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Truck News / November 1, 2016 Natural gas truck sales in the US and Canada are down 29% year-to-date. Market analysts say, however, that the slowdown could reflect the broader truck market, which has seen Class 8 demand slide from last year. “While sales of natural gas powered units have their own inherent challenges, part of the reason for softness may also be related to factors impacting the broader truck market,” said one analyst. “Regardless of the fuel used, heavy trucks are all competing for the same freight, which has failed to increase for at least the last five quarters.” He added, “Coincidentally, many truckers increased their fleet sizes just as freight growth was slowing, setting up the current situation of excess capacity that is keeping the brakes on new truck sales, irrespective of fuel type.”

Bloomberg / November 1, 2016 Convoy Inc., a Seattle-based startup that aims to become an Uber for trucking, has struck its biggest deal yet -- with consumer goods giant Unilever NV. The four-year agreement will have Convoy connect Unilever to trucks for tens of thousands of shipments a year and is worth millions of dollars over the next year, Convoy Chief Executive Officer Dan Lewis said in an interview. Unilever, the company behind Dove soap, Hellmann’s mayonnaise and Lipton tea, chose Convoy over several other trucking technology providers, the company said. The deal is a vote of confidence in Convoy, which uses software to match companies needing tractor-trailers with smaller providers, line up deliveries and track them to better ensure on-time pickup and receipt. It’s particularly important as car ride-hailing app Uber Technologies Inc. gets into the freight market through its acquisition of Otto. Uber and Anheuser-Busch InBev NV (also a Convoy customer) recently sent an 18-wheeler full of beer more than 120 miles down Colorado’s I-25 highway without a driver, a stunt intended to prove the company could use autonomous trucks for commercial deliveries. The company is working on trucking marketplace software to connect drivers of regular trucks with cargo loads and signing up shippers to try it when the app goes live, Uber said. Over time, Uber plans to merge the self-driving technology, obtained in its acquisition of Otto, and the marketplace app. “It doesn’t make me nervous -- the market is gigantic,” said Lewis about Uber. “All we see today is their self-driving truck. I haven’t seen anything in the field that implies there’s an actual freight service.” When Convoy, backed by Amazon.com Inc. CEO Jeff Bezos, Salesforce.com Inc.’s Marc Benioff and Uber co-founder Garrett Camp, started in April 2015, it was mainly focused on ad hoc deliveries for companies needing a truck here and there. It has since added deliveries scheduled ahead of time and on a regular basis, said Lewis. In fact, he’s starting to dislike the Uber-for-Trucking moniker because it leads people to think “we only mean an ad hoc truck waiting on the side of the road.” Besides Unilever, other customers include Anheuser-Busch, Peterbilt Motors Co. and lawn-care company Scotts Miracle-Gro Co. "We want to shift the mindset from Convoy is a little more niche to Convoy is going to build the highest service level trucking company in the world,” Lewis said. Becoming a regular trucking vendor for a consumer goods giant may help. Unilever has been trying Convoy since February and has graded the company against its existing trucking providers and other startups that use technology to try to improve the process. "Our partnership with Convoy allows us to jointly shape the future of on-demand trucking while adding flexibility into our supply chain," Reginaldo Ecclissato, a Unilever supply chain executive, wrote in an e-mailed statement. Convoy’s deal is not exclusive and Unilever will still be working with standard trucking companies, Convoy’s Lewis said. While it’s not as exciting as an 18-wheeler full of beer, organizing thousands of trucks full of soap, mayo and tea should be lucrative work for the startup.

Cummins Sees Its Business Slow Down as Demand Weakens The Motley Fool / November 1, 2016 Restructuring efforts can only do so much to offset the damage from a sluggish global economy. The global economy hasn't been kind to Cummins, and the engine maker has had to take dramatic actions to try to shore up its business and make the most of its opportunities despite facing tough conditions. Coming into Tuesday's third-quarter financial report, Cummins investors were bracing for declines in revenue and net income. Cummins' numbers on the earnings front were a bit better than most had expected, but tough sales conditions were evident and aren't likely to get better in the near future. Let's take a closer look at the latest from Cummins and whether investors should have much hope for better times ahead. Is Cummins stalling out? Cummins' third-quarter results revealed signs of just how tough the macroeconomic environment is for the engine manufacturer right now. Revenue dropped more than 9% to $4.19 billion, which was an even steeper drop than most of those following the stock had looked to see. Net income fell by nearly a quarter to $289 million, but even though the reported $1.72 per share in earnings was below the consensus forecast among investors for $1.96 per share, Cummins said that it suffered a $0.30 per share hit due to loss contingencies. On an adjusted basis, therefore, many saw Cummins as having beaten expectations. Taking a closer look at how Cummins fared, the reversal of fortune in where the company brought in revenue continued. The once-strong North American market suffered a 13% decline in sales, while international markets were down just 3%. In China, Cummins managed to increase revenue [primarily ISF light truck engines], helping to offset declines in the Middle East and Africa. The company blamed lower truck production in North America and weakness in demand for power generation equipment internationally for the overall drop in revenue. Cummins' key divisions were fairly weak across the board. The distribution business held up the best on the sales front, with segment revenue falling just 3%, but pre-tax operating income was down by more than a fifth. The components division suffered an 8% drop in sales but limited its profit decline to just 5%. Meanwhile, the engine segment and the power systems segment both saw their top lines fall double-digit percentages, and segment profit took hits as well. In particular, on-highway revenue for the engine segment fell 13% because of the pressure on heavy-duty and medium-duty truck production. CEO Tom Linebarger discussed the difficulties that Cummins faces. "Due to the slow pace of growth in the global economy," Linebarger said, "we continue to face weak demand in a number of our most important markets." The CEO noted that restructuring and cost-containment initiatives are helping to offset the negative effects of lower revenue, and he was proud of the operational performance that Cummins has had recently. When will Cummins start growing again? Unfortunately, Cummins doesn't see any immediate relief from the industry's tough conditions. It now expects full-year 2016 sales to fall 9%, which is at the midpoint of its previous guidance range for an 8% to 10% decline. However, Cummins did cut its expectations from pre-tax operating margin, now predicting a figure of 11.3%, down from its previous range of 11.6% to 12.2%. The company blamed the cut on higher loss contingencies from a field campaign that Cummins decided to expand, addressing emissions issues connected with third-party after-treatment systems about which some customers have reported problems. More importantly, the main downward impacts on Cummins' business don't appear likely to disappear anytime soon. The trucking industry is having its own problems, and that bodes ill for truck production, which is hitting both the core engine segment and the related components segment. Negative currency impacts have largely gone away as the dollar's strength wanes, but declines in organic sales on the distribution side of Cummins' business reflect the overall weak demand for its products overall. Meanwhile, power systems rely on healthy industrial sectors of the economy, and that strength hasn't been present, either. Cummins investors weren't happy with the report, sending the stock down more than 3% in pre-market trading following the announcement. Until conditions in the industrial economy start to improve, it will be tough for Cummins to see a return to fundamental strength in its core businesses.

