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Daimler Trucks North America Supports New 2017 Truck Show Heavy Duty Trucking / May 23, 2016 Daimler Trucks North America has signed a letter of intent to exhibit at the inaugural The North American Commercial Vehicle (NACV) Show, a new bi-annual trucking show to be held September 2017 at the Georgia Congress Center in downtown Atlanta, Ga. The company has agreed to exhibit at the Sept. 18-22, 2017, event, as well as at the 2019 & 2021 NACV Shows. DTNA also joins the NACV Show exhibitor advisory committee. DTNA last year announced it would not exhibit at the Mid-America Trucking Show in 2016 because it preferred an every-other-year format running in odd years opposite the big IAA Commercial Vehicles show in Hannover, Germany, which is held each September in the even numbered years. The NACV Show, first announced in April, fits the bill, DTNA says. “Daimler Trucks North America has diligently reviewed numerous concepts and proposals for the next evolution in shows and exhibitions in the North American commercial vehicle market, and we have chosen the North American Commercial Vehicle (NACV) Show as the one commercial vehicle event that can meet our business goals and needs,” said DTNA President & CEO Martin Daum. “The NACV Show is the perfect platform for Daimler Trucks North America to connect with our suppliers and fleet customers, launch new products and meet with industry press." However, this does not mean that individual DTNA brands, such as Freightliner, Western Star or Detroit, may not still exhibit at MATS. “Our choice to sign a letter of intent for the NACV has no connection to other annual regional shows," noted David Giroux, director of corporate communications and corporate marketing for DTNA. "Attendance at regional shows – such as MATS or GATS – by local dealers or individual brands will be at their discretion. We will not be attending these shows on a collective corporate basis. The NACV will be a showcase for technologies and innovations across all Daimler Truck brands operating in North America." The NACV Show is organized and managed jointly by Newcom Media USA and Hannover Fairs USA. Newcom, a major Canadian B2B publisher, puts on the Truck World and ExpoCam trade shows. Hannover Fairs USA develops and manages marketing programs at Deutsche Messe events in Hannover, Germany, and the United States, as well as in emerging markets such as China, India and Turkey. IAA is hosted by Deutsche Messe and owned by VDA (Verband der Automobilindustrie e.V.). Deutsche Messe also organizes China Commercial Vehicle held in Wuhan, China. Unclear at this point is the fate of a second effort to establish a new North American trucking show that will alternate years with IAA. In March, the American Trucking Associations, along with the Heavy Duty Manufacturers Association division of the Motor and Equipment Manufacturers Association, announced they were working with global event management and trade show firm Messe Frankfurt Inc. to develop a new, biennial North American-based truck and transportation event. However, no additional details, including specific dates or location, have been announced since that time. “We will continue to work with the other truck manufacturers and strategic industry partners over the coming weeks to solidify their commitments with the goal of presenting the full event concept to the industry at large by July 1,” said Joe Glionna, vice president of Newcom, in a statement. The new NACV Show targets North American-based commercial fleet owners, heavy-duty vocational applications, commercial and light commercial vehicle dealers, distributors, original equipment manufacturers, service suppliers, and the commercial vehicle trade media. The first three biennial NACV Shows will be held in Atlanta. Atlanta "has done a good job of setting itself up to handle large trade shows," said Glionna.

