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Scania Group Press Release / November 7, 2016 How Italian pumps fitted with Scania engines use technology that helped save the Leaning Tower of Pisa. It’s not often that you witness the assembly of a product as rich in technology as high-pressure pumps. At the heart of these two high-performance machines lie two Scania 16-litre V8 industrial engines: 515kW/690hp and 566kW/760hp (US Tier 4 Final and EU Stage IIIB emissions-compliant respectively). We follow the process along the assembly line with expert guide Cesare Melegari, president of Tecniwell, a company from Piacenza, Italy, that designs and manufactures jet grouting equipment (pumps for cement mixing and injection systems). Italy: leader in the field The history of development of jet grouting is very interesting, as Melegari explains. “The idea and its embryonic development took place in Japan. This was later imported to Italy and used for the first time in the consolidation of the Leaning Tower of Pisa. “The technology presented on that occasion was developed and improved in our country for the creation of increasingly complex and sophisticated machinery also used in the oil industry. This continuous technological development has strengthened the role of Italian companies in the field of jet grouting, making us in fact the absolute leader in this field.” Insisting on Scania engines “These two pumps are destined for South-East Asia and the Spanish markets. The latter have been commissioned by the Keller Group – a world leader in the construction industry – which for its machines insists on the exclusive use of Scania engines,” Melegari says. The pumps have two uses: in the construction sector the pumping and injection of cement, and in the oil sector the stimulation of wells through high-pressure water injection. In both these cases very powerful equipment is needed. The work takes place in extreme operating conditions, where the overall reliability of the individual components must be at the highest possible level. How was Tecniwell born and how did it grow? “We recently celebrated 30 years in business. We started as a true pioneer in the production of jet grouting equipment, which is machinery capable of reaching pressures up to 900 bar. Over the years we have consolidated our position at the national level and then expanded abroad with clients operating in Europe, Asia, and the Americas.” “Currently our turnover is based almost exclusively on orders from markets outside of Italy. The history of our company has had an interesting corporate path and I would say is against the normal trend.” “From 1999 to 2014, the company was part of a US public company, Layne Christensen, an engineering group in which we took care of the technological and operational aspects of jet-grouting. About a year ago we returned to being completely Italian, committed to the continuous evolution of our products.” Can you describe some technical innovations that distinguish your work? “We have worked a lot on the improvement of motor pumps moving from traditional “chain drive” to “crown and pinion”, guaranteeing a higher level of both performance and quality. This technical aspect makes us unique in the market.” “We also operate in the maritime field, producing a machine for the construction of submarine rods/supports contributing to the restoration of the docks of the port of Ravenna. Another example of unique equipment is our ‘mini-jets’, very compact units for the injection and mixing of cement. This is a popular product, especially in the United States.” What are the distinctive aspects of your partnership with Scania? “Our cooperation with the Scania brand dates back to 1991, and since then contact has never been interrupted. What I would like to emphasise is the support we have always received from Scania with the technological development of our products and for resolution of problems, especially with those also outside our national borders. With Scania we know we can count on a serious and reliable partner, always!” .

Windsor Star / November 7, 2016 Ford Motor Co., will invest $613 million in its Windsor plants to launch a new global 7.0-litre engine program — the centrepiece of a new four-year tentative agreement that was approved on the weekend by 58 per cent of about 6,700 hourly workers in Ontario. “It’s really a huge victory for the community of Windsor,” Jerry Dias, Unifor national president, said following a ratification meeting Sunday for about 1,400 members of Local 200, who voted 88.7 per cent in favour of the deal. “It’s about giving people who’ve been laid off for so many years opportunities,” he said of the 280 members who remain off the job. “We really hit a home run in 2016 bargaining.” As of 7:45 p.m. Sunday, the results of Local 707 in Oakville were unavailable. The Windsor office units represented by Local 240 voted 97 per cent in favour, while Local 1324 in Bramalea had 100 per cent approval. Under the deal, the new program will be installed at the Ford’s Annex facility, which produces cylinder heads for the Windsor Engine and Essex Engine plants. It is designed to replace the 6.8-litre V-10 engine assembled at the Windsor Engine plant, and will power Ford’s top-selling vehicles, such as the F-150 pickup, said Dias. “It’s more fuel efficient, smaller, lighter, with more torque, more horsepower. It’s a big deal.” The new engine “will supply next-generation, high-volume products planned for the 2020 model year.” The 600 workers at Windsor Engine will continue to build the 6.8-litre over the life of the deal, and will be eventually be integrated into production of the new engine program. The Essex Engine plant, which employs about 800 workers, has been designated as “the sole source for all 5.0-litre engine assembly and any potential derivatives based on its platform.” That engine program will receive “significant technology upgrades.” “We still have a ton of open floor room at Essex Engine that one day hopefully we can do something with,” said Chris Taylor, president of Local 200. “The Annex right now has open floor space; there’s just old, redundant equipment.” Ford also has committed to spending another $100 million at the Oakville vehicle assembly plant for mid-cycle upgrades of the Ford Edge and MKX crossovers. Ford of Canada said the “globally competitive” deal ensures “a strong future for our employees, our customers and our communities.” “This competitive agreement with Unifor enables Ford of Canada to further strengthen its business and positions the Canadian operations for future success,” Steve Majer, vice-president of human resources, said in a statement. “Ford continues to speak with the federal and Ontario governments to ensure long-term sustainability for Canada’s auto manufacturing sector.” Earlier in the day, ratification votes were held for members of Local 707, which represents about 5,000 hourly workers at the Oakville plant. The new agreement, was modelled after pattern agreements recently reached with General Motors and Fiat Chrysler. Unlike the Windsor Local 200 meeting, which showered the bargaining committees with sustained applause, the Oakville session was rancorous. “People have the right to express their point of view, and they certainly did just as they did in Windsor,” said Dias. The Oakville union, which represents a majority of Ford’s unionized workers, opposed the GM pattern because it kept new hires on a 10-year pay grid. The rift prompted the Windsor local to issue a public statement a day before the Oct. 31 strike deadline that a strike could prompt Ford to move its plants out of Canada. Dias said Sunday Ford had presented the union with an exit strategy, that included moving its export vehicles from Oakville to its plant in China. “All of the export vehicles were gone within three months; that would mean between 800 and 1,000 jobs,” said Dias. “To quote Ford, they were going to drop a nuclear bomb on Oakville over the life of the agreement if, in fact, they went on strike.” Ford was the last of the Detroit Three automakers to ratify a new contract with Unifor, which made new product investment the top issue in bargaining. And it was Ford’s investment commitment in Windsor that prompted workers such as Jay Hillis to give the tentative deal the thumbs up. “I voted absolutely yes,” said Hillis, a 28-year veteran at the Windsor Engine plant. “It brings a lot of product to Windsor and job security for at least 10 years, and that’s what we need right now,” he said. “It’s a good pattern all the way around.” In all, Unifor secured about $1.5 billion in new investment from the Detroit Three, with the bulk slated for Windsor. The union’s agreement with Fiat Chrysler secured $323 million in new spending, while its deal with General Motors promised $554 million in investment.