Cummins third-quarter profit drops on weak truck production Reuters / November 1, 2016 Engine maker Cummins Inc on Tuesday reported a lower quarterly profit as revenue was hit by weak heavy-duty truck production in North America and poor global demand for power generation equipment. "Due to the slow pace of growth in the global economy, we continue to face weak demand in a number of our most important markets," Cummins Chief Executive Officer Tom Linebarger said. The Columbus, Indiana-based company provides engines for the large trucks that haul a large majority of U.S. freight. Truck makers have experienced a drop in sales this year as lackluster economic growth and high retail inventories have discouraged many trucking firms from putting in orders for new vehicles. The company reiterated its downbeat full-year revenue forecast. Sales in the company's engines unit were down 12 percent versus the same period in 2015. Third-quarter net income fell 24 percent to $289 million, or $1.72 per share, from $380 million, or $2.14, a year earlier. Excluding a one-time loss contingency charge, earnings per share were $2.02. Analysts, on average, expected $1.96.

Transport Engineer / November 2, 2016 Independent lubricants blender Millers Oils has acquired two Renault Trucks Range T rigids as part of its nine0strong HGV fleet revitalisation process. Both are 26-tonne Range T380 6x2 rigid curtainsided vehicles, supplied on a six-year contract hire deal through BRS, and follow two Renault Range D Wide 18-tonne curtainsiders which have been running on Millers Oils’ fleet since 2014. Delivering lubricants across the UK, the new Range T380 sleeper cabs – which have Roco Truck Bodies’ rigid curtains, Mellor Flow Trans’ inter pump hydraulics and full rear closure tail lifts – were specified with Renault Trucks Comfort Pack and Fuel Eco Pack. “Our drivers are out on the road for two or three days at a time, so it’s vital that we create an environment where they feel appreciated,” states Millers Oils managing director Jamie Ryan. “I was first introduced to the Range T two years ago at the CV Show: I sat in the truck and was extremely impressed by the size and comfort of the cab,” he continues. “Our drivers’ satisfaction is highly catered for in these top-spec Range Ts and we’ve even added extras such as air suspended seats, three ambient lighting modes, microwave, fridge, TV and DVD player.” But Ryan also points this new trucks’ fuel efficiency. “Through our Eclipse fuel treatments, Millers Oils is working hard to increase fuel efficiency, reduce emissions and maintain clean injectors. “Our specific aim was to invest in energy saving vehicles, like the Range T, which has had aerodynamic improvements made and … these new vehicles will help sustain and prolong our fleet life as well as helping to protect the environment too.” .

Transport Engineer / November 1, 2016 Derbyshire-based earthmoving, plant hire and recycling services specialist JC Balls & Sons has bucked the trend and added three six-wheel tippers to its 38-strong fleet, instead of industry preferred 8x4s, citing their versatility and manoeuvrability. Conceding its new tippers reduced payload capacity at 15 tonnes, director Jamie Balls counters that his new 26-tonners are ideal for work on local highways contracts. “A 6x4 truck is a lot more manoeuvrable than an eight-wheeler, which is a big advantage on some of the roads in this area,” insists Balls. “Also, of course, the lighter vehicle comes at a lower purchase price, and is cheaper to operate too,” he adds. And Balls points out that because highways contracts are mostly summertime activities, he needs his tippers to handle aggregates, muckaway and the like in the winter months. “So versatility is all-important for us, and this new chassis-body combination is living up to all our expectations,” smiles Balls. Supplied by Derby dealer Mertrux, its new Arocs 2635Ks were specified with ClassicSpace M-cabs and the 7.7-litre 354bhp engine driving through the PowerShift AMT (automated manual transmission). They have been bodied by Thompsons with its lightweight, all-steel Stonemaster, and tip the scales at an unladen weight of 10,700kg. “These are still very early days but the drivers have certainly taken to the Arocs, with the responsive engine and smooth-changing PowerShift being particularly well received,” continues Balls. JC Balls inspects and maintains its trucks in its own workshops but will be using Mertrux for regular deliveries of Mercedes-Benz GenuineParts. .

