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Transport Engineer / December 24, 2015 Transport and distribution business Moran Logistics has taken delivery of 50 new MAN TGX tractors and says it will be adding a further 80 to its fleet in 2016. The Lutterworth-based company’s additions are all TGX 26.440 tractors with XLX cabs and 12.4-litre six-cylinder engines, delivering 440bhp at 1,800 rpm. Owner Harry Moran was taken to the Munich factory by MAN to see one of his new vehicles rolling off the line. The company has 220 trucks and 330 trailers, and is a long-term MAN customer. A spokesman said: “We have tried different models in the past and we are impressed with what MAN has to offer. The whole package is attractive and there is a strong dealer network, too. “We have purchased 50 TGX 26.440 tractor units this year and we are gradually putting them in to service at our operating depots in Reading, Oswestry, Lockerbie, Manchester, Leeds, Lutterworth and Rugby. “We will be looking to add another 80 vehicles in 2016 to complement the current fleet. “MAN met the benchmark and that is why it won the tender. It has proved itself and delivered against expectations.” All the vehicles are supplied with a two-year repair and maintenance contract. .

Famous truck industry author Patrick Dyer's eighth book in the 'at work' series takes the reader on a journey with ERF, England's last independent truck manufacturer, between the years 1975 and 1993 with the B, C, CP and E-series trucks that the Sandbach-based company produced in the face of overwhelming competition from foreign truckmakers. Apart from the renowned economy, reliability and longevity of the products, the B, C, CP and E-series truck ranges were all linked by the remarkable SP cab, which combined a steel cage with bolt-on SMC (composite) panels. The system was so revolutionary that ERF patented it. The low cost of design and manufacture allowed it to update and improve its cabs with each series. ERF B, C, CP & E-series at Work draws on over 200 high quality photographs from the manufacturer and trucking enthusiasts, which combine with the informative text to tell the remarkable story of these ERF products through some of the most turbulent years of the company's existence. http://www.amazon.ca/Erf-E-Series-Work-Patrick-Dyer/dp/1910456101 http://www.nynehead-books.co.uk/description.php?II=2346

Scania Group Press Release / December 22, 2015 Download the Legend app and find out all there is to know about the V8's evolution. App Store: bit.ly/1g2AJkb Google Play: bit.ly/1m5clhN

Peterbilt’s Denton plant celebrates 35th anniversary Truck News / December 22, 2015 In 1980, ‘Old No. 1’ rolled off Peterbilt’s assembly line in Denton, Texas, and the company, which has produced nearly 500,000 trucks since, is now celebrating 35 years of ‘quality, safety, efficiency and innovation.’ “The value Peterbilt’s Denton plant has brought through the years to the company, our employees, customers, dealers and the community is immeasurable,” said Darrin Siver, Peterbilt general manager and PACCAR vice-president. “The Denton plant is a premier manufacturing facility across any industry and we continue to invest in the tools, processes and people that keep it state-of-the-art.” Starting with 81 employees working to manufacture two-and-a-half trucks each week, maximum capacity for the plant at the time was expected to be 16 trucks per day, but now, 35 years later, that capacity has increased 10 times and the workforce is 2,000 strong at the 455,000 square-foot facility. Over the years, many changes have come to the Denton plant; changes to increase efficiency, capacity and productivity, including recent improvements to the robotic cab assembly for the Models 579 and 567, as well as a non-contact axle alignment system. “To ensure our industry-leading quality and technological leadership, Peterbilt is constantly innovating throughout all areas of our operations,” said Leon Handt, Peterbilt assistant general manager of operations. “We laid the foundation 35 years ago in Denton to establish advanced manufacturing technologies, and we’ve been building on it ever since, taking it to levels of efficiency, quality and productivity far beyond when the facility was first designed.” The plant is currently undergoing a three-phase expansion project, which is expected to be complete by mid-2016. “The Peterbilt Denton plant is one of the strongest selling tools we have,” said Robert Woodall, Peterbilt assistant general manager of sales and marketing. “Thousands tour the plant every year, and it’s a great way to showcase our product quality, customization and technology. The Peterbilt Experience is a great addition to the facility and gives visitors a unique opportunity to experience Peterbilt’s products and the company’s history.” Milestones of Peterbilt’s Denton plant include: 1978 – Facility groundbreaking 1980 – Plant opens 1985 – 10,000th truck produced 1986 – First Model 379 produced 1988 – Facility expansion of receiving docks, warehousing and test area 1990 – Training center added 1993 – Engineering lab construction completed 1996 – 100,000th truck produced 1996 – Styling studio opens 1997 – Robotic integrated cab and sleeper assembly (Models 387 and 587) 1999 – First Model 387 produced 2001 – Clear coat paint robotics installed 2002 – Base coat robotics installed 2004 – Robotic fuel tank welding added 2006 – Training center auditorium added 2007 – Robotic chassis paint installed 2010 – First PACCAR MX-13 engine installed 2012 – Robotic cab assembly (Models 579 and 567) 2012 – First Model 579 produced 2013 – Non-contact axle alignment complete 2014 – The Peterbilt Experience opens 2015 – Loading dock expansion “Peterbilt has a highly skilled, very passionate workforce,” said Ron Augustyn, Denton plant manager. “It’s a great place to work. Everyone takes tremendous pride in what they do and it really shows.”

