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Presenting the Scania (Mack) V-8 http://www3.scania.com/en/V8/GB/Celebration/

I have nothing against Mr. Roy personally. However after watching the interview below, it reinforces my feeling that he's not the least bit qualified to lead the Mack brand. He's merely speaking the script written and approved by Volvo (conceived by Dennis Slagle and Olof Persson). True leaders of the truck industry that included the likes of Alfred Brosseau, Zenon C.R. Hansen, Henry Nave, Al Pelletier, John Curcio and Elios Pascual spoke from their hearts and minds, immediately earning your respect with their demeanor and in-depth knowledge of the truck business. Experienced and qualified, they were in their element and it was visibly evident. But of course Volvo doesn't actually want a president, because Mack is now merely a brand name, and no longer a (American) company. They want a guy who will be a face for the Mack brand when duty calls, subserviently go with flow and obey the "Volvo Way". A junior Volvo corporate guy is all they need. And no doubt, Persson is thrilled that Roy's salary will be much smaller than Flahertys. http://fleetowner.com/video/interview-stephen-roy

The Korea Herald / February 16, 2014 Navistar International released its signature ProStar commercial trucks in Korea on Wednesday, becoming the first U.S. truck maker to enter the market since the Korea-U.S. Free Trade Agreement went into effect in March 2012. The International ProStar is a 6-by-4 with 475 horsepower and 235 kilograms per meter of torque. Aerodynamics contribute to 50 percent of overall fuel economy, which makes it critical for a vehicle to be designed to minimize drag, Navistar said, adding that the vehicle’s aerodynamic nose and other components make it one of the most fuel efficient vehicles in the truck industry. More than 70,000 units of the model have been sold in the U.S., and the company expects the 159 million won ($150,000) vehicle to create $5 million in profit in Korea this year. U.S. Ambassador to Korea Sung Kim (left) shakes hands with Tom Clevinger, senior vice president and general manager of Navistar’s global export operations, at the Grand Hyatt Seoul Hotel. (Navistar) “In the U.S., the ProStar was used as a benchmark for developing aerodynamic standards. Under the free trade agreement, Korean truck drivers will now be able to experience the cost savings associated with the improved aerodynamics and fuel efficiency of aero-nosed on-road commercial trucks,” said Tom Clevinger, senior vice president and general manager of Navistar’s global export operations at a press conference in Seoul last week. The arrival of ProStar is expected to create a stir in the heavy load truck market, of which 55 percent is dominated by European vehicles such as Daimler AG, Skania, Volvo and MAN. Domestic players include Hyundai and Tata Daewoo. The imported truck market has shown steady growth. According to the Korea Customs Office, $129 million worth of trucks were imported to Korea in 2009 and imports jumped to $213 million in 2013, a 64 percent increase. Korea’s free trade agreements with the European Union and the U.S. are expected to improve their competitiveness due to the lowered tariffs. The current 1.6 percent and 4 percent tariffs on European and U.S. cars will be scrapped from July and 2016, respectively. Clevinger said that Navistar products have 9 percent higher fuel efficiency than their European competitors.

Truck News / February 25, 2014 A California company has invented a new tire inflation system that uses the wheel’s rotational motion to pump and maintain optimal air pressure. Aperia Technologies says it has tested its Halo Tire Inflator over eight million miles, including in Canadian winters. The bolt-on system doesn’t tap into the vehicle’s air system. Instead, it functions like a self-winding watch, using the rotational motion of the wheels for power. Aperia says its new system, which will debut at the Technology and Maintenance Council meetings in March, works with dual and wide-base single tires. “The fuel savings from properly inflated tires are well documented,” said Josh Carter, CEO and co-founder of Aperia. He cited FMCSA data that showed proper tire inflation pressure contributes to a 1-2% fuel economy increase, compared to the 55% of truck tires on the road today that are suspected of being at least 5 psi from their target pressure. Research also indicates underinflation is the cause of one tire blow-out per tractor-trailer each year. “Numerous studies, including research by the FMCSA, show that by eliminating tire underinflation, the average fleet can save more than $2,200 annually for each tractor-trailer,” explained Carter. The Halo system can be installed in five to 10 minutes per wheel-end and doesn’t require a connection to an air compressor, the company says. “Bringing truly innovative technology like the Halo to market takes a great deal of time, money and thought,” said Brandon Richardson, CTO and co-founder of Aperia. “After four years of R&D and more than two years of on-road fleet testing we are confident the Halo will satisfy the needs of the most demanding fleet operations.”

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My friend, that's simply not how business works. We're not talking about the corner hardware store hiring a new kid for the plumbing section. In three years time, an unqualified individual can cost a company billions in lost sales and mistaken strategies. This is why historically and for good reason, major companies typically hire "qualified" individuals to be presidents and/or CEOs. The only reason I can think of here is that Roy, like Flaherty, is merely a puppet under Volvo. Ask Flaherty and he'll tell you that he had none of the powers that a president of the former Mack Trucks had so as to run the company. It was a demeaning joke, and he's glad to now be away from it in retirement.

