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Renschler declined to comment on specific plans or targets. “We’re keeping all options open on our way to becoming a global champion.” Translation: VW is sweating bullets over how they're going to pay US$45 to 90 billion to cover the diesel emissions scandal, and Scania is the only brand of meaningful value that anyone would buy in today's economic situation. Though it will kill Renschler to see his one profitable truck unit sold off, VW has few options.

Bloomberg / February 8, 2016 Volkswagen AG’s heavy-truck division is exploring options for growth that could include acquisitions and an initial public offering as it seeks to reap the benefits of more independence within its rapidly reorganizing parent company. Trucks chief Andreas Renschler said in an interview that the U.S., the only major market where the unit has no significant presence, and China are among key regions for possible expansion. The strategy would challenge global industry leaders Daimler AG and Volvo AB as well as smaller rivals in emerging markets. Truck models are dramatically different in individual regions, so expansion in the U.S. would probably involve an acquisition. Renschler declined to comment on specific plans or targets. “We’re keeping all options open on our way to becoming a global champion,” Renschler said in the interview in Munich. “We want to be industry leaders in terms of profitability, customer-oriented innovations and global presence, not necessarily in terms of sales volume.” Unlike most of its passenger-car siblings, Volkswagen’s trucks unit isn’t dealing directly with fallout from the diesel-emissions scandal. Still, the crisis besetting the parent company triggered a management revamp and accelerated a push kick-started a year ago to give the automaker’s 12 brands more leeway to make their own choices, handing Renschler, who previously held the same post at Daimler, more room to maneuver. Empire Building “Shareholders would certainly welcome an IPO of VW’s trucks business as the company would start lifting value after decades of empire building” and address investor skepticism regarding conglomerates comprising passenger cars and commercial vehicles, Arndt Ellinghorst, a London-based analyst with Evercore ISI, said in a note. He estimates the combined value of VW’s truck assets at about 20 billion euros ($22.3 billion). The shares fell 2.3 percent to 100.75 euros at 11:04 a.m. in Frankfurt. The company has lost almost 22 billion euros in market value since emissions cheating at its passenger-car units became public on Sept. 18. North America remains the largest undeveloped territory for the truck holding Volkswagen formed last May to better coordinate MAN, Scania AB and its namesake VW truck and bus brand. By contrast, both Daimler and Volvo enjoy large North American market shares with the Freightliner and Mack nameplates. Still, sales in that market are entering a lull because many trucks on the road were recently replaced. Volvo has revised its outlook and predicted Friday that truck industry deliveries in North America will shrink 7 percent this year. That means belt-tightening for some competitors. Good Fit “In the long-term, the North American market is of course interesting for us, but it has to be a good fit for us as well as for a possible partner,” Renschler said. He declined to comment on whether Volkswagen would be interested in buying Paccar Inc. or Navistar International Corp., the truckmaker partially owned by billionaire Carl Icahn. In China, the world’s biggest market for heavy trucks, the likelihood of a flat market this year hasn’t deterred Volkswagen from growth plans. “We’re pursuing a dual-track strategy in China,” Renschler said. Volkswagen is seeking to expand with partner Sinotruk Hong Kong Ltd. in the mass-market segment as well as boosting the higher-end business of selling its own MAN and Scania vehicles. Volkswagen is also in talks about joint projects with other peers, including the commercial truck unit of China’s FAW Group. The negotiations with FAW are separate from expansion discussions for a car joint venture the two companies also operate. Intensifying Cooperation Renschler took over a few months before the truck holding was created. Hiring one of the industry’s most high-profile executives from a rival underscores the sense of urgency at Volkswagen about finally reaping financial benefits from the multi-billion-euro takeovers of MAN and Scania. That means intensifying cooperation between MAN, where a downturn in South America has eaten away at profits and a restructuring program is under way, and the smaller, higher-margin Swedish Scania unit, which has been more resilient to swings in the cyclical truck industry. MAN is cutting about 1,400 administrative jobs and 400 production jobs to lower costs as part of a revamp program to be completed next year. The program also includes a substantial expansion in digital services for truck drivers and logistics operators. Cooperation will focus on joint procurement, research, business development, finance and personnel. Volkswagen’s factory in Salzgitter, Germany, will produce non-driving axles for both brands, and the two independent assembly facilities in Russia will be combined, according to Renschler. Efficient Alliance Forging an efficient alliance will play out principally in western Europe, where Scania and MAN have a combined market share of about 30 percent. Cooperation had been hampered in the past by memories of MAN’s ill-fated 2006 attempt at a hostile takeover of Scania. Volkswagen opposed the attack, then took control of both companies, buying out Scania’s minority shareholders in 2014. Overcoming cultural differences and ensuring collaboration will be crucial for the strategy to pay off. They’ll also need to weather some gloom, with Renschler predicting that Brazil, a key South American market, won’t turn around before 2018. “You don’t change corporate culture by sitting down and holding each other’s hands,” Renschler said. “You need to get people to really work together to achieve common results.”