Trailer/Body Builder / December 23, 2015 In 1980, the first truck produced at Peterbilt’s Denton, Texas manufacturing plant—a Model 359 known as “Old No. 1”—came off the assembly line. Thirty-five years later, the facility has produced nearly 500,000 trucks. “The value Peterbilt’s Denton plant has brought through the years to the company, our employees, customers, dealers and the community is immeasurable,” said Darrin Siver, Peterbilt General Manager and PACCAR Vice President. “The Denton plant is a premier manufacturing facility across any industry and we continue to invest in the tools, processes and people that keep it state-of-the-art.” When the plant first opened, there were 81 employees working to manufacture 2½ trucks per week. Maximum capacity was expected to be 16 trucks daily. Through continuous improvement and ongoing investment, the plant’s current production capacity is ten times that and the workforce is 2,000 strong. Since opening, the 455,000 square-foot plant has undergone numerous changes to increase efficiency, capacity and productivity. The introduction of new models has brought on new tooling and processes, and technology has been introduced to enhance operations. “To ensure our industry-leading quality and technological leadership, Peterbilt is constantly innovating throughout all areas of our operations,” said Leon Handt, Peterbilt Assistant General Manager of Operations. “We laid the foundation 35 years ago in Denton to establish advanced manufacturing technologies, and we’ve been building on it ever since, taking it to levels of efficiency, quality and productivity far beyond when the facility was first designed.” Recent improvements to the plant include robotic cab assembly for the Models 579 and 567 and a Non-Contact Axle Alignment System. The plant is also undergoing a three-phase expansion project. The first phase created additional east side dock doors and receiving capacity. Phase two will add 17,000 square feet of additional material receiving area on the west side of the facility. Phase three, scheduled for completion in mid-2016, will create an automated storage and retrieval system (AS/RS) on the second level of the building to index painted hoods, cabs and sleepers.

There are several ways to look at this. Many view the 304 cu.in. V-8-powered CJ-5 as the ultimate version. But then you have to decide body tub styles, early 1970s (basically the M38A1 tub) versus the later revised (simplified) CJ-7 style tub. A 4-speed transmission was an available option, making the V-8/4-speed (T18) arguably the ultimate CJ-5. And again, it all depends on what you feel like. A second generation V-8 powered Jeep Commando (C104) was/is quite a truck. If comfort is important, the longer wheelbase CJ-7 might be worth consideration. It inherently won't rock as much front to back, so you won't necessarily be looking for a bathroom as often as with a CJ-5. Fast forwarding to the present, it doesn't get any better than AEV's JK Wrangler and Brute pickup. http://www.aev-conversions.com/vehicles/jk-wrangler http://www.aev-conversions.com/vehicles/brute-double-cab AEV is an OEM supplier to Toledo (FCA), and their factory-like modified Jeep products enjoy a full Jeep factory warranty.

Furor over Arabic assignment leads Virginia school district to close Friday The Washington Post / December 17, 2015 A Virginia school system has decided to close schools Friday after a high school geography assignment on world religions led to allegations of Islamic indoctrination and a slew of angry emails and phone calls. Augusta County School District officials said that there had been no specific threat of harm to students. But in a statement posted on the school district’s website, officials said they were concerned about the “tone and content of these communications.” “We regret having to take this action, but we are doing so based on the recommendations of law enforcement and the Augusta County School Board out of an abundance of caution,” the statement says. Superintendent Eric Bond refused to respond to questions about why he canceled school given the lack of a specific threat, or about whether he considered the original assignment improper. Members of the school board also refused to comment. The school district serves about 10,000 students in Virginia’s Shenandoah Valley west of Charlottesville, Va., about 150 miles from Washington, D.C. A geography teacher at the district’s Riverheads High in Staunton, Va., gave an assignment asking students to try their hand at [alleged] calligraphy by copying a statement in Arabic, according to the Staunton News Leader. The “calligraphy” was the Muslim statement of faith, according to the newspaper: “There is no god but Allah. Muhammad is the messenger of Allah.” The assignment was [allegedly] meant to give students a sense for the art of calligraphy, and the teacher did not have the students translate the statement into English, require students to recite the statement, or say they believed in it. But some parents were outraged at what they saw as an attempt to promote Islam in a public school. One parent accused the school of religious indoctrination, drawing the attention of national media, triggering a community meeting and an avalanche of messages to the school system. “These children were deceived when they were told it was calligraphy,” the parent, Kimberly Herndon, told NBC29 television. “This is not calligraphy, this is a language.” Students were also invited to try on a hijab, or head scarf. In the statement posted on the school district website, officials said that “no lesson was designed to promote a religious viewpoint or change any student’s religious belief.” Students will continue learning about world religions as required by state academic standards, school officials said. But in the future, students will practice calligraphy using a different sample that has nothing to do with Islam.