Bloomberg / February 24, 2014 Daimler, the world’s biggest commercial-vehicle manufacturer, said profit and sales growth this year will help the truck operation reach an eventual goal of an 8 percent return on sales. The Daimler Truck division’s deliveries rose in all markets last month except Latin America, where growth was hampered by processing of Brazilian state-funded lending applications, Wolfgang Bernhard, head of the business, said today at a press conference in Stuttgart, Germany. “We began the new year as we expected,” Bernhard said, reiterating forecasts of “significant” growth in sales and a “substantial” increase in earnings before interest and taxes this year. “I’m therefore optimistic that we will remain on course for success in 2014 and move a good step closer towards achieving our medium-term targets.” After revising its heavy-duty line-up in the past two years to meet stricter European Union emissions rules that took effect on Dec. 31, Stuttgart-based Daimler is focusing strategy at the truck unit on increasing profitability. New models being rolled out this year include vehicles for the BharatBenz brand in India, Western Star in the U.S. and Fuso in Asia, Bernhard said. Savings Strategy Daimler Trucks, whose biggest nameplates are Mercedes-Benz in Europe and Freightliner in the U.S. as well as Fuso, is likely to reach a goal of improving Ebit by 1.6 billion euros ($2.2 billion) by the end of 2014 through cost savings and delivery growth, Bernhard said. The program, dubbed Trucks No. 1, generated about 500 million euros of that amount last year. The division has a medium-term target of raising Ebit to 8 percent of sales. The return on sales narrowed last year to 5.2 percent from 5.4 percent in 2012 because of costs from warranties, cutting jobs and currency effects, especially the yen’s drop against the euro. Excluding those items, the margin in 2013 was 5.6 percent, Daimler said today. Daimler, whose Mercedes-Benz car brand is the world’s third-biggest maker of premium vehicles, has held back from setting a new deadline for profitability targets after postponing it twice from a 2010 target date. Truck-division revenue last year rose 0.3 percent to 31.5 billion euros while Ebit fell 3.4 percent to 1.64 billion euros. Orders jumped 19 percent because of higher demand in the Americas. Production Cuts Advance sales of trucks in Europe have been “restrained” in recent weeks after several customers bought cheaper trucks last year before models were equipped technology to comply with the new EU emissions rules, Bernhard said. Daimler Trucks has reduced production in response, eliminating some Saturday shifts at German sites under union agreements on flexible-work arrangements, he said. Investments at Daimler Trucks in the two years through 2015 will total 4.4 billion euros, focusing on research and development and building and equipping factories, the company said today. “We aim to remain the spearhead of technological developments,” with annual spending at 7 percent to 8 percent of revenue, Bernhard said. “We’re investing to sustainably secure our leadership position,” he said, reiterating Daimler’s plan to sell 700,000 trucks annually by 2020. Daimler’s truck deliveries rose 4.8 percent to 484,200 vehicles in 2013. That compares with a decline of 2 percent to 200,300 trucks at Gothenburg, Sweden-based Volvo, which ranks second to the German company in global sales. Bernhard’s Role Bernhard became head of the truck division in April in a job swap with Andreas Renschler, who was assigned to run production and purchasing at the Mercedes-Benz car business. Renschler left Daimler after 25 years last month and will join Volkswagen AG in 2015 as the German competitor pushes for its Scania and MAN heavy-vehicle businesses and VW commercial unit to cooperate more closely. Industrywide registrations in Europe of commercial vehicles heavier than 16 metric tons, excluding buses and coaches, rose 8.3 percent to 238,500 vehicles last year after sales more than doubled in December, according to data of the ACEA trade group. Daimler Trucks is predicting the European and Brazilian vehicle markets this year will decline slightly, countered by growth of as much as 10 percent in North America. That compares with Volvo’s forecasts that industrywide demand will rise 5.8 percent in North America and 13 percent in Brazil, versus a drop of 4.2 percent in Europe.

As I mentioned before, Flaherty has been replaced by Stephen Roy, a Volvo man that has only been around truck parts since 2008, as Volvo Trucks senior vice president, parts sales and marketing (he's the guy that brought you those unbelievably high parts prices so as to improve Volvo’s margins). From 2002 thru 2007, Stephen Roy was a loan guy with Volvo Commercial Finance. And that's it, the brief extent of his involvement in the truck industry. Amazing that Volvo feels his modest credentials are adequate for heading their Mack brand unit. What is Roy saying? That under Volvo, the Mack brand has fallen and now requires “revitalizing”? Roy says that Volvo plans to “re-launch” the Mack brand. That would infer the Mack brand has been off the market for a period. “Starting this year, we’ll know when a truck comes into a dealership and when a truck leaves a dealership...........we’re able to transmit this information to other companies ” Installing GPS tracking devices on all new trucks so that Volvo can follow you AND share that information with other companies sounds too much like the NSA to me. Who gave Volvo the authority to track the whereabouts of their customers?

