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Electronic stability control and traction control brakes now standard on tractor models (optional on F-750 diesel straight frame model*) New diesel engine soot trap regeneration inhibitor allows driver to postpone incinerating trapped soot until regeneration can be performed in a preferred location, plus new easy-to-access oil dipstick location to check oil levels New high-output 240-amp alternator now available for 6.8-liter V10 gasoline engine models Available three-inch bumper extension limits potential hood wear and collision damage DEARBORN, Mich., May 3, 2017 – Ford, America’s truck leader, is updating its biggest trucks to improve performance and serviceability. Ford F-650 and F-750 medium-duty trucks are the fastest growing volume Class 6-7 brand**. Ford F-650 and F-750 trucks were completely redesigned for 2016, enjoying their best sales since 1997 last year. Ford’s largest trucks are available in straight-frame, kick-up frame Pro Loader and dedicated tractor models, with Regular Cab, SuperCab and Crew Cab body styles. Ford is the only manufacturer to offer a choice of gasoline or diesel powertrain in the medium-duty conventional truck market. All F-650 and F-750 trucks are built at Ohio Assembly Plant near Cleveland using domestic and foreign parts. “Customers are moving from other brands to Ford F-650 and F-750 medium-duty trucks because they’re affordable and Built Ford Tough in America,” says Kevin Koester, Ford medium-duty truck and Super Duty fleet marketing manager. “Our segment-exclusive gasoline engine is appealing to fleet managers who recognize not every duty cycle requires the torque of a diesel engine, and who prefer the cost and maintenance advantages of gasoline power. “The success of our new truck design is apparent from our growing sales and the fact it was named Medium-Duty Truck of the Year by Work Truck magazine in 2016 and 2017,” adds Koester. “For 2018, we’re enhancing this successful platform based on customer feedback.” Electronic stability control and traction control brakes are now standard on all 2018 F-650 and F-750 tractor models. The system will initially be optional on certain F-750 diesel air-braked straight trucks with high-center-of-gravity-body upfits. For applications with high electrical demands – such as tow trucks, road service vehicles and other well-lit work trucks – a high-output 240-amp alternator is now available with the 6.8-liter V10 gasoline powertrain. Ordering the higher output alternator to power auxiliary lights and equipment can eliminate the need to specify a second alternator or generator. Ford offers an optional automatic regeneration inhibitor on 2018 diesel trucks to give the operator more control over when the engine goes into regeneration to clean the diesel particulate filter. To limit potential hood wear and front-end collision damage, an available bumper extension moves the full-width front bumper from flush with the grille to three inches in front of it. This provides additional protection to the grille and components behind it in case of a collision, potentially reducing repair expenses. It’s easier to check the oil and transmission fluid levels on 2018 F-650 and F-750 diesel trucks thanks to relocated dipsticks that can be accessed from ground level. The transmission fluid dipstick has also been moved to provide ground-level access on gasoline models. The gasoline engine’s oil dipstick was already accessible from the ground. Powertrains purpose-built for Ford trucks Ford is the only manufacturer to design and build its own medium-duty diesel engine and transmission combination – ensuring the powertrain will work seamlessly with all chassis components and vehicle calibrations, and providing customers with streamlined service. The 6.7-liter Power Stroke® V8 turbo diesel engine delivers best-in-class standard 270 horsepower and 675 lb.-ft. of torque, as well as available engine outputs of 300 horsepower with 700 lb.-ft. of torque and 330 horsepower with 725 lb.-ft. of torque. The diesel has a B10 engine design life of more than 500,000 miles***, and is backed by an unsurpassed standard five-year/250,000-mile limited warranty. For additional braking assistance, an exhaust brake comes standard with every diesel engine. Ford’s segment-exclusive 6.8-liter V10 gasoline engine provides 320 horsepower and 460 lb.-ft. of torque for less than the cost of a diesel engine. It can be factory-prepped for conversion to compressed natural gas or liquid propane. Both engines come with the Ford-built TorqShift heavy-duty six-speed automatic transmission. An available live-drive power takeoff provision features an output gear linked directly to the diesel engine crankshaft for 300 lb.-ft. of stationary torque and 200 lb.-ft. of mobile torque. For the gasoline powertrain, the optional power takeoff’s stationary and mobile mode deliver 250 lb.-ft. and 125 lb.-ft. of torque, respectively. The transmission’s SelectShift® feature has two driver-initiated modes – progressive range select, which limits the range of gears to lock out overdrive for consistent speed over hills, and full manual mode, which provides control up and down the gearbox. Selectable tow/haul mode compensates for grade and load to reduce gear hunting and improve power delivery. Engine braking and selective gearing improve control on downhill grades and help minimize brake wear. Like all Ford trucks, Ford’s medium-duty F-650 and F-750 vehicles are supported by the company’s Commercial Vehicle Center program. Program dealers nationwide are committed to providing fleet and commercial customers the vehicles, financing options and service support their businesses need to maximize productivity and uptime. Ordering for 2018 Ford medium-duty F-650 and F-750 trucks begins this summer, with vehicles available at dealers this fall. *Electronic stability control and traction control brakes will initially be optional on certain F-750 air-braked straight trucks with high-center-of-gravity-body upfits. **Based on IHS Markit TIP registrations for gross vehicle weight Class 6-7 vehicles with sales over 1,000 units for calendar year-to-date December 2016 versus calendar year-to-date December 2015. ***B10 design life based on 330-horsepower output version and Ford engine dynamometer testing. .

GM expects $100 million hit to profits from Venezuela action Automotive News / May 2, 2017 General Motors said it would deconsolidate its operations in Venezuela, reducing global profits by up to $100 million after the government seized GM’s plant there last month. The deconsolidation, announced Tuesday, means GM will no longer include earnings or losses from Venezuela in its South American results, but it does not necessarily signal that GM is pulling out of the country permanently. GM has ceased operations and terminated its workers there while it appeals the plant seizure to Venezuela’s Supreme Court. “The company expects a prompt decision and favorable outcome,” GM said in a statement. “GM executives have expressed a willingness to talk with government officials and union leaders about the circumstances under which it could be possible to start production and employ some number of workers with a new, viable business model.” GM’s deconsolidation of Venezuela follows a similar move by Ford in that country two years ago. Ford’s action resulted in an $800 million charge, but the effect on GM’s finances will be much smaller because it had not produced any vehicles in Venezuela for more than a year. “The illegal seizure of the plant accelerated some decisions that we needed to make,” GM CFO Chuck Stevens told reporters last week. “We don’t necessarily want to exit the country, but certainly it’s not an environment that you can invest in or run a normal business at this point.”

