kscarbel

When it comes to management and execution, Scania trumps Volvo in every respect. Scania is the best managed truckmaker in the world with high level R&D talent resulting in the most advanced heavy truck technology, which is also why it is the most profitable truckmaker in the world.

Wall Street Journal / September 24, 2013 STOCKHOLM—Volvo AB Tuesday announced deep cost cuts and staff reductions amid a patchy economic recovery and a significant decline in demand. Volvo aims to save around US$626.4 million (4 billion kronor) a year by the end of 2015 under its new restructuring plan. The company said it has worked since January to identify measures to rationalize its business and boost efficiency, mainly in its core truck business. Volvo has seen demand for its trucks slip 10% this year. Sales fell 4% in August from a year earlier to 12,864 vehicles, as a sharp sales drop in Eastern Europe outweighed growth in South America. That decline follows a 38% decline in profit in 2012. Europe accounts for 40% of the company's truck sales. Volvo employs about 115,000 people, and white-collar workers and contract staff will be the primary target of head-count reductions. The restructuring plan is expected to result in one-time charges of about US$781.2 million (5 billion kronor). Sweden's economy has fared relatively well throughout the financial crisis compared with the euro zone, but Volvo's cost-cutting plans still come at a time when the country's economic growth remains stagnant and the state of the European economy remains in flux. According to the most recent data, Sweden's economic output fell 0.1% in the second quarter from the first, in part because of falling demand for Swedish exports elsewhere in Europe. Still, the country's purchasing managers index rose in August to 52.2 from 51.3 in the previous month, indicating that the country may be heading for a slow but steady turnaround. Volvo's Swedish rival Scania painted a rosier portrait at its capital markets day last week, stating that it has the potential to almost double its yearly truck deliveries to 120,000 trucks by 2020, and announcing plans to invest US$234.4 million (1.5 billion kronor) in production capacity over three years.

Bloomberg / September 19, 2013 Scania says European demand isn’t showing “seasonal weakness” this quarter as vehicle replacements and orders in advance of stricter emissions rules sustain sales. Scania is sticking to a worldwide target of delivering 120,000 trucks a year in 2020, and will safeguard profitability during the expansion, Henrik Henriksson, head of sales and marketing, said today at an investor conference at Scania headquarters in the Stockholm suburb of Soedertaelje. “The European market will come back,” and Scania will work to increase market share in the region by adding models for industries such as mining and forestry to a lineup focused on long-haul freight vehicles, Henriksson said. Scania is rolling out new trucks, including the new Streamline long-distance model range, as well as engines that meet tighter emissions standards in a bid bolster sales to counter recessions across Europe. The manufacturer is increasing production rates to ensure short delivery times after second-quarter orders rose 15 percent. Industrywide registrations in Europe of commercial vehicles heavier than 16 metric tons, excluding buses and coaches, fell 11 percent in the first half of the year, with double-digit declines in all major markets apart from the U.K., the ACEA automotive trade group said on July 26. A recession in the 17-country euro area ended in the three months through June after a record six-quarter contraction. Emissions Rules New trucks sold starting in 2014 must meet tighter European Union emissions standards, dubbed Euro 6. During such rules changes, some customers order cheaper vehicles that are still available while the older regulations remain in place. Demand at Scania has been helped in part by the “pre-buying” effect, Chief Executive Officer Martin Lundstedt said at the conference. Second-quarter orders at Scania rose to 22,564 trucks and buses from 19,586 vehicles a year earlier, while deliveries jumped 33 percent, the company said in July. Net income fell 6 percent to 1.37 billion kronor ($217 million), hurt by a strengthening Swedish currency and lower truck prices. Operating profit increased 5 percent to 2.04 billion kronor, while earnings as a proportion of sales narrowed to 8.9 percent of sales from 10.1 percent a year earlier. Margin Target The operating margin will return to previous highs of 14 percent and more, “but I don’t know when: It depends on the global economy,” Chief Financial Officer Jan Ytterberg said at the conference. Investment spending that holds back profitability has been necessary to prepare for volume expansion, Ytterberg said. “It is time to be a little more aggressive” and lay the foundation for future growth, he said. Scania rose as much as 3.4 percent and was trading up 2.9 percent at 143.4 kronor as of 1 p.m. in Stockholm, reaching the highest since July 18, based on closing prices. The stock has gained 6.8 percent this year, valuing the truckmaker at 112.2 billion kronor. Volkswagen, Europe’s biggest automaker, is forging a truck alliance between its Munich-based MAN division and Scania to reap cost savings and take on global market leader Daimler AG. A domination and profit-transfer agreement giving VW full control of MAN took effect in July. VW promoted former Scania CEO Leif Oestling last year to run group truck operations and lead the efforts for joint projects. Shareholders’ Stance Scania said on August 29 that an arms-length policy on cooperation with VW and MAN remains in place after a Swedish shareholders group called for an independent audit of the companies’ transactions. The Swedish Shareholders’ Association, which represents individuals with small stakes in the country’s traded companies, called in August for an independent monitor to evaluate cooperation between the companies to ensure minority investors’ interests aren’t overlooked. The group is seeking the support of investors controlling 10 percent of Scania stock to call a shareholders’ meeting to appoint the outside overseer. Any work with VW and MAN, which may include projects on axles, gearboxes, hybrid technology and purchases, will need approval of Scania’s management board, Lundstedt reiterated today. “Cooperation is developing in line with our internal plans,” Lundstedt said. “Projects like that are complex and they take time.” VW owns 46 percent of Scania’s equity and 71 percent of the votes, while MAN holds 13 percent of the stock and 17 percent of the votes. VW’s stake in MAN exceeds 75 percent.

