to comment. Diplomats in Islamabad would communicate the decision to their superiors in Washington. A main purpose was to give then-Secretary of State Clinton and her top aides a chance to consider whether she wanted to weigh in with the CIA director about a planned strike. With the compromise, State Department-CIA tensions began to subside. Only once or twice during Mrs. Clinton’s tenure at State did U.S. diplomats object to a planned CIA strike, according to congressional and law-enforcement officials familiar with the emails. U.S. diplomats in Pakistan and Washington usually relayed and discussed their concur or non-concur decisions via the State Department’s more-secure messaging system. But about a half-dozen times, when they were away from more-secure equipment, they improvised by sending emails on their smartphones about whether they backed an impending strike or not, the officials said. Some officials chafed at pressure to send internal deliberations through intelligence channels, since they were discussing whether to push back against the CIA, congressional officials said. The time available to the State Department to weigh in on a planned strike varied widely, from several days to as little as 20 or 30 minutes. “If a strike was imminent, it was futile to use the high side, which no one would see for seven hours,” said one official. Adding to those communications hurdles, U.S. intelligence officials privately objected to the State Department even using its high-side system. They wanted diplomats to use a still-more-secure system called the Joint Worldwide Intelligence Community Systems, or JWICs. State Department officials don’t have ready access to that system, even in Washington. If drone-strike decisions were needed quickly, it wouldn’t be an option, officials said. The Wall Street Journal first reported on the State Department-CIA tug-of-war over the drone program in 2011. Under pressure to address critics abroad, Mr. Obama pledged to increase the transparency of drone operations by shifting, as much as possible, control of drone programs around the world to the U.S. military instead of the CIA. An exception was made for Pakistan. But even in Pakistan, Mr. Obama recently signaled a shift. The drone strike that killed Taliban leader Mullah Akhtar Mansour last month was conducted by the military, not the CIA, and the outcome was disclosed. While the CIA still controls drones over the tribal areas of Pakistan near Afghanistan, the pace of strikes has declined dramatically in recent years. U.S. officials say there are fewer al Qaeda targets there now that the CIA can find.

When you contacted Horton customer service at 1-800-621-1320, what did they say ? http://www.hortonww.com/en-us/home.aspx

Just to keep things clear, The Mack model FDM was based on a Savage Manufacturing design.........Mack purchased Savage in 1989. Fast forward to 1998, Mack signed an agreement with Oshkosh to sell a Mack-powered variant of the S-Series called the FCM. Many here saw it at the 1999 MATS in Louisville. Volvo cancelled the program when it acquired Mack in 2000, before the effort could take off. http://www.bigmacktrucks.com/topic/34458-the-mack-hmm-“front-runner”-front-discharge-mixer-chassis/ http://www.bigmacktrucks.com/topic/34451-the-macksavage-fdm700-front-discharge-mixer/

I encourage everyone to take 16 minutes to watch the video (Ian Wright's presentation) above.

Nothing yet about a Durastar replacement.....it still sells very well. The Cummins ISB option, available from 2013, has augmented current sales volume (Ford's new for MY2016 Ohio-produced F-650/750 medium truck range was legless out of the gate because they decided NOT to offer the ISB, and also Allison transmissions). As mentioned in the link, the new Class 4-5 truck will be called the "CV". I never cared for the aesthetics of the current Class 4-5 Terrastar.....too unattractive, awkward looking, ill proportioned.