NAV hits new 52-week high on Monday.......$24.43 The stock of Navistar International hit a new 52-week high and has $36.47 target or 51.00% above today’s $24.15 share price. The 5 months bullish chart indicates low risk for the $2.00B company. The 1-year high was reported on Nov, 7. About 111,447 shares traded hands. If the $36.47 price target is reached, the company will be worth $1.02 billion more. The 52-week high event reflects very positive momentum. NAV has risen 99.74% since April 5, 2016 and is uptrending. It has outperformed the S&P by 97.79 percent.

Volvo Trucks USA Press Release / November 7, 2016 . . . .

Renae Merle, The Washington Post / November 7, 2016 Eight-years after taxpayers rescued the U.S. financial system, some of the country's largest banks, including JPMorgan Chase and Wells Fargo, continue to receive billions in bailout money, according to government data. Wells Fargo is eligible for up to $1.5 billion in bailout funds over the next seven years. JPMorgan and Bank of America could receive $1.1 billion and $964 million respectively. The continuous flow of funds is a remnant of the $700 bailout effort, known as the Troubled Asset Relief Program or TARP, put in place during the financial crisis. Some of that money, about $28 million, was carved out to help distressed homeowners by paying banks to lower their interest rates and monthly payments. The program, the Home Affordable Modification Program, has undergone several revamps over the last few years and fallen short of helping the 3 million to 4 million homeowners the Obama administration initially hoped. But it continues to operate -- HAMP will accept its last homeowner application at the end of this year -- and big banks continue to be paid for helping. The stream of cash for the big banks is worrisome to Office of the Special Inspector General for the Troubled Asset Relief Program, or SIGTARP, the chief watchdog of the financial crisis-era bailouts. Many of the banks have repeatedly broken the rules of the program, including kicking homeowners out unfairly or making it too difficult to apply for the help. "Why are we paying for nonperformance?...At what point is somebody is going to say enough and is enough?" said Christy Goldsmith Romero, special inspector general with the Troubled Asset Relief Program, who investigates crime at companies that received taxpayer bailout funds. "If a homeowner doesn't follow the rules in HAMP they get knocked out of the program. If a bank doesn't follow they still get paid by Treasury." The banks and the Treasury Department, which oversees HAMP, defend the program. The "error rates" have fallen significantly, Mark McArdle, deputy assistant secretary for financial stability, said in a statement. The SIGTARP report is "inaccurate," Wells Fargo said in a statement. "We respond quickly to correct any errors we identify or that are brought to our attention." Bank of America said it has helped more than 2.1 million customers avoid foreclosure through HAMP and other programs. "These initiatives continue to help those who face financial difficulty today, even as the economy has recovered overall," the bank said in a statement. JPMorgan, which has more than $2 trillion in assets, says most of the money it receives through the program is passed on to investors and homeowners who receive incentives for paying their mortgages on time. The biggest beneficiary of the housing program, by far, is little-known financial company Ocwen. The Atlanta company services millions of mortgages for investors, including collecting payments from homeowners. It has already received $2.9 billion from the HAMP program and over the next seven years, it could receive $2.6 billion more. "We are extremely proud of our performance and our success in helping struggling borrowers remain in their homes," Ocwen said in a statement.

Fleet Owner / November 7, 2016 The U.S. Department of Transportation is establishing a network of 55 alternative fueling and charging corridors for electric, natural gas, hydrogen, and propane fuel vehicles. The corridors will help drivers find routes with places to recharge or refuel an alternative-fueled vehicle and make it easier for drivers to move to alt-fuel vehicles, especially electric ones. It spans 35 states and Washington, D.C., and 48 out of 55 routes will be designated as electric-vehicle charging corridors.The corridors will include signage developed by the Federal Highway Administration indicating a charging station or alternative-fueling location. Along the corridors, drivers can expect either existing or planned charging stations within every 50 miles. The corridor designations were divided into two categories: signage-ready and signage pending. Signage-ready corridors currently have enough alternative fueling facilities to warrant signage along the corridor. Signage-pending corridors have demonstrated plans for future operational infrastructure. A spokesperson for the FHWA told HDT that there are not currently plans for specific signage indicating fueling stations that could accommodate commercial vehicles, but the plan is in the early stages and is still being developed in participating states and organizations. “Alternative fuels and electric vehicles will play an integral part in the future of America’s transportation system,” said U.S. Transportation Secretary Anthony Foxx. “We have a duty to help drivers identify routes that will help them refuel and recharge those vehicles and designating these corridors on our highways is a first step.” U.S. DOT website - http://www.fhwa.dot.gov/environment/alternative_fuel_corridors/ Interactive map - http://www.fhwa.dot.gov/environment/alternative_fuel_corridors/maps/