Truck News / February 21, 2014 Stephen Roy says Mack will push for market share gains, particularly on-highway Stephen Roy, the newly installed president of North American sales and marketing for Mack Trucks, knows there’s work to be done. Mack’s market share isn’t where he’d like it to be, and a recent focus on product and customer support has taken attention away from Mack as a brand. But he also feels the pieces are in place to revitalize one of the oldest brands in trucking. This effort will officially commence with a re-launching of the Mack brand at the ConExpo construction show in early March. And you can also look for Mack to aggressively grow its on-highway presence. “If we are going to improve share, we need to have a larger presence in the on-highway market,” said Roy. The last five years have seen Mack dealers invest more than $300 million into their facilities to better serve customers. They’ve increased bay capacity by 40%, added 50% more technicians, and trained those technicians so that now one in four are top-certified Master Technicians. Dealers also have increased their hours of service, and 60% now forward after-hours calls to Mack’s call centre, so that customers can receive support around the clock. Last year, Mack launched its GuardDog Connect remote diagnostics program, which allows Mack to remotely monitor engine fault codes and advise operators on the best course of action. Included in that service is dealership geofencing, which will notify Mack when trucks have been in the shop too long. “With GuardDog Connect, we have a geofence around every one of our dealerships,” Roy said. “Starting this year, we’ll know when a truck comes into a dealership and when a truck leaves a dealership. To assist a dealer, we’ll call the dealer and say ‘We notice this truck is in, what can we do to help you get the product in and out the door as soon as possible’?” Mack officials working out of a new three-storey Uptime Centre, to be built at the company’s Greensboro, N.C. campus, will be able to intervene when trucks are down for repair too long. This may mean directing them to a less busy dealership nearby or expediting delivery of the required parts. Later this year, Mack will also be teaming with Telogis and PeopleNet to stream its remote diagnostics data to those telematics providers, who will then convert the data into useful information for fleets. “We’re never going to be the gurus of telematics, there are too many good companies doing that,” Roy said. “But since we put GPS on the trucks standard, we’re able to transmit this information to other companies to provide all the things fleets need from a productivity standpoint.” Mack continues to be strong in the vocational segment, which has seen double-digit growth in each of the past few years. But its overall share of the North American Class 8 truck market remains just under 10%. Roy hopes to change that as early as this year. “With our backlog and the amount of activity we see now, there’s no reason Mack can’t be above 10% this year, with a vision to being much greater than that,” Roy said. Having spent the last five years bolstering its customer support, Roy said the time is right to make a push in the on-highway market. “We’re known for our vocational side, but my focus is to make sure - because we now have the network support, which is key - that we get back in front of our customers and let them know we do have a value proposition for them,” Roy said. “The timing is right but it’s not going to happen overnight.” Mack’s dealer network, meanwhile, is continuing to strengthen, with another 40 projects currently underway. “Our dealers are re-investing and the company is re-investing in research and development for new product as well as for infrastructure and support,” Roy said. “We feel Mack is very well positioned with products, we’re continuing to invest in R&D and we’re well positioned with our dealer network.” Roy cited the recent World of Concrete show as evidence the vocational truck market has been revitalized. “The activity at World of Concrete was as high as we’ve seen since 2006,” he said. “Customers were not looking at two or three trucks, they were looking (to buy) 25-50 trucks, which is great…We’ve seen double-digit increases the last few years. Housing starts, GDP - everything points to improvements on the vocational side.” Roy is projecting about 250,000 Class 8 truck sales this year in Canada and the US, which would represent a slight uptick in demand from 2013. Roy demonstrated the passion and exuberance for the Mack brand that industry observers have come to expect from people holding senior positions at that company. “I’m passionate about the Mack brand and where we can go,” he said. “I’m 50 and I plan to do this for the next 15 years.” Asked what customers and industry observers can expect to see over the next year, he said “We’re going to execute better than we’ve ever done.” http://www.trucknews.com/news/were-going-to-execute-better-than-weve-ever-done-new-mack-president-vows/1002927492/

So VW, unable to grasp that the heavy truck business is totally different from the passenger car industry, believes they can buy and “share” Scania’s superior technology with MAN and VW Truck (Constellation), without damaging (gutting) Scania’s market position. VW’s CEO Martin Winterkorn certainly has a lot to learn about the heavy truck industry. When Leif Oestling was Scania’s CEO, he opposed MAN’s VW-supported hostile bid for Scania in 2006. He aptly described MAN’s offer as an unwanted German “blitzkrieg.” But now that he has sold his soul to Volkswagen, and surprise, he’s now all for the change (he retires next year with a money chest from VW). If VW successfully purchases the remaining shares of Scania and shares Scania’s cutting edge technology with MAN and VW Truck, then Scania will obviously have lost its unique identity in the global market as its once brand-unique components will have become a common market commodity. In the first nine months of 2013, Scania’s profit margin was 9.4 percent, while MAN’s was just 0.4 percent. MAN is a great company, but Scania is the most profitable truckmaker in the world. In profitability, only Paccar compares.