Volkswagen Group Press Release / October 28, 2016 Volkswagen Truck & Bus sees unit sales continue to increase in Q3 • Around 133,000 trucks and buses sold from January through September 2016 • Truck sales of the MAN and Scania brands up 12% in Western Europe • Renschler: "Commercial vehicle sales in Brazil are set to pick up again in 2017" Volkswagen Truck & Bus sold 132,860 trucks and buses from January through September 2016, up 3% year-on-year. MAN Truck & Bus sold 19,670 vehicles in the period from July through September, up 7% on the same quarter of the previous year. Scania recorded 3% growth in the third quarter of 2016, selling 18,420 trucks and buses. In a challenging market environment in South America, MAN Latin America's sales of the Volkswagen Caminhões e Ônibus and MAN brands fell 16% to 5,500 vehicles. Andreas Renschler, the Member of the Board of Management of Volkswagen AG responsible for commercial vehicles and CEO of Volkswagen Truck & Bus, is pleased: "The third quarter of 2016 also went well. We continued to boost total unit sales, despite the ongoing crisis in Latin America. The market in Brazil seems to have bottomed out now. I expect that sales will start to pick up again slowly in 2017 and that we will be able to leverage our strong position there." The growth trend in the trucks business continued in the first nine months of 2016: at 120,610 trucks, the Volkswagen Truck & Bus brands sold around 3% more than in the previous year. The trends in the individual regions varied: the ongoing economic recovery in Western Europe led to a year-on-year increase of 12%. Italy, the Netherlands, and France in particular all recorded growth. Volkswagen Truck & Bus delivered significantly more trucks than in the previous year with its own brands in Central and Eastern Europe too, lifting its unit sales there by 21%. Due to the persistently difficult macroeconomic climate and tougher financing conditions, truck sales in Brazil decreased by 22%. Volkswagen Truck & Bus also saw positive developments in its bus business: at 12,250 vehicles, unit sales in the first three quarters of 2016 grew 3% year-on-year. In the third quarter alone, unit sales of buses increased by 21% compared with the previous year. Theme-wise, the third quarter of 2016 was dominated by the IAA Commercial Vehicles show in Hanover. The IAA Startup Night saw the MAN, Scania, Volkswagen Caminhões e Ônibus and Volkswagen Commercial Vehicles brands showcase their trade fair highlights together for the first time under one roof. Volkswagen Truck & Bus presented its new brand RIO, a digital platform linking all the players in a transport system up with one other – regardless of the vehicle brand or function – thus allowing them to boost their efficiency and profitability. MAN Truck & Bus MAN's appearance at the IAA 2016 included a look at its new MAN TGE transporter. Through a downward extension of its product line, MAN now offers commercial vehicles from three through 250 tons. The MAN TGE is identical in construction to the new Crafter from Volkswagen Commercial Vehicles. Both vehicles are produced at the newly opened plant in the Polish town of Września, Europa's most modern factory building of its kind. Hanover also saw MAN present the concept of a fully electric heavy-duty delivery truck based on the MAN TGS in the form of its eTruck. The company has also made great strides in optimizing its production and spare parts network as part of its future-proofing program. This includes a job guarantee for all MAN Truck & Bus employees until at least 2025. Scania In August 2016, Scania unveiled its new truck generation to the world. It has been ten years in the making, fueled by an investment of around twenty billion Swedish krona. The new generation significantly expands Scania's offering to include more performance levels, connectivity services, and sustainable transportation solutions tailored precisely to the customer. Thanks to an improved drivetrain and optimized aerodynamics, the new Scania needs around 5% less fuel than its predecessor. The S-series of the new truck generation was crowned "International Truck of the Year 2017" at the IAA show. Volkswagen Caminhões e Ônibus (Volkswagen Truck & Bus - Brazil) In order to reduce its dependence on the Brazilian market, Volkswagen Caminhões e Ônibus presented an internationalization strategy that is already bearing fruit. The company succeeded – in a very difficult economic climate – in selling more than 460 vehicles in key export markets such as Argentina, Chile, and Bolivia. In Mexico, the company secured a major order for 246 MAN- and Volksbus-branded buses for the tourism industry. Volkswagen Truck & Bus Volkswagen Truck & Bus GmbH is a wholly-owned subsidiary of Volkswagen AG and is a global leader in commercial vehicles with its brands MAN, Scania, and Volkswagen Caminhões e Ônibus. In 2015, the brands of Volkswagen Truck & Bus sold a total of 180,000 vehicles. Its product range includes medium- and heavy-duty trucks as well as vans and buses that are manufactured at 25 sites in 17 countries. As of December 31, 2015, the Company employed 76,000 people at all commercial vehicle brands worldwide. The Group is committed to driving transportation to the next level — in terms of products, services, and as a partner for its customers.

Outback Truckers Website - https://www.youtube.com/channel/UC5SpQEhj09YNozsi7cVttvw .