The Wall Street Journal / December 17, 2015 Truck maker Navistar International Corp. hopes to pay the U.S. Securities and Exchange Commission (SEC) to settle a probe into past disclosures about the departure of a chief executive and an exhaust-treatment technology. Navistar said the agency’s staff recommended acceptance of its settlement offer, but it released no details, noting that the offer hasn’t been formally approved by the SEC. The company’s offer wouldn’t require it to admit or deny any wrongdoing, it said in a regulatory filing, and the company has set aside an undisclosed amount to cover a civil penalty. “We have reached an agreement with the staff of the SEC that will end their investigation,” said Steven Covey, Navistar’s general counsel. “Beyond that, we’re, not making any announcement right now.” The company still faces lawsuits from customers and regulators.

Liebherr Press Release / November 23, 2015 The Liebherr T 282 C, the company’s newest off-highway hauler, has a 237 ton net empty weight, a 363 tons maximum payload and this a 600 ton GVM. A 90-liter (5,500 cu.in.) 3,650 horsepower V-20 engine propels the truck at speeds up to 64 km/h (40 mph) fully-loaded. The truck’s components arrive in Australia from Europe and North America in KD form (knocked down) and are reassembled. The dump body is produced in Australia. The video follows the journey from the Port of Brisbane to the build-site in North Queensland, showing all of the pieces being put together, and culminates in footage of some of the fleet in action.

AB Volvo Press Release / December 17, 2015 In November 2015, deliveries from Volvo Group’s truck operations amounted to 18,333 vehicles. In November 2015, truck deliveries rose by 40% in Europe. On the other hand, truck deliveries decreased by 63% in South America, by 9% in Asia and by 2% in North America. In total, Volvo Group’s wholly-owned operations* delivered 18,333 trucks, which was on the same level as in November 2014. Volvo brand global sales reached 9,655 units, including 2,912 deliveries in North America, down 10 percent globally but up 2 percent in North America compared to November 2014. Mack brand global sales reached 2,171 units, including 2,021 deliveries in North America, down 11 percent globally and down 6 percent in North America compared to November 2014. Renault brand global sales reached 4,859 units, jumping 54 percent globally and 70 percent in Europe compared to November 2014. UD (Nissan Diesel) brand global sales reached 1,638 units, including 1,351 deliveries in Asia, down 15 percent globally and down 11 percent in Asia compared to November 2014. * Excluding Dongfeng, Dongvo (UD China) and VE Commercial Vehicles (Eicher) .

Scania Group Press Release / December 17, 2015

Losses Fall, Company Optimism Rises as Navistar Reports 4Q and 2015 Results Transport Topics / December 17, 2015 Navistar International Corp. reported lower net losses for its fourth quarter and 2015 fiscal year ended Oct. 31, and forecast it would improve on those trends and turn cash-flow positive and profitable in 2016. For the quarter, Navistar lost $50 million or a diluted loss per share of 61 cents compared with a loss of $72 million or 88 cents a year earlier. Revenue in the quarter fell to $2.5 billion, down from $3 billion a year earlier. The company also said it has offered to pay a fine to settle a Securities and Exchange Commission investigation into the company’s disclosures about the departure of CEO Dan Ustian in 2012 and its strategy for reducing engine emissions. The company did not disclose details about the proposed settlement. CEO Troy Clarke said during a conference call that the company with its Class 8 vehicles “was seeing a higher share of the wallet,” meaning customers “who may have bought 25 trucks now are buying 300.” He said Class 8 orders were strong in December without giving an exact figure. The company said it expects to launch a new HX Series, the PayStar replacement, in early 2016 for the construction and vocational markets. Also, over the next three years, Navistar will continue to update its product line, including the introduction of its ProStar replacement, the new LT series. Sales of its used trucks slowed, in part, as export markets weakened, the company said. Also, the earnings report said the company “recognized adjustments to pre-existing warranties [for its engines introduced to meet 2010 emissions standards and since recalled] of $1 million in 2015 compared to adjustments of $55 million in 2014 and $404 million in 2013.” For the year, Navistar lost $184 million or $2.25 per share compared with a loss of $619 million or $7.60 in the 2014 period. Revenue for the year slipped to $10.1 billion from $10.8 billion a year earlier.