Chevy escalates Silverado advertising battle with Ford F-150 Automotive News / June 8, 2016 Chevrolet is escalating its truck battle with Ford through a provocative advertising campaign that claims the Silverado pickup’s steel bed is more durable than the F-150’s stamped aluminum bed. In the start of a major sales and marketing offensive, Chevy released a batch of new videos overnight that show the Silverado’s roll-formed steel bed sustaining only superficial damage when subjected to various construction-site poundings, while the same tests punctured and cracked the F-150’s bed. The tests were conducted without a bed liner. Chevy plans an ad blitz starting today that will run 30- and 60-second commercials on ESPN, NASCAR programming, the NHL finals, Major League Baseball and more. It will also run longer versions in 2,400 movie theaters nationally. Print ads are slated for most major markets in Texas, a strategic state for pickup truck sales and marketing. A four-page wraparound add also appeared in Detroit's newspapers today. One video shows front loaders dumping 825 pounds of landscaping stones into the beds of the Silverado and F-150. In a press release, Chevy claims that in 12 straight demonstrations, the F-150’s bed cracked, while the Silverado exhibited only scratches and dents. The video, shot in Chevy’s long-running “Real People, Not Actors” campaign format, features several truck owners clambering onto the pickups’ beds to survey the damage. “I’m surprised they’re trying to put a product out like this, ya know, and they’re supposed to sell ‘Ford Tough,’” remarks one. Another chimes in: “I think Ford needs to change their motto.” Joules in the rough Chevy said in the release that engineers used a 17-pound wedge-shaped striker to scientifically test the strength of each pickups bed. It says the Silverado withstood 90 joules of impact energy without cracking, while Ford’s aluminum bed floor “exhibited hairline cracks at just 30 joules, and was completely punctured at 40 joules.” A joule is a form of energy measurement equal to moving a small object, such as an apple, about one meter in one second, or .24 of a calorie, according to several online definitions. In response to the campaign, a Ford spokesman released this statement today: "When you're the market leader for 39 years, competitors sometimes try to take shots at you with marketing stunts. The fact remains that F-150's high-strength, military grade, aluminum alloy cargo box offers the best combination of strength, durability, corrosion resistance, capability, safety and fuel efficiency ever offered in a pickup. We have built nearly a million new F-150s, and our lead over the competition continues to grow." Chevrolet truck marketing manager Sandor Piszar told reporters on a conference call that the campaign is not “targeting Ford directly,” but merely pointing out what GM believes is a competitive advantage. “It’s not an attack on Ford. It’s not an attack on aluminum,” Piszar said. “It’s us showing that we have a better choice for customers in the highly competitive truck segment.” He said the tests were done without a bed liner because many people buy their pickups that way. He said half of Silverado customers “leave the dealership without any form of bed protection.” Ford spokesman Mike Levine said just 17 percent of F-150s are sold with a spray-in bed liner. On the same conference call, Mark Voss, a GM engineering group manager for truck body structures, said the choice of roll-formed, high-strength steel was aimed at “putting the right material in the right application.” He declined to answer whether GM would continue to use steel for the bed in its next-generation Silverado and GMC Sierra, expected to arrive in 2018. But he wouldn’t rule out the use of aluminum if it could meet GM’s specifications. “We’re continuing to evaluate any new materials as long as they exceed the performance of a high-strength, rolled-form steel bed. We’d consider it,” Voss said. Chevy said the campaign "is a dramatic example of Chevrolet engineers’ work to select the right material, enabled by the right manufacturing processes, for the right application." Escalating war It’s also a dramatic escalation of the war between the two biggest pickup brands, which have gone after each in marketing campaigns intermittently for years as they seek the upper hand in the industry’s most profitable segment. Lately it’s been Chevy tweaking Ford’s aluminum-bodied F-150, launched in late 2014 and billed as a revolutionary material transformation that GM and others eventually would be forced to mimic to reduce mass and make it easier to comply with fuel-economy regulations. While GM is expected to use more aluminum in its next-generation Silverado and GMC Sierra, due out in 2018, company executives and engineers have said frequently that they won’t rely too heavily on one material to achieve mass savings. Last summer, Chevy launched a prelude to the new campaign with a commercial that had volunteers assess the strength of an aluminum cage vs. a steel one, just before a grizzly bear lumbered into the room. Almost every person scrambled to the steel cage. “Truck customers demand the ability to haul their toys, tools and other cargo,” Piszar said in today’s press release. “These videos demonstrate the real-world benefits of the Silverado’s bed, in both extreme and everyday scenarios.” Repair costs Chevy also raises the issue of repair costs. Piszar claims in the release that, even if the Silverado’s bed is damaged, steel is “easier to repair than aluminum, potentially saving money and minimizing time” in the collision shop. In another video, former NFL hall of famer and occasional Chevy pitchman Howie Long chats with Silverado chief engineer Eric Stanczak about the differences between the Silverado’s steel bed and the F-150’s aluminum one. Stanczak demonstrates by nudging a large metal toolbox off the edge of each truck’s bed wall. The corner of the box gashes the F-150’s bed, while leaving only a small dent in the Silverado. “All of this would really make me think twice about buying a truck with an aluminum bed,” Long concludes. Truck incentives The campaign comes as Ford tries to claw back market share it ceded to Chevy last year, when Ford’s F-series availability was limited as the company ramped up production of the redesigned pickup. The Silverado had its biggest market share gain in a decade while Ford’s share slipped. Ford bounced back through May this year, with F-series sales rising 7.1 percent and Silverado sales slipping 0.1 percent. Ram sales rose 7.7 percent. The campaign’s launch coincides with Chevy’s Truck Month promotion, which features some of the largest incentives offered on the Silverado since the current truck rolled out in mid-2013. Qualified buyers can get 0 percent interest for 60 months plus up to $8,250 in cash and other incentives on certain crew cab models.

