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Transport Topics / February 12, 2020 Independent engine maker Cummins supplied the most Class 8 diesel engines in 2019. It was a mixed year that saw U.S. Class 8 retail sales climb to the highest level since 2006, but production slow and orders slide after a few months. At the same time, all truck makers sold more of their proprietary engines compared with a year earlier, except for a 37-unit decline at Mercedes-Benz. Mercedes-Benz sales in the U.S. fall under Daimler Trucks North America (DTNA) along with Detroit Diesel Corp. In 2019, Cummins notched a leading 34.8% of the total, or 112,756 out of 323,225. That was down from a year earlier when Cummins earned a top share of 38.3% with 118,857 of the 309,701 total engines. The report breaks Class 8 engines into two segments, Group 1, under 10 liters, and Group 2, 10 liters and over. Cummins’ dominance with its smaller L9 engine ensured it posted the overall lead. Cummins had an 88% share, or 25,343 engines of the total 28,829 in the Group 1 category. Others with engines in the under 10-liter category included Detroit Diesel, 1,853; Paccar Inc., 1,379; Mercedes-Benz, 210; and Hino with 40. In this group, Freightliner used the most Cummins engines at 15,403. International was next with 7,023. Detroit, Mercedes-Benz and Hino posted improvements in Group 1 in 2019 compared with a year earlier, while Paccar’s total fell from 1,742 in 2018. International had no engines in the category after posting four in 2018. Paccar makes the [DAF designed] MX engine for its Kenworth and Peterbilt subsidiaries. The figures come from a Ward’s report on North American factory sales of heavy-duty trucks, including their engines, released January 31. The Ward’s data this period reflected reporting changes involving Mexico, which included only trucks to U.S. and Canada. Ward’s also reported the Freightliner data is incomplete for North America. Last year, DTNA said the numbers it submits to Ward’s exclude Mexico volumes, without further explanation. Meanwhile, Cummins could not retain its lead from a year earlier in the Group 2 category of engines 10 liters and over, surrendering it to DTNA’s Detroit engines. “Original equipment manufacturers prioritized production of their own engines when making cuts to production in the second half of the year,” as demand stalled, Cummins CEO Tom Linebarger said during the company’s latest earnings call. In 2019, DTNA’s 10-liter and more engines hit 97,903, or 33.2% of the total 294,396 in the category. Its Mercedes-Benz engines accounted for 24 engines. Its Detroit brand made 97,903. Of those, 9,131 went into DTNA’s Western Star brand. The rest went into its market-leading Freightliner brand. A year earlier, DTNA’s Group 2 total was 90,827, or 32% of a total 283,210 Group 2 engines. Richard Howard, DTNA’s senior vice president of sales and marketing for Freightliner and Detroit, emphasized the investments the company has made in integrated powertrain that pairs Freightliner or Western Star trucks with Detroit engines, and the resulting benefits. Detroit makes 13-, 15- and 16-liter engines for Group 2. “We revealed the all-new DD15 Gen 5 late last year at the North American Commercial Vehicle show and we begin production in January 2021 to continue to deliver on the promise of performance, efficiency and maximum uptime,” Howard said. In 2019, Cummins earned a 29.6% share of Group 2 engines with 87,413. That compares with its year-earlier leading 33.9% share of the total 283,210, or 96,105 — its all-time record for the segment in terms. Cummins supplies its Group 2 engines to all OEMS, with Kenworth its largest customer followed by Peterbilt, which, respectively, used 29,416 and 25,186 engines. International used 24,099. Freightliner used 6,264. At the same time Paccar increased its own MX engines overall to 40,627 compared with 36,471 a year earlier. “Last year, we finished at 43% for engine sales with our MX engines. So that’s great. It was 47% actually in the fourth quarter,” Paccar CEO Preston Feight said during its latest earnings call. International’s own engines overall rose to 10,203 compared with 9,464 a year earlier. Its own engine is the 13-liter A26 [a version of the proven MAN D26]. “We see real growth opportunities with weight sensitive regional haulers and bulk carriers. Our 13-liter engine is the lightest in industry,” Steve Gilligan, vice president of product and vocational marketing for the North American business unit of Navistar Inc., told Transport Topics. Volvo engines — used exclusively in trucks from Volvo Trucks North America (VTNA) — increased sales to 33,391 compared with 29,468 a year earlier. Mack engines [rebadged Volvo engines] rose to 26,218 compared with 22,898 in the 2018 period. “For more than a century, Mack’s philosophy has been ‘components designed to work together, simply work better,’ which is why all Mack heavy trucks [Volvo trucks with legacy Mack cabs] come standard with Mack MP series engines,” said Roy Horton, director of product strategy for Mack Trucks. “In certain cases where we do not offer proprietary engine solutions, including natural gas-powered engines and engines for our medium-heavy duty models, we offer Cummins engine options to complement our offer. The increase in factory engine sales last year is a reflection of Mack delivering more trucks during 2019, with customers continuing to count on us for the proven performance and reliability of our Mack MP [Volvo] engines.” .