Automotive News / May 2, 2017 Dana Inc.’s first-quarter net income rose 67 percent to $75 million on the strength of new business with automakers, greater demand for light trucks and improvement in various other business lines. The longtime Ohio-based axle and powertrain supplier said higher sales were offset somewhat by higher transaction costs related to acquisitions such as U.S. Manufacturing Corp., a company that makes axle housing and driveline shafts in the Detroit suburb of Warren, Mich. Revenue bumped up 17 percent to $1.7 billion in the quarter. Among its business lines, Dana said light-vehicle revenue reached $761 million, up by 24 percent, and off-highway business climbed 36 percent to $328 million. The company said it will maintain a cautious outlook for power technology sales, despite a strong incremental quarter. Dana reported record sales in the department -- $283 million -- compared with last year’s $262 million -- because of strong demand in North America, Europe, and China. “Broadly speaking, we had a really strong performance in power technology,” Dana CFO Jonathan Collins said during a conference call. “Candidly, the business is just performing really well.” Dana anticipates full-year revenue of $6.2 billion-$6.4 billion. Dana Inc., formerly Dana Holding Corp., is headquartered near Toledo in Maumee, Ohio. It ranked No. 39 on the Automotive News list of top global suppliers in 2016.

Renault Trucks’ global sales results.....versus the Volvo brand: January 2015 Renault up 24% Volvo down 4% February 2015 Renault up 26% Volvo down 13% 1st quarter 2015 Renault up 35% Volvo down 8% April 2015 Renault up 12% Volvo up 9% May 2015 Renault up 5% Volvo down 1% 2nd quarter 2015 Renault up 7% Volvo down 4% July 2015 Renault up 8% Volvo down 5% August 2015 Renault up 60% Volvo down 6% 3rd quarter 2015 Renault up 20% Volvo down 2% October 2015 Renault up 16% Volvo down 1% November 2015 Renault up 54% Volvo down 10% 4th quarter 2015 Renault up 29% Volvo down 7% Full Year 2015 Renault up 22% Volvo down 4% 1st quarter 2016 Renault up 8% Volvo down 8% 2nd quarter 2016 Renault up 12% Volvo down 9% 3rd quarter 2016 Renault down 5% Volvo down 12% 4th quarter 2016 Renault down 5% Volvo down 8% Full Year 2016 Renault up 2% Volvo down 9% 1st quarter 2017 Renault up 3% Volvo down 2%

The Numbers In Q1 2017, sales (deliveries) from Volvo Group’s truck operations amounted to 43,927* units, down 5 percent from 46,110 units in Q1 2016. Volvo brand Q1 2017 truck sales (overall) fell to 23,720 units globally, down 2 percent from 24,315 units in Q1 2016. Volvo brand Q1 2017 truck sales in North America plunged to 3,484 units, down 40 percent from 5,797 units in Q1 2016. This follows a 49 percent sales decline in Q4 2016 versus Q4 2015, and another 49 percent sales decline in Q3 2016 versus Q3 2015. Volvo brand Q1 2017 truck sales in Europe rose to 13,325 units, up 4 percent from 12,852 units in Q1 2016. Volvo brand Q1 2017 truck sales in Africa/Oceania (includes Australia, New Zealand) rose to 1,105 units, up 1 percent from 1,095 units in Q1 2016. Mack brand Q1 2017 truck sales (overall) fell to 3,925 units globally, down 24 percent from 5,176 units in Q1 2016. This follows a 46 percent sales decline in Q4 2016 versus Q4 2015. Mack brand Q1 2017 truck sales in North America fell to 3,530 units, down 27 percent from 4,843 units in Q1 2016. This follows a 42 percent sales decline in Q4 2016 versus Q4 2015. Mack brand Q1 2017 truck sales in South America fell to 140 units, down 4 percent from 146 units in Q1 2016. Mack brand Q1 2017 truck sales in Africa/Oceania (includes Australia, New Zealand) rose to 255 units, up 37 percent from 186 units in Q1 2016. Renault Truck Q1 2017 brand sales (overall) rose to 11,533 units globally, up 3 percent from 11,222 units in Q1 2016. Renault Truck Q1 2017 brand sales in Europe rose to 10,277 units, up 2 percent from 10,065 units in Q1 2016. UD (Nissan Diesel) Q1 2017 brand sales (overall) rose to 4,749 units, down 12 percent from 5,397 units in Q1 2016. UD (Nissan Diesel) Q1 2017 brand sales in Asia rose to 3,938 units, down 10 percent from 4,394 units in Q1 2016. Total Global Deliveries by Brand Q1 2017 Q1 2016 % Change Volvo 23,720 24,315 -2 Renault Trucks 11,533 11,222 3 UD (Nissan Diesel) 4,749 5,397 -12 Mack 3,925 5,176 -24 Total Deliveries 43,927 46,110 -5 Total Global Deliveries by Truck Size Q1 2017 Q1 2016 % Change Heavy Duty (>16 metric tons) 36,764 38,282 -4 Medium Duty (7-16 metric tons) 3,548 3,765 -6 Light Duty (<7 metric tons) 3,615 4,063 -11 Total Deliveries 43,927 46,110 -5 Total Global Deliveries by Region Q1 2017 Q1 2016 % Change Europe 23,602 22,917 3 North America 7,065 10,740 -34 South America 1,889 1,890 0 Asia 8,470 7,854 8 Africa & Oceania* 2,901 2,709 7 Total Deliveries 43,927 46,110 -5 * includes Australia, New Zealand