New Truck Show to Focus on Technology, Fleet Buyers Heavy Duty Trucking / May 23, 2016 The goal of the new North American Commercial Vehicle Show is not to compete with established regional trucking shows that are popular with owner-operators and families, but to provide a more business-focused event showcasing the latest truck technology for fleets. “The main idea here is that what was missing from North American shows was a real focus on the medium to large fleets and the technology of today and tomorrow,” explained Joe Glionna, vice president of Newcom Media USA, one of the partners putting on the new event, in an interview with HDT. The new show will be held Sept. 18-22, 2017, at the Georgia World Congress Center in downtown Atlanta. Daimler Trucks North America is the first truck OEM to announce a commitment to the new show, but other announcements will be forthcoming. The NACV Show is organized and managed jointly by Newcom Media USA and Hannover Fairs USA. Newcom, a major Canadian B2B publisher, puts on the Truck World and ExpoCam trade shows. Hannover Fairs USA develops and manages marketing programs at Deutsche Messe events in Hannover, Germany, and the United States, as well as in emerging markets. The genesis for a new show was the pullout of major truck and engine OEMs from the Mid-America Trucking Show last year. DTNA and others expressed a desire for a show that would run on opposite years to the big IAA commercial vehicle show in Hannover, Germany, and that would have some of the same attributes of the European event, where fleets actually come to place equipment orders. In fact, Glionna said he doesn’t view the NACV show as directly competing against any shows that are currently in the North American market. “We believe there’s a place in this industry for events for truck enthusiasts, for owner-operators, for the family aspect of trucking, and we hope they continue to succeed in various regional markets,” Glionna said. “But what was missing … was an event that brings the buyers together and the latest technologies and the biggest fleets.” He noted there also will be a “robust European technology section of the show.” While owner-operators are certainly welcome, Glionna said, the NACV show will not have some of the types of features that would typically be a draw for this audience, such as a truck beauty competition, driver recruiting booths, concerts, educational programs, and vendors showing off products and services that are not directly related to the business of running a fleet. Quality, not quantity, is the goal when it comes to attendees and exhibitors. “Our expectations are quite low compared to the announced numbers” from some other shows, Glionna said. “We have no interest in having 50,000 people at this show. If we had 10,000 to 15,000 qualified buyers the first year, that would be a big success in our minds. It's not about big numbers, it’s about the right equipment, the right place to do business, and the right people to do business with.” NACV will be a five-day show. While schedules are far from finalized, as plans stand now, only two days are likely to be open to the general public, Glionna said. A third day will be limited to invited guests – customers and prospects of the exhibitors. A fourth day will be for the press, a fifth day for suppliers to meet with OEs. Eventually, Glionna said, NACV can become more of a truck-buying event like IAA. “In the North American market, trade shows are far less about acquisition than European shows, and it’s a mentality that’s not going to change in year one. I think we’re going to see a real attempt to start to create sales cycles where the show becomes a major date in that sales cycle.”