You're welcome, any time !

No. Steering knuckles are steering knuckles. Your tie rod ends are part numbers 10QH220P1 and 10QH221P1, which I believe are the rebuildable type. Kits used to be available, for example 204SQ17 and 204SQ21B. You need a parts book or a helping dealer. Non-rebuildable tie rod ends also existed, depending on the front axle model, such as 10QH11A/10QH12A, 10QH35/10QH36 and 10QH37/10QH38.

Ford recalls more than 200,000 vehicles over issue that may increase crash risk Audrey Laforest, Automotive News / February 12, 2020 Ford Motor Co. is recalling more than 200,000 vehicles in the United States, Canada and Mexico because of a problem that can cause a rear toe link fracture while driving and may increase the risk of a crash. The recall covers 2013-18 Ford Flex, Ford Taurus Police Interceptor, Ford Taurus SHO and Lincoln MKT vehicles. This affects 211,207 vehicles in the U.S. and federal territories, 15,281 in Canada and about 1,400 in Mexico. Globally, Ford said it is recalling about 230 vehicles in Europe, four in Asia Pacific, one in South America and almost 14,000 in emerging markets. The automaker said it has filed a notice with NHTSA. "Affected vehicles that are exposed to frequent full rear-suspension articulation (jounce and rebound) may experience a fractured rear suspension toe link," Ford said in a statement Wednesday. This can result in "unusual vehicle handling or difficulty controlling the vehicle," Ford spokeswoman Monique Brentley told Automotive News. To fix the problem, dealers will replace the left- and right-hand rear suspension toe links with new, forged toe links. Owners will be notified March 2, Brentley said.

James Jaillet, Commercial Carrier Journal (CCJ) / February 12, 2020 Navistar on Tuesday officially broke ground on a planned $125 million expansion of its engine manufacturing plant in Huntsville, Alabama, where the company builds its heavy-duty International A26 engine [Navistar version of MAN's proven D26)— and where, once the expansion is complete in 2023, it plans to build its new International Integrated Powertrain. Details on the powertrain package are still under wraps, but the company plans to leverage the resources of its partner Traton Group, the global trucks branch of Volkswagen that owns nearly 20% of the truck maker (and hopes to own outright), to develop the integrated powertrain offering. International currently is the only North American truck maker that doesn’t offer a proprietary integrated powertrain. The International LT on-highway tractor comes standard with the 12.4-liter A26 engine paired with Eaton’s 12-speed transmission. International LT buyers can also opt for the Cummins-Eaton integrated powertrain package. The company plans to change that, however, with the groundbreaking at the Huntsville engine plant representing the company’s first steps toward that goal, says Mark Hernandez, senior vice president of global manufacturing for Navistar. “It makes sense, with the people we have here, the dedicated workers, to bring this powertrain here,” he says. From the Huntsville plant, the A26 engine (and presumably the new integrated powertrain offering) are shipped to International truck plants in Springfield, Ohio, and Escobedo, Mexico, to be installed in International LT and RH Series trucks and tractors, as well as the company’s severe-duty line-up. Once complete, the engine plant expansion will create a facility of more than 400,000 square-feet, with Navistar having already acquired 50 acres adjacent to the current 30-acre parcel on which to build the expansion. It will add an estimated additional 145 jobs to the plant, which already employs 130 people. On hand at the groundbreaking ceremony Tuesday were Navistar President of Operations Phil Christman; Huntsville Mayor Tommy Battle; and Huntsville International Airport Executive Director Rick Tucker. The Navistar plant is located at Huntsville’s Jetplex Industrial Park adjacent to the city’s airport. .

Note the video.......that is how one efficiently moves freight.