Volvo Group Press Release / April 25, 2017 In Q1 2017 net sales increased by 8% to SEK 77.4 billion (71.7). Adjusted for currency movements and acquired and divested units sales increased by 4%. Adjusted operating income amounted to SEK 7,029 M (4,459), corresponding to an adjusted operating margin of 9.1% (6.2). Currency movements had a positive impact on operating income of SEK 289 M. Operating cash flow in the Industrial Operations amounted to SEK 1.5 billion (-10.4). UD Trucks launched all-new heavy-duty Quon and medium-duty Croner truck ranges. New Volvo VNR regional haul tractor launched in North America. CEO’S COMMENTS Continued improved profitability In the first quarter, both the Group’s sales and profitability increased. Net sales increased by 8% and amounted to SEK 77.4 billion. Volumes of heavy-duty and medium-duty trucks were down by 4%, which was off-set by 34% higher volumes of construction equipment. The good order trend from the end of last year continued, with order intake for trucks being up by 11% to 55,600 vehicles and order intake for Volvo CE rising 34% to 17,500 machines. The trend with increased services sales also continued with a positive development in all segments and markets. Sales of services grew by 6% currency adjusted, driven by increased focus in our sales and service operations as well as high fleet utilization for our customers. The Group’s adjusted operating income improved to SEK 7.0 billion, with earnings improvements coming from all business areas with the most significant impact from Trucks and Volvo CE. The adjusted operating margin was 9.1%. Demand for trucks in Europe remained high. Our customers continue to benefit from a good freight environment and we see good demand also in the construction segment. When it comes to market shares, we have started the year well, noting a 17.6% share for Volvo and Renault Trucks growing to 8.7%. After the downwards correction in the long haulage segment in 2016, the North American market seems to be bottoming out. We see positive signs of increased order activity. In April, Volvo Trucks launched the new Volvo VNR regional haul tractor, marking the first step in the renewal of the Volvo range in North America. With its modern, ergonomic and more aerodynamic cab, the new vehicle will significantly improve Volvo’s position in the regional haul market. Product features are focused on delivering the maneuverability, productivity and safety that are so important to customers in this segment. Demand for trucks in Japan remained at a high level. With the launch of new heavy- and medium-duty truck ranges with associated services, UD Trucks takes important steps in strengthening its product portfolio. The all-new heavy-duty UD Quon delivers higher levels of performance across features compared to its predecessor and also addresses a broader market by catering to a wider range of customer applications. In addition, UD Trucks extended its product offer aimed specifically at growth markets by complementing the UD Quester heavy-duty range with the all-new UD Croner range of medium-duty trucks. The first quarter also saw growing truck markets in India and China. Both our joint-ventures, VECV and DFCV, increased sales as well as profitability, contributing to the improved earnings for the Group’s truck business. It is also great to note that the European truck segment in Asia is growing, with a 41% volume increase for Volvo Trucks, which holds a strong position in this segment. This development is fuelled by higher commodity prices, which has sparked a recovery in the mining industry as well as a rapid growth of e-commerce in China. Customers operating in these industries value the uptime and productivity that our Volvo trucks deliver. All in all, the improved performance in our trucks business resulted in an operating margin of 9.9%. The recovery in the mining industry is good also for Volvo CE. After years of tough market conditions, the Volvo CE business is growing again, with a sales increase of 30%. Higher sales volumes linked with increased internal efficiency and a lower cost base resulted in an operating margin of 10.0%. Volvo CE is on the right track with the performance improvement plan yielding results. However, we see further opportunities to structurally improve the long-term competitiveness of Volvo CE. Volvo Buses delivered 10% fewer buses and had an operating margin of 1.8%, which was a slight improvement. Volvo Penta grew sales by 15%, while maintaining an operating margin of 15.5%. The Volvo Penta team continues to successfully drive and develop the industrial engine business. Volvo Financial Services’ credit portfolio continued to perform well with low credit losses. Operating income increased and VFS had a return on equity of 13.8%. With the new truck ranges launched this quarter, we take an important step in strengthening our product portfolios in North America, Japan and growth markets in Asia. Our strategy, with brand and business area driven organizations with decentralized accountability, is developing well with an increased focus on driving the service business. We are becoming a faster and more agile organization that is closer to customers. Martin Lundstedt President and CEO Report on the first quarter 2017(PDF, 0.7 MB)

Kenworth Truck Co. Press Release / May 2, 2017 Kenworth continues its advancements on low/zero emission projects focused on Kenworth T680 day cabs for drayage tractor operation in Southern California ports, which are backed by $9 million in government grants awarded last August. Kenworth is developing a prototype Class 8 hydrogen fuel cell tractor designed to provide true zero-emissions operation. By using the fuel cell – provided by Ballard Power Systems in Burnaby, British Columbia – to recharge the batteries, the only emission coming out of the tailpipe will be water. The T680 day cab tractor uses lithium-ion batteries to power a dual-rotor electric motor, driving the rear tandem axle through a 4-speed automated transmission. Kenworth’s hydrogen truck is expected to be ready for initial track and on-road testing in the fourth quarter of this year. This week, Kenworth began building a second prototype series hybrid-electric T680 day cab designed to produce near-zero-emissions. The truck will use the currently available Cummins Westport ISL G Near Zero NOx engine fueled by compressed natural gas (CNG) to generate electrical power. Initial track and road testing is expected to start in the fourth quarter. These two T680 tractors will be identical, with the exception of their power generation systems. Each truck will have an electric-only range of approximately 30 miles, and the on-board fuel – hydrogen or natural gas –will provide sufficient range for a full day in regional haul applications. Kenworth’s work on these programs is supported by grants of $2.1 million for each project from the U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE), with Southern California’s South Coast Air Quality Management District (SCAQMD) as the prime applicant. A third project received $4.8 million in funding from the California Air Resources Board (CARB), again with the SCAQMD as the prime applicant. Kenworth will build four additional, hybrid-electric T680 day cabs equipped with the Cummins Westport ISL G Near Zero NOx engine operating on compressed natural gas, and will also support customer field tests of these units in Southern California drayage operations. Kenworth will build its first unit for this project in 2018. Kenworth engineers will be able to make design and system refinements to this 2018 unit based on data collected from this year’s real-world testing of the initial, 2017 hybrid-electric T680. All six prototype T680 day cab drayage tractors, produced as a result of these Kenworth programs, will transport freight from the Ports of Los Angeles and Long Beach to warehouses and railyards in the Los Angeles basin. “These T680 day cab projects provide an excellent opportunity for Kenworth to develop and advance important technologies that may play a critical role in the trucks of tomorrow,” said Patrick Dean, Kenworth chief engineer. “Within the next decade, hybrid-electric powertrains are expected to be required to satisfy emissions regulations in several major U.S. metropolitan areas. For example, California is considering regulations that will require zero-emission levels for port drayage trucks operating in specifically designated areas. We look forward to playing a leadership role to meet the opportunities and challenges ahead.” .