Roadway had a few Macks, but never a lot. Only the last few were Mack powered. Some big Mack fleets were, to name just a few in addition to Overnite, Air Products, APA, A & P, BFI, Burns Motor Freight, Carolina Freight Carriers, Chemical Leaman, Hennis, Mason Dixon, Matlack, Mushroom, National, Penske, Ryder, Smith's Transfer, Southeastern, Waste Management, UPS and USPS.

It sounds like you've blamed everything and everyone, leaving no stone unturned. However, the truth is bit different. As for Renault, they were no more a "wolf" than the Signal Companies. Rather, they were supportive of a successful Mack Trucks. Renault respected Mack's R&D capability as world leading. As Mack President Al Pelletier said in March 1979 during his announcement that Renault would purchase a minority stake in Mack, "In the long run, we will need a partner to compete with all the giants of the industry. We looked for a partner and we found one in Renault." And Al Pelletier’s successor John Curcio accurately said of Renault, "They came to the party in 1983 when nobody else loved us." I have nothing but respect for Renault (i.e. RVI - Renault Vehicules Industriels, the truck unit of Renault). And, I have the utmost respect for Elios Pascual. He genuinely cared about Mack Trucks, as anyone at Mack World Headquarters during his tenure will tell you. In the big picture, the UAW weakened Mack in the 1980s. I'm not speaking of Local 677, but rather the international in Detroit. As I've stated before, Jack Curcio realized the threat presented by the foreign truckmakers in the United States, and was trying to reshape Mack Trucks in the face of changing times, enhancing efficiency and profitability to ensure Mack’s long-term survival. But the union didn’t heed his warnings of the dark clouds ahead, and chose to proceed with business as usual (when the Big 3 were on the verge of collapse, threatening the UAW’s existence, it amazingly became very cooperative).

French politics. Remember, Renault had long been a state-owned enterprise (company). Even today, France owns 20 percent of Renault (the car unit partnered with Nissan), and enjoys roping in CEO Carlos Ghosn to remind him that France's interests matter. In order for the French government to approve the truck deal, Renault had to keep some of its autonomy. In America however, the government handed over America's most iconic truckmaker to a foreign aggressor with only one concern......refuse trucks (and I imagine you know why).