SLT heavy-duty transport vehicle is the flagship of the new Mercedes-Benz truck family SLT is currently the only heavy-haul tractor unit available as a Euro-6 variant Technological pinnacle of truck engineering boasts many unique selling points such as a turbo retarder clutch Custom Tailored Trucks responsible for SLT design and development Most comprehensive range of heavy-duty transport vehicles as Actros-SLT and Arocs-SLT With the sales launch of its new Mercedes-Benz SLT 8x4 heavy haul tractor unit for the European markets, Mercedes-Benz Trucks is completing the introduction of its new truck model series featuring Euro VI in-line six-cylinder engines. The new family of Mercedes-Benz trucks for heavy hauling is available for the first time as the variants Actros-SLT with air suspension and Arocs-SLT with steel suspension, while the Arocs is also alternatively available with all-wheel drive. The SLT takes the best genes and components from the various model series of the new truck generation and fuses them together to create the jewel-in-the-crown of truck engineering. The customer profits from the huge range of possible heavy-duty transport vehicle variants – there are seven different wheel arrangements alone. Responsible for the development and production of the SLT with immediate effect is Custom Tailored Trucks (CTT), located in the Alsatian town of Molsheim and managed by the Wörth truck plant. The Euro III and Euro V versions of the Actros-SLT for non-European and overseas markets continues to be manufactured by CTT partner Titan. The Mercedes-Benz SLT is currently the only heavy-duty transport vehicle on the market which boasts Euro VI certification, a turbo retarder clutch as standard, and the Mercedes PowerShift 3 transmission with a special “Heavy” transmission mode. The only available heavy-duty tractor unit on the European market with Euro VI-powertrain to date is the new Mercedes-Benz SLT heavy tractor unit with the OM 473 Euro VI-engine. The most powerful variant of the new OM 473 (DD16) Euro-6 (EPA2010) in-line six-cylinder engine develops 460 kW (625 hp) and torque of 3000 Nm at 1100 rpm. At the same time the new Mercedes-Benz OM 473 impresses with its economy: even the most powerful unit of the new engine generation has been thoroughly developed for low fuel consumption. The special features of the new Mercedes-Benz OM 473 include a technical speciality, the turbo-compound system. The term stands for a second turbine downstream of the exhaust gas turbocharger. The automated Mercedes PowerShift 3 transmission features a “Heavy” transmission mode and is designed for high torque to handle loads of up to 250 tons. The SLT is the only vehicle in the field of competitors that has a 16-speed transmission and consequently the finest gear ratio spread in the heavy-duty transport sector. The turbo retarder clutch is another unique selling point of the new SLT. It functions as a wear-free starting-off aid, while the retarder section functions as a brake, and yet is lighter, more efficient and more compact than a torque converter clutch. This means the SLT tractor unit has temporally unlimited manoeuvrability and unrestricted low-speed driving and crawling capability, meaning that the SLT boasts the greatest possible flexibility in operation. The large quantities of heat developed are dissipated by the high-performance cooling system behind the cab, both in the three-axle and four-axle variants, of course. The cooling system is concealed by elegantly designed flaps on the sides that give the Actros or Arocs cab a distinctive and dynamic appearance. Drivers of heavy-duty transport vehicles spend much of their working time behind the wheel driving long distances – and taking many forced breaks if the permit so requires. At other times they must feel their way through tight town centres with their overheavy, overlong tractor-semitrailer combinations, and finally, on the last stretch to their destination, they become construction vehicle drivers who must deliver a generator set or wind turbine over poor field roads. The cab for the heavy-duty transport vehicle must be selected to meet all these requirements. The Actros-SLT with air suspension is available with GigaSpace or BigSpace cab; the Arocs-SLT with steel suspension, with BigSpace (2.5 m) or StreamSpace (2.3 m) cab. The new SLT heavy-duty transport vehicles can be ordered from any Mercedes-Benz truck dealer beginning immediately. Delivery of the basic chassis for the Actros-SLT with air suspension and the Arocs-SLT with steel suspension begins in December 2013. The all-wheel-drive variants of the Arocs-SLT are available from April 2014. http://www.geirinn.is/galleri/data/500/actros4165.jpg http://www.mercedes-benz.de/content/germany/mpc/mpc_germany_website/de/home_mpc/trucks_/home/long_distance/bodybuilder/custom_tailored_trucks/products.0004.fb0003.html https://bb-portal.mercedes-benz.com/mbis/fileadmin/user_upload/CTT/CTT_Bro_EN_120911_Web.pdf .

Transport Topics / September 11, 2013 The U.S. Postal Service is soliciting bids for a national contract to lease delivery vehicles for its fleet, a departure from the agency’s practice. In a solicitation notice, the agency said it is interested in leases for minivans, cargo vans and high-roof cargo vans. The vehicles would be used in the carrier delivery operations, the notice said. The postal service named several potential vehicles for the program, including Chevrolet’s Express and forthcoming City Express, Ford E-Series and Transit, the Freightliner/Mercedes-Benz Sprinter and the Ram ProMaster and Ford Transit. The vehicles will be leased for a maximum of three years and must be complaint with the federal Energy Policy Act of 2008. A lease-to-own agreement will apply to some of the vehicles, USPS said. It added that vehicles in service longer than 90 days must be white to match those in its official fleet. While the agency acknowledged that it currently has a “limited need for these types of vehicles,” it anticipates that it will need to add lease vehicles with longer lease terms as its fleet ages. It also acknowledged that its financial struggles are contributing to the interest in leasing. “Presently, there are not sufficient capital funds to purchase new equipment,” the agency said in the notice. The postal service has seen it revenues fall due to declining mail volume. Further, financial obligations to retirees have weighed heavily on its bottom line.