The global Ford Ranger, which has been brutally tested, has a steel bed. Aussie Ford truck engineering impresses. .

Chevrolet Trucks Press Release / June 7, 2016 We compared the roll-formed, high-strength steel bed of the Chevy Silverado to the aluminum bed of the Ford F-150. See how they held up. .

And remember, Navistar's upcoming new "LT" range, the replacement for the ProStar, is due out later this year. http://www.bigmacktrucks.com/topic/42260-navistar-readying-new-truck-lineup-for-2016/

Paul, I still can't get over how good the AU "Born Ready" video is, versus how bad the North America video is. Meanwhile, Daimler has a great video to be proud of (https://www.youtube.com/watch?v=IGDH8OLcQ7cI). I don't know what Mack USA thinks. Within Volvo's senior Mack brand management, there isn't even one individual with a truck industry background........they live in a vacuum. Road shows are popular in the global market, and quite successful. You can really connect with the local customers. But US truckmakers aside from General Motors never seized the opportunity. General Motors, at one time a global technology leader and manufacturing powerhouse that touched nearly every aspect of people's lives, was very successful with its "Parade of Progress" road shows (as well as its World's Fair exhibits). http://www.bigmacktrucks.com/topic/40653-remembering-gm’s-parade-of-progress-road-show/#comment-294654

But battery technology is moving along at a nice pace now, smaller, lighter and greater capacity battery packs. I'm also optimistic about vehicle-equipped micro-turbines.

Dagens Industri / June 7, 2016 Market registrations of heavy trucks (both imported and locally produced) in Brazil fell 26.0 percent to 1,228 vehicles (from 1,660 units) in May, compared to the same period last year. Compared with April 2016 (1,297 units), heavy truck sales declined 5.3 percent. In the semi-heavy truck segment, truck registrations fell 41 percent to 1,114 trucks (from 1,902 units in May 2015). Compared to April 2016, semi-heavy truck sales fell 3.2 percent. A total of 423 Volvo trucks were registered in May, down 48.5 percent from the same period last year (821 units). Compared with April 2016 (466 units), Volvo sales declind 9.2 percent. Of the 466 Volvo trucks sold in May, 315 were in the heavy segment (versus 607 in May 2015), while 108 trucks were in the semi-heavy (versus 214 in May 2015). Rival truckmaker Scania saw its sales increase with 319 new truck registrations in May, representing a rise of 3.2 percent from the same period last year. Mercedes Benz heavy truck registrations fell 27.6 percent year on year in April. MAN's heavy truck registrations declined 8.3 percent.

MAN presents Remondis with 4-axle TGS featuring new triple-axle configuration at IFAT 2016. MAN Truck & Bus Press Release / June 7, 2016 At the world's leading environmental technology show, MAN has handed over the first Euro-6 TGS 32.360 8x2-6 chassis to refuse specialist Remondis. Remondis Board Member Egbert Tölle and Purchasing Manager Josef Holtermann were presented the keys by MAN Truck & Bus Executive Board Member for Sales and Marketing Heinz-Jürgen Löw and Martin Zaindl, Head of German Regional Sales Southeast for Trucks. The 360 hp four-axle vehicle with specially developed MAN TipMatic ASF automated transmission will be put into service with a rear loader waste collection superstructure at the Remondis branch office in Oberhausen. The axle configuration of the 8x2-6 type features the special rear axle configuration with a steered pusher axle and a steered tag axle in addition to the driving axle. This triple axis variant, which is increasingly in demand in the disposal industry, provides increased payload to the chassis with high manoeuvrability and reduced tyre wear in comparison with the classic 6x2 axle configuration. MAN’s 8x2-6 configuration is ideal for waste collection operation where high payload reserves in the rear axle area are a key technological requirement. This is a real advantage, for example, when emptying organic waste collection bins as a cubic metre of organic waste weighs more than a cubic metre of household waste or recycling. In refuse industry applications, the higher rear axle payload enables better area coverage each time, reducing the number of journeys and results in environmental benefits as well as saving time. Another advantage of the new MAN 8x2-6 axle configuration is its availability direct from the factory. Complex and cost-intensive additional adjustment work is not required, also the vehicle can go directly from the production line to the body builder without delay. .