Mack Trucks was at a crossroads when they decided to bring Zenon C.R. Hansen on board to "fix the problem" and lead the company in an all new direction. He did. Zenon "wanted" Signal's financial support, and he later credited the Signal Companies' board for Mack Trucks' return to dominance. Their financial backing could, and did, supercharge Zenon's growth plans for Mack Trucks. And, Signal promised to allow Mack Trucks to operate with autonomy. They did. Mack earned more money for Signal than any other subsidiary, and Zenon famously kept them aware of that! Quoting the old man himself, "In my opinion, the Mack-Signal merger was the most successful large corporate merger ever attempted." In addition to Signal's financial backing being important to Mack's success, Zenon said "the really significant value has been this, that Mack has been associated with a high-grade organization which made good on all its agreements. We have kept our autonomy under Signal, and they have not meddled in the day-to-day operations of our business." Once, Zenon walked into a Signal board meeting to discuss bonus plans for the conglomerate companies. They didn't tell Zenon what bonuses were going to be handed out, rather he told them! Speaking to the board of the parent company, Zenon knew that it was his company, Mack Trucks, that was making all the money for Signal, and he told them so! "This is the bonus plan this year in my company [Mack Trucks]. I don't care what you're doing in your companies, but this is what I'm doing in mine." Particularly while Zenon C.R. Hansen ran Mack, the Signal Companies was extremely loyal to Mack Trucks. In 1964, prior to Zenon taking over Mack Trucks, the company reported US$275 million in sales. In 1966 with Zenon at the helm for two years, Mack sales reached US$411 million. And in 1970, sales leaped to US$534 million. We're talking about the man that issued every Mack employee a sillver dollar-sized coin with a bulldog on one side, and a slogan on the other side stating "You Make the Difference". I carry my coin every day. Mack's outstanding earnings in 1966 was a double-edged sword........it made Mack Trucks a takeover target. Initially, to fight back, Zenon was designated chairman and CEO as well as president. But he finally realized that Mack needed the financial security and protection of a larger conglomerate, but the merger would be on Zenon's terms. Zenon said, "Our feeling was that if we had to get into bed with someone, it would be a Park Avenue glamour girl, not a Greenwich Village streetwalker." Zenon believed that a successful merger must address four priorities in this particular order: 1. The employees 2. The dealers; they have US$100 million tied up in Mack trucks and parts 3. The Mack customer 4. The stockholder In responding to critics who said that shareholders should be the first priority, Zenon said, "What good is the stockholder's dollar if the employees are not happy, if the dealers are in trouble, if they don't have a customer?" New York bankers introduced Mack Trucks to the Los Angeles-based Signal Oil & Gas Company, and it was the perfect match. Recalling their initial meeting, Zenon said, "You size up the people and pull it out fast. We had never met, and we had an agreement in two and a half hours." In the deal, Mack and Zenon retained complete autonomy, and Signal promised not to acquire any other truckmaker. Mack Trucks received Signal's financial backing to ramp up plant expansion, production and sales, and Zenon joined Signal's board of directors. As a result of the Mack-Signal merger, Mack Trucks in 1971 was once more the top selling diesel truck in the United States. One out of five heavy trucks wore a bulldog. By the end of 1973, nine years after Zenon C.R. Hansen had taken the helm at Mack Trucks: - Production had increased 138 percent - New truck deliveries increased 134 percent - Mack sales skyrocketed 200 percent, from US$275 million to US$880 million - Shareholder's equity rose 147 percent, with return on invested capital increasing from 2.7% to 13% - Earnings per share increased by an astonishing 764 percent All of this, because of Signal's support of Mack Trucks and Zenon C.R. Hansen, the best truckmaking CEO in the history of the industry right up to the present day. As Zenon proudly said, and history has gone on to confirm: "I don't think many companies can match that record. I have been asked many times how we did this. I will say it again, there's no substitute for experience. It all boils down to experience, damn hard work, and good application of effort by the Mack management team. Our talented, dedicated, ingenious Mack people have made a difference."

The MaxAir 40 and 40A were only optional with ArvinMeritor and Eaton axles, something cheap the fleets wanted.

The Hendrickson-sourced Mack MaxAir 40 four bag suspension was introduced a month before the U.S. Department of Justice agreed to hand over America's iconic Mack Trucks to Sweden's Volvo. As far as I'm concerned, the identifying name is MaxAir 40. Related reading - http://www.bigmacktrucks.com/index.php?/topic/18742-maxlite-40-air-ride/ ------------------------------------------------------------------------------------------------------------------------------------- Bulk Transporter / November 1, 2000 The new MaxAir Series of suspensions from Mack Trucks, Inc is now available on Vision by Mack and CH model tractors. Engineers from Mack and Hendrickson Suspension jointly developed the MaxAir suspension to improve comfort, durability and serviceability, while also reducing weight, life-cycle costs, and maintenance. The first of the series is the 40,000-lb MaxAir 40, with a lighter aluminum version, the MaxAir 40A, scheduled for release by the end of 2000. MaxAir saves 72 pounds in the standard steel configuration, with another 40 pounds saved in the optional aluminum version. Modern design techniques allowed engineers at Mack and Hendrickson to optimize size and location of key components, such as the use of large-volume air springs and inboard shocks. Mack and Hendrickson torture-tested the MaxAir over thousands of miles, resulting in superior smoothness and handling for a Class 8 vehicle. The design team eliminated the need for retorquing clamp U-bolts by replacing the conventional clamped brackets with integrated axle brackets. For full details, contact Mack, PO Box M, 2100 Mack Blvd, Allentown PA 18105-5000. (Don't bother.......Volvo shut its doors) ------------------------------------------------------------------------------------------------------------------------------------- Parts List - http://www.hendrickson-intl.com/CMSPages/GetFile.aspx?guid=8ec0f3c4-b021-4226-95f1-1cfdca66ba70 Service Bulletin (adjustment) - http://hr.mckenzietank.com/maint/bulletins/16-sb136012.pdf