Scania Group Press Release / February 12, 2020 Norwegian wholesaler ASKO is deploying two battery electric Scania distribution trucks in its operations in Oslo, Norway. This pilot marks another milestone in the cooperation regarding electrified solutions for heavy transport between Scania and ASKO. The results from Scania’s hybrid vehicles using electric mode in city centres are positive, so it makes sense to start with fully electric battery-powered trucks in city distribution. With the battery technology that is currently available, battery electric trucks need to drive shorter distances and be able to recharge batteries. In city distribution, this can be done while loading or unloading goods. The two trucks that will go into ASKO’s operations have a battery capacity of 165 kWh, giving them a range of 120 km, and are charged by 130 kW cable charging. “In the long run, electrification will be key to achieving a sustainable transport system for heavy vehicles as well. On the journey, it is as important as ever to work with customer-near development to understand the impact on the customers’ full operations, not only making sure that a technical solution works and the electricity that charges the batteries is sourced from renewable energy. That is why we are pleased with yet another important project together with ASKO,” says Karin Rådström, Head of Sales and Marketing at Scania. Scania is continuing to invest in and develop electrified solutions and it will not be very long until we reach a tipping point where electrification for heavy transport will become a sound stand-alone investment for our customers. However, we are not quite there yet. This project received financial backing from Enova, which is a state enterprise owned by the Ministry of Climate and Environment in Norway. “Scania has taken an active part in the development of batteries and battery cells, in our own research, through partnerships and with customers. It is an area where we expect significant progress in the next few years, including improvements that will cater for varying transport assignments while keeping the total cost of ownership for our customers in mind,” says Rådström. As always, Scania’s work is based on a modular approach. In the battery electric trucks deployed in ASKO’s operations, the internal combustion engine in the powertrain is replaced by an electric machine, powered by rechargeable batteries. Scania’s approach to electrification involves researching and developing a broad palette of solutions. This includes different kinds of bio-fuelled hybrid-electric technologies, as well as fully electric trucks and buses. Scania also works with electric vehicles that can be charged in different ways, ranging from plug-in charging, to pantograph-charging standing still or on the move through electrified roads, or charging through hydrogen-powered fuel cells. FACTS ABOUT THE TRUCK: Gross Vehicle Weight: 27 tonnes Configuration: 6×2*4 Powertrain: 290 kW electric machine/245 kW continuous output, 2-speed transmission, 2200 Nm peak torque Energy storage: 165 kWh Li-ion batteries Charging: Max power 150 kW DC (CCS) Range: 120 km Electric PTO: 15 kW Read about electrification at Scania: www.scania.com/electrification .