Scania Group Press Release / November 1, 2016 On an icy October morning in Malmberget, a small Swedish mining town just north of the Arctic Circle, local residents have gathered to witness an unusual spectacle – an entire neighbourhood being picked up and carted seven kilometres away, house by house. The project, a joint undertaking by Swedish mining giant LKAB, Legendary Dutch heavy haulage company Mammoet (http://www.mammoet.com/) and Swedish construction firm NYAB, will see 30 houses and apartment buildings, the biggest weighing in at 230 tonnes, transported to the nearby village of Koskullskulle. While many buildings in the town have been or will simply be dismantled as part of a decades-long urban transformation, LKAB has chosen to preserve a number of historical buildings, the oldest dating to 1909, at the request of Gällivare municipality. Culturally significant “We have decided we want to save them for cultural and historical reasons. These are also some of the oldest houses in Malmberget and were built for the LKAB workers,” says Maritha Mossberg, communications officer at LKAB, explaining that apartments in these houses will be available for rent. Using a team of Scania trucks, including a Scania R 620 V8 outfitted with an Allison automatic transmission for heavy haulage, Mammoet transports the houses to their new neighbourhood once the initial prep work has been done and the buildings have been lifted from their foundations. 18 axles, 144 wheels After backing it up underneath each house, Mammoet’s team slowly raises the 63-tonne, 18-axle Nicolas MHD trailer, balancing the weight of each house evenly on the trailer’s 144 wheels before securing the load and pulling away. “The trailer can take 36 tonnes per axle maximum,” explains Mammoet driver Trond Friis, putting the trailer’s capacity at above 600 tonnes. A generator that sits on the back of the truck powers the trailer’s hydraulics and steering systems, and a technician who sits on the front end of the trailer manages those systems during transport. While the specially equipped Scania R 620 has been approved for loads of up to 250 tonnes, for the larger houses Mammoet also attaches a second truck to the rear of the trailer to assist with both pushing and braking. Working quickly, Mammoet can cover the entire seven kilometre distance in less than an hour once each house has been loaded. Decades-long transformation Fourteen of the buildings were moved in October, with the rest scheduled for transport in 2017. The project is the result of LKAB’s plans to expand iron ore extraction underneath the town, whose history has, quite literally, been shaped by iron ore mining, which has been taking place here since the 18th century. Apart from the town’s name, which means “The Ore Mountain,” visitors might be tipped off to the local industry once they notice the giant pit that splits the town in two. While Kaptensgropen, or “The Captain’s Pit” as it is called, will eventually be filled in, underground mining work will continue to displace the town, with the centre expected to be cleared by 2032. Residents, whose livelihoods are dependent on mining production, will move to Koskullskulle or the larger town of Gällivare as Malmberget is transformed. “We are so lucky that we don’t have to create a town. We already have a town just a few kilometres from Malmberget. Gällivare will grow, Koskullskulle will grow, and Malmberget will disappear,” says Mossberg. “The mine, LKAB, and the town are dependent on each other. So no town without the mine – without the mine, no town.” .

Scania Group Press Release / November 1, 2016 European TV audiences know Glenn Kendall as one of the stars of the hit reality TV show Outback Truckers. And now the extroverted big-rig driver has found fame in another way – by being crowned Australia’s best truck driver in the 2016 Scania Driver Competitions. Kendall, who viewers of Outback Truckers know by the nickname ‘Yogi’, edged out tough competition to take the national truck driving title in the final in Melbourne. “It feels amazing,” he says. “Scania is working hard to portray a good image for the industry and they are actually putting their money on the line. I’m really excited to have been part of that.” The road to the champion’s crown was a long one for 40-year-old Kendall, who with his family runs Kendall Trucking & Co from the town of Katanning in Western Australia’s outback. A driver for nearly 20 years, he had entered every Scania Driver Competition since the event was established in Australia in 2007 without progressing to the final. This year was different. “I made it through to the final 12, and I think maybe that’s because I have honed my skills by working as an owner-driver over the past four years,” he says. No special training To take part in the finals, Kendall flew over 3,300 kilometres from the west coast of Australia to the east. Incredibly, he did no special training for the event, even though he normally drives a 1990s American bonneted truck – a completely different vehicle to the sleek Scania G 480 used in the competition. “When I got into the Scania, I was blown away by all the electronics and the ways that the truck will tell you what to do,” he says. “You can tell that Scania are the leaders with this kind of technology, and on the road it was absolutely phenomenal.” “I loved the challenges” Kendall says he thought his chances of winning were over when he knocked over a cone just two minutes into his first event – the Slalom. But he kept his cool and recovered enough in the other events to take the winner’s trophy. “I loved the challenges,” he says. “I loved the manoeuvring challenges, I loved the B double reversing, I loved working through the theory, the on-road drive.” Apart from winning, Kendall says one of the best things about the competition was having the chance to meet and talk with other professional drivers. “Where I operate its fairly remote and rural, so you don’t tend to talk to a lot of people during the day,” he says. “So, it was excellent to meet the other competitors who are like-minded people and are pushing for the industry to be better.” “Glenn’s achievement in winning the 2016 Scania Driver Competition should not be underestimated,” says Ron Szulc, Brand and Communications Manager for Scania Australia. “Not only did he beat a very talented field, but he adapted quickly to a cab-over truck from his traditional bonneted truck. To do this, and complete the manoeuvring tests with such style underscores his talent behind the wheel. “We are very pleased to have Glenn as our champion this year.” Kendall has recently shot another series of Outback Truckers which will soon be shown in Australia and in European countries including the UK, Germany, Italy and the Netherlands. .

Both the engines offered in the Sprinter, the 2.1L 4-cylinder and 3.0 V6, are diesels. They can put off diesel light vehicle sales, but the Sprinter show must go on. M-B broke ground on the new US$500 million Sprinter plant in North Charleston, South Carolina on July 27 this year. To be clear, they're adding onto the existing SKD assembly facility, adding body manufacturing, painting and final assembly lines. They're reportedly going to start hiring people in "mid-2017".