Scania Group Press Release / June 7, 2016 Imagine a service which, based on how you actually use your vehicle, tells you when it’s time to go to the workshop. Not too often and only when it’s needed. This service is called Scania Maintenance with flexible plans – a service contract that maximises a vehicle’s uptime. .

Fleet Owner / June 7, 2016 Michelin Americas Truck Tires, a division of Michelin North America, Inc., has introduced the MICHELIN X Works Z, an all-position tire, for mixed on/off road applications that operate in demanding environments. “The MICHELIN X Works Z is designed to improve uptime,” according to the company. “It features a 50% wider protector ply and a thicker layer of cushion gum than leading competitive tires1; together, these provide extra protection and casing durability. The MICHELIN X Works Z also offers a 5% increase in removal mileage2 and is backed by Michelin’s six-month worry-free road hazard guarantee3.” “Construction, energy and tanker customers demand a tire that fights against road hazards so they can keep running and get their work done,” said Adam Murphy, vice president of marketing for Michelin Americas Truck Tires. “With multiple features to protect the casing and sidewall from shocks and impacts, the new MICHELIN X Works Z delivers the uptime, durability and capping those fleets demand.” According to the company, its casing features a groove-to-groove protector ply to provide protection all the way to the outer grooves and thick shock-absorbing cushion gum for extra protection against impact shocks. The MICHELIN X Works Z also features a dual-layered defense against stone retention and stone-drilling, with V-channels and groove bottom protectors. The sidewall features a double treatment of TW6 Ozone Resistor for increased protection against ozone cracking and thick sidewalls to fight impacts, the company added. “Confident in the tire’s unsurpassed durability, Michelin stands behind the MICHELIN X Works Z with a six-month worry-free road-hazard guarantee3,” Michelin said. “If the tire is taken out of service in the first six months or before 50% of its useable tread life, Michelin will provide a $200 credit per tire. The tire is available now in 11R22.5, 12R22.5 and 11R24.5 sizes in load range H and a 315/80R22.5 size in load range L. A 12R24.5 size in load range H will launch at a later date.”

Fleet Owner / June 7, 2016 In the first evaluation of this technology for a Class 8 refuse vehicle, Mack Trucks is showcasing a LR model refuse chassis retrofitted with Wrightspeed's "Route 1000" powertrain here at WasteExpo 2016. Designed as an alternative driveline to conventional piston engine and transmission systems, The Route is an electric vehicle powertrain that can provide "unlimited range and reduced fuel costs for today's refuse, delivery and mass transit markets," according to Wrightspeed. "Mack is the refuse industry leader because we're not afraid to pioneer new ideas and innovations," said Dennis Slagle, president of Mack Trucks. "Wrightspeed shares this pioneering spirit, which is why we're eager to evaluate their Route powertrain technology." The Wrightspeed Route powertrain uses electricity to deliver 100% of the vehicle's propulsion. The company says the system features an advanced, plug-in-capable battery pack that provides a range of up to 24 miles on electric power. When the batteries' charge is depleted, Wrightspeed's 80 kW "fuel agnostic" Fulcrum turbine generator recharges the batteries, enabling Route-equipped vehicles to have unlimited range with refueling, Wrightspeed says. Additional recharging comes from the Route's 730 kW regenerative braking system, which generates electricity as the vehicle comes to a stop. Regenerative braking helps Route-equipped vehicles cut down on maintenance costs, Wrighspeed notes, "as braking force — and subsequent brake wear — is significantly decreased." Electricity from the battery pack powers four electric motors, which the company says allows the Route to power vehicles up to 66,000 lbs. on grades as steep as 40%. With full torque available from zero rpm, Wrightspeed says The Route provides a driving experience comparable to diesel-powered trucks. Wrightspeed counts FedEx, Ratto Group and New Zealand Bus among early customers. "At Wrightspeed, we're focused on designing the best-performing powertrains for forward-looking OEMs and fleet operators," said Ian Wright, CEO and founder of Wrightspeed. "Mack represents one of the most innovative manufacturers in the refuse industry, and we're proud to showcase our technology alongside their Mack LR model." Wrightspeed “Route” introduction and VIDEO - http://www.wrightspeed.com/the-route-powertrain Related reading: http://www.bigmacktrucks.com/topic/38533-tesla-co-founder-electrified-about-garbage-trucks/#comment-275237 http://www.bigmacktrucks.com/topic/39936-wrightspeed-unveils-new-turbine-range-extender-for-medium-and-heavy-duty-electric-powertrains-30-more-efficient-than-current-microturbine-generator/#comment-289053 http://www.bigmacktrucks.com/topic/37393-fedex%E2%80%99s-new-electric-trucks-get-a-boost-from-diesel-turbines/#comment-26342 FYI: The current Mack VP of N.A. sales worked one year at Wrightspeed in 2013 (he changes jobs annually). (http://www.bigmacktrucks.com/topic/44647-mack-trucks-names-senior-vp-of-sales-for-north-america/#comment-329486)