Mack Deliveries Decline in November Transport Topics / December 17, 2015 Production slowed in November for Mack Trucks, with the heavy-duty truck manufacturer reporting its first delivery decline of the year. Mack delivered 2,171 rigs worldwide in November, an 11% decrease from the 2,451 it sent out one year earlier, according to a report released Dec. 17 by the Sweden-based Volvo Group, Mack's parent company. Of that, 2,021 — or about 93% of the worldwide total — were delivered in North America, down 6% compared with a year ago. Mack also saw a decline in South America, delivering 75 trucks there in November, falling short of the 209 sent there in November 2014. While it's the first reported delivery decline for Mack this year, the figures are not entirely unexpected. Mack said Dec. 15 it will lay off about 400 workers in the Lehigh Valley by late January, allowing the manufacturer to adjust to an expected 10% decline in the heavy-duty truck market next year. Mack employs 1,850 in the Lehigh Valley and its 1 million-square-foot Lower Macungie Township plant is where all Mack trucks built for the North American market and export are assembled. The heavy-duty truck market is expected to peak this year and, at least at one point this year, Mack's Lower Macungie plant had been pumping out 116 trucks a day. Through November, Mack delivered 25,198 trucks, up 8% from the 23,349 from the same 11-month stretch last year. In its third-quarter report, Volvo said it expects the total North American retail market for heavy-duty trucks to approach 310,000 trucks in 2015. In 2016, the company expects solid — but lower — demand of about 280,000 trucks. Other firms, such as Stifel Financial Corp., have lower projections. In a Dec. 7 report, Stifel decreased its 2016 North American heavy-duty truck production estimate from 280,000 units to 250,000 after order data underwhelmed for the second consecutive month in November. Mack was not the only manufacturer to see a decrease in deliveries in November. According to the report, Volvo delivered 9,360 of its heavy-duty trucks in November, also down 11% from one year earlier when it sent out 10,574 vehicles.

The Morning Call / December 17, 2015 Production slowed in November for Mack Trucks, with the heavy-duty truck manufacturer reporting its first delivery decline of the year. Mack delivered 2,171 rigs worldwide in November, an 11 percent decrease from the 2,451 it sent out one year earlier, according to a report released Thursday by the Sweden-based Volvo Group, Mack's parent company. Volvo also reported an 11 percent decline in deliveries of its heavy-duty trucks. Of Mack's worldwide total, 2,021 — about 93 percent — were delivered in North America, down 6 percent compared with a year ago. Mack also saw a decline in South America, delivering 75 trucks there in November, falling short of the 209 sent there in November 2014. While it's the first reported delivery decline for Mack this year, the figures are not entirely unexpected. Wade Watson, vice president and general manager of Mack Trucks Lehigh Valley Operations, said the decline in production was partly caused by holidays in November, calling last month's figures "basically an impact of the season." However, Watson said, Mack still has a "fair amount of backlog" it is getting through, causing employees to work some extra days earlier this month. "December looks like it's going to be a pretty strong month for us on deliveries," Watson said. Mack also is adjusting its workforce amid an anticipated 10 percent decline in the heavy-duty truck market next year. The company said Tuesday it will lay off about 400 workers in the Lehigh Valley by late January. Mack currently employs 1,850 at its Lehigh Valley Operations and its 1-million-square-foot Lower Macungie Township plant is where all Mack trucks built for the North American market and export are assembled. The heavy-duty truck market is expected to peak this year and, at least at one point this year, Mack's Lower Macungie plant had been pumping out 116 trucks a day. Through November, Mack delivered 25,198 trucks, up 8 percent from the 23,349 from the same 11-month stretch last year. In its third-quarter report, Volvo said it expects the total North American retail market for heavy-duty trucks to approach 310,000 trucks in 2015. In 2016, the company expects solid — but lower — demand of about 280,000 trucks. Other firms, such as Stifel Financial Corp., have lower projections. In a Dec. 7 report, Stifel decreased its 2016 North American heavy-duty truck production estimate from 280,000 units to 250,000 after order data underwhelmed for the second consecutive month in November. Watson said he sees next year's expected decline as a market correction, after heavy-duty truck makers received an influx of orders at the end of 2014 and built at high levels this year. He also said the workers who will be affected by the upcoming layoff — they have recall rights with the exception of probationary employees — could eventually be brought back. "I expect to see the market come back," Watson said. "It's a cyclical business. We see ebb and flow over usually a three-year period." .

