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Mammoet Rallysport Press Release / November 7, 2016 Mammoet Rallysport, the race team of legendary Dutch heavy haulage company Mammoet (http://www.mammoet.com/), is testing the new Renault Trucks Sherpa rally truck for the Dakar 2017. The Renault Sherpa is a tactical military vehicle that, coincidentally still uses the “club of four*” [Mack Mid-Liner] cab, which had been jointly developed by Saviem (merged into Renault), DAF, Magirus and Volvo. The Renault Rallytrucks proof to be very succesfull. Van den Brink already won stages in Silkway and Dakar rally with the Renault Trucks K- rallytruck. With the Sherpa the Olybia Rally and the Libya Rally were won. Later this month the trucks will be shipped from France to Argentina for the rally. The start of the Dakar 2017 rally is on january 1. * Officially known as the Euro Truck Development Group. . . .

Commercial Motor TV - sponsored by DAF Trucks / November 7, 2016 .

Volvo Launches Renault Trucks Defense Sale Defense News / November 4, 2016 Volvo kicked off the sale of its Renault Trucks Defense (RTD) subsidary on Friday by holding consultative talks with labor unions at its government sales division. The deal reflects a move toward European consolidation, said Volvo Group spokesman Joakim Kenndal. “Volvo Group has conducted a strategic review of the Governmental Sales business area and intends to initiate a process to divest this business,” Volvo said in a Nov. 4 statement. “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,” said Jan Gurander, Volvo deputy chief executive and chief financial officer. “Consequently, we intend to start preparations to divest the business." The start of the sale is “subject to the finalization of mandatory consultations with staff representative bodies,” Volvo said. Acmat, Mack Defense in the US, Panhard, RTD and Volvo Defense make up the government sales business, which employs more than 1,300 staff. Renault Trucks Defense, the lead unit, posted 2015 sales of some €500 million (US $556 million) and had a target to double its annual sales by 2018 or 2019. Growth by acquisition had been ruled out. Renault Trucks Defense was among the most profitable Volvo units, with annual profit close to double digits, according to an industry executive. There was, however, sensitivity over arms sales, which required Renault Trucks Defense to seek approval from Volvo. Volvo’s search for a buyer has raised questions over whether Nexter, Thales or German manufacturer Rheinmetall might make a bid. Any offer by Nexter would need an agreement with its partner KMW, a second defense executive said. A purchase of Renault Trucks Defense by Rheinmetall would lead to a European landscape where two French-German companies compete for a foothold in the land-based arms sector. Nexter and Thales declined comment. Nexter is the leading French land-based arms manufacturer, while Thales supplies onboard systems and builds the Bushmaster and Hawkei Australian light transports. The planned divestment will raise questions over Renault Trucks Defense’s role in the French Army’s €6 billion Scorpion modernization program, which includes developing and building a Griffon multirole troop carrier, Jaguar combat vehicle and a light scout vehicle. A production contract for some 2,000 Griffon troop carriers could be worth about €1 billion, based on a basic unit cost of €500,000 excluding onboard systems, the first executive said. Renault Trucks Defense is one of the core industrial partners with Nexter and Thales on the Scorpion program, with the Volvo unit receiving more than 30 percent of the 2014 development contracts worth almost €752 million, the second executive said. RTD will supply engines and drivelines for Jaguar and Griffon, which will have a high commonality of equipment. Renault Trucks Defense and Nexter are partnered on maintenance of an infantry fighting vehicle, dubbed Véhicule Blindé de Combat et Infanterie, and a troop carrier, Véhicule Avant Blindé, which this year marked its 40 years of service. Defense Minister Jean-Yves Le Drian said Nov. 2 in the lower house of the National Assembly that the government was ready to consider speeding up deliveries of the Scorpion vehicles, Agence France-Presse reported. “We can think about the issue concerning the years ahead. I am open to this discussion.” That readiness follows remarks in September by Army Chief of Staff Gen. Jean-Pierre Bosser, who referred to studies for speeding up the Scorpion vehicle deliveries. The Army would like to see a faster introduction by five years of the Jaguar and Griffon so there would be four or five battalions equipped by 2025 rather the present plan of 2030, the second executive said. That would reduce the maintenance cost of a variety of fleets including the new Scorpion vehicles, VAB, and aging combat vehicles AMX 10RC, Sagaie ERC 90 and VAB HOT to be replaced by the Jaguar. Renault Trucks Defense chairman Emmanuel Levarcher told the French parliamentary defense committee on Jan. 27 that Volvo had not blocked export deals. “Volvo group has never prevented us from exporting material,” he said. Volvo chairman Martin Lundstedt lived in France when he was head of the Scania truck company, in Angers, western France, and sold Scania trucks to the Direction Générale de l’Armement procurement office. As the Ukraine crisis deepened in 2014, Renault Trucks Defense froze talks with its prospective Russian partner UralVagonZavod to develop a 30-ton infantry fighting vehicle named the “Atom”, as the company waited for instructions from Sweden and France.

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.