Sharp looking truck. http://www.dieselnews.com.au/2013/08/the-coronado114-a-new-dimension-driven-by-steve-brooks/ http://www.newtrucksearch.com.au/reviews/2013/3/born-in-the-usa-freightliner-coronado-114-review/ http://www.newtrucksearch.com.au/reviews/2012/12/freightliner-releases-new-coronado-114/ .

Trailer/Body Builders / September 16, 2013 Cummins has developed a new global heavy-duty engine platform to complement its existing global product offering. The G Series platform is an in-line six cylinder engine, and will be available in 10.5- and 11.8-liter displacements to meet a broad variety of on-highway and off-highway global market requirements and emissions standards. Initial engines are designed to run on diesel fuel. Design and development of the engine has been led by a team in the United States, and supported by global technical and marketing resources with deep knowledge of local market and customer needs. This global design approach utilizes the latest advanced technologies to develop an adaptive architecture, with each engine designed to meet unique performance and cost-of-ownership expectations for its target market and region. "The G Series global design approach is a vivid demonstration of how Cummins is transforming from a multinational to a truly global company," said Steve Chapman, Cummins Vice President and Group Vice President - China and Russia. "This engine platform has been designed for diverse and global markets by utilizing the expertise and local knowledge of our engineers from around the world." The G Series minimizes engineering requirements for vehicle and equipment manufacturers with a common, compact installation envelope. A key design focus for the G Series has been to achieve significant weight savings in order to increase the power-to-weight ratio. A sculptured block retains high rigidity while removing unnecessary mass. The use of composite material for the oil pan and valve cover provides further weight savings. With this innovative approach, the G Series achieves a remarkably low engine weight of just 1,900 pounds while retaining all the structural strength and durability expected of a Cummins Heavy-Duty engine. The G Series incorporates Cummins Xtra-High Pressure Injection (XPI) fuel system, derived from the larger and more powerful X Series engine. With multiple injection events driven by high-precision Cummins electronic controls, the XPI fuel system contributes to a very impressive peak torque for the G Series of 1700 lb-ft (2305 N•m), together with a torque rise as high as 60 percent available. These attributes enable the G Series to deliver exceptionally fast response to increasing load factors from low engine rpm. The G Series offers fuel efficiency through parasitic reducing technology without variable-flow pumps that add unnecessary cost and reduce reliability. Its Single Cam In Head (SCIH) design with roller valve train and high-efficiency intake ports continues the design theme of minimum complexity and maximum efficiency. The resulting low-weight design allows more payload to be delivered while requiring less energy to manufacture than competitive designs. For on-highway markets, the G Series Heavy-Duty engine platform will be introduced as the Cummins ISG11 and Cummins ISG12. These engines offer a power range from 290 hp to 512 hp (216-382 kW) in a compact and lightweight package. Engines will be available to meet global variations in emissions requirements. At launch in 2014, engines will meet Euro III, Euro IV and China NS4 emissions requirements. Engines for Euro V, Euro VI and U.S. Environmental Protection Agency (EPA) are also in development. The ISG11 and ISG12 are ideal power solutions for Heavy-Duty trucks in long-haul, regional-haul and vocational service, as well as buses, motor coaches, fire trucks and recreational vehicles. One engine from the new G Series platform was initially unveiled at BAUMA in April 2013 under the name QSM12, and will now be renamed QSG12 as part of this family of engines. The QSG12 is purpose-designed to meet U.S. EPA Tier 4 Final and European Union (EU) Stage IV emissions regulations with a more compact envelope and a more than 30 percent higher power-to-weight ratio than the class average for engines with a similar power range. High-efficiency air handling and advanced combustion enable the QSG12 to achieve near-zero emissions without the need for a cooled Exhaust Gas Recirculation (EGR) system. With ratings covering a broad 335 hp-to-512 hp (250-382 kW) range, the QSG12 offers an ideal power solution for a wide variety of applications, including tractors, combines, wheel loaders, excavators, cranes and material handling, road building equipment, compressors, screening and crushing machines. "Cummins G Series will set a new benchmark as a global Heavy-Duty engine platform," said Rich Freeland, Cummins Vice President and President - Engine Business. "With innovative and leading technology, the G Series will deliver superior performance to drive our customers' success." The G Series will initially be manufactured at the Beijing Foton Cummins Engine Co., serving customers on a global basis. Production will start during the first half of 2014.

Transport Topics / September 16, 2013 Cummins announced on September 16 that it has developed a heavy-duty 6-cylinder engine designed for the on- and off-highway global market. The G Series diesel engine is available in 10.5- and 11.8-liter displacements and was developed to meet international emission standards, Cummins announced in a statement. “This engine platform has been designed for diverse and global markets by utilizing the expertise and local knowledge of our engineers from around the world,” said Cummins China Inc. CEO Steve Chapman. According to Cummins, the engine’s high efficiency air handling and advanced combustion enable it to achieve near-zero emissions without the need for a cooled exhaust gas recirculation system. The G Series production will start in early 2014 and initially be manufactured in China by the joint venture Beijing Foton Cummins Engine Co., Cummins said.