Navistar Defense / April 27, 2017 .

COLUMBUS, Ind., May 2, 2017 – Cummins Inc. (NYSE: CMI) today reported results for the first quarter of 2017. First quarter revenues of $4.6 billion increased 7 percent from the same quarter in 2016. Stronger demand from construction and mining customers and higher sales from a distributor acquisition in the fourth quarter of last year, more than offset the impact of weaker truck production in North America. Currency negatively impacted revenues by approximately 1 percent compared to last year, primarily due to a stronger US dollar. International sales improved by 17 percent primarily due to growth in China and Europe while revenues in North America increased 1 percent. Net income attributable to Cummins in the first quarter was $396 million ($2.36 per diluted share), compared to $321 million ($1.87 per diluted share). The tax rate in the first quarter of 2017 was 26.1 percent. Earnings before interest and taxes (EBIT) were $566 million, or 12.3 percent of sales, an increase from $484 million or 11.3 percent of sales a year ago. “Cummins delivered solid financial results, successfully launched new products and returned $222 million in cash to shareholders in the form of dividends and share repurchases in the first quarter,” said Chairman and CEO Tom Linebarger. “We launched our fully updated range of engines for North American truck and bus markets offering improved performance and better fuel economy for our customers. As recently announced, we also advanced our strategy to be the leading global powertrain supplier through our agreement with Eaton to form the Eaton Cummins Automated Transmission Technologies joint venture. This new venture will design, develop and produce the next generation of Automated Transmissions which will be fully integrated with our engine development to deliver up to an additional 7 percent improvement in fuel economy. The joint venture will benefit from the continuing shift away from fully manual transmissions in commercial vehicles, launch new products that will gain market share, leverage Cummins’ strong presence in international markets for growth and generate aftermarket sales.” Based on the current forecast, Cummins expects full year 2017 revenues to be up 4 to 7 percent, compared to prior guidance of flat to down 5 percent. EBIT is projected to be in the range of 11.75 to 12.5 percent of sales, up from 11 to 11.5 percent. This forecast excludes the impact of the new joint venture with Eaton, which will be consolidated within Cummins’ financial results and is expected to be operational in the third quarter of this year, subject to regulatory approvals. First quarter 2017 highlights: The Company returned $222 million to shareholders in the form of dividends and share repurchase, consistent with its plan to return 50 percent of Operating Cash Flow in 2017 Cummins was named to Ethisphere’s 2017 list of World’s Most Ethical Companies for a 10th consecutive year by the Ethisphere Institute In March, the Company announced its plans to reach a 50 percent intensity reduction in water use at its facilities by 2020 1 Generally Accepted Accounting Principles Read the full press release – including first quarter detail for all Cummins business segments – by clicking on the link below. Press Release – Cummins Reports First Quarter 2017 Results

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No, flat floor. Note above video at 0:40.

The Argosy is a beautiful truck. NIce fuel tanks as well.

Fleet Owner / April 27, 2017 PHOENIX. Targeting “the traditional yellow-iron customer,” Western Star Truck Sales Inc. has added a new option to its XD OFFROAD line. Based on the iconic Western Star 4900 platform, but with “considerably more material” to support off-road applications, the Western Star XD-25 is designed to be tough and versatile, company executives explained during a 50th anniversary event here. Its 25-ton capacity makes it ideal for smaller construction, mining and quarry site hauling use. “The XD-25 provides yet another extreme duty option for customers who tackle the toughest challenges,” said Kelley Platt, president, Western Star Trucks. “These units are specifically designed to handle off-road jobs without compromising fuel economy and cycle time efficiency.” The new XD-25 is available with a Tier 3 Series 60 or Detroit DD13 engine, and is powered by the Allison Off Road Series (ORS) transmission and planetary gear sets. Together, the engine and transmission combination results in more power for loaded applications and higher speeds when unloaded. “In the past, some companies have tried to push highway products into the off-highway market, and it resulted in less-than-ideal product lifespans—this is by no means that kind of product, as we’ve already seen from the vehicles we have in the field.” added Peter Arrigoni, Western Star Trucks vice-president of sales. “The XD-25 really is an alternative at a much better value—this is probably the only market in which the Western Star is the less-expensive option. It’s an interesting proposition for a lot of customers.” Additional features found with all Western Star XD OFFROAD products include rugged slippered spring suspensions, simplified maintenance components and metal fender butterfly hoods for long-life durability. “Our customers want an off-road solution that has great ton-per-mile (TPM) savings, and a lower purchase price over conventional articulated equipment,” said Platt. “The XD-25 OFFROAD’s low maintenance design and versatile platform configurations deliver on performance every time.” Western Star also used the event to announce a number of options for the product lineup. “The needs of our customers continue to grow and change, so we will continue to add new options that will help our customers while delivering the power, performance and comfort expected from a Western Star truck,” said Platt. Options now available include: RollTek Seats: Available for Western Star 4700, 4800 and 4900 truck models, the RollTek seat system inflates side-impact airbags, tightens seat belts and compresses air suspension seats to the lowest position to prevent serious injuries to the driver, in the unlikely event of a rollover. Sealed Frame Rails: The new sealed frame rail for Western Star 4700, 4800 and 4900 truck models, reduces corrosion on double channel and partial liner configurations. Sealed along the edges, the flexible water-tight seal prevents the intrusion of liquids and minimizes rust that might occur due to environmental factors and road de-icing products. Abrasion Tape for Exterior Harnesses: Ideal for applications that can cause abrasion in the chassis, such as construction, logging and road maintenance, the new Abrasion Tape for Exterior Harnesses for Western Star 4700 and 5700 truck models will improve durability. Each harness is wrapped in an abrasion-resistant seal and then fastened securely to the frame rails to prevent damage to the wires from debris, water and chafing. Aluminum Diamond Plate Tool Box: With cab access and increased ground clearance, the Aluminum Diamond Plate Tool Box for the Western Star 4700 is durable enough to withstand harsh working conditions, and features the traditional Western Star style. Detroit 23,000-lb Front Steer Axle: New for Western Star 4800 and 4900 truck models, the Detroit 23,000-lb front steer axle is ideal for applications that require a higher front axle weight rating like snow plow, dump and heavy haul. Up to 40 lbs. lighter than other brands, Detroit front axles improve durability, reduce tire wear and provide smoother steering control. 5-Man Crew Cab: Western Star 4700, 4800, 4900 and 6900 truck models can now be spec’d with an aftermarket-installed 5-man crew cab option with either two or four doors. A 12-dash inch backpack is also available for additional storage. 5700 Truck Configuration: The Western Star 5700 is now available in a truck configuration for expeditor and RV applications in a day cab or sleeper. Photo Gallery - http://fleetowner.com/equipment/western-star-xd-offroad-working-dirt#slide-0-field_images-217091