Cummins Reveals "Repower" Diesel Crate Engine Program at SEMA 2016 Truck Trend / November 1, 2016 Making its debut at the 2016 Specialty Equipment Market Association Show this morning was Cummins Repower, the new crate engine program designed for consumer auto and truck enthusiasts. The program’s first (and so far only) offering will be the Cummins R2.8 Turbo Diesel, an I-4 engine commonly used for Jeep projects. Cummins Executive Director – Global Pickup/Van Business Jeff Caldwell said the decision to offer the R2.8 was made after seeing the immense demand for Cummins engines from the consumer aftermarket. “They want reliable power, and this segment of the aftermarket exists because there is no off-the-shelf vehicle that satisfies enthusiasts’ appetites for personalization,” Caldwell said. According to the company, the R2.8 will come with 50-state emissions compliance, and the company is working with the California Air Resources Board to ensure the R2.8 has clear guidelines regarding which vehicles and vintages it can power. Electronically controlled high-pressure common-rail injection provides reliable and consistent power delivery, and the kit includes all necessary components to ease installation. Cummins says even novices can handle the kit, although we’d suggest rookies have a little help regardless. The company claims that a Jeep Wrangler TJ with the R2.8 engine swap has improved torque ratings across the engine’s rev range, with fuel economy that’s doubled or even tripled compared to the stock engine. We believe that claim, as Cummins’ compact I-4 turbodiesel was lots of fun to drive in the Frontier prototype we sampled a few years ago. The R2.8 will begin consumer sales early next year. .

Cummins Press Release / November 1, 2016 There’s no place quite like SEMA Show to make a major announcement… Today, Cummins formally announced the long-awaited crate engine program called Cummins Repower™ as a means of offering brand new engines from the factory direct to the consumer market. ”For nearly 100 years, the Cummins legacy has been built on repowering anything from early river boats to modern 95-liter locomotives and everything in between,” said Jeff Caldwell, Cummins Executive Director – Global Pickup/Van Business. “Clessie Cummins repowered automobiles, race cars, buses and trucks, demonstrating the benefits of the diesel engine over their original power plants. We are proud to be continuing the legacy of our namesake by enabling passionate enthusiasts to repower their vehicles for the same reason Cummins repowered his own.” The announcement, made on the first official day of the 2016 SEMA Show, comes after research and voice of customer surveys identified significant demand for Cummins in the consumer aftermarket. “They (customers) want reliable power, and this segment of the aftermarket exists because there is no off-the-shelf vehicle that satisfies enthusiasts’ appetites for personalization – they build their own,” Caldwell continued. Engine Details The first Cummins Repower engine offering will be the R2.8 Turbo Diesel, including other major components to ease the installation process, as well as the necessary documentation to make it 50-state-emissions-compliant. The turbocharged 2.8-liter, 4-cylinder engine is based on a global platform which is currently used in small pickups, chassis cabs, SUVs, vans, commercial vehicles and industrial equipment around the world. The proven platform is a lightweight, electronically controlled, High Pressure Common Rail (HPCR) compact package ideal for most small pickup and SUV applications for qualifying vintages. The kit will include the major components necessary for the engine operation to help ensure that even the shade-tree novice has most everything they need to make their Cummins Repower installation as painless as possible. Testing the R2.8 Turbo Diesel Initial testing with the R2.8 Turbo Diesel installed into an otherwise stock Jeep® Wrangler® TJ (pictured above) demonstrated that the vehicle not only gained higher peak torque, but the amount of accessible peak torque across the RPM band also increased. In addition to the performance gains, preliminary testing indicates that the R2.8 more than doubled the fuel economy of the Jeep – in some real-world drive cycles, even tripling it – all while meeting the Transitional Low-Emission Vehicle (TLEV) LDT2 vehicle emissions standards of that particular gasoline engine vintage. Start of sales is anticipated for the first quarter of 2017. Future engine family introductions into the Repower product lineup will be announced at later dates. Cummins Repower website - https://cumminsengines.com/repower

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I buy a new car for 10 years minimum, if not 20. Seriously. I take meticulous care of it, like you probably do as well, I choose carefully. If I was you, knowing what we know at this juncture, I'd keep your diesel Sportswagon and ignore any parts or software recalibration recalls. I'm looking ahead at both the US market Ranger and Everest, but that remains to be seen. I assume we'll see the 5-cylinder 3.2L diesel since the Transit is already here with it, but the standard 4-cylinder 2.2L diesel has abundant power and still better fuel economy. So many of the cars and trucks I like aren't available in the US market, or aren't available with a diesel in the US. You could ask your M-B dealer if the GLC300d is still coming.

Commercial Carrier Journal (CCJ) / November 1, 2016 Alabama Gov. Robert Bentley issued Tuesday an emergency declaration following an Oct. 31 explosion of a gasoline pipeline in Helena, Alabama, effectively relaxing hours-of-service regulations for gasoline haulers operating in the state. The pipeline that exploded is part of the same Colonial Pipeline that leaked in September that caused gas shortages in several states along the East Coast. The pipeline runs from Texas to New York and New Jersey. Several states issued emergency declarations as a result of that leak. Bentley’s State of Emergency declaration suspends hours regulations for any drivers or carriers providing aid through pipeline repair or fuel transportation for 30 days through Dec. 1, unless the order is canceled sooner. Colonial Pipeline representatives said the gasoline pipeline, Line 1, will likely remain shut down the rest of this week. Line 2, which transports diesel, jet fuel and other distillates, was restarted late Oct. 31 and is expected to remain in operation. Colonial says the incident occurred at approximately 2 p.m. local time Oct. 31, when a crew working on a permanent fix for the gasoline pipeline struck the pipeline with a trackhoe, sparking a fire and explosion that killed one worker and injured four others. The fire has since been contained.

