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Ford’s Suspended Dividend Tests Family’s Patience With Hackett Bloomberg / March 19, 2020 Ford Motor Co.’s Chief Executive Officer Jim Hackett was already under pressure before the coronavirus pandemic upended economies worldwide. But after suspending the dividend payment that management had said was sacrosanct, he’s now testing the faith of the founding family that has supported him. Executive Chairman Bill Ford has not been shy about stressing the importance of the stock and dividend to his clan. “Most of our net worth is tied up in the company,” he said at Ford’s 2017 annual shareholders meeting. A year later, he joked about his family’s keen interest in the dividend when reading a question from an investor. “Why is the company so stingy with paying dividends?” Ford read during the webcast shareholder meeting. He quipped: “Was that sent in by a member of the Ford family?” But now, with the automaker halting production at its North American factories after shutting plants in Europe earlier this week, Hackett said he has no choice but to conserve cash and offset a financial hit one analyst estimates will cost the company $1 billion in earnings before interest and taxes. “While we obviously didn’t foresee the coronavirus pandemic, we have maintained a strong balance sheet and ample liquidity so that we could weather economic uncertainty and continue to invest in our future,” Hackett said in a statement. Bunker Mode To give the company financial breathing room and keep important new model launches rolling, the automaker also is fully drawing down $15.4 billion from two credit lines and retracting earnings guidance it had given investors on Feb. 4. “They maxed out their credit line, so they have well over $30 billion in cash now and that is a massive hoard,” said David Whiston, an analyst with Morningstar in Chicago. “That, along with the dividend suspension, basically puts Ford in lockdown mode. They’re going into their bunker.” The unprecedented circumstances should buy Hackett some time and patience from the Ford family, which derived annual income of tens of millions a year from the 15-cent quarterly payout. While all common shareholders receive the dividend, the progeny of Henry Ford hold a special class of stock that gives them 40% voting control of the company. Ford last suspended its dividend in 2006 before reinstating it five years later. That included a period when U.S. auto sales plunged to 10.4 million in 2009. Stock Under Pressure When Ford restored the payout, management pledged it had re-engineered the company so it could maintain the dividend through the next downturn. “Ford has said many times, even before Hackett became CEO, that the dividend would be safe if sales went back to ‘09 levels,” Whiston said. “And even the lowest projections as of mid-March are not for ’09 levels in 2020.” The dividend reversal puts even more pressure on Hackett, who has faced questions from Wall Street about his job security. Ford shares fell as much as 8.9% shortly after the start of regular trading. The stock, which as of early this month had fallen further under Hackett than his predecessor, closed Wednesday at the lowest since April 2009. Hackett, 64, took the steps to bulk up on cash hours before Ford planned to halt output at all North American factories through March 30 for deep cleaning. The shutdown will cost the company $1 billion in lost earnings before interest and taxes, Michael Ward, an analyst at Benchmark Co., estimated in a note to clients on Thursday. Ford will lose the equivalent of 140,000 vehicles worth of production during the 11-day shutdown, or about $5.3 billion of revenue, he wrote. Ward lowered earnings estimates for the carmaker, which he rates a hold. Analysts have speculated in the wake of the virus that factory closings and the global slowdown of vehicle purchases probably would force Ford management’s hand. Then-CFO Bob Shanks said in August 2018 that reports the dividend was at risk were “baseless.” “The dividend’s been a legendary value creator at Ford,” Hackett said Feb. 4. “I want to continue that, because we said we could do it, and right now we can.” Joseph Spak, an analyst at RBC Capital Markets, predicted a dividend cut last week, writing in a report that the $2.4 billion annual cost of the payments would be too much of a burden for a company that’s repeatedly come up short with its earnings and just issued a disappointing profit forecast for the year. Heir Apparent In an effort to change that negative dynamic, Hackett recently shook up management by appointing Jim Farley chief operating officer and gave him a mandate to accelerate an $11 billion restructuring. But credit-ratings companies have raised concerns about the efficacy of those efforts, with Moody’s Investors Service downgrading Ford to junk and S&P Global Ratings cutting the company to the lowest rung of investment grade rating last year. Ford’s board of directors last week cemented Farley’s status as heir apparent to Hackett by disclosing it had arranged a $2.5 million stock award for the 57-year-old if he is not named the next CEO. Bill Ford and his family have stood by Hackett through setbacks and struggles. And now they’re likely hoping this dividend suspension is short-lived. “I would not be shocked if the dividend comes back as soon as this year,” Morningstar’s Whiston said. “But that’s certainly not a base-case expectation because we just don’t have visibility on anything in U.S. autos.”