Well said. In my experience, cultural change can only be orchestrated by the individual at the top of the pyramid. So many company's management don't grasp that.

Trump rules out swift NAFTA withdrawal in favor of renegotiation Bloomberg / April 26, 2017 President Donald Trump won’t immediately terminate U.S. participation in the North American Free Trade Agreement, the White House said, after he spoke with the leaders of Mexico and Canada about ways to renegotiate the accord. “Both conversations were pleasant and productive. President Trump agreed not to terminate NAFTA at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the NAFTA deal to the benefit of all three countries," the White House said Wednesday. Mexico’s peso and Canada’s dollar jumped after the White House’s announcement. Trump’s top advisers had been embroiled in a debate over how aggressively to proceed on reshaping U.S. participation in NAFTA, with hard-liners favoring a threatened withdrawal as soon as this week and others advocating for a more measured approach to reopening negotiations with Canada and Mexico. Some of Trump’s advisers wanted a dramatic move before Trump’s 100th day in office on Saturday to fulfill a key campaign promise, while others said he could let the milestone pass and revisit the issue later through more formal procedures, according to two White House officials who spoke on condition of anonymity to discuss internal deliberations. Dramatic step The dispute played out in the media Wednesday, with several outlets saying Trump would take the most dramatic available step -- issuing an order declaring his intention to withdraw from the treaty. In this case, threatening to withdraw would have amounted to a formal step that started the process of giving Mexico and Canada six months notice that Trump intended to start negotiating. Instead Trump is asking the two other nations to open talks on ways to make the deal more balanced from the U.S. perspective, which is allowed within the framework of the treaty. He spoke late Wednesday afternoon with his two counterparts, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto, according to the White House. “It is my privilege to bring NAFTA up to date through renegotiation,” Trump said in the White House statement. “I believe that the end result will make all three countries stronger and better.” Exactly who in the White House sparred over the decision wasn’t known but one of the most prominent anti-trade hard-liners is Senior Counselor to the President Steve Bannon, and Trump’s decision is sure to be viewed as a defeat for Bannon and his views. Bannon already is seen as being on the outs with Trump over reportedly sparring with Trump’s son-in-law Jared Kushner. ‘Bring pressure’ Talk that Trump would revisit NAFTA on Wednesday had caused Mexico’s peso, the Canadian dollar and shares of companies that rely on cross-border trade to plunge. “Even if he notifies Mexico and the U.S. of his intentions, that doesn’t mean he has to leave,” said Beatriz Leycegui, who was Mexico’s deputy minister on foreign trade between 2006 and 2011. “This is a strategy to bring pressure on Canada and Mexico.” Trump must give Congress 90 days notice that he seeks to renegotiate the accord. Commerce Secretary Wilbur Ross said on Tuesday the administration is busy working with lawmakers to kick start renegotiation of the deal. He did say the U.S. was embarking on a more muscular strategy for trade-enforcement. Trump has blamed NAFTA for hollowing out America’s manufacturing sector by relocating jobs to lower-cost Mexico -- which his administration initially said was the main target of changes he was seeking to the accord. ‘Disastrously bad’ Where Trump stands on NAFTA is hard to discern. After harsh rhetoric during the campaign, he has in recent weeks toned down his criticism, suggesting the relationship with Canada only needs tweaking. But this week he fueled trade tensions by imposing new duties on softwood lumber imports from Canada and vowing to defend U.S. dairy farmers against quotas imposed in Canada. A number of Republicans are strong backers of free trade and have cautioned the administration against walking away from the free-trade deal. “Scrapping NAFTA would be a disastrously bad idea,” U.S. Sen. Ben Sasse, R-Neb., who was a Trump critic during the campaign, said Wednesday in a statement. “It would hurt American families at the check-out, and it would cripple American producers in the field and the office.” Sen. Jeff Flake, R-Ariz., also blasted the idea on Twitter, writing, “Increasing trade barriers with CAN and MEX will result in lost jobs and higher consumer costs in #AZ. Strengthen #NAFTA, don’t abandon it.” Without NAFTA -- which reduced or eliminated tariffs on most trade products after taking force in 1994 -- commerce ties between the nations would need to be reset, raising the specter of more frequent trade disputes and higher tariffs. U.S. trade with its NAFTA partners has more than tripled since the agreement took effect, rising to $1.1 trillion last year. Canada followed by Mexico ranked as the two biggest markets for U.S. exports, taking in a combined 34 percent of the total in 2016, according to a February paper published by the Congressional Research Service.

