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Navistar Starts ‘Diamond Renewed’ for Used Trucks


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Transport Topics / July 28, 2014

Navistar Inc. said it has launched a new program to enhance the value of its later-model used trucks.

“Diamond Renewed” includes a complete vehicle reconditioning and the OnCommand Connection monitoring system. Model year 2010 or newer International ProStar, TranStar and LoneStar vehicles powered by the company’s MaxxForce engine with under 400,000 miles will be included.

Navistar had a media briefing at its headquarters here July 24 and then hosted a dealer event leading up to the public launch.

“Diamond Renewed assures every truck meets our stringent reconditioning and quality standards,” said David Gerrard, senior vice president of distribution.

While emissions from these engines initially failed to meet 2010 federal emissions standards, eventually leading the company to switch to selective catalytic reduction, Navistar said every unit has recalibrated software updates, new diesel particulate filters and diesel oxidation catalysts, and now is compliant.

“These trucks run well when we do the things we are supposed to do,” said Bill Kozek, president of North American Truck and Parts.

Other fixes or improvements to the 11- and 13-liter Maxxforce models involving the turbo air control values, high pressure fuel pump and the exhaust process are standard with each Diamond Renewed vehicle, said Tim Shick, vice president of North American engine sales.

Navistar said the Diamond Renewed process was developed at its used equipment recondition center in Indianapolis, which opened in July 2013. The facility has reconditioned more than 1,200 units, and any vehicle in the Diamond Renewed program receives a special decal near the doors.

The entire inspection process includes more than 180 vehicle and engine points, as well as body repair and painting of the frame rail.

Also included is a warranty, including EGR components, for up to two years or 200,000 miles.

Navistar debuted its OnCommand Connection remote diagnostics system last year. As part of the integration into the Diamond Renewed program, the company released a mobile app, making it easier for small fleets or owner-operators to get the large-fleet experience.

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Navistar launches “Diamond Renewed” used truck program

Fleet Owner / July 28, 2014

As part of larger strategy to help rebuild its U.S. heavy truck market share, Navistar is launching a new used truck refurbishment program dubbed “Diamond Renewed” for 2010 model or newer International units equipped with the company’s MaxxForce exhaust gas recirculation (EGR) engines.

David Gerrard, Navistar’s senior VP of distribution, explained in an interview with reporters last week that the “Diamond Renewed” program seeks to capitalize on demand for late model, low mileage used trucks that is expected to only increase as freight distribution patterns are expected to undergo a major shift over the next two years towards the Eastern seaboard.

“Our customers are operating on very tight lines,” Gerrard said, who himself spent a long career in the LTL segment of the industry before joining a Chicago-based Navistar dealer for 5 years and then moving over to the OEM’s corporate team.

“It used to be that the standard used [Class 8] truck model was 7 to 8 years old and cost between $25,000 and $40,000,” he pointed out. “Now that [Class 8] truck is 3 to 4 years old and costs $45,000 to $65,000. Yet that is still significantly cheaper than a brand new one.”

The upshot of the “Diamond Renewed” program, then, is to create what Gerrard referred to as a “sweet spot” for used trucks; Class 8 models that costs $50,000 less than a new unit yet come with enhanced options in order to better support vehicle uptime. In short, he said the program aims to provide used truck customers with a “new truck experience.”

Navistar’s effort in the used truck market is dovetailed with continued strong demand, as data tracked by ACT Research Co. indicates that the volume of used Class 8 trucks sold in June rose 10% above May’s volume.

“June’s performance was a little counterintuitive, given that sales usually slow in the summer months,” noted Steve Tam, ACT’s VP- commercial vehicle sector.

“While one month does not make a trend, it confirms that demand in the used truck market remains strong,” he said. “Meanwhile, the average selling price of total reported Class 8 trucks sold in June slipped for the second month in 2014, to a record $47,345. Despite the short-term decline, our expectation is for price appreciation of up to 10% for 2014.”

In terms of the particulars for Navistar’s new “Diamond Renewed” program, only model year 2010 or newer International ProStar, TranStar and LoneStar models powered by MaxxForce EGR engines under 400,000 miles and up to 450 hp are accepted.

Gerrard noted that in some cases Navistar is "de-rating" engines coming into the program with higher hp settings as that reduces EGR related issues. "We've foud over the last few years in our experience with EGR that higher horsepower ratings create a lot of issues," he said. "So dropping into the 430 to 450 hp range creates less performance issues related to EGR."

Following a 180-point vehicle and engine inspection process, eligible used trucks are then refurbished at Navistar’s Used Equipment Reconditioning Center (UERC) in Indianapolis, with refurbishment working including: Cleaning or replacing diesel particulate filters and diesel oxidation catalysts, EGR calibration software updates, checking and repairing brake systems, conducting major body repair, painting frame rails and more. To date, the company said it has reconditioned 1,200 units to its “Diamond Renewed” standards.