Sean Kilcarr, Fleet Owner / November 7, 2016 If you’re in the business of selling vehicle parts, then you may be about to witness a healthy uptick in sales volumes for a stretch – this despite record sales of new vehicles over the last few years, especially where cars, sport utility vehicles (SUVs) and pickup trucks are concerned. That’s because older models – especially ones around five years in age and ones 12 years or older – are staying on the road longer and accruing more mileage. That means (tah dah!) they’ll need more parts and services, at least according to the data analyzed by research firm IHS Markit. During the annual Automotive Aftermarket Products Expo (AAPEX) held last week in Las Vegas, Mark Seng, director, global automotive aftermarket practice at IHS Markit, noted that while new vehicle sales are expected to reach nearly 90 million units globally this year, the number of global vehicles in operation is expected to exceed nearly 1.4 billion vehicles by 2021, with two billion vehicles in operation expected by 2040. [In the U.S., new vehicle sales are expected to reach 17.4 million units this year, a slight decline from last year, before rising to 17.5 million units in 2017, he added.] That means – despite the record pace of new vehicle sales – the population of older vehicles will keep growing. The aftermarket definitely felt the 40% drop in new light vehicle registrations experienced during the downturn of 2008-10, Seng noted. However, the impact of that on the vehicles in operation indicates the volumes of vehicles in the new to five years old category will grow 16% by 2021, and while vehicles in the six to 11 year-old range will grow just 5%, the population of vehicles that are aged 12 years or older will grow 10%, according to IHS Markit projections. Indeed, it is the number of older vehicles on the road that are growing the fastest – with vehicles 16 years and older expected to grow 30% from 60 million units today to 81 million units by 2021. IHS Markit research also indicates 20 million vehicles on the road in 2021 will be more than 25 years old. “Some believe that high new-vehicle sales are not a good thing for the aftermarket,” Seng noted during a presentation at AAPEX. “However, I don’t see it that way. Anytime you are adding vehicles to the fleet that’s a good thing. It’s our ‘new business pipeline’ if you will. [It means] simply more vehicles to repair down the road.” Vehicle miles traveled in the U.S. continues to increase, too, driven partly by a continued spate of low fuel prices – adding to the “aging” process for vehicles. For the past two years, consumers have traveled more than 3 trillion miles per year, which is up from seven years of declining or flat miles traveled between 2006 and 2013, according to the Department of Transportation and Federal Highway Administration (FHWA) numbers. From a global perspective, light duty vehicle miles traveled are estimated to reach more than 10 trillion miles this year, according to IHS Markit. “The aftermarket must be prepared to address the needs of the aging vehicle population,” Seng said. “More repair opportunities will abound for these older vehicles, including from consumers who may be a vehicle’s third or fourth owner.” But what kinds of light vehicles are we talking about here? IHS Markit’s data offers some further insight: The firm tracks nearly 30 different vehicle segments but just four represented nearly 60% of new vehicle registrations in 2015. Compact CUVs or “crossovers” are commanding nearly 19% of the market year-to-date in 2016, with traditional compact cars (13.4%), mid-size sedans (12.7%) and full-size pickup trucks (12.3%) rounding out the top four. In the U.S., import brands are outpacing the traditional domestic brands, which allows for growth among import parts providers and service experts, according to IHS Markit. Market share of new vehicle sales held by traditional domestic brands in the U.S. is declining – accounting for just 46% in 2015. IHS Markit forecasts suggest import nameplates will account for 57% of U.S. light vehicle market share by 2021. As a percentage of vehicles in operation, cars with import nameplates increased by more than 50% since 2002, and likewise, import branded light trucks have nearly tripled in number over the same 14 year timeframe. One final though thought here as we talk about replacement part demand in the light vehicle space: don’t forget that much of this is computer related, meaning repairs will be vastly more complex than in times past. For example, IHS Markit noted that new premium vehicles today rely on more than 100 million lines and over 50 onboard computers to function. “This level of technical sophistication is virtually unmatched by other industries,” Seng emphasized. “This technological complexity is the foundation for the coming autonomous and connected car,” he added. “And even though these vehicles will not dominate the market for another couple of decades, the technology found on those future vehicles are entering repair bays more and more.” That’s going to put further stress on the need to find skilled technicians – savvy in both computer learning and mechanical repair skills – to keep today’s vehicles up and running on the road. That particular challenge isn’t going away anytime soon.

Transport Topics / November 7, 2016 Engineering and research company PIT Group and truckload carrier U.S. Express announced they had begun the first in-service fuel-efficiency test in the United States with a variety of Class 8 trucks and various powertrain combinations to compare actual performance levels. The weeklong test at a U.S. Express facility here involves three Model 579 tractors from Peterbilt Motors Co.; two from International Truck, a new 2017 LT model and 2017 ProStar ES; a 2017 Cascadia from Freightliner; and a 2017 T680 from Kenworth Truck Co. U.S. Express called the trucks the most fuel-efficient vehicles offered by the respective truck manufacturers. Peterbilt and Kenworth are brands of Paccar Inc. Freightliner is a brand of Daimler Trucks North America. International is the brand of Navistar Inc. “We are in the largest [equipment-related] transition period since deregulation and the hard part is this is a low-margin business, so you have to be skeptical,” said Gerry Mead, senior vice president of maintenance at U.S. Express. “The key to the road test is getting a third-party result” that analyzes the test findings using the various combinations and understands how they were achieved “so we know what is the best,” Mead said. “This is a competition,” he said, “and that’s how we are looking at it. So we are going to see who wins.” One truck will ultimately stand out, PIT Group said. “It will be the best truck in terms of what U.S. Express needs,” not the best truck for every fleet, said Yves Provencher, director of PIT Group. PIT Group selected a 60-mile test course on highways and local roads. To mimic typical fleet operations, the tractors will pull new Hyundai TransLead 53-foot trailers loaded identically, PIT Group said. Also, an in-cab observer from the company will ride with and monitor the carrier’s drivers operating the test trucks. Each truck carries an identical 50 gallons of fuel in a special fuel tank whose weight has been certified. PIT Group said the overall test qualifies as an ISO-17025-certified process. The fuel consumption test is based on RP 1103A, a recommended practice from the Technology & Maintenance Council of American Trucking Associations, the company said. U.S. Express Enterprises ranks No. 19 on the Transport Topics' Top 100 list of the largest U.S. and Canadian for-hire carriers. .

Reuters / November 7, 2016 Illinois filed a lawsuit against Volkswagen for tampering with emissions controls in Volkswagen and Audi diesel vehicles, becoming the 19th U.S. state to take legal action against the German automaker. The complaint, filed in Cook County Circuit Court by Attorney General Lisa Madigan on Monday, charges the company's American unit and seeks civil penalties for violations of state environmental laws. The German carmaker admitted last year to cheating U.S. vehicles emissions tests using sophisticated software. About 29,800 cars sold in Illinois were affected, Madigan said.