The Premium was designed and priced as a fleet truck, and the legendary Magnum was a hit with independent operators across Europe (including Sweden). Today, the new "T Range", though with Volvo DNA, feels to me very much like a "Renault". The "K Range" continues the tradition of the exemplary "Kerax". And Renault Trucks still feels like the highly capable RVI. Make a point to experience at least one of these trucks the next time you cross the pond. Renault is "much" more still Renault than Mack is Mack.

DAF Trucks Press Release / February 5, 2016 DAF Trucks’ market share in the heavy-duty segment (16 tonnes+) of the European truck market increased to 14.6% in 2015. "We have achieved growth in almost all major markets", says Richard Zink, member of the DAF Board of Management and responsible for Marketing & Sales. "We supply the best and most fuel efficient trucks ever, important drivers behind this growth." With a market share of 14.6%, DAF further strengthened its position in the heavy-duty segment of the European truck market in 2015 (2014: 13.8%). DAF saw its market share increase in major truck markets, such as Germany (10.8% market share), Great Britain (23.9%), Spain (11.3%), Poland (18.9%), the Netherlands (29.4%) and the Czech Republic (17.2%). In France and Italy, its market share stabilised at 12.0% and 10.2% respectively. In the heavy-duty segment, DAF is the market leader in the Netherlands, Great Britain, Poland and Hungary. In Belgium and the Czech Republic, DAF is market leader in tractors. In 2015, DAF registered around 39,400 vehicles in the European heavy-duty segment, an increase of 26% compared to the more than 31,200 trucks a year earlier. Total market for heavy-duty commercial vehicles rose by about 19% to more than 269,000 units, compared to just over 226,000 in 2014. For this year, DAF expects the European market for heavy-duty trucks to be between 260,000 and 290,000 vehicles. Light segment In the light segment - in which DAF offers the LF - the European truck market increased by more than 5% in 2015 to 49,000 units (2014: 46,500). DAF saw its market share in this 6 to 16-tonne class increase slightly from 8.9% in 2014 to 9.0% in the past year. An important contribution came from DAF's success in the UK, where it achieved a market share of over 36% in the LF segment. Further growth outside the European Union DAF has also further strengthened its market position outside the European Union. DAF made its entrance into Malaysia and Colombia. In Taiwan, a new assembly plant was opened to double production capacity for the LF, CF and XF models. With a market share of 17.8%, DAF is the largest European truck brand in Taiwan. The DAF factory in Ponta Grossa, Brazil increased production and commenced assembly of the versatile CF series and the PACCAR MX engine. DAF introduced its complete Euro 6 range in Turkey, where the new emission legislation came into effect on 1 January 2016. DAF Transport Efficiency "We are proud to have further reinforced our market position in 2015, both within and outside Europe", says Richard Zink, Director of Marketing & Sales. "Over the past year, DAF has introduced important product innovations that make our popular CF and XF models up to 5% more fuel efficient. In line with our DAF Transport Efficiency philosophy, numerous innovations were also implemented for the LF distribution truck, resulting in an even greater return per kilometre. Along with our extensive package of services and professional dealer organisation, DAF's comprehensive product range forms the basis for continuing growth toward our medium-term objective of 20% market share in Europe." .