Navistar Reports First Profit in Three Years Transport Topics / June 7, 2016 Navistar International Corp., the parent company of the International truck brand, said it turned its first profit in three years as second quarter 2016 net income reached $4 million, or five cents per diluted share. That compares with a net loss of $64 million, or 78 cents, in the year-earlier period, it said. The company said revenues in the quarter ending April 30 were $2.2 billion, down 18% compared with $2.7 billion in the second quarter last year. “For the first time since we launched our turnaround more than three years ago, Navistar reported a quarterly profit,” Troy Clarke, Navistar CEO said in a statement. “Our performance this quarter begins to demonstrate the earnings potential of this company. The fact that we earned a profit despite lower Class 8 truck volumes that impacted the entire industry, underscores the tremendous progress we continue to make in managing our costs effectively and improving our operations.” Two of the company’s four main business units saw income rise in the quarter: the parts segment increased to $176 million — a quarterly record — from $133 million a year earlier, while the financing unit’s income rose to $25 million, up from $22 million in the year-earlier period, it said. The truck unit had a loss of $23 million compared with a loss of $51 million a year earlier, and global operations reported a loss of $1 million, compared with $1 million in profit in the same period one year ago, it said. For the second half of 2016, Navistar said it lowered its industry guidance range by 20,000 units, due to softening Class 8 market conditions. “While we were net income positive in the second quarter, it will now be difficult for us to be profitable for the entire year given the tougher than anticipated market conditions, primarily due to the lower outlook for Class 8 industry volumes,” Clarke said. “We are confident we will generate and implement additional performance improvements to partially offset current industry conditions.”

Navistar Reports First Quarterly Profit in 3 Years Heavy Duty Trucking / June 7, 2016 Navistar International Corp. reported its first quarterly profit in three years, thanks to healthy parts sales and in spite of lower revenue. The company on Tuesday announced second quarter 2016 net income of $4 million, or $0.05 per diluted share, compared to a second quarter 2015 net loss of $64 million, or $0.78 per diluted share. "For the first time since we launched our turnaround more than three years ago, Navistar reported a quarterly profit," said Troy Clarke, Navistar president and chief executive officer, in a statement. "Our performance this quarter begins to demonstrate the earnings potential of this company. “The fact that we earned a profit despite lower Class 8 truck volumes that impacted the entire industry, underscores the tremendous progress we continue to make in managing our costs effectively and improving our operations," he added. Revenues in the quarter were $2.2 billion, down 18% compared to $2.7 billion in the second quarter last year. The decline reflects lower volumes in the company's main American and Canadian markets, due to softer industry conditions and the discontinuation of the company's Blue Diamond Truck joint venture with Ford in mid-2015, the announcement said. Another factor was lower engine sales volume in Brazil, which is in a deep economic slump amid political turmoil. This was partially offset by higher sales in the company's parts segment, per the announcement. The company achieved $56 million in structural cost reductions during the second quarter. Year to date, structural cost reductions are at $113 million, the announcement said. When combined with material spending reductions and manufacturing savings, the company is on track to well exceed its total cost reduction goal of $200 million for 2016. Navistar ended second quarter 2016 with $817 million in consolidated cash, cash equivalents and marketable securities. Manufacturing cash, cash equivalents and marketable securities were $732 million at the end of the quarter. However, for the second half of 2016, Navistar lowered its industry guidance range by 20,000 units, due to softening Class 8 market conditions. Given this, along with slower than anticipated market share growth domestically, weaker export markets, and the impact of a stronger dollar, the company reduced its full-year revenue and adjusted guidance for earnings before interest, taxes, depreciation and amortization (EBITDA). "While we were net income positive in the second quarter, it will now be difficult for us to be profitable for the entire year given the tougher than anticipated market conditions, primarily due to the lower outlook for Class 8 industry volumes," Clarke said. "We are confident we will generate and implement additional performance improvements to partially offset current industry conditions." Second quarter 2016 EBITDA was $135 million, compared to second quarter 2015 EBITDA of $85 million, the company said. This year's second quarter results included $52 million in adjustments, including $46 million to pre-existing warranty reserves. As a result, second quarter adjusted EBITDA was $187 million, up 83%, compared to adjusted EBITDA of $102 million in the comparable period last year. The improvement was driven by continued strong cost management, product cost improvement and record Parts segment profitability. Navistar emphasized bright spots in its products and services offerings. It said that orders for the HX series of premium vocational trucks, introduced in early February, are already more than 70% of what was expected for the fiscal year. Later in the quarter, the company announced the addition of the 8.9-liter Cummins ISL9 diesel as an option for its DuraStar and WorkStar models. The company also said it made advances on its telematics-based, connected vehicle services during the quarter. OnCommand Connection, Navistar's open-architecture remote diagnostics service to International and other makes of trucks, surpassed the 200,000 subscriber mark. Navistar also launched what it said is the industry's first Over-the-Air Programming service, which enables drivers or fleet managers to utilize a mobile interface to initiate engine programming over a safe, secure Wi-Fi connection. Since then, Navistar announced that it is offering Over-the-Air Programming with Cummins engines, including Cummins engines in vehicles not built by International.