Bloomberg / February 23, 2014 Volkswagen’s 6.7 billion-euro (US$9.2 billion) bid for the rest of Scania is key to raising profit at its three truck brands by sharing technology and components in the same way that VW’s passenger-car brands have already successfully done. Volkswagen argues that using common parts at its commercial-vehicles operations is critical to taking on industry leaders Daimler AG and Volvo AB, and requires full integration of Scania because the plan means the brands would all share technology, something Scania’s minority investors have opposed. “It enables you to create economies of scale regardless of the volume you produce,” Horst Wildemann, a professor for business administration, logistics and production at the Technical University of Munich. “Scania has already made substantial progress in this area and can build vehicles with fewer different components than Volvo for example.” VW’s namesake commercial-vehicles unit and its MAN division, which are less profitable than Scania, stand to benefit from Scania’s industry-leading expertise. This is exactly what some Scania owners have blocked, arguing that helping the other two (competing) brands is not in the interest of Scania and minority holders. Cost Savings The strategy VW has successfully applied at the passenger car brands is to share as much as possible while still keeping their independent identities. VW has said that its modular system for compact and midsize cars, which is the basis of models including the VW Golf and Audi’s A3, saves about 20 percent in costs per vehicle and reduces engineering hours by 30 percent. “We plan the same modularity for heavy trucks,” CEO Martin Winterkorn said in an interview last March. “Sounds simple, but requires a huge effort.” VW declined over the weekend to make Winterkorn or other board members available to discuss their strategy. VW trucks chief Leif Oestling is now trying to sell the takeover, something he opposed when MAN made a hostile bid for the Scania in 2006. As Scania CEO at the time, he described MAN’s offer as an unwanted “blitzkrieg.” The 68-year-old executive said three days ago that the current ownership structure, in which VW controls 62.6 percent of Scania’s share capital, has been “unsatisfactory for all parties” and one that “caused friction.” “We’ve been working here in the past year and gradually came to the conclusion that this is one important step for an integrated truck group,” he said Feb. 21. Investor Opposition VW thus far has only achieved 200 million euros in purchasing savings from Scania, its own commercial-vehicles unit and German truckmaker MAN, which VW also controls. VW’s goal is to deepen cooperation between the three in areas such as drivetrains, chassis, cabins and electronics to reach annual operating profit synergies of 650 million Euros. Given that developing new heavy trucks takes years, the automaker doesn’t expect to reach that goal for at least a decade. Scania’s minority investors have thus far not bought into VW’s integration plan, and some instead this month asked for an independent auditor to examine whether ownership of the company by VW and MAN poses a conflict of interest. They oppose the elimination of a board-nominating committee and a 16% cut in the dividend for 2013 to 4 kronor per share. Investors over the weekend raised doubts about the offer. “Scania’s prerequisites to maintain its leading position are better as a listed company than as a subsidiary in a larger group,” said Caroline af Ugglas, head of equities and ownership at pension provider Skandia, which owns 0.8 percent of Scania. “Skandia doesn’t intend to accept the offer.” Better Margin Scania’s 2013 operating profit rose 2 percent to 8.46 billion kronor ($1.3 billion). In the first nine months of 2013, Scania’s profit margin was 9.4 percent, while MAN’s was just 0.4 percent. MAN has yet to release full-year results. VW only plans to pursue the bid if it can secure 90 percent of Scania, which is the threshold needed under Swedish law to force the remaining owners to sell their holdings and delist the company. Scania’s board said yesterday that a committee independent of the VW members will evaluate the bid and make a recommendation on the offer at a later date. VW is offering 200 kronor per share, 36 percent above Friday’s closing price of 147.50 kronor for the company’s B stock. The shares have gained 7.4 percent in the last 12 months, valuing the Swedish truckmaker at 116.8 billion kronor. Explanation Needed Arndt Ellinghorst, head of automotive research at ISI Group in London, said in a note to clients that the offer is too high given the size of the announced cost savings. “There was no sufficient explanation provided on how this valuation was justified other than the fact that VW currently can’t exercise full control,” Ellinghorst said. “We especially struggle to understand the transaction’s benefits since it was confirmed that Scania, MAN and VW Trucks will remain independent companies.” VW currently controls Scania via its direct holding and a stake owned by MAN. The German automaker started buying stock in the Swedish manufacturer in 2000 and acquired majority voting control in March 2008. The automaker already has a domination agreement with MAN, which means the two can legally work more closely. That leaves Scania as the last of the three units preventing VW from fulfilling its goal of creating a heavy truck division that can better compete with Daimler and Volvo. .

No, the ramifications of losing the Ford contract in 2010* have long ago come and gone. *Ford began using their own 6.7 liter engine from April 2010, which was designed by Austria's AVL, a contract engineering company (like the UK's Ricardo) to the OEMs. https://www.avl.com/company

When Americans think of (Western) Europe, you imagine many small countries close together. You imagine a meshing of cultures. But that couldn't be further from the truth. The Germans, French, Swedes, ect. each have their own very unique cultural ways, and there's visible resentment for each other. Owing to our history, America is a country of people orignating from the world over. Europe isn't. The U.S. is extremely multi-cultural compared to the "old countries". At America's Cummins operations worldwide, you'll see employees from all over the world, owing to our country's diversity. However at the German truckmakers, you'll rarely see a nationality other than Germans, and the same goes for the Swedish truckmakers. Business in Europe is conducted much more aggressively than the US. The Swedes (Scania and Volvo) have an intense rivalry with each other first of all, and then with the Germans (Daimler and MAN) and the Italians (Iveco). It's no surprise that the U.S. concept and culture of heavy truck engineering is dramatically different from the European truckmakers, and again so different from the Japanese truckmakers. But it's just as true that the company culture, that catalyst for innovation, is tremendously different between Swedish and German truckmakers. The truckmaking unit of MAN isn't thrilled about having Volkswagen as a majority stake-holding master. But at least they're both German. Scania is a fiercely proud Swedish truckmaker. No Swede wants to be under the control of Germans. The very thought of Scania becoming a VW subsidiary has the country in an uproar. The catalyst for Scania's never-ending cutting edge heavy truck innovations has been its position as an independent truckmaker. The workforce at Scania is known for its deep passsion and enthusiasm, no different than the Mack family years ago. The Germans at VW have no more passion for Scania than Volvo had for the former Mack Trucks. VW will gut the company as Volvo has Mack. The business world is a cold and calculated place (particularly with Europeans), which is why governments at select moments need to step in as a matter of national interest. In the case of Mack Trucks, that did not occur. Why did MAN never enter the US market? In the 1970s, MAN observed Mercedes-Benz fail in the US truck market. Also, unlike Scania with its T-Series, MAN did not have any conventional truck models to send over. MAN did enter the US marine engine business. Like Scania's marine and industrial engines, they are quite good. http://www.man-mec.com/en/index.html