Ford profits fall on recall charges, higher costs Automotive News / April 27, 2017 Ford Motor Co. reported first-quarter net income of $1.6 billion, down $900 million from a year earlier, as revenue rose and profit margins shrank. Pretax earnings were $2.2 billion, down $1.6 billion, or 42 percent, from a year earlier, when Ford posted its best quarter in the company’s 114-year history. The automaker’s revenue rose 1.4 billion, or 4 percent, to $39.1 billion thanks to a strong sales mix. But profits were pinched by charges for recalls, continued investment in new mobility services and higher parts costs for some of its 2016 launches. Executives said the quarter will be the toughest in what’s expected to be a down year. The remainder of 2017 will be about even to, or even better than, its financial performance last year, where it made $10.4 billion pretax profit, second-best in the company’s history. Ford shares closed down 1.1 percent to $11.47. Ford’s profit margins during the quarter fell 4.4 percentage points to 5.4 percent. Ford reported earnings per share of 40 cents, down from the first quarter of last year but better than the 35 cents analysts had expected. “It was a solid quarter,” Ford CFO Bob Shanks told reporters. “There were no surprises; it’s consistent with what we had expected.” Ford took a $467 million warranty hit in the first quarter. That includes a $295 million charge for two recalls, one involving engines that could catch fire and the other involving door latches. CEO Mark Fields said the recall costs that have plagued Ford’s bottom line in recent years -- it also took a $600 million charge in the third quarter of 2016 -- are due to building more vehicles with similar underpinnings. “We were a little bit ahead of the industry in reducing our platforms and getting commonality of parts,” he said. “When we do have a recall, it tends to hit a bigger population. Whenever we see something, we’re going to act very proactively for the customer. That’s exactly what we’ll continue to do.” North America The automaker’s profits were driven by North America, where it made a $2 billion pre-tax profit, down $1.1 billion from a year earlier. Profit margins there fell 4.6 percentage points to 8.3 percent, and Ford’s market share fell 0.5 percentage points to 14.1 percent due to lower fleet sales. Ford’s retail share rose two-tenths of a percentage point, thanks to sales of trucks, utilities and luxury vehicles. Many of the factors affecting Ford’s overall business -- like part costs and investing in mobility -- are taking place in North America. The company expects the U.S. sales market will continue to plateau, although it is being helped by strong truck and SUV sales -- two areas where Ford is investing and updating its products, like the recently redesigned Super Duty and refreshed Escape. “We’re continuing our intense focus on costs,” Fields said. “We’re not only mindful of the current environment, but also preparing even more for a downturn scenario.” Ford expects it can break even in North America if the selling rate falls to 11 million. Regional performances Ford made a pre-tax profit of $176 million in Europe, down $258 million from last year, for its eighth-consecutive quarterly profit there. The automaker expects continued profits there as it offers more expensive trims on some of its popular sedans and utilities. It also made $124 million in Asia Pacific, despite a “tough quarter” for China, Shanks said. That was $96 million less than it made there at the same time last year. Ford lost $244 million in South America, although results improved by $12 million compared with last year. It lost $80 million in the Middle East and Africa, $66 million more than it lost there a year ago. Outlook Ford reaffirmed its full-year guidance. It expects to make a pre-tax profit of $9 billion, down from $10.4 billion in 2016 as it invests in “emerging opportunities” like autonomous and electric vehicles. It's in the midst of spending $4.5 billion through 2021 on 13 new electrified vehicles. Fields said that the company believes that in 15 years, there will be more electrified vehicles on the market than vehicles with internal combustion engines. It recently agreed to invest $1 billion in artificial intelligence startup Argo AI over five years. And, Ford is expanding Chariot, a Silicon Valley shuttle service it acquired last year. “This quarter was an investment in Ford’s future,” Fields said in a statement. Shanks said that the remainder of 2017 will be about even or better than Ford’s financial performance in 2016. “This will be the toughest quarter,” he said, although he noted that Ford’s lowest profits of the year will come in the third quarter, because of seasonal timing. Ford has forecast a profit for its Ford Credit arm of about $1.5 billion this year, down from $1.9 billion, because of lower auction values and a glut of off-lease cars. Ford Credit posted a pre-tax profit of $481 million for the first quarter, down $33 million from a year ago.

The Guardian / April 27, 2017 United Airlines will offer passengers up to $10,000 (£7,700) for giving up their seats on overbooked flights, as part of efforts to repair the damage to its reputation after widespread condemnation over the forcible removal of a passenger. The offer of increased compensation came after rival Delta outlined plans to offer up to $9,950 in such cases. United said it would “increase customer compensation incentives for voluntary denied boarding up to $10,000”, and also promised action to reduce overbooking and improve customer satisfaction. “Our goal is to reduce incidents of involuntary denial of boarding to as close to zero as possible and become a more customer-focused airline,” the carrier said. United also said it would no longer call police to stop passengers boarding, nor would passengers who were seated be required to give up their place on overbooked flights. Crews would be booked on flights 60 minutes before departure, and staff would undergo annual training to handle “the most difficult situations”, an inquiry report said. United will also adopt a “no questions asked” policy on permanently lost baggage from June, paying customers $1,500 for the value of the bag and its contents.

Kenworth Truck Co. Press Release / April 21, 2017 With more than 200,000 square-feet of exhibit space, and nearly 300 exhibitors, the Canadian trucking community is descending upon Montreal and the ExpoCam 2017 this week. While Kenworth’s medium and heavy duty trucks will be on display inside the Place Bonaventure, its medium duty line will also be traveling the streets of Montreal, a short drive from where they were produced. “Kenworth medium duty trucks are locally built with a lot of pride at PACCAR’s Ste. Therese factory,” said Mike Parent, general manager of Kenworth Montreal, which has sent a T370 dump to join a T680 76-inch sleeper, T880 dump and W900L in Kenworth’s ExpoCam booth (#4239). “We hold customer events at the factory and showcase the amount of care and quality built into every Kenworth medium duty conventional. A quality-designed and built truck is our competitive advantage, and a factory tour reinforces that message.” According to Chakib Toubal-Seghir, Ste. Therese’s plant manager, more than 167,000 medium duty trucks have been built at the factory since 1999, and innovations and quality improvements continue to be made. “We never stop advancing our processes,” he said. “We have a dedicated workforce, augmented with the precision of robotics. Last year, we had more than 1,110 visitors and customers visit our factory. Our employees are always very proud to work in front of customers, to showcase the level of expertise and care that goes into the build of the trucks.” For William Pasquini, sales and purchase manager at Discount Car and Truck Rentals, the factory tour he took when his five T370s were being built was eye-opening. “I was so impressed,” he said. “The first thing you notice is the cleanliness – you just don’t expect a pristine environment within a manufacturing facility. Everything was so organized up and down the line, with assemblers checking their work to ensure quality. I was also impressed with some of the machinery – one piece would lift and flip the entire chassis to optimize ergonomics for workers. The paint bay, with all the robotics and environmental safeguards, was revolutionary in my opinion.” According to Pasquini, at the end of the tour, he even got to do the Dyno test on his own truck. “That really concluded a great day at the factory,” he said. “It was very special to see our own trucks being built, then actually running the engine on the Dyno for final inspection.” When Discount Car and Truck Rentals’ first truck was delivered, Pasquini said they did a special promotion to announce the trucks to its customers. “It showcased how we were a Quebec company, with a Quebec-built Kenworth and a Quebec body. It was our local pride showing.” Pasquini said the Kenworth T370s have been a big hit with customers. “So much that we have another eight on order,” he said. “When we started offering the T370 for short term rentals, the response was tremendous. It’s our high-end truck and demand continues to grow – it’s why we’re adding more to our fleet.” .