So far, Navistar is only acknowledging "The new manufacturing plant will have the flexibility to build Class 6-8 vehicles".

When maintained properly, they worked. But "Q" style brakes never required extra maintenance effort (and today's disc brakes beat "Q" brakes all-around).

Ford Trucks Spain / March 18, 2020 As we all unite to fight the global Coronavirus, the work performed by carriers and their drivers is more essential than ever. Thank you for your efforts. And please take all precautions to stay healthy and safe. ,

Ford Motor Company has withdrawn its 2020 financial guidance, and has suspended its dividend to preserve cash. Ford plans to fully draw on credit lines, providing $15.4 billion of additional cash on its balance sheet.

Illinois Authorizes 88,000-pound Trucks Assisting with Emergency Response/Relief Heavy Duty Trucking (HDT) / March 17, 2020 In an effort to support emergency relief efforts in response to the coronavirus outbreak, Illinois is allowing 88,000 pounds (or an additional 10% above legal loads on fewer axles) for trucks assisting with emergency relief. The emergency declaration applies to loads not exceeding 14 feet in width and 100 feet in length, and movements are authorized 24 hours a day, seven days per week, until April 12. Truck drivers must ensure that they are carrying a copy of the IDOT Declaration, the Presidential Declaration, and a bill of lading. There is no fee associated with the authorization, and trucking companies must review Obstructions and Restrictions at www.gettingaroundillinois.com and obey all structure postings and any size or weight restrictions. Fleets can also view a copy of the governor's order here. For a full list of all emergency declarations for Illinois and across the country, go to www.iltrucking.org and click on the red banner at the top of the website. Other State Actions for Trucking Relief: Illinois is not the only state providing additional regulatory exemptions for trucks transporting coronavirus relief supplies. Among others are: Michigan: Will exempt motor carriers and drivers providing direct assistance in support of relief efforts related to the COVID-19 outbreaks from seasonal weight restrictions. Direct assistance according to MDOT means transportation and other relief services provided by a motor carrier or its driver to the immediate restoration of essential services, such as medical care, or essential supplies such as food, related to COVID-19 outbreaks during the emergency. Missouri: On March 15 announced an allowance for heavier-than-normal truckloads of supplies and equipment to travel on Missouri highways in the direct effort to prevent, contain, mitigate and treat the effects of the COVID-19 virus. The waiver allows private and for-hire motor carriers to haul up to 10% more than their licensed weight on Missouri highways and remains in effect through April 30. Ohio: Hours of service rules have been suspended for motor carriers providing intrastate transportation of relief supplies — including consumer goods and medical supplies — as part of the Coronavirus/COVID-19 response. “Unless otherwise directed, drivers must keep a written or electronic copy of this notice in each vehicle affected by this grant of regulatory relief. This regulatory relief will not apply to vehicles that do not have a copy of this notice.” Texas: Suspended three sets of statutes, subject to federal law and DMV safety limitations: The oversize and overweight permitting requirements under Transportation Code, Chapters 621 through 623, as well as Title 43, Chapter 219 of the Texas Administrative Code, for all divisible and non-divisible vehicles and loads; The International Registration Plan (IRP) vehicle registration under Transportation Code § 502.091 and 43 Tex. Admin. Code § 217.56, as long as the vehicle is registered in one of the 48 contiguous states of the United States; and The 72-hour and 144-hour temporary registration permits under Transportation Code § 502.094 and 43 Tex. Admin. Code § 217.40(b)(3), as long as the vehicle is registered in one of the states of the United States.