You'd walk into it knowing that you were buying a hood, 30-year old cab, Maxitorque transmissions, steer axles and drive axles. As you said, all showing their age. Then again, the American truck is due for massive evolvement, and what better marque to lead than (drum roll here).............Mack.

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I personally thoroughly enjoy Jay taking us around his ongoing projects every few months.

An original Mack 6MF519P2 looks very good...........on a R-700 or an F-model.

If an entity offered a financially challenged Volvo a reasonable amount of money for the Mack brand right now, I do believe they'd give it serious thought. I suspect, given a choice between keeping Volvo Bus or Mack, they'd keep Volvo Bus (Several Chinese busmakers would like to follow in Geely's footsteps and acquire Volvo Bus). If they could sell Volvo Construction Equipment (VCE) right now, which is what board chairman Carl-Henric Svanberg wants, they would probably want to hang on to Mack a bit longer. But the construction segment worldwide is at a low point so they can't get anything for it now. At any rate, they certainly are selling everything that isn't nailed down.

Volvo Group to divest Governmental Sales Volvo Group Press Release / November 4, 2016 Volvo Group intends to initiate a process in order to divest its Governmental Sales business area. Volvo Group has conducted a strategic review of the Governmental Sales [military truck] business area and intends to initiate a process to divest this business. “Governmental Sales has built a very strong position over the last few years with a positive development and a record order book. There are great opportunities to grow the business even further, HOWEVER, we believe that a new owner may be better placed to take the business to the next level. Consequently, we intend to start preparations to divest the business,” says Jan Gurander, Deputy CEO and CFO at Volvo Group. Governmental Sales is a part of Volvo Group’s operations and its sales correspond to approximately1.5% of total sales. The business, which has about 1,300 employees, most of whom are in France [Renault/ACMAT,Panhard*], manufactures and sells specially designed vehicles to governments, the defense industry, peacekeeping forces and aid organizations. The initiation of a divestment process is subject to the finalization of mandatory consultations with staff representative bodies. * http://www.renault-trucks-defense.eu/ http://www.acmat.fr/ http://www.panhard-defense.eu/

Gustaf Tapper, Dagens Industri / November 4, 2016 Volvo withdraws from the defense industry. The attention surrounding dealers in Russia and the Middle East was too much for the anxious directors at the headquarters in Sweden. The most natural buyer of Volvo Governmental Sales lies in France, and French government-owned weapons manufacturer Nexter Systems* is likely to be interested. The positive is that Volvo is now evidently in a restructuring phase that can release billions. * http://www.nexter-group.fr/en On a Friday when half of Sweden is on the autumn holiday, Volvo decides to send out this press release on a sensitive topic with only a brief text that is particularly well-sharpened: "The Volvo Group has made a strategic review of the business area, Governmental Sales and intends to initiate a process to sell the business." Towards the end there follows a sanitized description of the activity: "... manufactures and sells custom-designed vehicle for governments, armed forces, peacekeeping forces and aid agencies." Sure, Volvo Governmental might sell one or two trucks to help UN-type organizations, but a much bigger deal is the armored vehicles. One example is the billion contract in February for 100 VAB Mk3 and 100 Sherpa combat vehicles for delivery to Lebanon - a deal managed by the French state arms export agency Odas and financed by Saudi Arabia. At Eurosatory defense exhibition in June, Volvo had one of the largest booths with their military vehicles lined up. There were stacks of the New York Times wrapped in an advertisement on the four sides of Volvo. The cover - a jeep model Sherpa Light with heavily armed soldiers from the Special Forces. You could describe it as someone in France had concocted the ultimate branding nightmare of Volvo Group’s Executive Board in Sweden. With such friends, you don’t need enemies ... And one can only imagine the reactions to related parties at Volvo Cars’ marketing group. On the inside of the advertisement, Volvo governmental head Emmanuel Levacher told how the strategy for Volvo's growth in the defense looks, including an active role in the structure of business with competitors in the defense industry. Now it will also be so in the end, but perhaps not in the way Emmanuel Levacher had imagined. He will not stand as a buyer. The core of Volvo Governmental is France-based Renault Trucks Defense, and the country's liberal views on arms exports are not the only culture clash over the years. At the head office in Gothenburg, it has been difficult to keep up with their creative French arms dealer export business, the challenging advertising, and the maneuvers that Volvo will participate in structural transactions. The other year, Renault Defense ventured into cooperation with Russian tank producer UVZ to develop the Atom, a new combat vehicle armed with a machine gun. A giant order from the Russian army was in the pot. Also in 2014, Russian troops had just occupied Crimea. After a few weeks, it was decided to put cooperation on ice, but only this year the Volvo/Renault Trucks partnership with UVZ was terminated. It is easy to understand if management related Volvo Cars had comments on the cooperation and the other arms deals. The risk is that the Volvo brand, owned jointly by Volvo Car and Volvo Group, could easily be affected. Finally, the difficulties in controlling the French proved to be too much for the anxious Swedes at Volvo's headquarters in Gothenburg. Now the defense business is sold. The most natural buyer is state-owned French company Nexter which produces combat vehicles, artillery and ammunition. Nexter cooperates with Volvo on several products, including the “véhicule blindé de combat d'infanterie” infantry fighting vehicle and the Caesar howitzer*. Another possible buyer is Germany’s Rheinmetall. The French government will closely monitor the sale and has the last word. The other day, Volvo sold real estate for billions. Friday's initiative strengthens the impression that CEO Martin Lundstedt has launched a major streamlining. It is positive for shareholders and will release capital. Last year, Di did a survey that showed that Volvo can withdraw 60 billion by selling assets odd, stock items and their properties. In several cases, companies with losses. With this development, there is surely more to come. * https://en.wikipedia.org/wiki/V%C3%A9hicule_blind%C3%A9_de_combat_d%27infanterie https://en.wikipedia.org/wiki/CAESAR_self-propelled_howitzer .