Today's Trucking / November 1, 2016 Cummins Inc. reports that its third quarter revenue of $4.2 billion is down 9% over the same period last year. In its earnings statement, Cummins noted that “lower truck production in North America and weak international demand for power generation equipment were the most significant drivers of the decline in sales.” North America revenue dropped 13%, while international sales declined by 3%. Within international markets, higher revenues in China partially offset declines in the Middle East and Africa. Net income attributable to Cummins was $289 million ($1.72 per diluted share). “Due to the slow pace of growth in the global economy, we continue to face weak demand in a number of our most important markets,” announced Cummins chairman and CEO Tom Linebarger. “The restructuring actions that we initiated in the fourth quarter of 2015, combined with strong execution on material cost reduction initiatives, productivity gains and improvements in product quality are all helping to mitigate the impact of weaker revenues. We are on track to deliver our goal of 25% decremental EBIT margin for the full year 2016, as a result of strong operational performance in very challenging economic conditions. We have returned $1.3 billion to shareholders so far this year, through a combination of dividends and share repurchases, consistent with our plans to return 75 percent of operating cash flow to shareholders in 2016." For a more comprehensive look at at Cummins' third quarter performance, please click here.

Court gives ELD rule the green light Fleet Owner / November 1, 2016 The rule to mandate electronic logging devices (ELDs) is good to go, the U.S. Court of Appeals for the Seventh Circuit ruled Monday. The requirement, published late last year and set for an initial implementation phase to begin in December 2017, was challenged by the Owner-Operator Independent Drivers Assn. and truck drivers Mark Elrod and Richard Engel. OOIDA President and CEO Jim Johnston said the organization was “disappointed,” and that it “strongly” disagreed with the court's ruling. “Because this issue is of vital importance to our members and all small business truckers, we are reviewing our next steps to continue our challenge against this regulation,” Johnston said in a statement. An FMCSA spokesman [the American people’s employee] refused to comment. OOIDA had successfully blocked an earlier attempt to require e-logs to track truck driver hours of service, with the court agreeing that the 2010 rule did not sufficiently address drive harassment, a protection required by Congress. However, the new rule meets the requirement, the court decided, and the panel also rejected four other arguments made by the petitioners in the case. Broadly, the decision written by Circuit Judge David F. Hamilton regularly refers the 80-year history of regulating the trucking industry and driver work limits. “Congress has long recognized commercial trucking as a dangerous industry. Danger to the public has lain at the center of the hours of service rules since 1935,” he writes, and he quotes a statement from a congressman at the time who coined the term “truckathon” to describe the “brutal, inhumane, and dangerous practice whereby drivers of busses (sic) and trucks are compelled to work 18 to 20 hours a day, to the detriment of their own health and the danger of the public who travel the highways of our country.” In the point-by-point denial of OOIDA’s claims, the the three-judge panel rejected the arguments that: The rule is contrary to law because it permits ELDs that are not entirely automatic: “Petitioners’ reading of the statute seeks to pit one statutory requirement against another rather than allow the agency to balance competing policy goals endorsed by Congress,” the decision summarizes. The agency used too narrow a definition of “harassment” that will not sufficiently protect drivers: “When defining harassment, the agency sought input from drivers, motor carriers, and trade organizations; it considered administrative factors; and it ultimately provided a reasonable definition of the term.” The agency’s cost‐benefit analysis was inadequate and fails to justify implementation of the ELD rule. “The agency did not need to conduct a cost‐benefit analysis for this rule, which was mandated by Congress. Even if such analysis were required, the studies were adequate.” The agency did not sufficiently consider confidentiality protections for drivers. “The agency, however, adopted a reasonable approach to protect drivers in this regard.” The ELD mandate imposes, in effect, an unconstitutional search and/or seizure on truck drivers. “We find no Fourth Amendment violation. Whether or not the rule itself imposes a search or a seizure, inspection of data recorded on an ELD would fall within the “pervasively regulated industry” exception to the warrant requirement. The agency’s administrative inspection scheme for such information is reasonable.” The American Trucking Association (ATA) participated in the case as a “friend of the court” who supported the rule. “ATA is pleased that the court has cleared the way for this important regulation and we look forward to its implementation,” spokesman Sean McNally said.