Kenworth Truck Co. Press Release / April 25, 2017 It’s been shown that up to 80 percent of every service event consists of poor or slow communications and processes — lost time, effort and assets that could be better utilized moving your business ahead. Introducing Kenworth TruckTech+ Remote Diagnostics and Service Management, a revolutionary, fully integrated system designed to streamline every aspect of fleet maintenance. .

Bullseye. An American truckmaker impresses.

Earnings Watch: Daimler Doubles First Quarter Profit Heavy Duty Trucking / April 26, 2017 Earnings for German truck and auto maker Daimler AG doubled in the first quarter of the year, despite lower sales of its trucks. Net income for the parent of Freightliner, Western Star and Mercedes-Benz totaled 2.70 billion euros ($2.96 billion) from 1.35 billion euros the same time a year ago, according to MarketWatch. That performance was driven by sharply higher Mercedes-Benz sales of SUVs and E-class models. At Daimler Financial Services, earnings grew significantly mainly as a result of increased contract volume, according to the company. Revenue rose 11% to 38.8 billion euros as unit sales rose 10% to 754,259 cars, trucks, vans and buses. This followed the company unexpectedly reporting on Tuesday that earnings before interest and taxes (EBIT) jumped 87.1% in the first quarter from a year earlier, totaling $4.01 billion euros, or $4.25 billion. In the first quarter of this year, sales by Daimler Trucks of 94,000 vehicles were 11% lower than in the prior-year period. Unit sales increased compared with the prior-year period in Europe by 12%. However, in North America, sales dropped significantly to 32,900 units compared to 40,400 a year earlier. In Latin America, Daimler Trucks increased its sales marginally to 6,300 while sales in Brazil decreased 15% to 2,400 units due to the country’s difficult economic situation. But there was strong growth in unit sales in Argentina, up 114%. In Asia, sales were lower than in the prior-year quarter as unit sales decreased in the Middle East by 30%. The division’s revenue amounted to 7.9 billion euros, down from 8.2 billion euros a year earlier while EBIT of 668 million euros was higher than the prior-year figure of 516 million euros. Daimler expects a continuation of the cyclical market slow-down when it comes to demand for trucks in North America. “An overall decrease in the magnitude of 5% is to be expected in classes 6-8, and an even more substantial weakening of demand is anticipated in the segment of heavy-duty trucks (Class 8),” the company said. “Nonetheless, it is assumed that the market will gradually stabilize as the year progresses.” Overall, Daimler Trucks said it assumes that its total unit sales in 2017 will be in the magnitude of the previous year, including when it comes to unit sales in North America.

Heavy Duty Trucking / April 25, 2017 Earnings for truck makers moved higher in the first quarter of the year, with three on Tuesday showing big improvements from the same time in 2016. Volvo AB's first quarter profit increased 25% from a year earlier, totaling 4.73 billion Swedish kronor, or $533.7 million, according to MarketWatch, beating analysts' expectations of 3.56 billion kronor. Sales during the period rose 8% to 77.37 billion kronor, compared with 71.71 kronor billion a year earlier The better numbers were driven by increased orders of both trucks and construction equipment. “After the downwards correction in the long haulage segment in 2016, the North American [truck] market seems to be bottoming out. We see positive signs of increased order activity,” said Martin Lundstedt, president and CEO. He noted that the truck market in Europe remained strong in the first quarter of the year and demand there for heavy duty trucks is expected to be about the same as it was in 2016. In North America, Lundstedt said dealer inventories of new trucks are at healthy levels, however inventories for used long-haul trucks remain elevated. “This continues to dampen demand for new trucks in this segment despite indications of an improving freight environment. Demand in the refuse and construction segments remains good. Retail sales for the industry are forecasted to be lower 2017 compared to 2016,” he said. North American truck deliveries were down 34% compared to a strong first quarter 2016. Both Volvo Trucks and Mack gained market shares, with Volvo Trucks reaching 9.4% and Mack hitting 8.9%. The order intake increase of 27% was driven by both Volvo Trucks and Mack reflecting higher activity within the construction segment and a somewhat improved freight environment combined with low dealer inventories, according to Volvo Paccar Earnings Rebound Back in the U.S., the parent to Peterbilt and Kenworth reported a big turnaround. Paccar Inc. had net income of $310.3 million compared to a net loss of $594.6 million a year earlier. The performance a year earlier was due to more than $900 million the company had to pay over claims of price fixing in Europe that involved it and other truck manufacturers. Earnings per share in the first quarter of 2017 were 88 cents, 1 cent better than Wall Street expectations. Despite this turnaround, revenue declined 1.7% to $3.94 billion. “Paccar benefited from increasing truck production in North America and Europe, as well as record quarterly Paccar Parts pretax profits,” said Ron Armstrong, CEO. U.S. and Canada Class 8 truck industry orders were 40% higher in the first quarter of 2017 compared to the same period last year, according to Darrin Siver, Paccar senior vice president, who said this reflects a good economy and steady freight demand. “Peterbilt and Kenworth achieved 32% share of U.S. and Canada Class 8 truck industry orders in the first quarter this year,” he said. “Class 8 truck industry retail sales for the U.S. and Canada in 2017 are expected to be in a range of 190,000 to 220,000 vehicles.” Paccar Parts achieved record quarterly pretax income of $151.7 million in the first quarter of 2017, which was 13% higher than the $134.6 million earned in the same period last year. It generated revenues of $786.7 million in the first quarter of 2017, 9% higher than the $719.5 million reported in the same period last year. Daimler Pre-Tax Profit Nearly Doubles Not to be outdone, the parent company to the Freightliner, Western Star and Mercedes-Benz brands reported preliminary numbers Tuesday, a day before it publishes full first quarter numbers. Daimler AG earnings before interest and taxes (EBIT) jumped 87.1% in the first quarter from a year earlier, totaling $4.01 billion euros, or $4.25 billion, according to Reuters, due to better car sales and one-time gains. The German company said that EBIT for Mercedes-Benz cars totaled 2.234 billion euros, up from 1.395 billion a year earlier. Daimler Truck EBIT was 668 million euros compared to 516 million euros in the first quarter of 2016. According to the Financial Times, Daimler was forced to publish strong first-quarter results two weeks early because they were “significantly above market expectations."