Improving truck fuel economy with new engine oils Sean Kilcarr, November 4, 2016 / November 4, 2016 Here’s a question for you: how much is a 1% gain in Class 8 fuel economy worth? Can you put a dollar figure to it? Apparently Gary Parsons, the global OEM and industry liaison manager for the products and technology division at Chevron Oronite Company, can – and according to his calculations a 1% improvement in fuel economy is worth $500 to $700 per year in cost savings. And that’s why Parsons believes truckers – be they owner-operators or big fleets – should embrace the impending changeover to CK-4 and FA-4 diesel engine oils on Dec. 1; the official names for oils developed over the last five years under the Proposed Category 11 or “PC-11” label. “Unlike with aerodynamic devices or low rolling resistance (LRR) tires, you can change the kind of oil you are using with low cost and implement it across entire your fleet immediately – affecting fuel economy overnight,” he explained during a webinar this week hosted by Chevron Lubricants. If a fleet switches from current CJ-4 15W-40 oils to the new CK-4 10W-30 grade, Parsons said they’ll attain 1% improvement in fuel economy. If the fleet switches to the lower viscosity CK-4 5W-30 grade, the fleet would see an extra 0.2% gain in fuel efficiency. And if the fleet decided to switch to the new super-fuel efficient FA-4 5W-30 grade – a grade, however, that will only be allowed right now for use in a few select engine models – the fleet would get another 0.2% on top of that, for an overall gain of 1.4% versus the current CJ-4 15W-40 grade. [As an aside, Rommel Atienza – North American Delo commercial brand manager – added that Chevron Lubricants plans to keep supplying CJ-4 for at least a year following the rollout of CK-4 and FA-4, providing a good length of time for customers to switch over to the new grades.] Yunsu Park, the program manager for confidence reports at the North American Council for Freight Efficiency (NACFE) added that fleets his group works with that’ve already switched to current CJ-4 10W-30 blends are seeing some significant gains in fuel economy. He said NACFE’s partner fleets experienced fuel economy gains ranging from 0.5% to just over 2% in some specific cases by switching to the 10W-30 grades currently on the market. “The data is very consistent,” Park stressed during the webinar. “We recommend fleets implementing this change; going from a 15W-40 grade to a 10W-30 grade in same [oil] category.” Interestingly, NACFE’s research into engine oils found this is one area where even so-called “forward-thinking” fleets are actually reluctant to make changes. “Over 40% of the NACFE fleets still use the 15W-40 grade, and these fleets are typically fairly aggressive with new technology,” Parks noted. Industry-wide, less than 20% of Class 8 fleets are using something other than the 15W-40 engine oil grade, he added. A separate conclusion NACFE derived from examining FA-4 grade field test data over the summer indicates fleets could get a further 0.4% to a 0.7% improvement in fuel economy over current 15W-40 blends, but Parks stressed that his “information is still very limited” and that more testing is needed to confirm that potential gain. But Parks also remains “confident” in NACFE data that that higher viscosity oils don’t provide better engine protection than the 10W-30 and thinner viscosity grades. “We believe the 10W-30 grade provides good protection,” he stressed. Yet there is a challenge: price. For while there is no upfront investment to the level required by adding aerodynamic devices or LRR tires, Parks said fleets moving from a 15W-40 oil to a 10W-30 or 5W-30 grade will see a cost increase. “Your return on investment [ROI] can be achieved, but you need to investigate that on your own,” he noted. [Len Badal, the global Delo brand manager for Chevron Lubricants, said much the same thing to me in an earlier interview you can read here.] Part of that ROI calculation needs to include longer drain intervals, for both the CK-4 and FA-4 grades. For example, one fleet attending the webinar noted that the drain interval on its 200 trucks using CJ-4 grade oil is around 35,000 miles. With CK-4, that interval could be over twice as long. PACCAR, for instance, recently announced a drain interval of 75,000 miles for its 2017 model MX-11 and MX-13 engines – a boost of over 15,000 miles from its current 60,000 miles limit – though that number may need to be pulled back if a fleet’s engine idle time is greater than 20%. Cummins is allowing for a drain interval extension in its new X15 engine line of up to 80,000 miles – with something similar in the works for its X12 engine as well, which will be introduced in 2018 – if fleets use its new OilGuard oil analysis service. Yet NACFE’s Parks also noted that the potential for easily-attainable fuel economy gains is there with the new CK-4 and FA-4 grades and he expects thinks truckers will take advantage of that opportunity. “We really see the new oils coming on to the market [Dec. 1] as a chance for fleets to re-evaluate their choices based on the fuel economy impact of low viscosity oil,” he said. We’ve got less than a month to go before we start finding out which fleets will switch and which will stand pat.