Peterbilt Motors Company Press Release / February 5, 2016

Renault versus Volvo in “delivered trucks” for 2015 What is the most valuable (highest performing) brand in Volvo Group? Actually, it isn’t the namesake Volvo brand. Rather, it’s Renault. Since 2012 (http://www.bigmacktrucks.com/index.php?/topic/43897-how-the-mack-name-ended-up-where-it-is-today/), Volvo has completely owned Renault's truckmaking unit (aka RVI). However, with attention to French pride and politics (and part of the original backroom deal), Volvo gives Renault a tremendous amount of autonomy. Let’s take a look at Renault and Volvo worldwide truck deliveries in year 2015, versus the same period in 2014: January 2015 Renault up 24% Volvo down 4% February 2015 Renault up 26% Volvo down 13% 1st quarter 2015 Renault up 35% Volvo down 8% April 2015 Renault up 12% Volvo up 9% May 2015 Renault up 5% Volvo down 1% 2nd quarter 2015 Renault up 7% Volvo down 4% July 2015 Renault up 8% Volvo down 5% August 2015 Renault up 60% Volvo down 6% 3rd quarter 2015 Renault up 20% Volvo down 2% October 2015 Renault up 16% Volvo down 1% November 2015 Renault up 54% Volvo down 10% 4th quarter 2015 Renault up 29% Volvo down 7% Full Year 2015 Renault up 22% Volvo down 4% Renault brand truck sales rose in every month of 2015. Renault brand truck sales rose in excess of 10% during 9 of those months. Volvo brand truck sales fell in all but one month in 2015, even though Volvo Group gives its namesake brand priority over Renault (and Mack) in the global market (outside Western Europe). The Renault brand is on fire, and their trucks and organization tell the story. But the Volvo brand, ................................................

I again say, Mack should still be an American company. The U.S. Department of Justice should NOT have approved Volvo's purchase of Mack. Rather, the U.S. government should have supported Mack's survival, just as it has the Big 3 automakers for years. If the Big 3, and the banks on Wall Street, are "too big to fail", then why not America's truck industry that carries our economy on its back 24/7 ? I will say, Renault respected Mack Trucks for the capable company it was, and allowed Mack to operate with a high degree of autonomy. Renault wanted Mack Trucks to prosper in its own right. Volvo, on the other hand, wanted to acquire market share in the U.S. market. Mack was yet another stepping stone for the Swedish truckmaker in the U.S., like Autocar, GMC and White, a means to an end goal of finally finding significant success for Volvo in America's truck market.

Engine Maker Cummins Hit by Slowing Truck Sales The Wall Street Journal / February 5, 2016 Engine maker Cummins Inc. said its fourth-quarter profit plunged 64%, becoming the latest U.S. equipment maker pulled down by sliding demand for trucks in North America, anemic commodity prices and slower growth in developing markets. "Due to weak or slowing demand in many our major markets, 2016 will be another challenging year," Chairman and Chief Executive Tom Linebarger said during a conference call on Thursday. The Columbus, Ind., company's new outlook implies 2016 revenue of between $17.3 billion and $18 billion, with earnings per share of about $7.90, according to analysts. Cummins's revenue for 2015 was about flat with 2014 at $19.1 billion. Profit for the year declined 15% to $1.4 billion, or $7.84 a share. Its stock rose 7.6% to $97.57 at 4 p.m. in New York trading as part of a broad advance by industrial stocks. Fourth-quarter profit was lower than expected, reflecting weaker demand for Cummins's commercial trucks in North America. Truck buyers dialed back purchases late in the year as U.S. industrial activity weakened. The leading supplier of engines for heavy-duty commercial trucks said its fourth-quarter sales of heavy-duty truck engines fell 11% from a year earlier to $700 million. A flurry of truck orders early in 2015 pushed North American truck sales to their highest level since 2006. With most trucking fleets already well-stocked with new equipment, Cummins expects industry heavy-duty truck output will fall 25% this year. The decline is in line with forecasts offered this week by truck -transmission maker Eaton and truck-axle manufacturer Meritor. Cummins expects its revenue from heavy-duty truck engines to fall 20% this year from 2015 because of declining truck volumes in North America. It recorded a fourth-quarter impairment charge of $211 million to reflect the diminished value of its light-duty truck engine business. Cummins, which supplies diesel engines for Ram and Nissan pickup trucks, expanded production capacity for V-8 engines in the U.S. in anticipation of additional customers. "In light of the current economic situations [that expansion] is less likely in the short-term," said Rich Freeland, chief operating officer. "We'll add some non-pickup truck customers in 2016." Cummins is facing tough business conditions in once-highflying engine markets in China and Brazil. The company said revenue from Brazil plunged 48% last year under the weight an economic recession. Overall for the fourth quarter, Cummins reported a profit of $161 million, or 92 cents a share, down from $444 million, or $2.44 a share, a year earlier. Excluding one-time items, per-share earnings fell to $2.02 from $2.56 a year ago. Revenue declined 6% to $4.77 billion.