Trailer/Body Builders / April 26, 2017 In March, EU commercial vehicle registrations increased 10%, totaling 266,902 units, according to the European Automobile Manufacturers' Association (ACEA). This strong result is mainly due to Easter falling in March last year and in April this year. Demand was sustained by all segments and across most of the major EU markets. Spain (+24.3%), Germany (+17.3%), Italy (+17.0%) and France (+13.7%) all posted double-digit percentage gains, although registrations declined slightly in the United Kingdom (-1.3%). During the first quarter of the year, the European market expanded by 7.5%, counting 606,230 new commercial vehicles. Over the same period, both Spain (+20.4%) and Italy (+13.4%) posted highest increases, followed by France (+9.4%) and Germany (+7.5%), while the UK market remained stable (-0.2%). New heavy commercial vehicles (HCV) over 16 tonnes March 2017 results show a positive uplift in the heavy truck segment (+6.1%), with 29,971 new vehicles registered. Most of the Eu’s major markets contributed to this growth, Italy did very well (+60.1%) while the UK (-11.7%) market faced a downturn. Three months into the year, the EU market grew by 4.8%, reaching 75,331 units. Italy (+43.9%), France (+5.7%), Germany (+4.9%), Spain (+2.0) and the UK (+0.6%) all saw their demand for heavy trucks increase. New medium and heavy commercial vehicles (MHCV) over 3.5 tonnes In March 2017, truck registrations were largely similar to those in the heavy truck segment, with Italy again posting the highest growth figures (+52.9%) followed by Spain (+16.9%) and Germany (+14.1%) – only the United Kingdom posted a decline (-6.4%). Overall, 36,870 new trucks were registered in the EU, up 7.1% compared to March 2016. From January to March 2017, 91,665 new trucks were registered in the European Union, 4.7% more than last year. Similarly to the HCV segment, the five big markets posted growth, jointly sustaining positive momentum across the whole region. New medium and heavy buses & coaches (MHBC) over 3.5 tonnes March 2017 results of the bus and coach segment were rather diverse. Demand fell in France (‐8.6%), while Italy (+57.8%) and Germany (+21.6%) posted remarkable growth. Overall, 4,199 new buses and coaches were registered across the region, up 9.1%. In the first quarter of 2017, the EU bus and coach market grew by 5.9%, counting 9,716 vehicles registered. Demand only decreased in Spain (-1.8%) and France (-17.9%), while new bus and coach registrations increased in Italy (+58.0%), Germany (+12.9%) and the UK (+8.5%). New light commercial vehicles (LCV) up to 3.5 tonnes In March 2017, new registrations of light commercial vehicles totaled 225,833 units, or 10.5% more than in the same month last year. Spain (+25.4%), Germany (+18.4%), France (+15.2%) and Italy (+12.9%) all posted significant growth. At the same time, the United Kingdom (-0.9%) performed slightly below March 2016 levels. From January to March 2017, 504,849 new vans were registered in the EU, up 8.1% compared to the first quarter of 2016. The United Kingdom (-0.9%) was the only major market posting a slight decline, while Spain (+23.6%), France (+10.2%), Italy (+9.4%) and Germany (+8.9%) all saw demand for vans increase.

Daimler's First-Quarter Profits Double, but Trucks Not a Big Factor Transport Topics / April 26, 2017 First-quarter business rose and profits doubled for German manufacturer Daimler AG, but new truck sales were generally not part of the equation, and especially not in North America, the company reported April 26. Quarterly operating profit jumped at least 19%, year-over-year, at all five major divisions and there were also some one-time benefits for the parent company of Freightliner and Western Star Trucks and Detroit Diesel Corp. As a whole, Daimler earned the equivalent of $2.98 billion, or $2.70 a share, on quarterly global sales of $41.31 billion. Net income was $1.55 billion, or $1.39, on revenue of $36.68 billion during the first three months of 2016. The truck division, Daimler’s second-largest behind Mercedes-Benz cars, earned the equivalent of $711.7 million in operating profit, up from $569.6 million, even though quarterly revenue declined by 3% to $8.46 billion and unit sales fell 11% to 94,007 commercial vehicles. Truck-making was the only division not to post a gain in revenue, even though profits rose. The company said truck profits rose primarily due to a gain from a real estate sale in Japan during the quarter just ended. The company also said it benefited from efficiency gains at the truck division, as operating margin improved to 8.4% from 6.3% in the year-ago quarter. Mercedes-Benz led the Daimler growth with a 14% surge in quarterly revenue and a 60% leap in operating profit. In assessing the coming months and demand for trucks in North America, “We expect a continuation of the cyclical market slow down in the full year [2017]. An overall decrease in the magnitude of 5% is to be expected in Classes 6-8, and we anticipate and even more substantial weakening of demand in the segment of heavy-duty trucks. “Nonetheless, we assume that the market will gradually stabilize as the year progresses,” the report said. The company is more bullish on the world and U.S. economies. “The outlook for the world economy continues to be favorable at the beginning of the second quarter of 2017, so global growth could accelerate slightly this year. Recent forecasts for full-year 2017 are at the upper end of a range from 2.5% to 3%,” he report said. Switching to the United States, management said, “Compared to its weak performance in 2016 with growth of just 1.6%, the U.S. economy should revive significantly and grow by approximately 2.3%,” featuring stable private consumption and increased corporate investment.