Fleet Owner / May 23, 2016 In an earlier post, I talked some of the issues the trucking industry as a whole should be worrying about at the moment – with slumping freight volumes only the tip of the bad-news iceberg. But what do fleet managers themselves believe are the major issues facing trucking right now? What’s the “view from the trenches” so to speak? I talked to Sandeep Kar, global vice president-mobility research for the transportation practice within global consulting firm Frost & Sullivan, about this subject just last week as his team conducts an annual in-depth survey with 100-plus fleet managers at for-hire and private fleets across North America to unearth those concerns. And here are their top seven concerns based on Frost & Sullivan’s poll: The driver and technician shortage/retention issue Regulatory compliance Total cost of ownership (TCO) Declining equipment utilization Fuel price volatility Freight rate fluctuations The economic outlook and profit margin concerns “There’s much nervousness among fleet managers because margins are eroding; there’s also a lot of ‘interconnectedness’ among those issues as well,” Kar explained to me. “And when you look at declining equipment utilization, that is bad news for [truck] OEMs because that means fleets will probably delay more purchases of Class 8 trucks.” He noted that while fleets have benefitted from the low price of diesel over the past year, there is rising uncertainty regarding the “longevity” of this low price environment. Kar added that most of fleet managers in his firm’s poll believe diesel prices may increase unexpectedly causing severe operating cost increase in the short-to-medium term; a trend that’s started gaining strength in recent weeks. He also pointed out that based on the durations of past business cycles it would be “unusual if we did not enter a recession sometime in the next few years.” Not exactly something to cheer about. So how are all of those “worries” shaping – or perhaps “re-shaping” – the truck specification strategies of among fleet managers? More broadly, do they believe certain truck specs and technology selections can help mitigate the negative aspects of the above-mentioned concerns? Here’s what Kar’s research team discerned: While 55% of surveyed fleet managers reported engine displacement as an important “engine purchase decision influencer,” 34% said their preference now is for trucks in same weight class but with smaller sized engines; that spec will drive their purchases over next five years. Semi-automatic and fully automatic transmissions are the fastest growing advanced powertrain technologies. Nearly 50% of fleet managers reported preference for “OEM nameplate engines” while the remainder reported either a preference for third-party independent engine suppliers or using a mixed-sourcing approach. Interestingly, “convenience of servicing” emerged as the top reason for choosing OEM nameplate engines, Frost & Sullivan found. Roughly 57% of the fleet managers polled said they are interested in hybrid powertrain systems if the upfront price premium can be recovered within three years or less from date of purchase. There’s also a “noticeable increase” in the percentage of fleet managers likely to consider OEM nameplate transmissions as well, though 42% of them consider place OEM nameplate and third-party independent transmission suppliers on equal footing. Nearly three in four surveyed fleet managers said natural gas as a truck fuel is “attractive” if – and this is a big “if” – the price difference between a gallon of diesel and a diesel-equivalent gallon (DGE) of natural gas is maintained at $1 or more and it “adequate” natural gas fueling infrastructure is established. On top of that, an 11.6-liter displacement seems to be the most preferred natural gas engine of choice by the fleet managers in Frost & Sullivan’s poll. On another front, the firm dug up some interesting safety insights – particularly in terms of how much fleet managers are willing to pay for technologies such as forward-collision warning and the like: The increased ability to take preventive measures, tangible return on investment (ROI), reducing likelihood of accidents, and improved driver monitoring are the biggest reasons driving purchases of specific safety technology packages. A separate Frost & Sullivan poll found that roughly 60% of fleets have experienced a rollaway/runaway crash over the past 24 months, with 18% of these incidents resulting in fatalities. That data in particular is driving Bendix to develop a new product called “E-Park” that it hopes to make commercially available in 2018. [Read more about that here.] A price tag of $2,750 was found to be the “optimal” dollar amount for automatic collision mitigation systems, implying that if these systems are priced at this level, adoption rates could increase rapidly. In particular, Kar told me that there are too many “disparate” safety systems available today and that fleet managers would prefer one system offering multiple capabilities – driver monitoring, video, automatic emergency braking, etc. – down the road to help them reduce their spend on such technologies. Then we come to telematics in trucking; subject matter Kar is well-versed in but also one that fleet managers seem to view as a way to help solve their many myriad problems; from increasing asset utilization to reducing maintenance costs. Here’s a sampling of Frost & Sullivan’s findings: Separate research by Frost & Sullivan indicates trucks are traveling empty 30% of the time. About 55% of fleets with more than 500 vehicles use a telematics-based transportation management system (TMS) of some sort, the firm noted, which drops to 32% or fleets operating between 50 and 500 trucks and declines to just 4% for fleets running 50 or fewer vehicles. Some 48% of the fleet managers polled by the firm showed interest in smartphone based freight brokering, also colloquially known as “Uber for trucks.” While most fleet managers continue showing preference for in-vehicle installed telematics hardware device, share of portable /handheld devices is growing. Third party telematics providers continue to lead in-vehicle telematics hardware device enabled telematics services market; however, the share of truck OEM-provided systems is now at 41% among surveyed fleets. Monitoring of drivers and vehicle (both mobile resources) now rank as most important and influential factors for fleets when purchasing telematics services and associated hardware. Critical event alert/safety system intervention alert is the most preferred telematics service among surveyed fleet managers, with $5 to $10 per month being incremental service fee range for this feature. Optimal price for this technology was found to be $5.50 per month per truck, based on the firm’s “price sensitivity” measurement analysis. Some 65% of surveyed fleet managers showed interest in a remote calibration and maintenance system – a trend that is more pronounced among medium sized fleets - while 48% them would prefer to pay for such services upfront at time of vehicle purchase rather than as an ongoing monthly fee. Of all the telematics services offer, prognostics is estimated to grow fastest among the fleet managers polled by Frost & Sullivan as rising equipment complexity, the growing technician shortage, and need for downtime reduction are behind the rising interest in prognostics. Some 92% of safety managers and 78% of maintenance managers showed interest in remote diagnostics/prognostics data integration to their organization’s maintenance management systems. Yet what are fleets willing to pay for such telematics-driven services? According to the firm’s poll, $26 per month per truck is the highest monthly subscription fee fleets are willing to pay to adopt telematics “en masse.” For prognostics, the highest fee that fleet managers were willing to pay was $12 per truck per month. However, Frost & Sullivan found that $4 per month per truck is the “optimal price point” for prognostics. Those are definitely a wide range of interesting trends for fleets to ponder as we ride out the (hopefully) short term speed bumps now occurring in the freight world.