A deeper dive into the new truck engine oils Sean Kilcarr, Fleet Owner / November 1, 2016 I’ve talked about the impending introduction of the new CK-4 and FA-4 diesel truck engine oils with Leonard “Len” Badal, the global Delo brand manager for Chevron Lubricants, several times now and he’s always a great font of information – often on their particular characteristics, the end result of five years’ worth on what were previously called Proposed Category 11 or “PC-11” motor oils. One thing Badal stressed to me about the CK-4 and FA-4 oils – each a different “sub-category” within the PC-11 specification – is that they were designed with new engine designs and component technology in mind. Ostensibly they are formulated to maintain performance in a higher engine heat environment (new 2017 model engines may run almost 50 degrees hotter) yet also deliver better fuel economy, mainly via thinner viscosities, so an engine does not have to work as hard – and thus burns less fuel – moving such “lighter weight” oils around. Yet he also pointed out to me that many of the “thinner” CK-4 and FA-4 blends heading to the market Dec. 1 – especially the 10W-40 and 10W-40 varieties – will be “backward compatible” to a significant degree; even back to 2010 model year engines, and with often longer oil drain intervals to boot. That means fleets run a mix of late model and older trucks should be able to reap fuel economy gains and maintenance savings from longer drains, though perhaps not on the order of what fleets operating the latest and greatest greenhouse gas (GHG) compliant 2017 model engines with the thinnest oil blend will get. Badal also recently pointed out that many truck OEMs are embracing the new FA-4 blend more broadly as a factory-fill option. Here’s what he knows at least so far regarding what engine oil the various OEMs plan to spec for 2017: Cummins Inc.: CK-4 – Cummins CES 20086 and FA-4 – Cummins CES 20087. Both CK-4 and FA-4 are approved for the new GHG-compliant 2017 Cummins IX-15 and IX-12 engines (Note: the IX-12 won’t be commercially available until 2018). CK-4 along with Cummins CES 20086 specification oils are also approved for use in older ISX and ISX-15 model engines, while FA-4 is not authorized for anything but IX-15 model engines at this time. With its new categories, Cummins will also its oil drain recommendations by 10,000 miles – from a maximum 40,000 to 50,000 miles – for new IX-15 engines using the new oils. Detroit Diesel: CK-4 – DFS 93K222 and FA-4 – DFS 93K223. Detroit Diesel has approved the backwards compatible CK-4 for older engines in Freightliner and Western Star trucks. FA-4 is approved for new GHG-complaint 2017 model engines along with EPA-complaint 2010 and 2013 engine models. The company has not announced an oil drain extension, but recommends using the new products in new engines. Detroit Diesel will start factory-filling new model engines with FA-4 and DFS 93K223 approved oil starting mid-December 2016. Volvo and Mack: CK-4 – Volvo VDS4.5, CK-4 – Mack EOS 4.5 and CK-4 – Renault VI RLD 4. No specification is being released for FA-4 for it will not be allowed for use in EITHER new or older Volvo or Mack diesel engines. Badal noted that Volvo and Mack specifications are built around tighter requirements for improved oil oxidation performance as measured by the new Volvo T-13 engine test versus the typical CK-4 or FA-4 Volvo T-13 requirements. That being said, Volvo is announcing a 10,000-mile oil drain extension (from 45,000 to 55,000 miles) for new engines using the new VDS4.5- or Mack EOS 4.5-approved CK-4 oils. Navistar: As of now, Navistar does not have its own OEM specification qualification program; it simply uses the API designations for engine oils. Most Navistar equipment is powered by Cummins engines, and so its oil recommendations will be the same as Cummins, including the oil drain extension. For its own N13 model diesel engine, CK-4 is recommended for all models, with FA-4 approved for new model GHG-compliant 2017 engines only. Yet Navistar will be factory-filling with CK-4 SAE 10W-30 diesel, Badal emphasized PACCAR: CK-4 for now with FA-4 to be announced in the future. Badal noted that PACCAR uses the API designations for its specifications with no specific OEM specification qualification program included. Kenworth and Peterbilt trucks are equipped with either a PACCAR MX or Cummins diesel engine and both engine models have been factory filled with Delo 400 XLE Synblend SAE 10W-30 (a CK-4-grade product) since back in mid-September. FA-4 oils may be used with the new Cummins IX-15 diesel engines once they started to be installed in Kenworth or Peterbilt trucks, but PACCAR has not committed yet to whether it will use FA-4 oils for its GHG-compliant 2017 model MX engines. Badal also stressed something else: that the new CK-4 and FA-4 products are just the start, not the end, of the reformulation program for diesel motor oils. “Most OEMs are already starting to develop next generation engines and engine oils for launch between 2020 and 2025 – and almost all of the new oil development programs for these engines are focused on low HT/HS [High Temperature/High Shear] 5W viscosity grades [that will be] factory filled to meet stricter fuel efficiency and emission standards,” he explained in a recent blog post. The hitch, however, is that such 5W oils cost more than comparable 10W and 15W grades – a LOT more, largely because they are full synthetics, he told me recently. “The price difference between a 10W-30 and a 15W-40 isn’t much; they are within the ballpark of one another,” Badal pointed out. “But when you get to 5W blends, you are talking two to three times the cost of a 15W product.” That doesn’t mean moving to 5W grades isn’t worth the extra money, he stressed; indeed, those blends can deliver greater improvements in fuel economy as well as longer oil drain intervals. The issue is this, though: a fleet must really justify those improvements by attaining them consistently, but that can be problematic based on a fleet’s duty cycle. “It’s not a durability or performance issue; it’s a cost justification issue,” Badal emphasizes. “For example, we had one fleet double their oil drain interval while another only achieved a 15% extension. So it comes down to the type of engine and the duty cycle it’s working in. You have to drive a lot of value to make the transition to a 5W blend pay off.” Something to keep in mind as we draw closer the dawn of a new diesel engine oil era.