Daimler Press Release / February 12, 2020 Vähälä Logistics can rely on the new Actros, even as temperatures reach minus 40 degrees Extra-long "high-capacity truck" Frost is no problem for the MirrorCam Clear view thanks to powerful camera and minimal soiling of the MirrorCam Oulu – Minus temperatures and icy roads, short days and poor visibility: Winter presents both the trucks and their drivers with a particular challenge. Finnish transport company Vähälä has 65 of their own trucks and is putting their trust in the new Actros for their daily routines in the extreme conditions of Finland which are unmatched across the rest of the continent. The Finnish winter has days that start with temperatures slightly above freezing, which will then reach minus 40 by the time drivers arrive at the northern provincial capital of Rovaniemi in the evening, having travelled a good 900 kilometres from the south of the country to get there. “We’re delighted with the new Actros,” says Ville Vähälä who is at the helm of the family business, now managed by the third generation. The 42-year old was one of the first customers in Europe to have used the vehicle as part of long-distance road testing. The vehicle has since become an integral part of the company fleet. Operated on a multi-shift basis, the annual mileage is an impressive 250,000 to 300,000 kilometres. Operation as a “high-capacity truck” – not a problem thanks to the MirrorCam Vähälä uses the Actros 2663 as a “high-capacity truck” with two semitrailers. Trailers like these, reaching up to 34.5 metres in length and weighing 76 tonnes in total, have only been permitted in Finland since the start of 2019. And the new Actros appears to have been perfectly designed for this role. Finnish law dictates that any towing vehicle with a train length of 28 metres or more must have a digital camera system – something the new Actros includes as standard with the MirrorCam. The MirrorCam has replaced the main and wide-angle mirrors on the outside of the truck with two compact, streamlined camera arms on the roof frame. The images captured are transmitted to displays on the A-pillars in the driver's field of vision. The system thus provides assistance when navigating bends, for example, whereby the image of the curve inner moves in accordance with the vehicle's own movement. The driver thus always has the end of the trailer in their sights. Plus, the large display switches to a wide-angle mode when reversing, thus providing the driver with a better overall view. Powerful cameras, minimum soiling – a real bonus during the winter months All truckers generally benefit from these features. However, those truckers looking to safely navigate the poor visibility of Finland's dark and gloomy winter days, particularly with an extra-long truck, certainly appreciate this additional support. The MirrorCam provides even more benefits, especially during the winter months. The system functions reliably in all weather conditions as the camera lenses are heated once temperatures drop below 15 degrees. Furthermore, the intensity of the light means the MirrorCam ensures good visibility even at night. And, the compact design of these cameras means they are far less prone to getting dirty, for example from slush. Support from Active Drive Assist in all speed ranges In addition to the MirrorCam, the new Actros boasts a number of other innovative features – certainly a valuable asset when faced with challenging winter conditions. The new Active Drive Assist, for example, which supports the driver when braking, accelerating and steering in all speed ranges. Or Active Brake Assist 5, the latest generation of the emergency brake assistant. An improved version of the Predictive Powertrain Control, the intelligent cruise and transmission control, has been included in the new Actros. With additional map material, it is also practical for inter-urban routes. A big plus for those navigating the sparsely populated regions of Finland, in particular. Not forgetting the new Multimedia Cockpit with its two new digital displays and convenient intuitive operation. Low fuel consumption leverage fully utilised Predictive Powertrain Control not only increases safety but also fuel efficiency – a particularly important aspect for Ville Vähälä. “Mercedes has certainly reached new heights here with this feature.” Further leverage here includes the economical Euro VI engines, finely tuned drivetrain configurations and further improvements to the aerodynamics, thanks in part to the absence of outside mirrors. Vähälä's 65 trucks travel a total of eight to nine million kilometres every year. The reduced fuel consumption is thus noticeably reflected in diesel costs. Reliable operation with Mercedes-Benz Uptime Long distances covered in often adverse weather conditions, through sparsely populated regions and with customers who can’t tolerate downtimes: circumstances that demand nothing less than maximum reliability. Since the purchase of his first Actros in 2006, Ville Vähälä has only had positive experiences with Mercedes-Benz. “We can cover up to 150,000 kilometres between two service appointments – that's extraordinary.” Not only does the new Actros boast a particularly solid and durable design, it is supported by sophisticated axles, frame components, chassis and suspension components, as well as an operations-oriented braking system. Vähälä also makes the most of the comprehensive truck services offered by Mercedes-Benz. “All of our trucks are covered by Service Contracts and are fitted with Mercedes-Benz Uptime. We have no need for our own workshop any more,” he explains. Long journeys and extreme weather conditions characterise Finland's transport market Vähälä Logistics, with its headquarters in the northern Finnish city of Oulu, has around 200 trucks in operation. This also includes vehicles from subcontractors. Two-thirds of the company's 65-strong fleet of trucks are made by Mercedes. Their freight ranges from pulp for paper manufacture to medical products, not to mention foodstuffs for supermarkets. Another important pillar is the transport of cargo on behalf of DB Schenker. Vähälä functions as a national network partner of the German logistics giant. Finland's transport market is certainly a challenging environment. For a country almost as big as Germany, it only has 5.5 million inhabitants, most of whom live in the southern and western regions. Nevertheless, goods need to be regularly transported to the most remote parts – regardless of the weather! Video - https://media.daimler.com/marsMediaSite/en/instance/video.xhtml?oid=45604371&ls=L2VuL2luc3RhbmNlL2tvLnhodG1sP3JlbElkPTEwMDEmcmVzdWx0SW5mb1R5cGVJZD0xNzMmb2lkPTQ1NjA0MTAzJmZyb21PaWQ9NDU2MDQxMDMmYm9yZGVycz10cnVl&rs=1 .