Next, Navistar will provide what it calls its “System1 Confidence” OEM factory-backed warranty coverage for up to two years, 200,000 miles; coverage that includes EGR components, Gerrard stressed.

Finally, the OEM said “Diamond Renewed” reconditioned trucks with its OnCommand Connection monitoring system, providing a remote diagnostics portal so customers can access real-time fault codes, truck and dealer locations, vehicle health reports and fault code action plans.

Gerrard added that Navistar plans to sell its “Diamond Renewed” trucks through both its 15 International Used Truck Centers nationwide as well as through its dealer network. "At the end of the day we're trying to build on brand loyalty with this program; supporting the second and third buyer of our trucks in the market," he explained.

Bill Kozek, Navistar’s president-North American trucks & parts, added on the call that the new “Diamond Renewed” program aims to provide the same two major strategic benefits the OEM seeks to beef up for its new trucks as well: more vehicle uptime and lower cost of ownership.

“It’s all about developing products to fill in our gaps, be a leaner low-cost manufacturer, all while delivering lower cost of ownership to our customers,” he told reporters. “It’s an exciting time at Navistar but we still have hard work to do.”

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Now armed with years of bitter experience, they’ve learned how to make their EGR engines operate with a reasonable level of reliability. It appears changes have been made so as to lower the EGR levels somewhat and thus add to reliability.

Let’s run down the list as they’ve presented it:

  • The core engine is either the proven MAN D20 or D26
  • “Diamond Renewed” is limited to model year 2010 or newer International trucks with less than 400,000 miles
  • The work is done in-house at Navistar’s Used Equipment Reconditioning Center (UERC)
  • Every truck meets our stringent reconditioning and quality standards (believable because they can’t afford any more mistakes)
  • Each engine gets the latest software updates
  • New or cleaned diesel particulate filters (DPF) and diesel oxidation catalysts (DOC)
  • True EPA2010 compliancy
  • Improved turbocharger air control values
  • High horsepower engines de-rated to 430-450 horsepower, to ensure acceptable EGR system durability
  • New high pressure fuel pump
  • The addition of the OnCommand Connection remote diagnostics system
  • 180 point inspection process, plus body repair and frame rail painting.
  • 200,000 mile warranty, which includes EGR components
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Navistar will never be in my good graces unless someone new owns them. Their lying, law suits and disregard for owner operators makes them unforgivable. I know every company is concerned about bottom line, but the maxxfarce engines put small guys out of business. I have 4 trucks on the road, if I spent $180,000 on a new one and had so much down time how would that truck pay its way? How about the poor driver sitting in it? Then when its time to trade.....that truck that couldn't pay its own way is worth next to nothing. How about Navistar does this program for people who currently own these shit trucks?? Give them the 200,000 mile warranty, fix their emissions and egr setup! Stand behind the guys that use to have faith and pride in them. Instead they'll give you little on trade for it and then try to sell it to some poor guy believing this is all better now. I welcome Scania with open arms.

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Navistar will never be in my good graces unless someone new owns them. Their lying, law suits and disregard for owner operators makes them unforgivable. I know every company is concerned about bottom line, but the maxxfarce engines put small guys out of business. I have 4 trucks on the road, if I spent $180,000 on a new one and had so much down time how would that truck pay its way? How about the poor driver sitting in it? Then when its time to trade.....that truck that couldn't pay its own way is worth next to nothing. How about Navistar does this program for people who currently own these shit trucks?? Give them the 200,000 mile warranty, fix their emissions and egr setup! Stand behind the guys that use to have faith and pride in them. Instead they'll give you little on trade for it and then try to sell it to some poor guy believing this is all better now. I welcome Scania with open arms.

Scania will take heavy truck operational efficiency to the next level when it returns to the North American market. But for now, that is a discrete dicussion occuring behind closed doors.

I have zero confidence in Navistar's current head, former General Motors man Troy Clarke.

Having said that, at least Clarke finally realized that he was far out of his element (whatever that is) and sought out a real truck man to turn the company around. That's ex-Paccar veteran Bill Kozek, an absolutely super individual. A man of the utmost integrity, you can believe what he tells you. With Kozek onboard, Navistar has a fighting chance at righting itself.

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It just seems funny to me how a company like Caterpillar can come out with a junk Accert motor, dump it into the trucking ind. then walk away from it and all it's troubles?? Then come out with a truck built on a Navistar and go back in busn. like nothing ever happened?? And people buy them before a Mack or a Western Star or Pete, KW??? Even today some guys still talk about the Detroit 00-92's and how they will never buy a Detroit again? and GM (at that time) made good on all the 92's that went bad and replaced them with the Silver series!

BULLHUSK

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