Navistar Trims Losses, Expects Profitable 2016 Today’s Trucking / December 17, 2015 LISLE, IL – The truck and engine manufacturer Navistar International managed to cut back on its losses in its most recent fiscal quarter while they were down significantly for the 2015 fiscal year, both ending on Oct 31. Its fourth quarter 2015 net loss of US$50 million, or US$0.61 per diluted share, compared to a fourth quarter 2014 net loss of US$72 million, or US$0.88 per diluted share. Revenues in the quarter were US$2.5 billion compared to US$3 billion a year earlier. Fourth quarter 2015 earnings before interest, taxes, depreciation and amortization (EBITDA) was US$86 million versus EBITDA of US$66 million in the same period a year ago. This quarter included $69 million in restructuring-related and impairment charge and $40 million in pre-existing warranty adjustments "We delivered on our adjusted EBITDA end-of year run rate target of eight percent or better, thanks to a favorable mix of truck sales and record parts profitability in our core North America market in the fourth quarter," said Troy A. Clarke, Navistar president and chief executive officer. "We also benefited from our continued focus on cost management across our operations, marked by a US$74 million improvement in structural costs in the quarter." As for full-year fiscal 2015 results, Navistar reported a net loss of US$184 million, or US$2.25 per diluted share, down significantly from a net loss of US$619 million, or US$7.60 per diluted share, for fiscal 2014. Revenue for fiscal 2015 was US$10.1 billion, down from US$10.8 billion a year earlier. Fiscal year 2015 adjusted EBITDA was US$494 million versus US$306 million for fiscal 2014. Chargeouts in the company's core North America market increased by 3,500 units, or six percent, in 2015, reflecting an 18 percent increase in Class 6/7 medium duty trucks, a 10 percent increase in school buses, and a seven percent increase in Class 8 severe service, partially offset by a four percent decline in Class 8 heavy trucks. Total market share for Class 6-8 and bus for the year was 16 percent. Operationally, the company reduced its total costs by more than US$300 million in 2015, including US$114 million in structural cost reductions, with the remainder coming from reduced material and logistics spending and lower manufacturing costs, according to Navistar. "For the third consecutive year, we generated around US$200 million in adjusted EBITDA improvement, and we expect this improvement trend to continue in 2016," Clarke said. "We are building the best products we've ever built, and we are winning back customers. We have identified and begun implementing actions to further lower our material spend and structural costs, while driving greater efficiencies in our manufacturing operations. As a result, we expect to build on our 2015 progress, and our goal is to achieve profitability and be free cash flow positive in 2016." In Navistar’s truck segment business during the 2015 fiscal fourth quarter it recorded a loss of US$36 million, compared with a year-ago loss of US$40 million. For the fiscal year 2015, the truck segment recorded a loss of US$141 million, compared with a fiscal year 2014 loss of US$380 million. For the fiscal fourth quarter of 2015, the parts segment recorded record profits of US$163 million, compared to a year-ago fourth quarter profit of US$150 million. For the fiscal year 2015, the parts segment recorded record profits of US$592 million, compared to a fiscal year 2014 profit of US$528 million. The global operations segment for the fourth quarter 2015 recorded a loss of US$27 million, compared to a year-ago fourth quarter loss of US$56 million. For the 2015 fiscal year, the global operations segment recorded a loss of US$67 million compared to a year-ago fiscal year loss of US$274 million. The financial services segment during the fiscal fourth quarter of 2015 recorded a profit of US$26 million, the same from a year earlier, while fiscal 2015 profit was US$98 million, up slightly from US$97 million a year earlier. Navistar also released the following guidance for its 2016 fiscal year that started on Nov. 1. - Forecasts retail deliveries of Class 6-8 trucks and buses in the U.S. and Canada will be in the range of 350,000 to 380,000 units industry-wide. - Full-year 2016 revenues of US$9.5 - US$10 billion. - Full-year 2016 adjusted EBITDA of US$600 - US$700 million.

Commercial Carrier Journal (CCJ) / December 17, 2015 Navistar International Corporation Thursday reported a fourth quarter 2015 net loss of $50 million, an improvement of $22 million from a fourth quarter 2014. Revenues in the quarter were $2.5 billion, a 17 percent drop compared to fourth quarter 2014. Navistar president and chief executive Troy Clarke says the company hit its adjusted EBITDA end-of year run rate target of 8 percent or better, “thanks to a favorable mix of truck sales and record parts profitability in our core North America market in the fourth quarter.” Navistar’s fourth quarter adjusted EBITDA margin for the quarter was 8.4 percent. “For the third consecutive year, we generated around $200 million in adjusted EBITDA improvement, and we expect this improvement trend to continue in 2016,” Clarke says. “We are building the best products we’ve ever built, and we are winning back customers.” As for full-year 2015 results, Navistar reported a net loss of $184 million against a net loss of $619 million for fiscal year 2014. Fiscal year 2015 adjusted EBITDA was $494 million versus $306 million adjusted EBITDA for 2014. Revenue for fiscal year 2015 was $10.1 billion, compared to $10.8 billion in fiscal year 2014. “We have identified and begun implementing actions to further lower our material spend and structural costs, while driving greater efficiencies in our manufacturing operations,” Clarke adds. “As a result, we expect to build on our 2015 progress, and our goal is to achieve profitability and be free cash flow positive in 2016.” Chargeouts in the company’s Core North America market increased by 3,500 units (6 percent) in 2015 – an 18-percent increase in Class 6/7 medium trucks, a 10-percent increase in school buses, and a 7-percent increase in Class 8 severe service. Class 8 heavy truck dropped 4-percent. Total market share for Class 6-8 and bus for the year was 16 percent. For the fiscal year 2015, Navistar’s truck segment recorded a loss of $141 million, compared with a fiscal year 2014 loss of $380 million. The year-over-year improvement, Clarke says, was primarily driven by a shift in product mix, improved margins and lower structural costs, partially offset by an increase in used truck reserves and higher accelerated depreciation charges related to the company’s exit of the foundry business. Navistar’s parts segment recorded record profits for the year of $592 million, up from $528 million last year.

http://www.autoblog.com/2015/12/17/ford-f150-jaguar-land-rover-diesel-spy-shots/

I have nothing but respect for U.S. Navy veteran John McCain. But, there has long been a troubling pattern with government leaders all around the world. They come on strong with dynamic and flexible thinking in their 40s and 50s, but transition to conservative and rigid thinking in their later years, just the opposite of what made them outstanding in the beginning. It's a normal event of human nature, but detrimental to optimal governmental performance. John McCain is 79. His experience and knowledge is not subject to question. But respectfully speaking, I believe that the age for members of the legislative, executive and judicial branches should be capped at 75, if not 70.