Great looking Scania 3-Series. The Scania version of the Mack-Scania V-8 has individual cylinder heads.

Transport Topics / September 13, 2013 Daimler Trucks North America will build a new $150 million headquarters in Portland, Oregon. The truck maker said in a press conference Sept. 13 it expects the 265,000-square foot facility to be completed by 2016. City and state tax incentives will cover about 10% of the project’s cost and the company said it will make 400 new white-collar hires. Daimler Trucks North America CEO Martin Daum made the announcement with Oregon Gov. John Kitzhaber (D) and Portland Mayor Charlie Hales. There was speculation that the new headquarters could lead to the closing of offices at Daimler’s facilities in North and South Carolina, but the company recently sent an email to employees saying it had no plans to close its locations there.

Fleet Owner / September 10, 2013 Paccar Parts has renovated it Northeastern Parts distribution center and designed it to maximize environmental efficiency. The center, located in Lancaster, PA, includes daylight harvesting and the latest in radio frequency (RF) technology. “We are excited to share all of the upgrades to our Lancaster distribution center. These enhancements strengthen our dedication to providing superior products and service to our network of Kenworth and Peterbilt dealers in the northeastern United States,” said Tom Floyd, general operations manager. The facility, now a total of 120,000 sq. ft., was doubled in size. An additional 12,500-sq.-ft. small parts mezzanine increases stocking density and order-picking productivity. The combination of added space and optimized racking systems increases the overall facility storage capacity by 130% to 35,000 stock keeping units (SKUs), Paccar Parts said. The zero waste-to-landfill site also boasts several environmental enhancements. A corrugated auger improves recycling efficiency and a storm water retention system reduces runoff. Motion-sensing light fixtures work in conjunction with 90 skylights and daylight harvesting to reduce electricity usage by 40%. Additional enhancements include all-new storage and conveyance systems that reduce travel time, as well as ergonomic work stations with hydraulic lifts for heightened employee safety. An upgraded wireless network and next generation RF equipment increase productivity and reduce the possibility of errors. “These new enhancements will help our distribution center employees continue to deliver outstanding inventory and shipping accuracy to Kenworth and Peterbilt dealers in the Northeast. Paccar customers can depend on getting almost any part they need within 24 hours,” said Floyd.

The Granite-based MHD (medium heavy duty) is a pathetic attempt by Volvo North America to compete with the Freightliner Business Class M2 106/112 and the International WorkStar. The Granite MHD is simply a decontented Granite that pleases no one, and the abysmal sales are proof. If you want to compete in the municipal segment with a low-priced heavy truck, you need a purpose-designed medium heavy-duty product like the Freightliner Business Class M2 106/112 and the International WorkStar (I'm not a big fan of either product but the cities like them). By taking the Granite and installing a Cummins ISL, a competitive product for this segment has not been realized. And of course, assuming Volvo had wanted to play off the former Mack Trucks' legendary reputation in the vocational sector, putting any powerplant other than a Mack-branded product in this truck is nothing less than shooting yourself in the foot.