Please allow me to answer your question and expand upon it. As the year 2000 approached, Navistar wanted to have an exclusive engine for its heavy trucks, which certainly wasn’t a bad idea. Navistar and Cummins were discussing a 13-liter engine concept named the Dakota. Navistar would get the engine exclusively for a few years before it would become available to all truckmakers. However the talks came to an end in May 2001. Navistar then switched gears and announced later that same month they were negotiating a long-term supply agreement with Volvo for 12-13 liter engines. However just seven months later in December, Volvo broke off the talks saying that Navistar had failed to meet the terms of their agreement. Of course during this period, Navistar continued to purchase engines from Caterpillar, Cummins and Detroit Diesel. Fast forward to December 2004, Navistar signed an agreement with Germany’s MAN that would allow the U.S. truckmaker to produce MAN D20 and D26 engines for the U.S. market under license. You know them as the MaxxForce 11 and 13. In May 2005, Navistar purchased Brazilian diesel engine manufacturer MWM*. Navistar spent US$45 million expanding the MWM plant to facilitate production of MAN D20 and D26 engine blocks. MWM could produce the compacted-graphite iron** (CGI) blocks more cheaply than could be done in the United States. The blocks are cast at Tupy S.A., a Brazilian foundry in Sao Paulo, and then shipped to MWM’s Santo Amaro plant (also in Sao Paulo) for machining before heading to Navistar’s modern big-block engine plant in Huntsville, Alabama. Running 24/7, the MWM line can produce 36,000 MaxxForce 11 and 13 blocks annually. The MAN (MaxxForce) engines have been unfairly criticized. The Man D20 and D26 are proven high-performance engines, operating trouble-free around the globe. I’d also like to point out that MAN (and Scania) for Euro-5 (EPA2007) offered both EGR and SCR engines. Owing to different customer preferences, they gave their customers a choice. The Euro-5 EGR engines operated with high performance and reliability. However for Euro-6 (EPA2010), the Germans at MAN switched to SCR because they realized that EGR technology (at this moment) was unable to meet Euro-6 (EPA2010) with acceptable performance and reliability. But former Navistar CEO Dan Ustian arrogantly decided to ignore MAN’s advice to use SCR for EPA2010. Ustian and his whiz kids (e.g. Helmut Endres, Michael Cerilli, Ramin Younessi) all believed they could do what the Germans couldn’t. The rest is history. They spent a lot of money but failed to advance the limits of today’s EGR technology and create a durable and high-performing EPA2010 EGR engine. Admirable intentions, but Ustian should have realized two plus years earlier it was time to give up on Plan A (EGR) and switch to a Plan B (i.e. SCR). *MWM was founded in Brazil in1953 by Germany’s MWM gmbH (Motoren-Werke Mannheim – which was acquired by CAT in 2010) and Knorr-Bremse. MWM was purchased by Klöckner-Humboldt-Deutz AG (KHD) in 1985, and sold to Navistar International in 2005. http://www.nav-international.com.br/site.aspx/Home-En ** CGI has revolutionized the auto and truck industry. CGI engine blocks and cylinder heads provide 75 percent greater tensile strength, 45% greater stiffness and double the fatigue strength of conventional grey cast iron and aluminum. CGI allows engine designers to improve performance, fuel economy and durability while reducing engine weight, noise and emissions. CGI users now include Aston Martin, Audi, Caterpillar, Chrysler, DAF Trucks, Ford, General Electric Transportation Systems, General Motors, Hyundai, Jaguar, Jeep, Kia, Land Rover, MAN, Navistar, Porsche, PSA Peugeot-Citroën, Renault, Rolls-Royce, Scania, Toyota, Volkswagen, Volvo, VM Motori and Waukesha Engine.

These are not 12-volt trucks with 24-volt starting. They are 24-volt throughout, truck and trailer. During the 1970s and 1980s when Mack trucks were running across Europe, there was a mix of 12 and 24-volt. But now from the European brands to Russia, China and Japan, the heavy trucks are 24-volt. Of course 24-volt allows for much better starting, but it also allows for smaller size cable that a 12-volt system would require, reduced component weight and cost.

Although Americans are unaccustomed to it, most trucks worldwide have 24-volt electrical systems. Incidentally, the dash-mounted power outlets on these trucks are typically dual 12/24 volt for convenience.