IVECO Trucks Press Release / February 11, 2020 IVECO has won the prestigious iF DESIGN AWARD 2020 for the IVECO S-Way in the Automobiles/Vehicles Category of the Product Discipline. Recognised as a symbol of design excellence, the annual award competition is organised by iF International forum Design GmbH, one of the oldest independent design institutions in the world. The IVECO S-Way was selected by the international jury of 78 independent experts from 7,298 entries submitted from 56 countries. The criteria for selection were the degree of innovation and elaboration, looking at the product’s uniqueness, execution and workmanship; functionality, including usability, ergonomics, safety; aesthetic and emotional appeal, spatial concept; corporate responsibility in terms of production efficiency, consideration of environmental standards and carbon footprint, social responsibility and universal design; and positioning of the product. Thomas Hilse, IVECO Brand President, stated: “It is an honour to receive such a prestigious award. It is an important recognition from an authoritative independent jury that we have achieved our aim: redefining the idea of customer centricity with a vehicle that uses design and the latest innovations in connectivity and automation to provide a complete solution that will make our customers and drivers unstoppable.” The IVECO S-Way perfectly meets the criteria: its cab is entirely redesigned around the driver’s and owner’s needs. The cab design provides drivers with first-rate living and working conditions while addressing their safety. It provides a complete package of features developed with a focus on driver centricity, sustainability and a new, extended level of connectivity – everything logistics operators need to ensure their fleets top-level uptime, efficiency and productivity in order to succeed in today’s fiercely competitive market. IVECO S-Way design intent is extremely focused in translating technical and aerodynamical features in a harmonious and integrated body capable of communicating at the same time technology and power, dynamism and balance, refined aesthetic and quality. IVECO S-Way is characterized by all the styling cues that identifies the IVECO DNA such as the logo dominating the highly detailed and strongly identifying grille, the sharp headlamp sight, and the precious surfaces and balanced proportion typical of the Italian design heritage. The vehicle expresses his best in the aesthetical integration of the several components typical of his architecture: the front hatch and the bumper area share the big grille in order to hide the strong division line between the cab and the chassis, while the corners wrap around the vehicle giving a refined sense of continuity between the front and the side of the truck. The upper roof, designed to maximize the interior living space, contributes to the front size impression giving strength and stability. The exterior design is strictly driven by aerodynamics, the air intake beside the headlamps regulate the air pressure along the lower side, cleaning the turbulences generated by the wheels, while the rounded cab corner guides the airflow smoothly along the upper side. IVECO S-Way has been developed also as a first in class living and working space. The position of the cab floor is optimized to reach a perfect balance between easy accessibility (just 3 steps are needed to get in) and easy walk through (the engine tunnel is very low, allowing easy movements in the interiors. The living space is also maximized thanks to the new roof profile, dimensioned to allow easy in-cab movements in standing position. .

Scania's success came from the decision to use a modular approach to truck design.

Scania Group Press Release / February 11, 2020 This Scania archive film tells the story of the development of the Scania 2-series, or GPRT range, which was Scania's first fully modular truck range. The first model in the range was the bonneted T truck, unveiled in April 1980. The complete range, based on four cab types, was unveiled in December 1980. The new range was divided into three main duty classes: M (medium duty), H (heavy duty) and E (extra heavy duty) based on the use of the truck. The new truck range achieved what can almost be called perfection when it comes to modularisation. From a limited number of main components, Scania was able to create an almost limitless number of truck variants, adapted to the special needs of individual customers. .

Today was very special for us as we delivered the very first production DC-64R chassis to our valued customer WCA Waste! We are so grateful to have the pleasure to host President & CEO Bill Caesar, COO Matt Spencer, Purchasing Manager Twila Davis & VP of Fleet Jason Saunders, whose insights were invaluable to us throughout the development of this incredible new conventional cab roll-off truck! So proud of and thankful for our dedicated Autocar team. Always Up - Autocar Trucks .

You're right of course, but in year 2020 that's all in the distant past. The HX is an impressive option today in vocational.

No Mark, not at all.

Unheard of. I hope the company is speaking up to Volvo about it.

You're welcome! We aim to please. "If " Watts doesn't have them, and/or can no longer obtain them from Mack (Volvo), then Google search. Try Watts first. for an original Mack kit. https://www.google.com/search?ei=xFBBXoPYHa-DytMPp-uRmAg&q="301SQ32B"&oq="301SQ32B"&gs_l=psy-ab.12...7157.9913..13243...1.0..0.122.253.2j1......0....1..gws-wiz.BqPvKyzK8gA&ved=0ahUKEwiDyqiVgsfnAhWvgXIEHad1BIMQ4dUDCAo https://www.rockauto.com/en/moreinfo.php?pk=201040

Please give Watts Mack a call at 1-888-304-6225. They are the generous provider of the BMT website.