Hillary Clinton on east coast oil drilling: 'So little to gain and so much to lose' The Guardian / December 17, 2015 Clinton is critical of the department of interior’s draft plan for drilling in areas off the coast of Virginia, North Carolina, South Carolina and Georgia Hillary Clinton has said she is “very sceptical” of the need to drill for oil or gas off the United States’ eastern seaboard, despite the Obama administration putting forward proposals that would open up vast tracts of the ocean for fossil fuel extraction. Clinton’s doubts follow her public opposition to the Keystone oil pipeline, which Obama halted, and Shell’s oil exploration in the Arctic, which the president allowed only for Shell to then scrap its drilling plans. “I am very sceptical about the need or desire for us to pursue offshore drilling off the coast of South Carolina, and frankly off the coast of other southeast states,” Clinton told South Carolina radio station WGCV-AM. The frontrunner for the Democratic presidential nomination said the drilling poses risks to the environment and conflicts with the need for renewable energy sources. The department of interior has put out a draft plan that would allow five-year leases for drilling from 2017 in areas off the coast of Virginia, North Carolina, South Carolina and Georgia. The proposed leases, which cover 104m acres, would mark the first time the US has allowed drilling in the region. The department of interior said the plan, which will be open for public comment early next year, is part of Obama’s “all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production”. Mayors of several coastal towns and environmental groups have spoken out against the proposed drilling, arguing it will harm marine life (such as whales), perpetuate climate change and damage tourism and fishing in coastal communities. The oil and gas industries have claimed new drilling will generate new jobs and investment for the southeast states. Despite her remarks over drilling, Clinton has been challenged by environmental groups over donations from fossil fuel companies. Questioned over the issue by climate activist group 350.org, Clinton said she will “take a look” at claims her campaign has received money from a former ExxonMobil executive and a former lobbyist of TransCanada. “Individuals who might have some connection to whatever industry, I’m not going to do a litmus test on them,” she said. “I don’t think that there’s a lot who support me, but the companies don’t, because they know I’m going to be very adamant about moving us towards clean renewable energy and I think that’s the way it should be. They should know where we’re going and how I’m going to try and get you there.” The recent Paris climate talks produced an agreement where the US, and more than 190 other countries, vowed to peak fossil fuel use as quickly as possible and phase out its use by the second half of the century. Both Bernie Sanders and Martin O’Malley, Clinton’s challengers for the Democratic nomination, have said they would block any offshore drilling. The Republican candidates are broadly in favour of drilling, although Texas senator Ted Cruz has proposed that coastal states should be able to determine whether they want offshore development. Khalid Pitts, political director of conservation group the Sierra Club, said: “Now that the entire world agreed in Paris on an expiration date for fossil fuels, there are even more reasons to be sceptical of why we’d want to risk a catastrophic oil spill for the sake of dirty energy that’s on its way out. “With so little to gain and so much to lose for our coasts, public health and climate, we’re much better off just keeping these dirty fuels in the ground.”

Bloomberg / December 17, 2015 The No. 1 U.S. defense contractor, Lockheed Martin Corp., is going to court to fight a government decision awarding a $6.75 billion deal to replace the U.S. Army’s Humvee combat vehicle to a company that ranked No. 99 last year. The Army plans to buy about 55,000 of the multipurpose vehicles for its troops and the Marine Corps through 2040, spending an estimated $30 billion. Oshkosh Corp. in August was awarded the initial order for about 17,000 vehicles, which are more heavily armored than the Humvees they’ll replace. “After careful consideration of all options, Lockheed Martin decided to file a complaint with the Court of Federal Claims concerning our Joint Light Tactical Vehicle (JLTV) contract award process,” that company said in an e-mailed statement announcing its lawsuit. “We look forward to working with all parties involved on the next steps.” Its complaint was filed under seal Wednesday, according to court records. Lockheed said in an accompanying filing that some proprietary information was inappropriate for public release. The court will ultimately decide how much of the complaint, and legal proceedings in the case, should remain confidential. A hearing is scheduled for Friday before Judge Charles Lettow. The government’s answer is due by Feb. 16. Michael Clow, an Army spokesman, declined to comment on the complaint. Oshkosh Vice President John Urias said in a statement that he had confidence in the Army’s procurement process, which he said included “exhaustive testing and evaluation to ensure our troops get the best vehicle.” Urias also said he believed the federal court will uphold the Army’s selection of the Oshkosh, Wisconsin-based company. “We firmly believe we offered the most capable and affordable solution for the program,” Lockheed said in September, when it lodged its original protest with the U.S. Government Accountability Office. Absent Documents Lockheed opted to abandon the GAO proceedings after learning that “a substantial number of documents directly related to the competition” weren’t provided to it or to the agency until late in that process, it said in a Dec. 15 statement. The agency declined to extend its 100-day deadline for ruling on the dispute and couldn’t consider the new information, according to Lockheed. The GAO then rejected Lockheed’s protest, citing the company’s filing of a notice of intent to sue. The case is Lockheed Martin Corp. v. USA, 15-cv-01536, U.S. Court of Federal Claims (Washington).