Bloomberg / February 23, 2014 Scania minority owners expressed doubts about backing Volkswagen’s 6.7 billion-euro ($9.2 billion) bid for the rest of the truckmaker, with some suggesting the offer may be too low and others saying the Swedish company should retain its relative independence. “Scania’s prerequisites to maintain its leading position are better as a listed company than as a subsidiary in a larger group,” Caroline af Ugglas, head of equities and ownership at pension provider Skandia, said in an e-mailed response. “Skandia doesn’t intend to accept the offer.” VW only plans to pursue the bid if it can secure 90 percent of the shares in Scania, which the German automaker needs under Swedish law to pursue a squeeze-out and delist the Soedertaelje-based company. VW, Europe’s largest automaker, currently controls 62.6 percent of the share capital. VW’s goal is to deepen cooperation between Scania, its own commercial vehicles unit and MAN, which it also controls, in areas such as drivetrains, chassis, cabins and electronics. Such moves have faced resistance from Scania’s minority holders who argue doing so is a disadvantage for the manufacturer, which is more profitable than MAN. VW is offering 200 kronor per share, 36 percent higher than the Feb. 21 closing price of 147.50 kronor for the company’s B stock. The shares have gained 7.4 percent in the last 12 months, valuing the Swedish truckmaker at 116.8 billion kronor ($17.9 billion). “This must be evaluated in light of the duty we have for our pensioners and it is not obvious that that is the stock market price plus a few percent,” said Mats A. Andersson, head of the AP4 pension fund, which owns Scania shares. “We must now take a look at the offer and consider it and make an evaluation based on what a long-term owner finds is good.” Profit Boost By more closely integrating its truck operations, VW said yesterday that it can eventually achieve annual operating profit synergies of 650 million euros. To get there, VW needs to buy out Scania’s other investors, some of whom this month asked for an independent auditor to examine whether ownership of the company by VW and MAN poses a conflict of interest. “There is a lot of frustration regarding how VW has treated their minority shareholders,” Carl Rosen, head of the Swedish Shareholders’ Association, said in an interview after VW announced the bid. “We think it is positive that they make this offer.” Investors have objected to Scania’s plan to cut its dividend and the abolition of a board-nominating committee. The board of directors proposed last month reducing the dividend by 16 percent to 4 kronor a share from 4.75 kronor. Operating Margin Scania’s 2013 operating profit rose 2 percent to 8.46 billion kronor. In the first nine months of 2013, Scania’s profit margin was 9.4 percent, while MAN’s was just 0.4 percent. MAN has yet to release full-year results. “Alecta will evaluate the bid carefully, from all aspects,” Johan Andersson, a spokesman for the occupational pension company that is Scania’s fifth-largest shareholder with 2 percent of the capital, said in an e-mailed response. Goldman Sachs Group Inc. and Rothschild are VW’s financial advisers on the Scania offer, according to a statement on VW’s website. Roschier Advokatbyraa AB and Clifford Chance LLP are serving as legal advisers. VW currently controls 62.6 percent of Scania’s share capital via its direct holding and a stake owned by MAN. The German automaker started buying stock in the Swedish manufacturer in 2000 and acquired majority voting control in March 2008. MAN Holding The automaker already has a domination agreement with MAN, which means the two can legally work more closely. That leaves Scania as the last of the three units preventing VW from fulfilling its goal of creating a heavy truck division that can better compete with global leaders Daimler and Volvo. VW has accumulated a 75 percent stake in MAN since 2006, when it first purchased a holding to thwart the German truckmaker’s effort to take over Scania. As part of an agreement with MAN to take full control, VW is required by law to offer to buy out the German truckmaker’s remaining owners. VW is facing lawsuits from dozens of MAN investors who want a higher price for their shares. VW is proposing purchasing the truckmaker’s remaining stock for 80.89 euros a share. The stock closed Feb. 21 at 93.35 euros. Investors who don’t accept the cash will receive an annual dividend of 3.07 euros per share. VW Chief Financial Officer Hans Dieter Poetsch said Feb. 21 that Scania will keep its headquarter in Sweden and remain an independent brand within the group. Poetsch pointed to the success of sports-car maker Porsche, which will meet a target for 200,000 deliveries three years earlier than planned, as an example of how a marque can thrive after being bought by VW. “If you look at Porsche, the brand developed extremely positively after the takeover,” he said. “We want to improve the performance of our businesses” and not cut them down.

Bloomberg / February 21, 2014 FRANKFURT -- Volkswagen appointed former Daimler executive Andreas Renschler to its management board to deepen cooperation at its commercial vehicles operations. The 25-year Daimler veteran, who was a contender to eventually succeed Dieter Zetsche as CEO, will start at Volkswagen on Feb. 1, 2015, the company said Friday in a statement. Renschler resigned unexpectedly on Jan. 28 as operations chief at Daimler’s Mercedes-Benz unit a year after being asked to swap out of his job as the company’s trucks chief. “We are very pleased we have been able to recruit Mr. Renschler to join our company,” VW Chairman Ferdinand Piech said in the statement. “We have found the ideal successor” to replace current trucks chief Leif Oestling, who will retire. VW has struggled to forge closer ties between truckmaking affiliates Scania AB and MAN SE as well as increase cooperation with its own commercial-vehicles business. The German manufacturer, which took full control of Munich-based MAN last year, today said it is offering to pay 6.7 billion euros ($9.2 billion) to buy the rest of Sweden’s Scania to increase integration and squeeze out more costs. Renschler spent almost a decade running Daimler’s truck unit, the world’s biggest by revenue. His efforts included restructuring projects in the U.S., Japan and Brazil as well as adding production in China and India. Piech, who said Oestling was key in recruiting Renschler, signaled an interest in the 55-year-old executive, when he told Stuttgarter Zeitung on Jan. 30 that “the best lure the best.” Savings goals Oestling, 68, will retire after his contract expires next year. The former Scania CEO has sought savings through joint projects in purchasing, development, information technology, logistics, finance and legal affairs. Volkswagen has risen to become the world’s second-largest automaker by cutting costs and boosting profit by standardizing parts and technology across its car brands, which include Audi, Skoda and Porsche. VW is now working to adapt that strategy to its commercial-vehicle operations in an effort that began more than seven years ago. With the takeover of Scania, Volkswagen expects to eventually save 850 million euros at its trucks unit, up from an earlier target of 200 million euros. Yet because of longer product cycles in the commercial-vehicles business, it could take 15 years to achieve these goals, the company said. Daimler plans Daimler’s heavy-vehicle division includes the Freightliner and Western Star truck brands in North America, Fuso in Japan and Mercedes-Benz in Europe and Brazil. Renschler outlined an efficiency program in mid-2012 while still trucks chief at Daimler. The plan targeted a 1.6 billion-euro improvement in profit by 2014 by reducing costs and improving sales. Under his leadership, Daimler set up a truck joint venture in China with Beiqi Foton Motor Co. and created the Bharat Benz brand in India to pursue growth in emerging markets with vehicles targeted for local needs. Last year, the Daimler unit reported a profit margin of 5.2 percent. In the first nine months of 2013, Scania’s margin was 9.4 percent, while MAN’s was just 0.4 percent.