Volvo profit disappoints on N. American slowdown Market Watch / February 5, 2016 The world's second largest truck maker, Sweden's Volvo AB, on Friday cut its forecast for the North American truck market this year as it reported a lower than expected fourth-quarter profit. Volvo, which makes trucks under its Volvo, Renault, Mack and UD brands, said order intake in the fourth quarter fell 20% from a year earlier to 49,088 trucks. This drop was mainly driven by North America, which saw a slowdown in the market from an exceptionally high order intake in the fourth quarter of the previous year, the company said. The outlook for the North American market was cut to 260,000 trucks from 280,000 previously "Production cutbacks will be implemented in North America in the first quarter to adapt to a slowing market and expected destocking among dealers," Volvo said. In Europe, demand continued to strengthen, while Brazil saw a weakening trend, Volvo said. The outlook for the European truck market in 2016 was raised to 280,000 trucks from a previous forecast of 275,000 trucks, while the forecast for the Brazilian market was lowered to 35,000 trucks from 40,000 previously. Volvo said it expects the Chinese market for medium and heavy trucks to reach about 750,000 vehicles in 2016, up from a previous forecast of 720,000. The company, which is nearing the end of a four-year restructuring program targeting 10 billion Swedish kronor ($1.19 billion) in annual cost savings by the end of 2016, said measures are delivering expected results and that the number of employees in the group has been reduced by approximately 5,000 people for the full year. Handelsbanken analyst Hampus Engellau said the company's shares are likely to trade slightly higher Friday as the fourth-quarter result was mainly held back by losses in the group's construction equipment unit. "The main thing is that the operating margin in the company's truck business was 7.9% in the fourth quarter, which is very good," he said. Volvo's truck business makes up about two-thirds of its sales. Net profit for the October to December period rose to 2.60 billion kronor, compared with a net loss of 2.96 billion kronor a year earlier. This missed analyst expectations of 3.23 billion kronor in net profit. The fourth quarter of 2014 was negatively affected by provisions of 3.79 million kronor to an EU antitrust case and 660 million kronor for credit losses in China. Sales in the fourth quarter totaled 79.64 billion kronor, up from 77.48 billion kronor in the same period of 2014. Operating profit totaled 4.51 billion kronor, compared with an operating loss of 2.26 billion kronor.

Volvo AB to Cut Production on Lower North American Truck Demand Bloomberg / February 5, 2016 Volvo AB, the second-biggest truckmaker, cut this year’s forecast for the North American market by 7 percent, and said it will reduce production after demand weakened at the end of 2015. Fourth-quarter earnings excluding interest, taxes and costs related to restructuring were 5.38 billion kronor ($640 million), compared to a loss of 1.43 billion kronor a year earlier, Volvo said Friday in a statement. Sales rose 3 percent to 79.6 billion kronor. Volvo shed 5,000 jobs as part of a cost-cutting program to spend 10 billion kronor less this year than it did in 2012. The effort comes as the North American market, the company’s second-biggest, is expected to shrink to 260,000 units this year. Daimler AG, the biggest truckmaker, pointed toward the slowdown Thursday as the reason its earnings will probably be flat this year. “The question is whether this will be enough in the current market,” Hans-Peter Wodniok, an analyst at Fairesearch GmbH & Co. KG, said by phone from Kronberg, near Frankfurt. “They’re likely to announce another round of cost cuts this year.” With mostly new trucks on the roads in the U.S., sales there may decline for the next year or two, Wodniok said. Europe may partly compensate for those declines. Volvo is predicting that the European heavy-duty truck market will surpass that of North America this year as the world’s second-biggest, behind China. It’s predicting a flat market in China this year after last year’s 26 percent drop. “During the first quarter we will adjust production to the new lower level of demand in North America and Brazil,” Martin Lundstedt, who took over as chief executive officer in October, said in the statement. Advance sales contracts for trucks declined 20 percent to 49,088 vehicles in the fourth quarter, while orders for construction equipment dropped 18 percent. The company is proposing a dividend of 3 kronor per share, unchanged from last year. Operating income excluding restructuring charges at Volvo’s truck unit was 5.15 billion kronor during the fourth quarter, compared with a loss of 542 million kronor last year. Its construction equipment business had a loss of 191 million kronor, compared with a previous loss of 815 million kronor.