Transport Topics / September 6, 2013 Companies looking to cut costs and more accurately spec equipment to meet specific needs are increasing investment in smaller, medium-duty vehicles, dealers and fleets said. While some growth is due to carriers adding new medium-duty capacity, industry executives said there is a broader, emerging trend of carriers replacing capacity with smaller-class vehicles. Schwan’s Home Service Inc., a subsidiary of The Schwan Food Co., Marshall, Minn., is reducing the size of its trucks to boost efficiency, said Roger Porter, the company’s director of fleet acquisitions. By redesigning its vehicles and lightening the body, Porter said, the food-service delivery company has been able to replace Class 5 and 6 chassis with Class 4 models. “These trucks will give us fuel economy improvements of 37% along with lower acquisition costs,” he said. “The vehicles we are buying have plenty of power, which is great, as those engines tend to get better economy as they don’t struggle to haul the load.” Porter said Schwan has purchased more than 1,500 Class 4 vehicles in place of Class 5s and 6s since 2009. This year, it re-engineered and lightened its pre-2009 bodies as part of its Project Re-Vision, which will allow it to use those bodies on Class 4 and 5 chassis instead of Class 5 and 6, respectively. To lighten the bodies, Schwan improved energy efficiency and reduced the amount of refrigeration equipment required to keep food frozen, switched to a stainless steel bumper and removed step rails that were no longer necessary when using a smaller chassis. With the refurbishments, Porter plans to purchase 110 Class 4s instead of Class 5s and 40 Class 5s instead of Class 6 vehicles. Brian Tabel, director of marketing for Isuzu Commercial Truck of America, Anaheim, Calif., also sees customers investing in smaller classes. “With changing distribution patterns, they have smaller routes, and they are ‘right-sizing’ the trucks for the route,” he said, adding that the biggest change has been customers moving to a Class 5 truck from Class 6 or 7. “We have also seen customers moving down to the Class 2 or Class 2C from our Class 3 product.” Richard Witcher, CEO of Minuteman Trucks Inc. in Walpole, Mass., and chairman of American Truck Dealers, said the cost savings for a carrier moving to a smaller-class truck, particularly from a Class 8, is significant. In addition to overall vehicle costs, Classes 7 and below are exempt from the federal excise tax that adds 12.5% to the cost of a Class 8, he said. “In that aspect alone, there is a significant de­crease in the price of the vehicle. As the price has continued to escalate, business people are looking for ways to minimize expenses,” Witcher explained, adding that carriers are getting better at spec’ing for exactly what they need, which may allow them to purchase a smaller-class vehicle. One way they are doing that is by spec’ing vehicles to haul a diminishing load versus a max load throughout the day, he said. By doing so, they can avoid using heavier, more expensive components because they don’t need the same amount of power as they would if they were pulling a full load all day. “In the old days, you’d buy a vehicle that would be suitable for your maximum load throughout the course of the day, so you’d use heavier components. People are now specifying those vehicles for diminishing loads,” Witcher said. “You may max that truck out when it first leaves the lumber yard, but you minimize the load throughout the day because you’re dropping off parts of the load.” Steve Tam, from market analysis firm ACT Research, Columbus, Ind., said there is a “subtle shift” toward lighter vehicles, particularly among regional, private and specialty carriers. “Some Class 8 trucks are being replaced with Class 7, some Class 7 with Class 6, etc. Smaller vehicles, where they are still capable of doing the necessary work, are less expensive on every facet — initial purchase price, operating costs, maintenance costs, insurance, taxes and tolls,” Tam said. James Fields, chief operating officer of Pitt Ohio, Pittsburgh, said smaller shipments from manufacturers to stores and from stores to the consumers are causing the carrier to increase the number of Class 6 trucks it purchases. “The Class 6 vehicles are easier to drive, more fuel-efficient, easier to get into tight spaces where deliveries might take place and less expensive to purchase,” Fields said. However, he declined to comment on the number of Class 6 trucks the carrier has bought. Tabel said one of Isuzu’s customers now runs trucks in Classes 4-7, depending on the route. “In the past, a guy would typically buy one truck, and that is the truck his guys run throughout the company. Now, getting the right truck for the right route is a definite play,” he said. Stephen Latin-Kasper, director of market data and research for NTEA — The Association for the Work Truck Industry, Farmington Hills, Mich., said scaling down is driven by fuel and operating costs. He said he is seeing Class 5 sales taking share away from Class 6. “If you look at the 2012 data by class, you find that Class 5 outpaced the rest of the industry,” Latin-Kasper said, adding that while Class 5 sales are growing, Class 6 sales are also increasing. “From our own data, we could not make the case that [Class] 6 was taking share away from [Classes] 7 or 8, but there is anecdotal evidence that it is happening,” Latin-Kasper said. Steven Saltzgiver, vice president of fleet operations for Coca-Cola Refreshments, Atlanta, said that year-over-year, the company is adding and disposing of more than 250 diesel trucks. As part of that trend, Coca-Cola is investing in alternative-fuel and hybrid vehicles, but the company also is evaluating a possible move to smaller-class vehicles. Changes in distribution patterns nationwide are allowing some carriers to use medium-duty vehicles. “The distribution model is shifting from long-range driving to shorter-range, spoke-and-hub operations,” said Kyle Treadway, president of Kenworth Sales Co., West Valley City, Utah, which operates 18 dealerships in seven states. Witcher said that helps reduce the trucks’ gross vehicle weight. He added that the expansion of the Panama Canal, which is scheduled to be completed in 2015, will send more cargo to the East Coast. “The need will diminish for people to do cross-country runs with sleepers, and that is when I see additional conversion from large over-the-road trucks to lighter Class 7 and Class 6,” he said. Tim Kraus, president of the Heavy Duty Manufacturers Association, Triangle Park, N.C., said some carriers are becoming more specialized, which changes the vehicle they specify. “There are more and more people who are rather than using Class 8 tractors for city trucks, they’re specializing, and when they replace a Class 8, they’re replacing it with a lower-class truck that is more efficient and has less expensive parts,” Kraus said. However, he said it is too early to call the shift a trend. But dealers are seeing the growth. Treadway said he sees an increase in medium-duty vehicles — particularly Class 6 truck sales — in the furniture, bulk hauling, beverage and pickup-and-delivery applications. “One of the most critical factors affecting this trend is the driver shortage,” Treadway said, adding that because Class 6 doesn’t require a commercial driver license, “the driver pool to draw from is much larger.” Tam expects the aging of the driver population and retiring baby boomers will continue to change the driver pool and may make the need for smaller-class vehicles even more compelling. The CDL requirement triggers other compliance issues, including drug testing, logbooks and CSA, Treadway said. “The regulatory world of commercial truck drivers is getting more complex, hence the shrinking number of people willing to enter the industry,” he added. Kari Rihm, president of Rihm Kenworth in St. Paul, Minn., said some companies choose medium-duty vehicles with automatic transmissions, which can appeal to drivers. Rihm has seen significant growth in Classes 6 and 7 sales. “In 2009, we retailed only 83,” she said. “In 2012, we sold 308 Class 6 and 7, and we’re on a trajectory to beat that this year.” Dean Dills, a truck sales representative at Rihm Kenworth, said some of that growth is from sales that once would have gone to Sterling and General Motors. Daimler Trucks North America abandoned its Sterling brand in 2009. That same year, GM shuttered its medium-duty truck division, which limited its lineup to Class 3 and below. In addition, Kenworth recently reintroduced a cabover unit that is gaining popularity with in-town delivery companies because it is a shorter truck, Dills said. “They can get it in tighter areas, and there is better maneuverability.” Ford Motor Co., Dearborn, Mich., has seen an increase in Class 6 sales because of increased recreational-vehicle chassis and strip chassis production. “The economy is getting better. Even though it is growing slower than we’d like, we have many businesses experiencing growth, so they’re adding to their fleets in addition to replacing equipment,” said Len Deluca, director of Ford’s commercial truck division. Deluca said demand for the commercial strip chassis has more than doubled since it was introduced in 2009. However, he said he doesn’t believe enough fleets are switching classes to affect growth. “One thing we’re getting is looks from customers who didn’t consider us before due to some competitors who are dead, out of the market or aren’t providing the products they once did,” he said. Ford is seeing customers change to a gasoline-powered truck from a diesel-powered unit. “I think now there are some customers realizing they don’t need a diesel, and now we can provide them with the powertrain they really need,” Deluca said. Diesel engines provide more torque than their gasoline counterparts, but they typically have a higher initial cost. Bill Moad, director of fleet operations for J.R. Simplot, a Boise, Idaho-based agricultural business that produces frozen potatoes, vegetables, fertilizers, seeds and cattle, has downsized the size of the pickup trucks it buys. “In the field areas where we’re making sales calls, we went to the Ford F-150. We’re looking for better fuel economy, so we went down from the 1-ton pickup,” he said. Kenneth Calhoun, vice president of customer relations for Truck Centers of Arkansas in Little Rock, said that although everyone is trying to be lighter and more fuel-efficient, fleets shouldn’t drop to a smaller class simply to cut costs. “If you have a particular job to do, you have to look at it at a component level and not just if you can do this with a smaller truck. The payback isn’t there if you drop too far. You tend to get better service life and less maintenance expense from having something that is spec’d properly,” Calhoun said. Elissa Koc Maurer, manager of communications for Navistar International Corp., Lisle, Ill., said there is no irrefutable evidence to indicate that fleets are shifting class sizes. She said sales continue to be “choppy” and that “vehicle class sales are cyclical by nature.” In fact, Dills said, medium-duty customers often take the dealer’s advice on which vehicles to spec. “The medium-duty customer quite frequently is a company that isn’t a trucking company,” Dills said. “They produce something, and they need the truck to deliver it.”