After buying 10.8 percent of Cummins in 1990, Ford should have gone ahead and bought the rest, rather than selling their stake in 1997*. Likewise, Ford should NOT have sold the superb new HN80 range to German foreign aggressor Daimler in 1997. ______________________________________________________________ * The New York Times from Bloomberg News / January 4, 1997 The Cummins Engine Company said yesterday that it had bought back 1.3 million of its common shares from the Ford Motor Company and would repurchase 1.7 million more shares on the open market. The company also said that Kenneth R. Dabrowski, a vice president at Ford, had resigned from Cummins Engine's board, as planned under a 1990 investment agreement with the auto maker. Cummins, a maker of diesel engines, said it would issue 3.75 million shares of its common stock to an employee benefits trust. The stock would be used to finance employee retirement savings programs. In New York Stock Exchange trading, Cummins Engine rose $1.25, to $46. After the purchase from Ford, Cummins has about 38.2 million shares outstanding.

At Ford, bad numbers, exec moves play on repeat Michael Martinez, Automotive News / February 9, 2020 Amid a growing sense of urgency within Ford, CEO Jim Hackett last week again shuffled his senior leadership team. The shake-up followed another round of dismal financial results. DETROIT — After nearly three years into Jim Hackett's tenure, the Ford Motor Co. CEO's sweeping fitness plan has yet to produce the positive financial results he has promised, and the automaker served notice last week that its turnaround remains at least another year away from bearing fruit. Amid a growing sense of urgency within the company, Hackett last week again shuffled his senior leadership team, promoting Jim Farley to be his COO — and heir apparent — while parting ways with a seasoned manufacturing guru and dealer ally in Joe Hinrichs. The executive shake-up, coming as Ford enters a crucial stretch of high-profile product launches, followed another round of dismal financial results that prompted Ford's stock to drop the most in nine years. Hackett has indicated that his restructuring efforts would take time, but even he has been critical of the financial results produced during his tenure. Net income dropped from $7.7 billion in 2017, a performance he labeled unsatisfactory, to a "mediocre by any standard" $3.7 billion the following year, before plunging 99 percent in 2019, to just $47 million. "Simply not nearly good enough," Hackett concluded after a fourth quarter in which General Motors weathered a lengthy UAW strike and still outperformed Ford. "Not OK," CFO Tim Stone said. Now Ford is tasked with navigating numerous product introductions, including the next-generation F-150 pickup coming this year, without the aid of Hinrichs, who was instrumental in launching the aluminum-bodied F-150 in 2014 and helped minimize the damage from a 2018 supplier fire that crippled F-150 production for a week. "Those new products don't just blossom overnight," said Bob Tomes, owner of Bob Tomes Ford in McKinney, Texas. "Joe had a lot of input into Ford's direction, and he was a very capable person." Under Hackett, Ford has slashed jobs globally, revamped its product portfolio and changed its management structure in an effort to build a more lean, quick-thinking company. It has leaned into mobility ventures and autonomous vehicle technology in the hopes of being a leader in the future and developing a higher-margin business. "We're now in execution mode," Hackett said. "What the company needs is to come together behind this vision." Hackett is targeting 8 percent operating margins on the company's global automotive business and 10 percent margins in North America, or roughly double what the company has achieved recently. Meanwhile, Fiat Chrysler Automobiles posted a 10 percent North American margin in the fourth quarter. "Jim Farley is the right person to take on this important new role," Hackett said. "Jim's passion for great vehicles and his intense drive for results are well known. He also has developed into a transformational leader with the imagination and foresight to help lead Ford into the future." Farley, 57, who joined Ford in 2007 from Toyota Motor Corp., will retain his roles as head of Ford Smart Mobility, the company's autonomous vehicle unit, and of Ford's partnership with Argo AI, an autonomous technology company in Pittsburgh. Ford is preparing to launch an autonomous vehicle for commercial businesses next year. "We have all the foundational elements of this transformation," Farley said. "Now