Volvo readies for U.S. slowdown as fourth-quarter profit just lags Reuters / February 5, 2016 Swedish truck maker Volvo forecast a steeper than expected slowdown in the North American heavy-duty truck market this year and said it would cut production there after posting a slightly smaller than predicted rise in fourth-quarter earnings. Volvo, a rival of Germany’s Daimler and Volkswagen's truck brands, is contending with falling demand for commercial vehicles in the United States and Brazil and a plunge in purchases of its construction equipment in China. While European truck sales are growing, the group's ability to parry downturns elsewhere is a test for the leaner and meaner company Volvo has sought to create through years of cost cuts, targeted to reach 10 billion crowns ($1.17 billion) this year. Sweden's biggest company by revenues said adjusted operating profit rose to 4.57 billion crowns ($543.76 million) from 3.02 billion a year ago, just lagging a mean forecast of 4.72 billion in Reuters poll of analysts. Gothenburg-based Volvo said the cost cuts to lift profitability closer to the level of nimbler rivals such as VW's Scania, and which have seen about 5,000 jobs cut across the group, were nearing their end. "We now enter the next phase," said new Volvo CEO Martin Lundstedt, the former Scania boss appointed last year after Olof Persson was sacked amid impatience over progress on the vast efficiency drive. A slowing U.S. economy, weak freight data and destocking have hit truck orders in recent months though Volvo's sales, working off a hefty backlog, have so far held up well. In Europe, a recent bright spot for many manufacturers, orders remain robust. Volvo, which sells trucks under the Mack, Renault and UD brands as well as its own name, raised its European truck market outlook but scaled back expectations for both Brazil and North America, where it now forecasts a 14 percent fall. The North American outlook chimed with that of its rivals, with Germany's Daimler forecasting a 10 percent decline for class 6-8 trucks and Paccar predicting a 12 percent drop in retail sales of class 8 trucks alone, the heaviest segment. "During the first quarter we will adjust production to the new lower level of demand in North America and Brazil," Lundstedt said. Volvo said new orders for its trucks fell 20 percent in the quarter versus a 16 percent decline seen by analysts, hit by steep declines in the western hemisphere. But in Europe, where the group had been expected to show some of its strongest margins, order bookings rose 20 percent. "It is positive that they had an order intake rise of 20 percent in Europe," Handelsbanken Capital Markets analyst Hampus Engellau said. "That is better than both Scania and Daimler in the quarter, showing they are winning market share." At its other major arm, its construction equipment business which accounts for a fifth of group sales, Volvo slumped to a loss versus an expected slim profit and retained a forecast for a continued slump of 10-20 percent in the Chinese market. The company proposed an unchanged dividend of 3.0 crowns per share, below a forecast 3.18 crowns.

Transport Engineer / February 5, 2016 Transport and warehousing business Owens Group has expanded its 300-strong mixed fleet with its first Renault Range Ts. Supplied by Renault Truck Commercials, twenty 44-tonne Range T460 6x2 tractor units have gone into operation with Owens’ retail division on double-shift, 24/7 duty across South Wales, London and the Midlands. The vehicles have been supplied on a full three-year contract hire basis through BRS and are being supported by Renault Truck Commercials Cardiff. Operations director Ian Owen says: “Following our recent rebranding from Owens Road Services to the Owens Group and hitting £50 million turnover, we were looking to expand our fleet as well as update some of our older models. Our business is extremely competitive so we need to be at the very top of our game.” He continues: “Attracting and retaining the best drivers to our company is fundamental to the success of our business. Having the best trucks on the market helps us to achieve this objective and the new tractor units have been enthusiastically received.” The vehicles are already achieving 9.5 mpg after a few weeks, adds Owen, “which we expect will improve further as the vehicles run in”. .

Transport Engineer / February 3, 2016 Wal-Mart’s UK subsidiary, supermarket chain ASDA, has taken delivery of 37 Scania P 450 LA6x2/2MNA lightweight sleeper cab tractor units for its petroleum distribution fleet, the last of a 253-vehicle order it placed with Scania late last year. Wal-Mart acquired long-time UK grocer ASDA in 1999. As well as the petroleum distribution vehicles, ASDA also took delivery of more than 200 new vehicles for its base and chilled fleets in December. The bulk of the order comprises Scania G-series sleeper cab models, featuring Scania’s 410bhp Euro 6 SCR-only engine. All trucks in the order will be maintained by the Scania UK network, which also provides a full service for much of ASDA’s trailer fleet. “Scania won the business in the face of strong competition, with fuel performance and aftersales care being key factors underpinning our decision,” says Peter Hey, ASDA’s fleet procurement manager. “We have also enjoyed a long relationship with Scania – 23 years and counting – and the service they provide around the country, coordinating and providing a wide range of services supporting our cost effectiveness and our O licence compliance, is incredibly important to our business.” .