Bloomberg / February 21, 2014 FRANKFURT -- Volkswagen AG is bidding 6.7 billion euros ($9.2 billion) for the rest of truckmaker Scania AB to deepen cooperation with its other commercial-vehicles units after being blocked previously in those efforts by the Swedish company's minority shareholders. VW, which already controls a majority of Scania's capital and 89.2 percent of the voting rights, is offering 200 kronor ($30.6) per share, 36 percent higher than today's closing price of 147.50 kronor for the company's B stock. VW is looking to jump start a stalled seven-year effort to more closely align Scania, its own commercial-vehicles business and Munich-based truckmaker MAN SE, which VW also controls. VW will target annual operating profit synergies of 650 million euros from joint projects between the three. VW has faced resistance from Scania's other investors, who this month asked for an independent auditor to examine whether ownership of the company by VW and MAN poses a conflict of interest. "It definitely makes sense to invest this money to remove the last hurdles for closer cooperation and reap the planned cost synergies," said Frank Schwope, a Hanover, Germany-based analyst with NordLB. VW has the financial leeway to pay for the transaction. The company's net liquidity at the end of 2013 surged 60 percent to 16.7 billion euros after raising 3.7 billion euros selling bonds convertible to preferred shares. VW plans to raise an additional 2 billion euros in funding by selling new preferred shares as well as issuing hybrid capital. Squeeze-out Scania's shares have climbed 7.4 percent in the last 12 months, valuing the Swedish truckmaker at 116.8 billion kronor. VW said the offer is contingent on VW gaining ownership of 90 percent of the total shares in Scania, which it needs under Swedish law to pursue a squeeze-out. VW intends to delist Scania should it succeed with its plans, the automaker said. "Scania is a core element of the integrated commercial vehicles group that we intend to accomplish under the umbrella of the Volkswagen group," CEO Martin Winterkorn said in a statement. "Our offer is designed to create a sustainable and clear ownership structure for Scania." VW today said it hired former Daimler AG trucks chief Andreas Renschler, tasking him with deepening integration after taking over from current commercial-vehicles boss Leif Oestling, 68, when he retires next year. Renschler will assume his new post on Feb. 1, 2015. Global competition VW controls 62.6 percent of Scania's capital via its direct holding and a stake owned by MAN. The German automaker started buying stock in the Swedish manufacturer in 2000 and acquired majority voting control in March 2008. The automaker already has a domination agreement with MAN, which means the two can legally work more closely. That leaves Scania as the last of the three units preventing VW from fulfilling its goal of creating a heavy truck division that can better compete with global leaders Daimler AG and Volvo AB. The 650 million euros in improved annual operating profit will take as long as 15 years to achieve because of the lengthy development cycles in the commercial vehicles industry and will come on top of 200 million euros in yearly savings to be achieved by the end of 2014, VW said. "The plan to fully integrate Scania into the Volkswagen group follows a compelling industrial logic," said Oestling, who previously was Scania's CEO. "It will significantly improve the capabilities, efficiency and flexibility of the commercial vehicles group." Profit gain Volkswagen has accumulated a 75 percent stake in MAN since 2006, when it first purchased a holding to thwart the German truckmaker's effort to take over Scania. As part of an agreement with MAN to take full control, VW is required by law to offer to buy out the German truckmaker's remaining owners. VW is facing lawsuits from dozens of MAN investors who want a higher price for their shares. VW today reported a 1.5 percent gain in profit last year as record sales at its luxury Audi and Porsche brands offset spending on developing new models and expanding production. Earnings before interest and taxes rose to 11.7 billion euros from 11.5 billion euros in 2012, and matching the average of 21 analyst estimates compiled by Bloomberg. The maker of VW, Skoda and Bentley vehicles forecast its operating margin in 2014 to be in a range from 5.5 percent to 6.5 percent. The compares to 5.9 percent last year. Revenue is expected to "move within a range of 3 percent" from 2013. Scania's 2013 operating profit rose 2 percent to 8.46 billion kronor, the company said on Jan. 29. The board of directors proposed reducing the dividend to 4 kronor a share from 4.75 kronor.

The first T200 Mack multi-speed transmissions (9- and 10-speeds) came out in late 1984. Thru 1985, it gave us problems. We should have delayed the launch one more year. But we resolved the issues and, as many know, the multi-speed Mack T200 transmissions (1st generation) and T300s (2nd generation) matured into a great product. Volvo is still building the T300s today. All Mack factory-remanufactured T2090s are upgraded to the latest T300 internal design configuration. It's a great transmission. When you buy Mack Reman, you get a great product with all the latest upgrades, and a great warranty. You and I both have no idea if that transmission has ever been into. But given the age of the vehicle, and your desire for a trouble-free transmission you can depend on, I would go with a Mack factory-remanufactured unit rather than investing time and money in that old unit. All Mack components are remanufactured at a world class facility in Middletown, Pennsylvania (east of Harrisburg), and Volvo's parts distribution facility in Australia should keep them in stock.