DOT extends comment period for speed limiter plan Fleet Owner / November 1, 2016 With less than week remaining on the initial deadline, the Dept. of Transportation on Tuesday issued a 30-day extension to file comments on the truck speed limiter proposal. “The new public comment deadline of Dec. 7 will provide all interested parties sufficient opportunity to fully develop and submit comments and evidentiary materials to the agencies,” the DOT notice says. While the 118-page proposal suggests that speed limits of 60, 65 or 68 mph would be beneficial, the agencies will gather public input before setting the actual number. The speed limit would be managed by a governing device and would apply to all newly-manufactured vehicles with a gross vehicle weight rating more than 26,000 lbs. Both the American Trucking Assns. and the Owner-Operator Independent Drivers Assn. had requested more time to evaluate and gather member input on the Notice of Proposed Rulemaking, published Sept. 7 by National Highway Traffic Safety Administration (NHTSA) and Federal Motor Carrier Safety Administration (FMCSA). An ATA petition had prompted the rulemaking, but the DOT proposal has not earned the endorsement of the group. “In my humble opinion, we think this is flawed,” Chris Spear, ATA’s president and CEO, told reporters last month. “We cannot afford to elevate risk to the motoring public [for] this [speed limiter] rule does not even take the danger of differential speeds for cars and trucks into account.” OOIDA, which represents small business truckers, had asked for a 60-day extension of the comment period, citing the “wide range of issues” related to limiting truck speed and noting that the proposal is “based on complex research that in some instances is being used in an unconventional way.” More than 3,000 comments have been submitted in the two months since the proposal was posted. Comments may be posted or viewed here.

Comment Period on Proposed Speed-Limiter Rule Extended to Dec. 7 Transport Topics / November 1, 2016 The Federal Motor Carrier Safety Administration and the National Highway Traffic Safety Administration have extended the deadline for public comments on their proposed speed-limiter rule by 30 days to Dec. 7, the agencies announced Nov. 1. The proposed rule would require all newly manufactured U.S. trucks, buses, and multipurpose passenger vehicles with a gross vehicle weight rating more than 26,000 pounds to be equipped with speed-limiting devices. According to FMCSA, requiring speed limiters on large commercial vehicles could save lives, as well as an estimated $1 billion in fuel costs annually. American Trucking Associations, along with 50 state trucking associations, had asked for a 30-day extension in a Sept. 9 letter to Transportation Secretary Anthony Foxx. “In the nearly 10 years since ATA concurrently petitioned NHTSA and FMCSA for action on this important issue, much has changed in vehicle and motor carrier safety,” ATA President Chris Spear wrote in the letter, citing advances in technology, stricter regulatory oversight and increases in speed limits at the state level. “These developments, along with new state laws and speed limits, have changed the way motor carriers view and respond to safety concerns. In addition, the proposed rule’s dramatic departure from ATA’s initial petition in terms of tamper-proofing, the lack of a retrofit requirement, and the agencies’ reluctance to specify a governed speed requires additional time for ATA and its federation partners to re-engage its membership on these important issues,” Spear added.

Arconic Inc. Launches as Independent Company, Separates from Alcoa Inc. Heavy Duty Trucking / November 1, 2016 “Today we launch Arconic as a strong independent company,” said Arconic Chairman and CEO Klaus Kleinfeld. “Our multi-year transformation while part of Alcoa Inc. substantially improved our competitiveness and profitability. Our culture combines driving innovation with a relentless focus on operational excellence and cost control; this positions Arconic to create significant value for our customers and profitable growth for our shareholders.” Arconic retained 19.9% interest in Alcoa Corporation, which is available for monetization. In the North American automotive market, Arconic invented the bonding process to enable the mass-market shift from steel to aluminum. The Company expects its North American automotive sheet revenues to grow six-fold, from $229 million in 2013 to $1.3 billion in 2018. Arconic representatives will mark the Company’s trading debut as ARNC by ringing the opening bell at the New York Stock Exchange on November 2. The Arconic Foundation, an independently endowed charitable organization, is also making its inaugural grant to an organization that reflects the Arconic vision: Engineers Without Borders (EWB). The $300,000 grant will support the mission of EWB in major countries where Arconic operates: the United States, the United Kingdom, France, Germany, Mexico and Brazil. EWB applies engineering and ingenuity to infrastructure projects worldwide to help build a resilient, sustainable future. .

Heavy Duty Trucking / November 1, 2016 The separation of Alcoa Inc. into two distinct standalone companies– Alcoa Corp. and Arconic Inc.—took effect on Nov.1. Back in Sept. 2015, Alcoa’s board of directors unanimously approved a plan to separate the 128-year-old firm into two independent, publicly traded companies. The aim was to create one entity (Alcoa Corp.) devoted to Alcoa’s traditional lightweight metal manufacturing and other upstream businesses and another (Arconic) focused on engineered products and solutions, including truck wheels. The spinoff was accomplished via a pro rata distribution by Arconic of 80% percent of the outstanding shares of newly formed Alcoa Corp. Alcoa Inc. shareholders received one share of Alcoa Corporation common stock for every three shares of Alcoa Inc. common stock, held as of the record date of Oct. 20. Alcoa Inc. shareholders also retained their shares of Alcoa Inc., which became Arconic Inc. shares. “Today we launch Arconic as a strong independent company,” said Arconic Chairman and CEO Klaus Kleinfeld. “Our multi-year transformation while part of Alcoa Inc. substantially improved our competitiveness and profitability.” Arconic stated in a news release on the separation that in the North American automotive market, it is at the “forefront of capturing growing demand for aluminum sheet as the industry shifts to light-weighting,” including for truck cabs and chassis. Arconic will also continue to offer its Alcoa-branded forced aluminum wheels for commercial vehicles. The company added that across its North American automotive portfolio, 96% of its revenues come from products “where it is number one or number two in its market.” .