German KBA greenlights 29 cent Volkswagen fix for 1.6-liter EA 189 TDI engines Green Car Congress / November 5, 2016 The German Federal Motor Transport Authority (KBA) has approved Volkswagen’s technical solutions for 2.6 million vehicles equipped with the EA 189 1.6-liter TDI engines affected by the emissions-cheating issue. The modification in the case of the EA 189 1.6-liter TDI engines involves a software update. In addition, a [magic 29 cent] flow conditioner (aka. flow transformer) is being fixed directly upstream of the air mass meter. The implementation will take less than an hour of working time. Implementation can soon begin on the first of the vehicles of this third and final engine size. The vehicle owners will be notified in succession over the coming weeks. All affected customers can then book their vehicle in for the modification at an authorized workshop at a time of their choosing. The KBA has said without qualification that the implementation of the technical solutions for these models causes no detrimental changes to fuel consumption levels, performance data or noise emissions. The KBA had previously already affirmed this for all other models approved for the recall. After the modification, the vehicles also fulfil all statutory requirements and the duly applicable emissions standards. The modification of vehicles with affected 2.0-liter TDI engines began back at the start of the year. The implementation of the technical solutions for affected models with EA 189 1.2-liter TDI engines is also under way. With KBA approval now having been given for the final engine size group as well, work will shortly begin on the modification for vehicles with the affected EA 189 engine. It is thus now possible to bring affected models with 1.2-liter, 1.6-liter and 2.0-liter TDI engines up to due standard. In Germany customers are being informed in a two-stage process. In stage one, all of the owners concerned were already notified this spring that their vehicle is affected by the modification program through a letter agreed with the authorities. As soon as the technical solutions for a model have been approved and are available, the customers are being asked in a second written communication to book their vehicle in with a partner business of their choice. This communication has now been sent to the owners of vehicles with the 1.6-liter TDI engine as well. The vehicles affected are technically safe and roadworthy. Between now and their modification, they can continue to be used on the road without any restrictions. The required technical solutions are being implemented across Europe based on a schedule and action plan agreed with the KBA. ----------------------------------------------------------------------------------------- VW's surreal fix turns Dieselgate drama into a comedy Automotive News / November 16, 2015 Two months into its Dieselgate scandal, Volkswagen says it finally has found a silver-bullet solution. In receiving the blessing of the KBA, Germany's type approval authority, to clean up hazardous emissions from the 1.6-liter diesel, VW has now resolved the hardest aspect of its massive recall as that specific engine required technical modifications. Not only does the proposed new component bring the cars into compliance in Europe, VW Group believes the fix will not even impede fuel efficiency or engine output. Fitted directly in front of the air mass sensor, this part is equipped with a mesh that calms the swirled air flow and thus decisively improves accuracy when measuring current air mass throughput, a very important parameter for optimum combustion. That last passage is taken almost word for word from the company's statement. Pretty darn impressive even if I have absolutely no clue what that means. The component comes complete with a cool name, too – “flow transformer." It sounds kind of like the fictional Flux Capacitor that allowed a DeLorean to travel through time in the 1980s film "Back to the Future." VW even put quotes around the name, as I just did, as if they patented the whole idea in the first place. In German it's even better since you can squish the two words together to form Stroemungstransformator. All I can say is, "Wow!" So imagine my surprise after watching the company's helpful accompanying video on its website. When a bookish-looking VW manager complete with a properly long job title -- head of diesel development of derivatives and fuel injections systems -– explained the merits of said device as he held it up to the camera for all to see, I was stunned. Here is a German engineer who can probably plot the torque and horsepower curves of his engines from memory cradling in both hands a plastic tube as if were pure gold. Low-tech doesn't even begin to describe a part that looks more like something a plumber might install in a kitchen sink to keep it from clogging. Granted, the media had already reported that VW was working on a low-cost solution, but these days something as comparatively complex as DRAM memory chips manufactured under the most stringent cleanroom conditions can cost only a few dollars each. VW still doesn’t have an answer for its U.S. diesels, but can you imagine then how the less-trusting Environmental Protection Agency might react had it, and not the KBA, been confronted with VW's Flux Capacitor? Sorry … “flow transformer." Of course just because it looks cheap doesn’t mean it won’t work. -- I have to assume it does. Volkswagen cannot possibly be dumb enough to announce a fix that doesn't work. They know that environmental advocacy and consumer rights groups won't take them at their word, preferring instead to carry out their own tests to verify the authenticity of VW's claim. There’s no reason a fix should be ludicrously expensive either, but at least retrofitting all engines with completely different injection nozzles as VW Group CEO Matthias Mueller had initially warned might lead one to understand why engineers were not forming lines to be the bearer of bad news. Given that, the implication of the fix is truly staggering. For most of the 8.5 million illegal diesels on European roads, all Volkswagen had to do to ensure it was not breaking the law, polluting the environment or deceiving customers was simply update their software? And for the rest – the 1.6-liter versions that required technical modifications –- a quick run to their local do-it-yourself chain to pick up a plastic drain trap would have sufficed? Total service time required according to VW: less than one hour, if that. It's almost surreal. The whole scandal is beginning to sound more and more like a very, very expensive exercise in tragicomedy. .