I normally steer clear of non-truck posts, however I found this interesting (but not surprising). Bloomberg / Sept 7, 2013 Eight U.S. Transportation Security Administration employees were among nine people arrested in connection with stolen parking passes at Dallas/Fort Worth International Airport, police said today. Airport police found stolen airline employee-parking placards had been sold for $100 each to TSA workers. The passes would normally cost $34 a month or $400 a year, according to a police statement. The passes were among 129 that went missing from an American Eagle Airlines Inc. office inside an airport terminal in March. An airline employee has been arrested on a felony charge involving the theft of the passes, police said. The carrier is a unit of American Airlines parent AMR Corp. TSA misconduct, and the agency’s handling of it, has been a concern in Congress. The Government Accountability Office said in a July 31 report the agency hasn’t been consistent in meting out discipline for infractions ranging from sleeping on the job to stealing travelers’ laptops from security lines. One TSA employee faces a felony charge of theft for selling the placards to colleagues, police said. The other six government workers face misdemeanor charges for using the stolen passes. The airport didn’t release names of the arrested employees, saying the investigation was continuing. David Castelveter, a TSA spokesman, said the agency is cooperating with the airport’s investigation. The eight employees have been placed on indefinite suspension without pay, he said. “TSA does not tolerate any form of unethical or unlawful behavior by its employees and takes appropriate disciplinary action,” said Castelveter.

Transport Topics / September 4, 2013 Navistar International Corp. reported a loss of $247 million in its fiscal third quarter, or $3.06 per share, and said it has started taking orders for the first selective catalytic reduction engine option for medium-duty trucks and school buses. The earnings for the quarter ended July 31 compare with a net income of $84 million, or $1.22 a share, in the same period a year earlier, Navistar said Sept. 4. Revenue fell to $2.9 billion compared with $3.2 billion the prior year. The truck and engine maker blamed the loss primarily on its transition to SCR for heavy- and medium-duty trucks, and weak industry conditions. Its North American truck operations have switched from using only exhaust gas recirculation for emissions control to SCR engines from Cummins Inc. over the past year. “We clearly need to accelerate progress with our financial results, and we are already implementing additional cost reduction and business improvement actions to counter our near-term volume challenges,” Navistar President and CEO Troy Clarke said in a statement. “This includes resizing our company to match our current business environment.” The 6.7-liter Cummins ISB will be dropped into the first Classes 6 and 7 DuraStars later this month, with the Lisle, Ill., manufacturer ramping up to full production in December. Full production for Navistar’s CE school buses with the engines is scheduled for January, Navistar said in a Sept. 3 news conference. In Navistar’s earnings announcement, the company also said that it started this month cutting 500 jobs globally. It said in August that it would cut “a few hundred” jobs but did not have a specific figure.