Central banks are casinos. They print money as if they were manufacturing endless numbers of chips that they’ll never have to redeem. Actually a casino is an apt description for today’s global monetary policy. There is a well-known “foolproof” system in gambling circles that is sophisticatedly called the “Martingale”. I used to call it “double up to catch up” at my fraternity’s poker table where I was consistently frustrated (loser) – not because I used Martingale but because I wasn’t a good bluffer. Today’s central bankers use both tactics to their success – at least for now. They bluff or at least convince investors that they will keep interest rates low for extended periods of time and if that fails, they use Quantitative Easing (QE) with a Martingale flavor. Martingale theorizes that if you lose one bet, you just double the next one to get back to even, but if you lose that one you do it again and again until you win. Given an endless pool of “chips”, the theory is nearly mathematically certain to succeed, and in today’s global monetary system, central bankers are doing just that. Japan for years has doubled down on its QE and Mario Draghi’s statement of several years past, “Whatever it takes” – is a Martingale promise in disguise. It vows to get the Euroland economy back to “even” and inflation up to 2% by increasing QE and the collateral it buys until the Euro currency declines, the EZ economy improves, and inflation approaches target. Currently the European Central Bank (ECB) buys nearly 55 billion Euros a month, and this Thursday they will up the ante – Martingale or bust! How long can this keep going on? Well, theoretically as long as there are financial assets (including stocks) to buy. Practically the limit is really the value of the central bank’s base currency. If investors lose faith in a reasonable range for a country’s currency, then inflation will quickly hit targets and then some. Venezuela, Argentina, and Zimbabwe are modern day examples. Germany’s Weimar Republic is a great historical one. Theoretically, if the whole developed global economy did this at the same relative pace and stopped at the right time, they could successfully reflate and produce a little bit of inflation and a little bit of growth and save the globe from the dreaded throes of deflation. That is what they are trying to do – Quantitative Easing, Martingale style – and so far, so good, I guess – although no rational observer would call these post Lehman efforts a success. That they haven’t really succeeded is a testament to what I and others have theorized for some time. Martingale QE’s and resultant artificially low interest rates carry distinctive white blood cells, not oxygenated red ones, as they wind their way through the economy’s corpus: they keep alive zombie corporations that are unproductive; they destroy business models such as insurance companies and pension funds because yields are too low to pay promised benefits; they turn savers into financial eunuchs, unable to reproduce and grow their retirement funds to maintain expected future lifestyles. More sophisticated economists such as Kenneth Rogoff and Carmen Reinhart label this “financial repression”. Euthanasia of the saver is the result if it continues too long. But this is theorizing much like Schrödinger’s cat. How many people care about the existence of a quantum feline? (A few, thankfully, but not many.) Market observers say “show me the money” and when they look inside the box, they want to see some, so let’s get down to business. How does all this play out? Timing is the key because as gamblers know there isn’t an endless stream of Martingale chips – even for central bankers acting in unison. One day the negative feedback loop on the real economy will halt the ascent of stock and bond prices and investors will look around like Wile E. Coyote wondering how far is down. But when? When does Martingale meet its inevitable fate? I really don’t know; I’m just certain it will. Doesn’t help you much, does it. Except to argue that much like time is relative to the speed of light, the faster and faster central bankers press the monetary button, the greater and greater the relative risk of owning financial assets. I would gradually de-risk portfolios as we move into 2016. Less credit risk, reduced equity exposure, placing more emphasis on the return of your money than a double digit return on your money. Even Martingale casinos eventually fail. They may not run out of chips but like Atlantic City, the gamblers eventually go home, and their doors close. William (Bill) H. Gross December 3, 2015