Heavy Duty Trucking (HDT) / March 18, 2020 Eaton Cummins Automated Transmission Technologies is expanding its Endurant automated transmission lineup with the introduction of the all-new Endurant XD series. These are purpose-built, high-performance automated transmissions designed for on-highway applications with high gross combined weight ratings, such as double and triple trailer trucks, and severe-duty on/off highway applications like dump and logging trucks. The Endurant XD series has torque and horsepower capacity to cover all Class 8 North American engines, the company said, including the Cummins X15. “The DNA of the Endurant platform is efficiency, light weight and low cost of ownership,” said Charles Masters, general manager, Eaton Cummins Automated Transmission Technologies. “We’ve taken that DNA and added the durability and unique features that customers demand from trucks operating in severe heavy haul and vocational applications to create the Endurant XD series.” The Endurant XD series is currently going through an extensive development testing program that puts the transmission through evaluations under extreme conditions. The Endurant XD series has 18 forward speeds, making it highly versatile and allowing it to be used in many applications and driving scenarios. It is designed for ease of use, with low-speed maneuverability, up to six reverse gears, and optimized software that makes smart shift decisions in difficult conditions. The Endurant XD series features provisions for bottom 8-bolt and rear 4-bolt high-capacity power take-offs, and a transmission oil cooler provision is available when required. Endurant XD transmissions will be available starting in 2021. .

Reuters / March 18, 2020 Pressure is growing in Washington for the U.S. Federal Reserve to use its emergency powers to lend directly to businesses hurt by the coronavirus. The U.S. Treasury, senior bankers, the U.S. Chamber of Commerce, and some senior senators want the central bank to make broader use of its powers under Section 13(3) of the Federal Reserve Act to provide credit directly to businesses under “unusual and exigent” circumstances. On Tuesday, the Fed used that authority to resurrect a pair of 2008 financial crisis-era programs aimed at boosting liquidity for the two dozen banks that transact directly with the Fed and to unclog a short-term funding market essential to large corporations. But those programs do not get funds directly to small businesses, a lynchpin of the U.S. economy. Bolstering this sector is seen as critical at a time that measures taken to contain the virus outbreak have started forcing closures of enterprises ranging from corner bodegas and restaurants to fashion boutiques and health spas. Policymakers are wrestling with unprecedented issues, including which type of businesses the Fed could lend to and at what rate, what collateral the Fed would need in return, what extra conditions it should impose on the loans, and how the Treasury would backstop the risk. Any such plan would have to be approved by the Treasury, which would also have to guarantee the loans because the Fed is not allowed to take on such large credit risk. The Treasury had indicated a willingness to do this. Aspects of such a facility may also require approval from Congress, and some lawmakers may be reluctant to hand so much power to the Fed, an independent agency. In recent interviews, Treasury secretary Steven Mnuchin has said he wants to see the Fed’s powers expanded by Congress after they were curtailed following the financial crisis. In a news conference on Sunday night after the Fed slashed interest rates to near zero and announced new bond purchases, Fed chair Jerome Powell said he felt the central bank’s existing authority was adequate, and asking Congress for new powers “is not something we’re actively considering right now…I think we do have plenty of space to adjust our policy.” The Fed is reluctant to become a direct lender to large portions of the economy, preferring to focus on providing liquidity to the financial system and leave fiscal stimulus measures to Congress instead. Members of the Treasury Borrowing Advisory Committee (TBAC), which regularly talks with the administration on market issues, have discussed ways in which the Fed can use its emergency power to support smaller businesses in phone calls over the past week. Some TBAC members are concerned that securing needed approvals could take weeks, while measures are required immediately to support the economy. But they believe there was already enough momentum on Capitol Hill for measures to be approved in days, adding that Congress had been able to move swiftly to adopt fiscal measures after the terrorist attacks of 9/11. With liquidity rapidly drying up in short-term funding markets, the Fed has taken a raft of measures over the past week to ease the strain, including urging banks to use its discount window and providing cash through the commercial paper markets. Those interventions lead the U.S. markets to briefly rebound 6% on Tuesday, but with markets falling again 8% on Wednesday, investors, bankers and lobbyists said the Fed may need to take further steps to ease liquidity strain.