Navistar Gains as First Profit Since 2012 Trumps Lower Forecast Bloomberg / June 7, 2016 Navistar International Corp. surged the most in more than three years after the truckmaker reported a surprise quarterly profit, its first since 2012, outweighing concerns as the company lowered its 2016 forecasts. The shares gained 24 percent to $15.11 at 12:31 p.m. New York time after rising as much as 29 percent, the biggest intraday jump since March 2013. The company posted fiscal second-quarter net income of $4 million, helped by cost cuts, while the average of analyst estimates compiled by Bloomberg was a $15.2 million loss. The profit ended a 14-quarter streak of net losses and came amid a slump in demand for heavy-duty trucks. That downturn led Navistar to trim its full-year outlook for sales to $8.2 billion to $8.6 billion, from at least $9 billion, and for earnings before interest, taxes, depreciation and amortization to $550 million to $600 million, from a minimum of $600 million. “We just completed an important quarter that shows the benefit of strong cost management as well as lean enterprise efforts and our ability to earn a profit despite industry headwinds,” Chief Executive Officer Troy Clarke told analysts on on a conference call. “While the second half poses new challenges due to softening industry conditions, we are a resilient organization and we intend to deliver the best achievable results.” Navistar said in its statement Tuesday that structural cost reductions in its first half reached $113 million and that, including savings from materials and manufacturing, expense cuts for the full year are on track to exceed its goal of $200 million. Joel Tiss, an analyst at BMO Capital Markets, said that the return to profitability helped ease concern that Navistar would have to restructure its debt. A number of bearish investors banking on that pessimistic outlook were buying back the stock after the results, boosting the share price, he said. Tiss rates the shares market perform.