Trailer/Body Builders / September 4, 2013 Navistar International Corporation has expanded its medium-duty engine offerings to include the Cummins ISB 6.7-liter engine for International DuraStar medium-duty trucks and IC Bus CE Series school buses. “Adding the proven, market accepted Cummins ISB to our line-up is a key part of our strategy to offer our customers the most comprehensive medium-duty truck and bus offerings,” said Jack Allen, Navistar executive vice president and chief operating officer. “The ISB will complement our existing engine offerings and will be a catalyst as we look to improve our medium-duty truck and bus business in 2014 and beyond.” International DuraStar trucks and IC Bus CE Series school buses with the Cummins ISB will be Navistar’s first medium-duty vehicles with Selective Catalytic Reduction (SCR) emissions aftertreatment. Navistar will begin taking orders immediately for trucks and buses with the Cummins ISB with initial truck builds later this month and regular production for trucks scheduled for December. Regular production for CE Series school buses is scheduled for late-January 2014. “Medium-duty truck and bus customers from across the industry have extensive familiarity and confidence in the Cummins ISB. Adding it to our proven DuraStar and CE Series products, along with our industry-leading dealer network, will provide customers with a winning combination,” said Bill Kozek, Navistar president, North America Truck and Parts. “Customers seeking commonality in their engine line-up have expressed significant interest in combining the Cummins ISB engine with our chassis and we anticipate strong demand and orders as a result.” While the Cummins ISB is a new offering for Navistar’s medium-duty trucks and buses, Navistar has gained extensive experience packaging and manufacturing medium-duty trucks with the Cummins ISB since 2010 through its Ford Blue Diamond joint venture. The Cummins ISB allows Navistar to meet the needs of its truck and bus customers by adding a proven mid-range SCR engine to its line-up. The company will announce the next steps of its comprehensive mid-range SCR engine strategy at a later date. In the meantime, Navistar will continue to offer EGR-only versions of its mid-range engines utilizing its medium-duty emissions credits. With more than 75 years of history and collaboration behind its partnership, Navistar and Cummins teams have worked side-by-side over the past year to launch the Cummins ISX 15-liter engine in the company’s Class 8 trucks—including the International ProStar, PayStar 5900 and 9900i models. In addition, the teams continued their close collaboration this past spring and summer as Navistar added the Cummins SCR aftertreatment system to its proprietary MaxxForce 13-liter for the successful launch of ProStar, WorkStar, TranStar and PayStar models.

The Financial Times / September 4, 2013 Shares in Navistar International fell nearly 6% in midday trading after it reported a worse than expected $247m third-quarter loss and announced it would cut 500 jobs. Navistar continues to suffer from a bad bet on new diesel engine technology and lower industry demand in its fourth straight quarterly loss. Navistar reported a net loss of $237 million from continuing operations, or $2.94 a share, down from an $80 million profit, or $1.16 a share, during the same period last year. Consolidated revenues fell nearly 12%, from $3.25 billion to $2.86 billion. Analysts had expected a $1.30 a share loss on $2.92 billion in sales. “We clearly need to accelerate progress with our financial results, and we are already implementing additional cost reduction and business improvement actions,” said Troy Clarke, chief executive. The company has announced numerous rounds of cost cutting since last year. The 500 salaried and long-term contractor jobs cuts, along with other cost reduction activities, are expected to generate an additional $50 to $60 million in annual savings starting in the fiscal year beginning in November, the company said. Navistar employed 18,500 people last year. Mr. Clarke has worked to keep Navistar on track since taking over as chief executive this year, an appointment that sent shares in the company surging nearly 28%. He took over for Lewis Campbell, the interim CEO, on April 15. Mr. Campbell had been in charge since the resignation last August of Daniel Ustian, under whose leadership the company had spent $700 million on an alternative technology that was not able to meet stricter US emissions standards. The failure of that project helped drive the company’s market share down from 28% during the fiscal year that ended in October 2011 to 14% during the three months to July. The results came the day after the company said it would expand its sourcing of engines from Cummins , a direct competitor, a programme that it had begun after the US Environmental Protection Agency failed to approve its diesel engine. Navistar said the two companies have more than 75 years of history together and it was increasing its sourcing because of customer demand.

Flatback with NTC335 and aluminum frame

The Freedom (Renault Midlum) is a solid truck. It's Renault Premium-based cab is quite comfortable. BUT, to operate one in the US in year 2013, I would be concerned about unreasonably high parts pricing thru Volvo/Mack for Renault spare parts. If you were in Europe, this would be a non-issue. Also, because it was sold for only a few years here (2001-2003), technicians with in-depth Freedom/Midlum experience are hard to find. So, yes it's a good truck. But I think you can find another truck that has a lower overall cost of operation.

Australian Transport News / September 2, 2013 US vehicle retailer Penske has completed the purchase of Commercial Vehicle Group (CVG) and has confirmed the existing management will stay in place. Penske spent $219 million on the deal with Transpacific Industries for its heavy vehicle sales and support business, it was revealed in July. CVG distributes heavy and medium-duty trucks for Western Star, MAN Truck and Bus, and Dennis Eagle refuse chassis through a network of over 80 independent dealers, and for the price Penske gains “target working capital of approximately $67 million inclusive of vehicle inventory, parts, and other assets”. The new owner expects to gain $420-$460 million in annual revenues from its first Australian acquisition. “We believe that our existing relationships with heavy and medium-duty truck manufacturers, our experience in operating distribution and dealership-related businesses, strong market dynamics and multiple growth options augment this business opportunity,” Penske Automotive Group Chairman Roger S. Penske says. “Further, The Commercial Vehicle Group provides us with an attractive gateway to enhance our global business profile while potentially providing a stepping-stone to Southeast Asian markets for other parts of our business."