Transport Topics / May 23, 2016 Company Also Says It Will NOT Return to MATS in 2017 on ‘Collective Corporate Basis’ Daimler Trucks North America on May 23 announced its intention to exhibit at the first-ever North American Commercial Vehicle Show in Atlanta in September 2017. The company also told Transport Topics it will not return next year on a “collective corporate basis” to the Mid-America Trucking Show in Louisville, Kentucky. “Daimler Trucks North America has diligently reviewed numerous concepts and proposals for the next evolution in shows and exhibitions in the North American commercial vehicle market, and we have chosen the North American Commercial Vehicle Show as the one commercial vehicle event that can meet our business goals and needs,” DTNA President Martin Daum said in a statement distributed May 23 by NACV Show organizers Newcom Media USA and Hannover Fairs USA. Daum said NACV would be “the perfect platform” for his company to connect with “our suppliers and fleet customers, launch new products and meet with industry press." “Our choice to sign a letter of intent for the NACV has no connection to other annual regional shows. Attendance at regional shows such as MATS . . . by local dealers or individual brands will be at their discretion. We will not be attending these shows on a collective corporate basis,” DTNA spokesman David Giroux said. “The NACV will be a showcase for technologies and innovations across all Daimler Truck brands operating in North America. We look forward to the inaugural show in September 2017,” Giroux added. As an example, DTNA might have a limited presence at shows other than NACV if a dealership or the Western Star Trucks or Detroit Diesel Corp. subsidiaries choose to make an appearance. MATS has a strong following among owner-operators and that might make the show appealing to Western Star, for instance. The May 23 announcement is part of an ongoing struggle on how to market heavy-duty trucks in North America involving MATS — an annual event in Louisville — and another proposed show to be sponsored by American Trucking Associations and the Heavy Duty Manufacturers Association. All four North American truck-making corporations and independent engine maker Cummins Inc. backed out of the 2016 version of MATS, saying that an every-other-year format makes more sense. They want to display in Europe at the IAA Commercial Vehicles Show in Hanover, Germany, in even-number years, and a major North American show in odd-number years. Exhibit Management Associates, the owner and organizer of MATS, has been clear on its intention to keep Mid-America a spring event at the Kentucky Exposition Center, as stated by EMA President Toby Young. Prior to the May 23 announcement from DTNA, OEMs have been hedging their bets on 2017 plans. As recently as May 11, Volvo Trucks North America executives were asked about their plans at a press event and said they would display at a North American truck show in 2017 but would not specify which one. “HFUSA and Newcom formed this strategic collaboration to offer industry participants a first look at new products and solutions as well as a premier destination to network and form business partnerships,” HFUSA President Larry Turner said in the announcement. Hannover Fairs is a North American subsidiary of Deutsche Messe, which operates IAA. “We will continue to work with the other truck manufacturers and strategic industry partners over the coming weeks to solidify their commitments, with the goal of presenting the full event concept to the industry at large by July 1,” added Joe Glionna, vice president of Newcom. Related reading - http://www.bigmacktrucks.com/topic/44835-finally-%E2%80%93-professional-int%E2%80%99l-level-truck-show-coming-to-america/#comment-330425

Not really off topic Paul. Your correlation is dead on. Anyway, you are always a fountain of knowledge and interesting thoughts. I look forward to all your posts. Thank you BTW, JAC's light truck range is virtually as good as the Japanese units, and available with the Cummins 3.8-litre ISF (http://jacen.jac.com.cn/showroom/n-series.html).

Trade Trucks.com.au / May 23, 2016 With an Atkinson on the back, Mark and Elaine Abbott’s Mack made a splash at the Harden Truck and Tractor Show It’s just over an hour’s drive from Cowra to Harden, which proved no problem for Mark and Elaine Abbott’s 1969 Mack Flintstone for its third Harden Truck and Tractor Show. With a trailer on the back, it also hauled a mate’s Atkinson to the event. Mark says he bought the Mack three years ago as a "play toy". "It’s got Hendrickson suspension, it’s powered by a VT 903, and I’ve just put a 15-speed Roadranger in it," he explains. "It’s very unique". Mark explains that the Flintstone has had 10 owners, and he’s tracked down most of them. "But we don’t know who put the 903 in it." What he does know is that it started off as a 711 with a duplex box in Newcastle, later sold at auction in 1975. At one time it ran Sydney to Melbourne for Border Express. The Flintstone had been sitting idle in a paddock for six years when Mark bought it: "I fell in love with it, of course." Getting the Mack mobile proved no issue. "We just washed it," Elaine smiles, although Mark had to make some minor adjustments to get it on the road. "We pressurised the start tank, put a battery on it, turned the key, hit the button and it started, and we drove it home," he explains. "I put a different rear end in it to get better road speed, because it was sitting on 2500 revs doing 97km/h." The Flintstone is not the only Mack in the Abbott’s collection. There’s a recently retired CH model which Mark bought nearly 10 years ago, and a new Super-Liner. "We’ve got a ’79 model Dodge," Mark says. "It’s a work in progress, but the Flintstone takes priority." Mark has, for the most part, been a Mack man since he started working for Aztec — now Boral — 25 years ago. "I started in a 285 Mack, an S-Line after that, then I got a Valueliner. I was in love when I got that," he says. "Then I ended up with a 650, then I bought an Eagle — I didn’t have that for very long — then I bought the CH and hardly spent a cent on it. "It’s done 1.5 million kilometres and still has the original injectors and the original compressor."