Congresswoman Katie Porter can be my lawyer anytime. The people responsible for health in the US appear clueless. I suspect they know far more then they're sharing with the public, and it's not good news. . .

Nobody hated Rockwell's "Stopmaster" wedge-type brakes back in the 1970's and 1980's more than me. Nobody. However, the modern European wedge brakes actually work well. Solid performance, lower cost and lighter weight wheel ends.

U.S. Virus Plan Anticipates 18-Month Pandemic and Widespread Shortages The New York Times / March 17, 2020 WASHINGTON — A federal government plan to combat the coronavirus warned policymakers last week that a pandemic “will last 18 months or longer” and could include “multiple waves,” resulting in widespread shortages that would strain consumers and the nation’s health care system. The 100-page plan, dated Friday, the same day President Trump declared a national emergency, laid out a grim prognosis for the spread of the virus and outlined a response that would activate agencies across the government and potentially employ special presidential powers to mobilize the private sector. Among the “additional key federal decisions” listed among the options for Mr. Trump was invoking the Defense Production Act (DPA) of 1950, a Korean War-era law that authorizes a president to take extraordinary action to force American industry to ramp up production of critical equipment and supplies such as ventilators, respirators and protective gear for health care workers. “Shortages of products may occur, impacting health care, emergency services, and other elements of critical infrastructure,” the plan warned. “This includes potentially critical shortages of diagnostics, medical supplies (including PPE and pharmaceuticals), and staffing in some locations.” P.P.E. refers to personal protective equipment. The plan continued: “State and local governments, as well as critical infrastructure and communications channels, will be stressed and potentially less reliable. These stresses may also increase the challenges of getting updated messages and coordinating guidance to these jurisdictions directly.” The plan was marked “For Official Use Only // Not For Public Distribution or Release.” Much of the plan is bureaucratic in nature, describing coordination among agencies and actions that in some cases have already been taken, like urging schools to close and large events to be canceled. But its discussion of the Defense Production Act came as lawmakers and others urged Mr. Trump to invoke its powers. President Trump said on Tuesday that he was not ready to invoke the Defense Production Act. “We’re able to do that if we have to. Right now, we haven’t had to, but it’s certainly ready. If I want it, we can do it very quickly. We’ve studied it very closely over two weeks ago, actually. We’ll make that decision pretty quickly if we need it. We hope we don’t need it. It’s a big step.” Passed in 1950 shortly after American troops went to war defending South Korea against an invasion from North Korea, the Defense Production Act was based on powers used during World War II and authorized the president to require businesses to prioritize and accept contracts necessary for national defense. Over the years, its scope has been expanded to include domestic preparedness and national emergencies. A president can make direct loans or loan guarantees and purchase commitments, subsidies or other incentives to influence industry to help in times of crisis. Other key decisions outlined as options for the president include distributing medical supplies and equipment from the Strategic National Stockpile, providing money to states to help them meet demands caused by the coronavirus outbreak and prioritizing the distribution of essential resources to focus on areas most in need. “The spread and severity of Covid-19 will be difficult to forecast and characterize,” the government plan said. It warned of “significant shortages for government, private sector, and individual U.S. consumers.”