Autoblog / November 4, 2016 Restomods, Pro Touring, tributes, replicas, copies... whatever. They used to be called hot rods. And it seems there's at least one shop in every county striving to pump modern ability under old sheetmetal and sell the result as something new. Write a big enough check to companies like Detroit Speed (which is, for some reason, in North Carolina), and you'll get a '69 Camaro much faster than a new one. Sign up with Icon 4x4, and that Los Angeles company will create a hyper-detailed version of, well, almost anything you like. Then there's the subject here, climbing out of Legacy Classic Trucks in Jackson Hole, Wyoming, a re-creation of the beloved four-wheel-drive NAPCO Chevrolet pickup produced in small numbers during the 1950s. That's NAPCO as in Northwestern Auto Parts Company, a Minneapolis firm established in 1918 and well known for supplying four-wheel-drive components during World War II. With the war over, and at a time when most OEMs weren't yet building their own 4x4 pickups, the company put its expertise into building conversions. Most famously, NAPCO was selling kits that upgraded a Chevy or GMC half-ton truck to four-wheel drive. When GM introduced its own factory-built 4x4 pickups for 1960, NAPCO's conversion business dried up. Throw in a few rounds of corporate shenanigans, and eventually NAPCO was absorbed into the Dana Corporation and the brand died. "I called Dana about the brand," sighs Legacy founder and owner Winslow Bent. "No one there seemed to know." Such is the fate of all things to fade into obscurity. Well, not that obscure. There's a cult that has arisen around those NAPCO conversions. First because they're mechanically interesting and second because jacked-up GM "Advance Design" (1947–1955) and "Task Force" (1955–1960) trucks are spectacular-looking pieces of mid-century industrial design. For Legacy's Bent, whose company made its truck bones re-imagining and re-engineering early Dodge Power Wagons, reviving the NAPCO legacy would be, from a legacy point of view and legacy-wise, a good business for Legacy's expansion of its legacy. In the foothills that climb out of Southern California's Ojai Valley, the Legacy NAPCO looks as if it sprang naturally from the landscape. At least putatively a 1957 Chevrolet 3100 stepside pickup, the gloss of its paint, athleticism of its stance, and 33-inch-tall Toyo tires all belie that there's some magic at work. Impressions matter, and this truck is so gorgeous you can practically hear your pupils dilating at first sight. But there are some visual nitpicks worth making. First, the lack of chrome badges leaves the truck looking a bit stark and anonymous. It's missing the subdued jewelry that distinguished the Task Force design as both a part of its and one of the best truck designs of that time. Also, Legacy equipped this truck with a Borla Corvette-style, center-mounted, four-outlet exhaust system that awkwardly overwhelms the entire rear view. It simply destroys the illusion that this truck is a serious tool and not a rich man's toy. Stock 1957 truck chassis aren't robust structures. So Legacy has had TCI build a whole new one for its NAPCO-ish beasty. Mandrel bent and full-boxed with its steel coated in epoxy, the frame is so pretty it's a shame there's a truck covering most of it. The suspension looks tough enough to take photon torpedo hits and couldn't be simpler in concept: solid axles on leaf springs. Those axles are Dynatrac "ProRock" parts based on classic Dana 60 and 40 designs. Warn locking hubs make the power go where it should go. The brakes are four-wheel discs squeezed by dual-piston calipers and pressurized by a GM Hydroboost master cylinder. But the best mechanical improvement is the GM LS-Series 5.3-liter V8. The LS engine is small, powerful, economical, and has a torque curve friendlier than a Fruehauf full of puppies. Legacy claims that the one used in this truck makes 350 horsepower alongside 350 pound-feet of peak torque. If that's not enough, GM's LS3 "E-Rod" crate engine is also available, rated at 430 hp. Lashed to an Aisin AX15 five-speed manual transmission, the 5.3 is a happy camper in this NAPCO. Compared to a modern truck, old trucks aren't that heavy and 350 horses are plenty to scoot this one around. Especially since it's sort of tippy-toeing on its tall tires and the Saginaw recirculating-ball steering gear can be hazy. It's a blast crawling up trails, though it's less sure-footed on-road. The interior is trimmed in elegant leather and stuffed full of everything the modern aftermarket can provide. That includes a Glide Industries bench seat, a Nardo wood steering wheel, and instrumentation from Classic Industries. The Vintage Air air conditioning blows so cold it's practically disdainful. But the cockpit is also the Legacy NAPCO's Achilles instep. The major problem with the Legacy NAPCO isn't anything Legacy has done, but the limitations baked into the truck way back in the early 1950s when GM was designing it. Even compared to trucks built only a few years later, the cab is narrow and short. There's not a lot of leg or shoulder room, the atrocious aerodynamics lead to plenty of wind noise, and old hinge and latch designs mean the doors don't always like to close tight. My legs were practically cramping up against the pedals because they're too closely positioned for my six-foot-one-inch frame. Almost anything about an old vehicle can be improved upon with the application of cubic dollars. But almost anything isn't everything. And at some point the only way to get a better truck is to buy a newer one. Ultimately, the same things that make an old classic truck so ridiculously charming are what hold it back from ever being as comfortable and efficient as a new pickup. And that alone marginalizes the Legacy NAPCO as something of a plaything rather than an everyday driver. That's before considering cost. And with prices starting at $120,000, the Legacy NAPCO demands a lot of consideration. With the aftermarket now moving into areas it has never dared consider before – chassis, suspension, air conditioning, and whole new bodies, for instance – it's possible to indulge yourself if you have the wallet mighty enough to back up your whimsy. The Legacy NAPCO is a nice tribute to a bygone product, but it's not a necessary tribute. How much do you value paying tribute? Photo gallery - http://www.autoblog.com/2016/11/04/legacy-chevrolet-napco-4x4-conversion-review/ .