May 11, 2016 / 360 Truck Navistar’s “Global Operations” partner JAC recently displayed an all-new high-cab heavy truck concept. The flagship tractor concept, codenamed “Crossing", will feature high-power engines including the 11.8-liter Cummins ISG and 11.6-liter Weichai WP12, available with a ZF AS Tronic automated manual transmission (AMT). The cab is fully air suspended, as are the rear drive axles. Other details remain sparse. --------------------------------------------------------------------- The $3 million question......did Navistar provide JAC with design assistance on this project, as they have with existing Class 8 models? If so, that would indicate Navistar’s current engineering staff has what it takes to design a modern, competitive global market COE in year 2016. .

Commercial Motor TV - sponsored by DAF Trucks / May 20, 2016

Ford Motor Company / May 20, 2016

Class 8 outlook: Market factors could again drive business Fleet Owner / May 20, 2016 If you're looking for economic barometers for trucking, Kenworth is seeing a lot of positive signs lately — but like others, predicts 2016 will be good, but not great, for Class 8 sales in the U.S. and Canada. One indication of the Class 8 market is how many trucks are being churned out at assembly plants like Kenworth's in Chillicothe, OH. On an editors' tour on Wednesday, Plant Manager Judy McTigue noted the facility produces 80 trucks during the day shift and another 48 at night for a total of 128 per day; the lesser amount on shift two was "feathered down" a bit from last year in step with market demand, she said. Kenworth Director of Marketing Kurt Swihart pointed out there are a number of indicators that could bode well for the heavy truck market. He noted that the company's product sales have shifted dramatically to its latest T680 on-highway and T880 vocational trucks, which were launched in 2012 and 2013, respectively. Walking through the Chillicothe plant today, "it's very difficult to find one of our legacy models," Swihart contended. "I would guess that 90% of our current production here in Chillicothe is our T680 and T880 model lineup." With the T680 accounting for more than half of sales, the T880s are a big chunk of the rest. For one thing, "housing and construction are doing well, and that's a big part of our business," Swihart said. "Whether it's road-building, whether it's commercial construction, whether it's housing, there's very good, robust construction activity [in the North American market] and particularly in the United States," he added. Meanwhile, oil prices have been inching closer to the $50 mark per barrel of crude. "As oil prices dropped, it's kind of a double-edged sword for us," Swihart said. "It's good for fleets because they enjoy lower operating costs, but many of our customers are in the oilfield business, and much of that slowed down. "Oil was priced below a sustainable level of profitable operations in many of those industries, and as oil is increasing, it's opening up some of those industries again," he continued. "That could turn from being a slight headwind for the industry back into a tailwind that will help drive business." Overall, Kenworth is projecting Class 8 sales for the U.S. and Canada will be about 10-20% lower in 2016 than last year. "Our forecast for 2016 is Class 8 will be a market of 220,000 to 250,000 units, and we expect it'll be the third-highest year in the last 10 years. It is slightly down from nearly 280,000 Class 8 units in 2015, but it's still a very healthy market," Swihart said, referencing total retail sales. In other good signs, Swihart pointed to truck tonnage increasing just in the last two or three months, as reported by the American Trucking Assns. Additionally, manufacturing saw a slight contraction closing out 2015 and in the first months of 2016 but is again on an upswing, he noted, citing the ISM Manufacturing Index. "In recent months, manufacturing is expanding, and that's also good for our business," Swihart said.