You expect better judgement from your Secretary of Defense……….and you should. Carter served as US Assistant Secretary of Defense for International Security Policy during Clinton's first term (1993-1996), Under Secretary of Defense for Acquisition, Technology, and Logistics (2009-2011), and Deputy Secretary of Defense (2011-2013). This employee of the U.S. people is a Harvard graduate, a Rhodes Scholar and studied at Oxford. With all that in mind, he knew better than to use his personal e-mail. The mystery is, why did he like Hillary Clinton do so? --------------------------------------------------------------------------------------------------- Associated Press / December 17, 2015 The Pentagon acknowledged Wednesday that Defense Secretary Ash Carter used a personal email account to do some of his government business during his first months on the job. Carter's press secretary, Peter Cook (not Carter himself), released a statement saying Carter believes his use of personal email for work-related business was a mistake (By that admission, the American people are supposed to be nice and let him off the hook). Cook declined to say whether it was a violation of Pentagon email policies. Cook said Carter stopped the practice, but Cook refused to say when. The Pentagon statement was in response to a report published late Wednesday by The New York Times (http://www.nytimes.com/2015/12/17/us/politics/defense-secretary-ashton-carter-conducted-some-official-business-on-a-personal-email-account.html?_r=0). The newspaper reported it had obtained 72 work-related emails that Carter sent or received from his personal email account. Hillary Clinton came under heavy criticism when it was revealed in March that she had used a personal email account as secretary of state. Carter took office in February. "After reviewing his email practices earlier this year, the secretary believes that his previous, occasional use of personal email for work-related business, even for routine administrative issues and backed up to his official account, was a mistake," Cook wrote. "As a result, he stopped such use of his personal email and further limited his use of email altogether." The Times said the emails it received under the Freedom of Information Act were exchanges between Carter and Eric Fanning, who was his chief of staff at the time and is now the acting secretary of the Army. The emails were on a variety of work-related topics, the Times said, including speeches, meetings and news media appearances. In one such email, Carter discussed how he had mistakenly placed a note card in a "burn bag," the Times reported. Such bags are typically used to destroy classified documents. Cook said Carter "does not use his personal email or official email for classified material. The Secretary has a secure communications team that handles his classified information and provides it to him as necessary." Carter "takes his responsibilities with regard to classified material very seriously," Cook said.

Transport Engineer / December 16, 2015 Michelin Solutions has launched a telematics-based trailer management system, available to any fleet regardless of current or future tyre policy and which Michelin describes as “a quantum leap” for trailer management. Called Effitrailer, the trailer is fitted with telematics kit, featuring an on-board datalink, tyre pressure monitoring system (TPMS) and electronic braking system (EBS) data analysis. Once installed, the equipment enables constant geolocation of every Effitrailer-optimised asset in a fleet. As part of the offer, Michelin is committing to reduce tyre-related trailer breakdowns by up to 50%, with refunds for breakdowns if it does not hit the target. With the offer available to any fleet whatever the tyre policy, Michelin estimates it is suitable for 90% of trailers in Europe which do not currently use telematics. Nearly one-third (32 per cent) of all HGV breakdowns in Europe are linked to the tyres, and in 70 per cent of cases they occur on the trailer – with Michelin’s own research finding the average cost of a trailer breakdown is approximately £1,000. Real-time data is sent to a web portal, where fleet managers can see each trailer’s precise location, mileage, tyre pressure information, the length of periods of wait-time, unhooked or towed status, and more. Paul Davey, commercial director of Michelin Solutions in the UK and Republic of Ireland, says: “Effitrailer is a quantum leap in trailer fleet management and offers a previously unseen degree of control over the day-to-day operations of vital road transport assets. “With large trailer fleets, just knowing where every asset is can be challenging; but thanks to Effitrailer telematics, fleet managers can rest assured that the location of every optimised trailer is available at the touch of a button – and that’s just the tip of the iceberg when it comes to the added value the programme’s data offers.” Customisable alerts can be set up, such as for repeated hard braking, and Michelin provides monthly and quarterly reports. The telematics devices can be fitted on all trailer types equipped with EBS; the unit, cable harness and connection systems are mounted on the trailer’s chassis. Effitrailer is now available in the UK, Ireland, France, Italy, Germany, Switzerland and Austria, and will be offered in other European countries from 2016.

US Army Orders Oshkosh to Resumes JLTV Work Defense Update / December 16, 2015 Lockheed Martin said it is planning to file a new protest to the U.S. Court of Federal Claims by December 17th. Oshkosh is expected to begin production under the Army’s orders and wait for the Federal Claims Court decision. The U.S. Army instructed the Oshkosh Corporation to resume work on the Joint Light Tactical Vehicle (JLTV) following the U.S. Government Accountability Office (GAO) decision to dismiss Lockheed Martin’s protest yesterday. The protest against the Army’s selection of Oshkosh for the $6.7 billion contract was filed September 8, 2015 forced the army to stop work on the program until the GAO’s decision. The GAO announced its decision after Lockheed Martin’s notice that it intends to file another protest in the U.S. Court of Federal Claims by December 17th. Therefore, Oshkosh is expected to begin production under the Army’s orders and wait for the Federal Claims Court decision. According to the JLTV production contract, Oshkosh will begin delivering vehicles within the next 10 months, reaching an expected total volume of nearly 17,000 vehicles, as well as kits and sustainment services over an eight-year period. The release, even if temporary, means that Oshkosh can now proceed with orders to subcontractor, previously prevented by the Army’s the stop work order. “We are pleased that the JLTV production contract, awarded to Oshkosh in August, is now moving forward to deliver the world’s most capable light tactical vehicle,” said U.S. Army Major General (Retired) John M. Urias, executive vice president of Oshkosh Corporation and president of Oshkosh Defense. The JLTV program fills a critical capability gap for the U.S. Army and Marine Corps by replacing a large portion of the legacy HMMWV fleet with a light vehicle that provides unprecedented protection, off-road mobility and transportability. Related reading - http://www.bigmacktrucks.com/index.php?/topic/41515-oshkosh-wins-675-billion-deal-to-replace-us-army-marine-humvees/?hl=jltv