it's go time." Broad respect Hinrichs, 53, had been Ford's top operations executive since 2017 — when Hackett took charge as CEO — after five years as president of the Americas. He is well respected in Ford's factories and among dealers and was seen by many as a likely successor to Hackett. He has had broad authority over Ford's automotive operations, including product development, and helped the automaker come to terms on a new four-year labor contract with the UAW. Hackett called Hinrichs a "really good friend and accomplished global leader" who was "instrumental" in helping Ford survive the Great Recession and also played vital roles dealing with labor, manufacturing and trade. "To a person, he was beloved," Hackett said. "Joe's going to have a wonderful career. But everybody believes the momentum that we're talking about building here is the right thing to do." Ford's disappointing 2019 earnings were a result in part of the botched launch of the redesigned Explorer crossover, one of the company's most profitable nameplates, but Hackett said Hinrichs' departure was "not tied to that at all." Hinrichs also holds Ford's seat on the board of directors at electric vehicle startup Rivian. A Ford spokesman said no decision had been made on replacing Hinrichs in that role with another executive. Ford invested $500 million last year in Rivian and plans to use its technology for an upcoming Lincoln EV. Still, many dealers said they were generally upbeat about a chance to work more closely with Farley, whom they credit with positive changes to Ford's Europe operations. "Jim's a great innovator," said Tomes, the Texas dealer. "He's a great hands-on person. I think it portends a positive, upbeat future for Ford, its products and its dealer body." Ford is working to improve its results even as the auto industry is bracing for a possible downturn or recession in the coming years. U.S. new-vehicle sales are expected to fall below 17 million this year for the first time since 2014, even as rising transaction prices help pad revenue and profit. "There were those that thought 2019 wouldn't be a good economy, but it was, and [Ford] only did OK in North America," David Kudla, CEO and chief investment strategist with Mainstay Capital Management in Grand Blanc, Mich., told Automotive News. "They have to make hay and execute now and take advantage of the good economy because we know we have some leaner times to come." Investor impatience Analysts grumbled, and Ford stock tumbled, after executives warned of financial headwinds in 2020 from upcoming launches, including the F-150, the revived Bronco SUV and the new Mustang Mach-E electric crossover. Ford's projections of $2.4 billion to $3.4 billion in adjusted free cash flow and adjusted earnings of $5.6 billion to $6.6 billion fell short of analysts' expectations. "We're looking at guidance ... that doesn't give you a warm, cozy feeling," Kudla said. "I'd like to think they're setting Wall Street up for an underpromise, overdeliver earnings surprise. That kind of guidance is disconcerting." Investors, who chided Hackett in his early days at Ford for providing scant details of his turnaround plan, again criticized him last week for a lack of transparency about the company's expectations this year. "Not quantifying, that makes it very challenging for us to really assess what you're facing," Rod Lache, an analyst with Wolfe Research, said on Ford's earnings call. Morgan Stanley analyst Adam Jonas, who has publicly sparred with Hackett on past earnings calls, echoed Lache's push for details. "We are certainly used to management teams giving their best guess, particularly at a time when there is so much pressure and when the stakes are so high," Jonas said. A day later, after GM executives spoke at an investor day held by that automaker, Jonas took another dig at Ford. "I noticed that you were videotaping today's investor day. It'd be great if someone could send that tape to Ford in Dearborn," he told GM CEO Mary Barra and others. "I'm serious. I'll hand-deliver it myself to them if you don't send it to them. ... You are executing." ________________________________________________________ Executive moves effective March 1: Joe Hinrichs: Retiring as Ford's president of automotive Jim Farley: Promoted to COO from his previous role as president of new business, technology and strategy; retains roles as head of Ford Smart Mobility and Ford Autonomous Vehicles Hau Thai-Tang: Remains chief product development and purchasing officer while adding responsibility for Ford's Enterprise Product Line Management and connectivity arms