Transport Topics / August 30, 2013 Volvo AB’s North American truck deliveries declined 11% in July from a year ago, the company said August 30. Deliveries of its Volvo and Mack brands fell to 3,943 trucks from 4,437 a year ago, Sweden-based Volvo said in a statement. Volvo-brand truck deliveries fell 1% to 2,350 trucks, while Mack’s fell 22% to 1,564. Year-to-date North American deliveries are 20% below a year ago, at 24,853 units. A small number of Volvo’s Renault and UD Trucks brands made up the remainder of the North American tally. Worldwide heavy-duty truck deliveries for all Volvo brands fell 3% in July to almost 16,900 units. Volvo brand July heavy truck deliveries rose 20% worldwide to 9,959 units, while Mack’s fell 25%, to 1,715.

While this product is intended for the Chinese market in Euro-4 spec (similar to Euro-4), it could easily be adapted to meet Euro-6/EPA2010 with a VGT, SCR and DPF. The reason Cummins gave Dongfeng a 9.5 ISL up to 425hp is because Cummins already produces the 10.8L ISM with a different Chinese truckmaker (Shaanxi). The ISM would ordinarily suit Dongfeng's 420hp requirement but it's already spoken for. So the new 9.5L ISL is being promoted as a near equivalent that offers weight savings.

Edmunds / August 30, 2013 Toyota is eyeing a play from Nissan's product book and may also offer a Cummins turbocharged diesel engine in its Tundra pickup truck line. Earlier this month, Nissan announced it would offer a turbocharged Cummins V8 diesel engine in its redesigned 2015 Nissan Titan pickup. It is an effort by the Japanese automaker to attract new buyers by boosting the fuel economy and power of its full-size pickup. "I think Cummins would bring instant name recognition and obviously they are a leader in diesel engine technology," Toyota's Rick LoFaso told Edmunds. "That is not the first time we would have a tie up with somebody else," citing working relationships with Tesla and BMW. LoFaso is the corporate manager for light trucks at Toyota Motor Sales, U.S.A. Toyota is looking at two powertrains to boost the fuel economy of its full-size Tundra pickup. The base 2014 Toyota Tundra with a 4.0-liter V6 and five-speed automatic transmission returns 16 mpg in city driving and 20 mpg on the highway, according to the EPA. The 2014 Tundra with a 5.7-liter V8 and six-speed automatic transmission returns 13 mpg in city driving and 18 mpg on the highway. "The diesel engine is something that is on our evaluation list," LoFaso said during an interview at a press event here. "Hybrid technology is something that is on our evaluation list. Either one of those alternatives could deliver some pretty good real world fuel economy." No timetable was given as to when a decision would be made. Earlier this month, at a Nissan press event announcing the diesel engine for the Titan, a Cummins executive told Edmunds the engine maker would have enough capacity to sell its engine to Nissan and another vehicle maker. He would not say if Cummins was in negotiations with Toyota or another vehicle maker. Until the 2014 model year, no automaker had offered a diesel engine in a light-duty pickup. Chevrolet, Ford and GMC have been silent on the subject. However, with rising gasoline prices, pickup truck owners and operators are looking for engines that are more efficient such as those operating on diesel fuel. Federal regulations also require vehicle manufacturers to boost the fuel economy of their vehicles. An added benefit of a diesel engine over gasoline is that it provides more torque, as in power, for transporting or pulling heavier loads. Chrysler Group announced in June that a turbocharged 240-horsepower 3.0-liter V6 engine would be offered in its 2014 Ram pickup. Italy's VM Motori developed the engine. The company is owned 50-50 by Fiat and General Motors. Then, earlier this month, Nissan announced that the redesigned 2015 Titan pickup would be available with a 5.0-liter Cummins diesel V8 engine. Final specifications for the diesel engine have not been released. Nissan estimates the diesel engine will have over 300 horsepower and a torque rating in the mid-500s (pound-feet). Edmunds says: Toyota appears to be yet another truck maker that is anxious to cash in on the Cummins name.

The available Eaton Ultra-Shift Plus on Mack-branded Volvo trucks is not rebadged. It is sold as the Eaton product that it truly is. However in those same Mack-branded Volvos, Volvo Group deceptively rebadges their i-shift AMT transmission as a Mack product under the M-Drive name. Why doesn't Volvo just call a spade a spade and sell their AMT in Mack-branded trucks as the Volvo i-shift??? Volvo doesn't rebadge the Eaton transmission. What is Volvo embarassed about? Could it be they are afraid this would open up a can of worms, afraid the broad customer base would begin connecting the dots and realize that today's Mack-branded truck is realistically a Volvo?

The Quester is a decontented Quon. It uses the same cab shell as the Dongfeng Tianlong heavy truck which was developed by Nissan Diesel (UD) for Dongfeng. But whereas the Tianlong uses Dongfeng-produced drivetrain components like the 8.9/9.5L Cummins ISl and 11L Renault dCi, the Quester carries Volvo Group's UD logo and has a UD or Volvo powertrain, with available Volvo T-Ride and planetary hub-reduction rears. The Volvo-Dongfeng marriage remains mired in the mud, as both companies have entirely different goals. If it was a marriage made in heaven, Volvo would be planning the export of jointly-badged Tianlong tractors to all those emerging markets, rather than creating a nearly identical new truck named the Quester. Volvo had mentioned exporting Dongfeng brand trucks worldwide as an enticement to Dongfeng to sign the joint venture agreement, but the Quester announcement is proof that Volvo has different plans. Volvo never actually wanted to sell Dongfeng trucks thru Volvo dealers.