U.S. stock-index futures trigger ‘limit-down’ rule. How the stock market “circuit breakers” work A fall of 7% for the S&P 500 index once markets open would trigger a separate circuit-breaker rule that pauses market-wide stock trading for 15 minutes. If the S&P 500 were to extend a fall to 13% on the day in the regular stock market session once trading resumes after a 7% halt, it would trigger another 15-minute halt. However, trading wouldn’t stop if the decline occurred after 3:25 p.m. A 20% drop in the S&P 500 would trigger what’s known as a level three circuit breaker, which would stop trading for the remainder of the session.

They absolutely can !

Treasury Secretary Steven Mnuchin warned Republican senators Tuesday that the coronavirus pandemic could drive up US unemployment to 20%. Mnuchin's comments came as he urged Republican senators to act on economic stimulus measures totaling $1 trillion designed to avert that kind of worst case scenario. Mnuchin also said he is concerned the economic ramifications of the coronavirus pandemic could be worse than the 2008 financial crisis

Surely they're joking...................????? Reuters / March 17, 2020 The Native American [Indian] gaming industry on Tuesday requested $18 billion in U.S. federal aid as it shut casinos that are [allegedly] the sole source of commercial revenue for dozens of tribes in a bid to slow the coronavirus epidemic.

After working around the globe, I personally want any 85,000 lb (38,555 kg) bogie to have planetary hub reduction axles.

Bloomberg / March 17, 2020 The Trump administration is discussing a plan that could amount to as much as $1.2 trillion in spending -- including direct payments of $1,000 or more to Americans within two weeks -- to blunt some of the economic impact of the widening coronavirus outbreak. Treasury Secretary Steven Mnuchin pitched $250 billion in checks to be sent at the end of April with a second set of checks totaling $500 billion four weeks later if there’s still a national emergency. “Americans need cash now, and the president wants to give cash now. And I mean now, in the next two weeks,” Mnuchin said Tuesday at a White House briefing alongside President Donald Trump. “It is a big number,” Mnuchin said. “This is a very big situation in this economy, we put a proposal on the table that would inject $1 trillion into the economy.” The administration had been discussing a total aid package of $850 billion, but discussions later included spending as much as $1.2 trillion. The cash payments would be part of a stimulus plan Mnuchin is negotiating with Congress. The administration hasn’t decided on how much to send Americans, but wants the checks to exceed $1,000. Mnuchin’s proposal included $300 billion for small business loans, $200 billion in stabilization funds, $250 billion in cash payments and a possible second round of checks. Including tax deferrals, that would bring the cost of the plan to around $1.2 trillion. Mnuchin said the administration will aim not to send checks to millionaires but stressed the need for urgency. The checks will be subject to some kind of income test. Mnuchin also said the government intends to keep stock markets open. Plunging stock prices and the abrupt drop-off of consumer spending during a time of social distancing has crystallized the need for Congress to act quickly and boldly. The Federal Reserve has already used much of its toolbox to shore up the economy, leaving policymakers to dull the extent of the damage with fiscal stimulus. News of stepped-up government efforts to offset the financial damage caused by the outbreak prompted a rebound in U.S. stocks. The S&P 500 jumped as much as 7% before paring back to 4%, continuing a streak of volatility last seen during the Great Depression. The Dow Jones Industrial Average notched a 2% gain. The Senate on Tuesday was poised to take up a House-passed economic relief measure. That package, negotiated by Mnuchin and Pelosi last week and endorsed by the president, pays for virus testing, bolsters unemployment and food assistance and will send tens of billions in fresh aid to states. Its centerpiece gives workers at companies with fewer than 500 employees up to 12 weeks of paid family and sick leave to deal with issues involving the coronavirus, including staying home to care for children home from school. The tax credits for paid family, sick and medical leave in the virus bill would cost nearly $104.9 billion. The idea of issuing checks to Americans has been endorsed by lawmakers across the ideological spectrum. But it may not be practical to get money to Americans as fast as Trump desires. When Congress sent stimulus checks in 2009 to combat the financial crisis it took more than two months from the signing of the bill to checks hitting the mail. It’s quickest and simplest for Congress to send the same amount to every individual person, but still will take months to happen. If lawmakers decide to give more money to lower-income workers, it becomes even more complicated. In a further move to relieve financial stress on average Americans, Mnuchin said that individual taxpayers can get a deadline extension on paying taxes of up to $1 million and corporations can defer tax payments of up to $10 million. The deferments can total as much as $300 billion, Mnuchin said, up from $200 billion he proposed last week. The 90-day delay gives taxpayers additional time to pay their outstanding tax liabilities without interest or penalties. The White House is encouraging taxpayers to still file by April 15 if they don’t owe the IRS any money.