Take the money and run, Navistar Joe Cahill, Crain’s Chicago Business / February 4, 2020 The Lisle-based truck maker is lucky to be getting any buyout offer, let alone a premium bid when the industry is heading into a slump. After years of futility, Navistar is on the verge of getting the money and muscle it has needed since emerging from the breakup of International Harvester more than three decades ago. All it has to do is accept a buyout offer from the truck unit of Germany’s Volkswagen. Last week, Traton offered $35 per share for the 83 percent of Lisle-based Navistar it doesn’t already own. Navistar isn’t commenting beyond a statement promising to “carefully review and evaluate the proposal in the context of Navistar's strategic plan for the company in order to determine the course of action that it believes is in the best interest of the company and its stakeholders.” In general, I don’t like to see local corporate stalwarts acquired by out-of-town buyers. Job losses and disinvestment usually follow. It would be especially sad to lose the last independent Chicago-area company with roots stretching back to Cyrus McCormick and his reaper. Sentimental attachment notwithstanding, Traton’s offer is the best—and possibly the last—chance to put Navistar on firm financial footing and provide its shareholders with a return on their investment in a company that has struggled to compete with larger rivals and generate consistent profits since selling off the International Harvester agricultural business to focus on making trucks and truck engines back in 1985. Navistar’s story over those years has been a tale of persistent losses, periodic missteps and consistent competitive setbacks. Undersized in a notoriously cyclical industry dominated by giants like Germany’s Daimler, which makes Freightliner trucks, Navistar lost money in 10 of the last 20 years. Last year, it reported net income of $221 million on $11 billion in revenue, down 35 percent from a $340 million profit in 2018 on $10 billion in sales. To keep afloat, Navistar resorted to restructurings and plant closings that vaporized thousands of jobs. A new round of layoffs will reduce headcount to about 12,000, down 42 percent from more than 20,000 in 2011. Investors suffered alongside workers, as Navistar shares lost 60 percent of their value since 1986. During the same period, the S&P 500 climbed 1,455 percent and rival Paccar, which makes Peterbilt and Kenworth trucks, saw its stock soar 3,206 percent. Navistar’s woes included some self-inflicted wounds. Accounting errors forced the company to restate financials and caused a brief delisting of Navistar stock. The U.S. government has joined a whistleblower lawsuit, accusing Navistar’s military equipment unit of overcharging the Pentagon. Navistar has defended its pricing as “fair, reasonable and competitive.” By far the worst blunder was Navistar’s decision to develop a new engine using unproven new technology. The engine not only failed to meet new environmental protection standards, but tended to break down. The episode triggered hundreds of millions in warranty claims and lawsuits, while shattering Navistar’s reputation with customers. Doubts about the quality of Navistar’s products will make it harder to sell a new engine the company is developing in partnership with Traton to compete with a popular offering from engine specialist Cummins. At the same time, a weak balance sheet showing a shareholder’s deficit of $3.7 billion will make it harder to ride out the next industry downturn, which appears to be getting underway. Shallow pockets also threaten Navistar’s ability to keep pace with technological changes reshaping the trucking industry. The company needs to make big investments in electric powertrains and automated driving systems. “Navistar’s been lagging in electrification and fuel cell technology,” says analyst Scott Pope of Morningstar. “They’re going to need the backing of a larger entity.” A buyout by Traton would make all these challenges more manageable. Customers likely would be more willing to consider Navistar’s new engine if it has the full backing of Traton. Combining Navistar’s annual production volume of 100,000 vehicles with Traton’s 230,000 would create an entity with greater heft to compete with industry leader Daimler, which makes 500,000 vehicles a year. Financially, a hookup would not only provide ballast for navigating cyclical fluctuations, but also give Navistar access to deeper budgets for investment in new technologies. As for the impact of a buyout on Navistar’s workforce, there’s no denying that some jobs likely would be lost. Yet the wholesale layoffs associated with many mergers seem unlikely. Traton sees Navistar as its entrée to the North American market, where it has no significant operations. It would need Navistar plants and workers to carry out its expansion here. Employees’ long-term prospects may be brighter under Traton than an independent Navistar that’s in perpetual cost-cutting mode. While the business logic of combining appears strong, price remains an issue. Traton has offered a premium of 45 percent to Navistar’s stock market price before the bid was announced. But the offer values Navistar at 7.3 times its projected 2020 earnings before interest, taxes, depreciation and amortization, below the 8-plus multiples of competitors Paccar, Volvo and Cummins. Corporate raider Carl Icahn and onetime protege Mark Rachesky, who hold a combined 33 percent of Navistar stock, may push for more money. And Navistar appears to have some negotiating leverage. The company offers Traton its only realistic opportunity to become a significant player in North America within a reasonable time frame. On the other hand, no competing bidder has emerged to push up the price. Navistar directors should leave no money on the table. But they should also be realistic about the company’s value. Navistar is lucky to be getting any buyout offer, let alone a premium bid when the industry is heading into a slump. And if Traton walks away, Navistar’s future looks a lot like its past.

SAF-Holland Press Release / November 13, 2019 When choosing between an air disc brake and a drum, take into consideration brake fade. https://www.youtube.com/watch?v=e6KDOqHWedI

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