Commercial Motor TV - sponsored by DAF Trucks / February 4, 2016

Worse than expected by Volvo Goteborgs-Posten / February 5, 2016 Vehicle manufacturer Volvo made a profit before tax of SEK 3.9 billion for the fourth quarter of this year. It was worse than expected and Volvo now expects to sell fewer heavy trucks this year than the group previously forecast. During the final three months of last year reached the Volvo sales of 79.6 billion crowns - three percent better than for the corresponding quarter last year. Yet, the financial report, a mixed picture of the market. Demand for trucks increased in Europe, but was weaker in Brazil and North America. Profit before tax 3,901 million was a significant improvement compared with the fourth quarter of 2014, when Volvo recorded a loss of 2.286 billion crowns. But when Volvo took large one-off costs and the analysts who follow the group had, according to Reuters, on average expected a profit of 4.328 billion crowns. In North America, order intake declined during the fourth quarter by 20 percent. Volvo has now chosen to lower its previous forecast of delivering 280,000 heavy trucks this year to 260,000. For the full year 2015 Volvo reports a profit before tax of SEK 20.4 billion, compared to 5.1 billion in 2014. The Board proposes a dividend of three crowns per share, unchanged from the previous year's dividend.

AB Volvo Press Release / February 5, 2016 2015 was a year of largely unchanged volumes, with the exception of construction equipment, where demand declined considerably. Our profitability improved with the operating margin excluding restructuring charges going from 3.0% in 2014 to 8.2% in 2015. This was thanks to cost reductions, but was also helped by positive currency development and capital gains from selling shares. THE FOURTH QUARTER 2015 In the 4th quarter of 2015, net orders from Volvo Group’s truck operations decreased 20 percent [from 61,222] to 49,088 vehicles, compared with the 4th quarter of 2014. In Europe, Volvo brand net orders rose 24 percent to 14,090 units, while Renault brand net orders increased 15 percent to 11,596 units. In North America, Volvo brand net orders decreased 55 percent [from 12,023] to 5,414 units, while Mack brand net orders fell 61 percent [from 12,601] to 4,905 units. • In the fourth quarter net sales increased by 3% to SEK 79.6 billion (77.5). Adjusted for currency movements and acquired and divested units sales decreased by 1%. • Operating income amounted to SEK 5,382 M (-1,429) excluding restructuring charges of SEK 871 M (830). Currency movements had a positive impact of SEK 1,201 M. • Operating income includes a positive impact from an arbitration case of SEK 809 M. The fourth quarter of 2014 was negatively impacted by provisions of SEK 3,790 M relating to the EU antitrust case and SEK 660 M for credit losses in China. Adjusted for these three items operating income excluding restructuring charges amounted to SEK 4,573 M (3,021) corresponding to an operating margin of 5.7% (3.9). • Operating cash flow in the Industrial Operations amounted to SEK 14.7 billion (10.6). THE FULL YEAR 2015 For full year 2015, net orders from Volvo Group’s truck operations decreased 10 percent {from 219,791} to 198,057 vehicles, compared with full year 2014. In Europe, Volvo brand net orders rose 12 percent to 49,882 units, while Renault brand net orders leaped 22 percent to 43,023 units. In North America, Volvo brand net orders decreased 20 percent [from 39,132] to 31,365 units, while Mack brand net orders fell 41 percent [from 32,330] to 19,226 units. • For the full year 2015 net sales increased by 10% to SEK 312.5 billion (282.9). • Operating income amounted to SEK 25,652 M (8,393) excluding restructuring charges of SEK 2,333 M (2,569). • The operating margin excluding restructuring charges amounted to 8.2% (3.0). • Operating cash flow in the Industrial Operations amounted to SEK 18.3 billion (6.4). • The Board of Directors’ proposes a dividend of SEK 3.00 per share (3.00) For a PDF version of the report, please click here: Volvo Group Q4 2015 PDF