The Wall Street Journal / June 7, 2016 Company cuts guidance, expects reduced retail deliveries of heavy- and medium-duty trucks, buses Navistar International Corp. swung to a surprise profit in its latest quarter, its first since 2012 as the company slashed costs amid prolonged diminished market demand, but cut its outlook for the year and said it was unlikely to make a full-year profit. Still, investors seemed to focus on the return to profitability and sent shares up 21% to $14.71 in Tuesday afternoon trading in New York. The stock has risen 69% so far this year. The Lisle, Ill., truck producer now expects 2016 revenue in a range of $8.2 billion to $8.6 billion, down from its already downbeat prior forecast of $9 billion to $9.25 billion. Analysts had anticipated $8.79 billion, according to Thomson Reuters. The guidance cut comes as Navistar says it now expects retail deliveries of heavy- and medium-duty trucks and buses in the U.S. and Canada to be between 330,000 and 360,000 units, compared with a prior range of 350,000 units to 380,000 units. The company also lowered its adjusted Ebitda forecast to $550 million to $600 million from its earlier outlook range of $600 million to $650 million. Chief Executive Troy Clarke said that while the company earned a profit in the latest period, “it will now be difficult for us to be profitable and free cash flow positive for the year as we now see it.” The company said it won’t be able to increase its anemic market share in heavy-duty trucks this year because of the dismal market conditions. Raising share and getting back to profitability have been management’s key objectives. But Chief Financial Officer Walter Borst said dealers have drawn down their inventories, further denting Navistar’s production forecast. “We no longer believe we’ll be able to increase our market share as much as we’d originally expected heading into the year,” he said. Navistar said performance in its second quarter reflected soft industry conditions; a stronger U.S. dollar; lower volumes in Mexico and export markets; and lower engine volumes in Brazil amid weak economic conditions there. The company also noted it had discontinued its Blue Diamond Truck joint venture in mid-2015. Mr. Clarke said that turning a profit “underscores the tremendous progress we continue to make in managing our costs effectively and improving our operations.” For the three months ended April 30, Navistar reported a profit of $4 million, or a nickel a share, compared with a year-earlier loss of $64 million, or 78 cents a share. Revenue slipped 18% to $2.2 billion. Analysts had expected a loss of 16 cents a share on revenue of $2.19 billion. Costs and expenses declined 21% from a year ago.

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Big Rigs / June 7, 2016 The Australian Trucking Association has today released fact sheets on the trucking industry’s key issues for the 2016 election campaign: the Road Safety Remuneration Tribunal, the need for practical measures to improve road safety, and supporting stronger trucking businesses. The ATA is the peak body representing the trucking industry. Its members include state and sector trucking associations, major logistics companies and businesses with leading expertise in truck technology. The ATA represents many thousands of trucking businesses, ranging from owner-drivers to large fleets. The Chief Executive of the ATA, Chris Melham, renewed his call for political parties and candidates to confirm they would not re-establish the Road Safety Remuneration Tribunal or any similar price-fixing mechanism. "Small trucking businesses subject to the RSRT’s price-fixing order found that it was inflexible and increased costs by 20-30 per cent. This made them uncompetitive," Mr Melham said. "The tribunal also imposed an enormous paperwork burden on businesses. One independent report estimated the total compliance cost to the industry at $56 million a year for each of the tribunal’s two orders – $2,000 per year for each affected business." Mr Melham urged political parties and candidates to support practical measures that would genuinely improve road safety. "Earlier in the election campaign, the ATA released authoritative new figures showing that the rate of fatal articulated truck crashes fell 80 per cent between 1982 and 2015," he said. "But even one accident is too many. The next government must press on with measures to improve safety, including intelligence led, targeted enforcement to deal with the small minority of businesses that ignore the law. "We also want to see the next government mandate truck and trailer stability control technology from 2019 for new model trucks and trailers and from 2020 for new trucks and trailers, with appropriate exemptions. "Many fatal accidents involving trucks are due to other vehicles. We are calling for a share of the $15.6 million allocated to the NHVR from the abolition of the RSRT to go to an information campaign for car drivers about how to share the road safely with trucks. The campaign should run nationally, including in Western Australia and the Northern Territory." Mr Melham said the next government must also support stronger trucking businesses. "The trucking industry consists almost entirely of small businesses. They face important financial and business challenges," he said. "The ATA is calling on political parties and candidates to announce they would, if elected, agree to work with the industry on the development of a mandatory code under the Competition and Consumer Act. The code would cover payment terms for small trucking businesses and related issues, including a ban on unfair set offs and pay when paid arrangements," he said. "The National Transport Commission has concluded that truck and bus operators will be overtaxed by more than half a billion dollars over the next two years. "Australia’s transport ministers agreed to freeze revenue from truck and bus registration charges and the road user charge on fuel to prevent the overcharging becoming worse. "The next government should reduce the road user charge to 25.3 cents per litre in 2017-18, following the Coalition Government’s decision to reduce it for 2016-17. This further reduction is needed to deliver the commitment to freeze revenue from the charge. "The next government must also start work on establishing an independent economic regulator for road charges and regulated service delivery standards for roads, to take effect once the revenue freeze ends in 2017-18. The overtaxing must end; the industry must get the roads it pays for," he said. Later in the election campaign, the ATA will issue state-by-state report cards about how the parties and candidates compare.