Ryan Beene, Automotive News / November 6, 2016 A pivotal 8 years for the auto industry President Obama may be remembered as the first auto industry executive to serve as president of the United States. He happened to do both jobs at the same time. And no matter who is chosen to succeed him on Tuesday, the eight years of the Obama administration will be recognized as one of the most pivotal periods in U.S. automotive history -- not just in terms of the structural and technological changes that bolstered the industry during Obama's tenure, but also in terms of the government's profound role in determining its course, from investment priorities to competitive dynamics to the basic components of modern vehicles. For evidence of that, look no further than the Ford F-150, America's best-selling light vehicle. There's a new one rolling off the assembly line every minute. And every one has a body made of aluminum. If there was a guidepost for the administration's approach to the auto industry, it's a line attributed apocryphally to Winston Churchill, and co-opted by Obama chief-of-staff designate Rahm Emanuel. "You never want a serious crisis to go to waste," Emanuel told a gathering of corporate executives during the tumultuous weeks after the 2008 election. "It's an opportunity to do things that you could not do before." At the time the country was facing many crises: a wealth-destroying housing crisis, spiraling health-care costs, a financial system in tatters, surging unemployment, bloody wars in two theaters. The auto industry had crises of its own -- existential ones in the case of General Motors and the former Chrysler Group, plus big unknowns surrounding the impact of climate change, the nation's dependence on imported oil and unrelenting competition from Toyota. True to Emanuel's credo, Obama wasted no time. On Day 6 of his term, while General Motors and Chrysler clung to a lifeline extended by the Bush administration, the new president instructed the Department of Transportation to finalize new fuel-economy rules for the 2011 model year, and asked the EPA to review whether California and other states should be able to write their own greenhouse gas rules. "Our goal is not to further burden an already struggling industry," Obama said then. "It is to help America's automakers prepare for the future." Automakers had fought hard against previous attempts to raise fuel economy standards, but the promise of a consistent national standard helped win their support. "GM and the auto industry benefit by having more consistency and certainty to guide our product plans," GM's then-CEO Fritz Henderson said in a statement at the time. By mid-May, Obama was with executives from 10 automakers in the White House Rose Garden, proposing rules that would boost average fleet mileage to 35.5 mpg by the 2016 model year. Two years later, the target rose again: more than 50 mpg by 2025. A midterm review will determine whether that target should stick, but beyond some nervousness about the timing and costs, both automakers and regulators have signaled that they're committed to the course they've set. Surge in investment The new rules, along with toughening regulations elsewhere around the world, ignited a surge of R&D investment that has ushered in a new era of innovation in powertrains and lightweight materials, from the aluminum F-150 to the mixed-material construction of the Cadillac CT6. Nearly half of the 2015 model year fleet used direct-injection engines, compared with 2 percent in 2008, according to the EPA. Six-speed transmissions jumped to 57 percent of the fleet from 19 percent, while gearboxes with seven or more speeds grew to 17 percent from 2 percent. In addition, automakers now offer 12 battery-electric vehicles and 13 plug-in hybrids, according to the EPA. Of course, little of that investment would have been possible without the government-led rescues of GM and Chrysler, which not only revived the fortunes of the two automakers but sustained a supply chain that served the entire industry. GM and Chrysler had scrambled for months to restructure on their own, but having deemed their work insufficient, the Obama administration's auto task force took the wheel, ultimately pushing the two companies through government-orchestrated Chapter 11 reorganizations and onto more stable ground. The bankruptcies were quick but far from painless. Workers were fired. Brands were killed. Plants were shuttered. More than 2,000 dealer franchises were terminated. Bondholders were stiffed. To this day, many critics say the administration and the task force abused the bankruptcy law to benefit certain favored constituencies, and that the extent of their involvement in corporate affairs set a dangerous precedent, even if the industry is better off today. But the administration claims credit for forcing the reckoning that the industry had long avoided. "There was clear-eyed recognition that we couldn't sustain business as usual," Obama told the Detroit News in 2015. "That's what made this successful. If it had just been about putting more money in without restructuring these companies, we would have seen perhaps some of the bleeding slowed, but we wouldn't have cured the patient." As pivotal as this chapter was in their survival, the rescued automakers appear unwilling to revisit it. The very fact of the bailout soured many consumers on GM and Chrysler vehicles. And both companies felt stigmatized by having to endure the federal government as a shareholder well after they emerged from bankruptcy. GM and FCA declined to comment for this article, as did the Alliance of Automobile Manufacturers, the Washington trade group that counts them among its 12 members. The industry's crises didn't end in 2009. In some quarters, they were just beginning, opening new avenues for government intervention. The subsequent string of safety problems at Toyota, General Motors and Takata led to a reinvigorated National Highway Traffic Safety Administration under chief Mark Rosekind, who came to power in December 2014 pledging to ensure that the industry and the agency arm themselves to avert safety crises instead of just reacting to them. "NHTSA is truly successful not when we catch safety violations and hand down penalties, but when we work together with industry to prevent that kind of crisis from ever occurring in the first place," Rosekind said in a speech this year. NHTSA's consent decree with GM following the 2014 ignition-switch crisis set a precedent for federal monitoring of an automaker's internal safety operations. Under Rosekind, NHTSA would extend this oversight and continue to invoke rarely used powers, summoning Fiat Chrysler to a public hearing to explain its handling of recalls, and taking control of the complex Takata airbag case to schedule recalls and coordinate the distribution of replacement parts. Obama's DOT has assumed a similar posture in its approach to autonomous vehicles, reserving the right to assert new authorities, even as it stops short of issuing new regulations. The recently issued draft proposal calls for manufacturers to disclose significant detail about their self-driving cars and systems before they're introduced to the market, a departure from the way auto safety has been regulated to date. The visible hand Automotive businesses that came under a consent decree or some form of government oversight, or that settled regulatory or criminal charges during the Obama administration: BMW: Two-year consent order signed in 2015 required the automaker to retain an independent safety consultant and reform safety practices after it failed to recall 30,000 Mini Coopers in a timely manner. Fiat Chrysler: Agreed in July 2015 to three years of oversight by an independent safety monitor after mishandling more than 20 recalls since 2009. Separately, FCA's sales reporting practices were being investigated by the Justice Department and Securities and Exchange Commission. General Motors: Agreed to make sweeping safety reforms and submit to close NHTSA scrutiny in a 2014 consent order stemming from ignition switch crisis. The oversight has been extended through mid-2017. In addition, GM installed an independent monitor under an agreement with the Justice Department. Honda: Submitted in January 2015 to stricter oversight and agreed to complete several remedial actions after failing to report more than 1,700 deaths and injuries linked to potential defects in its vehicles over an 11-year period. Hyundai-Kia: Agreed to spend $50 million to establish an independent fuel economy certification group as part of a 2014 settlement to resolve a two-year EPA probe into inflated mpg ratings. Takata: Submitted to five years of additional NHTSA oversight and hired an independent monitor as part of a November 2015 consent order for failing to properly notify regulators that its airbag inflators were defective. Toyota: Installed an independent monitor in 2014 as part of a deferred-prosecution agreement with the Justice Department to settle charges that Toyota misled regulators and consumers during its unintended-acceleration recall crisis. Volkswagen: A VW engineer pleaded guilty to conspiracy and wire fraud charges tied to his role in VW's emissions cheating scandal, a rare example of an individual being charged in connection with a corporate scandal. Electric vehicle vision As for the vehicles of the future, the administration won't see its vision fully pan out, at least not in time for move-out day on Jan. 20. Obama's goal of putting 1 million plug-in vehicles on the road by 2015 (backed by billions of dollars in federal loan-guarantee programs for electric-vehicle projects and startups) has come up short by half. Compelling offerings from Nissan and Tesla Motors remain virtually off limits to people who have long commutes or short credit lines. But the cost of electrification is coming down, and the potential for affordable, longer-range vehicles is growing. As the Obama administration cleans out its file cabinets, General Motors will be rolling out the Chevy Bolt, a 238-mile-range electric vehicle and technological descendant of the plug-in hybrid Volt, which despite its groundbreaking powertrain became an early symbol of the administration's unrealized expectations. Meanwhile, an alternative version of the administration's vision is playing out on America's roads. The restructuring of the auto industry was geared toward spurring production and sales of high-quality small cars, the kind that Toyota and Honda were using to beat up the U.S. auto industry. And for a time, the recession and wobbly recovery helped wean consumers off costly gas guzzlers. Ford's Michigan Assembly factory became the poster child of this movement when it retooled from the big Ford Expedition and Lincoln Navigator SUVs to build the Focus compact in 2010. Yet, thanks to the expansion of domestic oil drilling, which has kept gasoline prices low, the uptick in domestic small cars was eventually overtaken by surging sales of crossovers -- family-size utility vehicles that could be built on the same platforms as smaller cars. In a way, it's an unintended consequence of the administration's fuel economy quest: Americans have always preferred bigger cars, and thanks to the current rules that require greater efficiency from all vehicles, consumers can now have both. "By and large, the majority of the domestic automakers have found a good balance in creating fuel-efficient products that people want," said Ed Kim, an analyst with AutoPacific Inc. He added: "I absolutely do think that there was an important role that the government took in bringing these well-balanced products to the marketplace."