Truck News / January 1, 2014 MONTREAL, Quebec. -- Keep your eyes peeled for a black Volvo cabover with “GLOBETROTTER” printed above the windshield deflector and a moose bumper bolted to the grille. Transport Robert is running two of them under a Transport Canada waiver for the next two years in a test of the robustness of their 24-volt electrical systems. This is a Volvo project. Volvo brought two 2013 Volvo Globetrotter European tractors across the pond in the spring of 2013 and modified them in its North American headquarters in Greensboro, N.C. for the Canada trials. Robert is leasing the vehicles, acting primarily as the operator and keeper of maintenance and repair records. Volvo wants to learn more about the durability of the Globetrotter’s 24-volt electrical system in different duty cycles, driving styles, living styles and cold climate operation. “Utilizing the Volvo FH (Front High cab) was the quickest way to put a 24V system into operation in North America,” a Volvo official told Truck News. “We will run them for two years and prepare a report for every repair or maintenance task. We keep any parts that have to be replaced. Then they will be sent back to Sweden for a component analysis,” adds Yves Maurais, technical director, asset management, purchasing and conformity, Transport Robert. Perhaps it seems unnecessary that a vehicle type as well seasoned as the Volvo FH, which was introduced in 1993, should need more testing for life in North America. But, Maurais explains, “The trucks in Europe do not pull the same weights, nor are they driven as fast. The trailers are shorter. Volvo wants to make sure the system is sturdy enough for North America.” Volvo adds, “We hope to learn how the electrical system behaves and reacts ... North American applications are different and often require higher hotel loads – using electrical accessories while the truck is parked.” Robert will be running the tractors in heavy electrical demand situations such as B-trains, long combination vehicles and heavy hauling; ie., over-dimensional loads. “It is basically an endurance test,” Maurais says. North American transport trucks have 12-volt systems, but there are advantages to 24-volt systems. “Advantages include enhanced startability, reduced cost and size of wiring due to higher currents and some opportunities to reduce the weight of the starter motor, alternator and window motors,” Volvo says. “The 24-volt system has plenty of power for accessories and stronger electronic signals. With the amount of electronics involved in today’s trucks, the 24-volt system is better suited to handle all the requirements,” Maurais says. Although Volvo’s main focus is on the performance of the 24V electrical system and driver and carrier feedback, Robert most certainly has an eye on the fuel consumption of the Globetrotter. In September 2013, Project Innovation Transport (PIT) compared the fuel consumption of the Globetrotter with a Volvo 2014 VNL 670 and a 2009 Volvo VNL 630 tractor. Robert is driving all three Volvo types and comparing them. The test results are confidential, but according to Maurais, some Volvos can get up to 10 mpg, with an apples and oranges caveat that European and North American Volvos are set up to optimize fuel consumption at different speeds. The Globetrotters have 460-hp engines, 1,696 lb.-ft. of torque, I-Shift transmissions and a 2.57 rear axle ratio. They are outfitted with Michelin XZA2 295/80 R22.5 tires on the steer axles; because of the forward location of the engine, the axles are rated for 12,200 lbs. The drive axle tires are the Michelin XDA 2+ 295/80 R 22.5. The wheelbase is 182 inches. The sleeper has a 30-inch bunk. The Greensboro modifications include installing a 12-volt converter between the tractor and the trailer, a 90-watt solar panel on the roof, an electrical A/C & heating unit to eliminate idling and modifying the fifth wheel height to 47 inches. As well, the Globetrotters have lane departure, anti-collision and automatic windshield wiper systems. Robert also opted for an aluminum moose bumper, which Volvo installed at its plant in Sweden. It takes five minutes to remove. Volvo is making no confessions about whether it is preparing to introduce 24-volt tractors to the North American market. “This project is part of our normal evaluation of possible solutions for our products,” Volvo says.” So are 24-volt transport trucks the future in North America? “It’s too soon to say, but there are some advantages,” Volvo adds. Maurais comments that 12-volt transport trucks are behind the curve compared to construction vehicles, for example. He also reveals an interest in the cabover. “The ride is different and we will collect data and comments from our drivers. I don’t think there is a formal plan to introduce European trucks in North America any time soon, but we never know.”

Overdrive versus direct drive is an old debate. Big fleets like Wal-Mart and Schneider National spec direct drive exclusively. The trade-off here is fuel economy versus drivetrain reliability. I feel direct drive wins at low GCWs, and overdrive wins at higher GCWs. Many tests have been conducted with fleets, and it was hard to find a difference between overdrive and direct drive because so many other variables play into the equation. It's no surprise that the routes driven and the drivers were found to be larger variables than overdrive versus direct drive.

The only real difference between the Volvo D16 and Mack-badged MP10 is the color of the paint. Again using EGR coolers as an example, you can see they are exactly the same (page 10). Hence, these Volvo and Mack service bulletins are exactly the same, just a different brand name in the upper left corner. Volvo did change the color pictures of the green Volvo engine to black and white for the Mack-labeled bulletin (page 5), so that they wouldn't have to take a second set of photographs (Of course the superior Volvo brands rates color while Mack gets B&W). http://www.volvotrucksemedia.com/ProductDetail.aspx?ProductId=9087&GroupId=-1 Click on "View File" https://www.macktrucksemedia.com/ProductDetail.aspx?ProductId=9086&GroupId=-1 Click on "View File"