No mention of it on the website..................https://www.macktrucks.com/powertrain-and-suspensions/axles/

If you mean the Federal Reserve dropping interest rates to zero on Sunday, that scares the heck out of me because now the Fed is out of ammunition should things get worse down the road.

Heavy Duty Trucking (HDT) / March 16, 2020 Mack Trucks introduced the Mack S852, an 85,000-lb. gross axle weight rating of its proprietary tandem drive axles, which is available for order now. Customers can spec it for specialized severe-duty or heavy-haul applications on Mack Granite models. For extreme loads at slow speeds, the S852 tandem drive axles have a creep rating of 105,000 lbs. Today’s Mack drive axles are engineered with a double-reduction design and include several design advantages implemented through continuous research and development efforts, according to Mack, such as the use of Durapoid bevel and helical gears. This design provides favorable gear tooth geometry that helps eliminate localized stress and loading on the gear tooth end, providing enhanced strength and longer gear life. Frictional losses are also reduced in this gear design, allowing Mack axles to deliver up to 1.5% improved fuel efficiency. “Low-traction situations can be a challenge for truck drivers, seriously impacting their productivity,” said Roy Horton, Mack Trucks director of product strategy. “To help address that issue, we offer standard inter-axle and optional inter-wheel power dividers that automatically distribute torque between the slipping and non-slipping axle or wheel respectively.” The axles also feature a top-mounted carrier design that is not only less prone to main seal leaks, but also provides more than two inches of additional ground clearance. An additional benefit of Mack’s top-mounted carrier design is improved driveline angles between the drive axles. Instead of a three and a half to eight-degree angle, Mack’s prop shaft angle is just one to two degrees. This maximizes universal joint life, allows for greater axle articulation and reduces vibrations for a smoother ride. It also reduces torque losses for improved efficiency. The new rating comes as Mack celebrates 120 years of drive axle design, engineering and manufacturing this year. “Mack has a long and rich history of engineering and manufacturing its own powertrain components, including drive axles, as it fits with our philosophy that components designed to work together, simply work better,” said Horton. “We welcome the new S852, which will broaden the applications our trucks are built to handle.” .

I would like to see a 180 day deferral (6 months), and we very well might before all is said and done.

This just in from the White House: MarketWatch / March 17, 2020 Treasury Secretary Steven Mnuchin on Tuesday said President Trump has authorized the deferral of $300 billion in payments to the IRS. Mnuchin said if individuals owe a payment, they can defer up to $1 million, and corporations may defer $10 million. The deferrals will be penalty-free for 90 days as the U.S. grapples with the coronavirus crisis.

Croatia is ahead of the game! All countries should do this. ------------------------------------------------------------------------- Reuters / March 17, 2020 Croatia’s government proposed on Tuesday to postpone tax payments for at least three months and make loans available to struggling business in response to the fallout from the coronavirus pandemic. “The goal of our economic measures is to save jobs and secure sufficient liquidity,” Prime Minister Andrej Plenkovic told a cabinet session. Parliament is expected to approve the measures this week. The postponement of tax payments on profit and income, as well as other salary contributions, will be extended for an additional three months if needed. Finance Minister Zdravko Maric said at the end of the six-month period, taxpayers would be able to pay overdue taxes in up to 24 monthly installments without any interest.