Fleet Owner / May 20, 2016 Despite objections from the White House and the Truck Safety Coalition, the Senate on Thursday easily approved an annual budget bill that contains a provision to address a problem with the hours of service restart language in last year’s bill. The legislation also includes an amendment that puts a six-month deadline on the proposed truck speed limiter mandate. The $56.5 billion FY2017 Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Act, part of a package that also funds veterans’ benefits and a response to the Zika virus, passed with a bipartisan vote, 89 to 8. Included with the DOT budget is the provision to correct a potential problem with the 34-hour restart. The Senate Appropriations committee’s solution calls for a weekly cap of 73 hours, in addition to clarifying which restart rules would be used if a study shows the 2013 changes are not effective. Earlier this week a House subcommittee advanced its version of the THUD bill that also addresses the restart matter. The House Appropriations committee is scheduled to markup the bill May 24, with key committee Democrats expected to resist several trucking provisions. The American Trucking Assns. Thursday asked Congress to quickly advance legislation that would maintain the current restart rule, “which gives professional truck drivers the flexibility and opportunity to take extended off-duty periods without restrictions.” “We have said since the broad framework of the current hours-of-service rules went into effect in 2004—complying with these rules improves safety,” said ATA President and CEO Bill Graves. “The flexibility to take additional rest that the restart provided for a decade, and is providing now, allows drivers to get additional off-duty time and rest, and we shouldn’t be putting restrictions on that—certainly not ones that have been shown to push truck traffic into riskier daytime hours.” The speed limiter amendment calls for DOT to issue “a final rule” not later than 6 months after the bill becomes law. And that will take some doing, given the pace so far. The rulemaking, which originated nearly 10 years ago with petitions from RoadSafe America and ATA, was officially initiated in May 2013 and was originally scheduled to be published in March 2014. But the Notice of Proposed Rulemaking was sent to the Office of Management and Budget for review in May 2015, and that means it has been stalled at the White House for a full year. In presenting the administration’s budget for the DOT in March, Transportation Secretary Anthony Foxx assured the Senate Appropriations transportation subcommittee the NPRM would meet a projected April 22 publication date. “As a top priority, we’ve been working with OMB to get that rule pushed out,” he said at the time. The latest monthly Report on DOT Significant Rulemakings, just posted for May, has projected a publication date of “Spring 2016.”

Daimler Sees NAFTA Class 6-8 Market Dropping 15% Heavy Duty Trucking / May 20, 2016 Citing “sustained contraction” of global truck markets— including North America-- Germany’s Daimler Trucks has adjusted its 2016 outlook. The OEM now expects its operating earnings will “significantly lower” this year vs. “the very good levels of last year.” On the other hand, the company added that its profitability this year will “remain very high.” While stressing that it is “defending its clear market leadership” in the NAFTA market, Daimler Trucks pointed out that “at the same time, there has been no revival of orders received, especially in the heavy-duty segment (Class 8).” In a May 19 press release, the parent company of Freightliner and Western Star said it now forecasts that the overall North American market for Class 6 to 8 trucks will “contract by approximately 15% in 2016.” The Germany-based OEM said the drop-off across the Atlantic can be offset only partially by a rising European truck market. “Although demand in Europe is significantly higher than last year, the competitive situation has become much more intense and is influencing market players’ pricing,” the company stated. “Another factor is that the persistently low price of oil is having a sustained negative impact on [truck] demand in the Middle East.” Daimler also said the outlook for developing markets in Brazil, Indonesia and Turkey has been “worsening since the beginning of the year and continues to worsen.” It expects the Brazilian market will contract by about 20%, thanks to the “political and thus also [the] economic situation” again deteriorating there. As for Indonesia, Daimler expects to see a decrease of about 15%. The OEM also sees “substantially lower” demand in Turkey, due both to purchases being brought forward to 2015 and the “very negative geopolitical conditions” in place. “The situation of global truck markets has been challenging for several months and has recently got worse,” stated Wolfgang Bernhard, Member of the Board of Management of Daimler AG and Head of the Daimler Trucks and Daimler Buses divisions. “Especially in the NAFTA region, but also in the Middle East, demand is weaker than previously expected,” he continued. “We have therefore adjusted our outlook for the rest of this year. Although the forecast is for lower numbers than in 2015, we continue to anticipate a high level of earnings in the full year.”

Transport Topics / May 19, 2016 Daimler Trucks said it lowered its outlook for overall North American truck sales for Classes 6-8 in 2016 as orders for Class 8 trucks especially have not revived. It now forecasts sales will be off about 15% compared with 2015, down from its previous forecast of a 10% decline. North American Class 8 orders have declined year-over-year for 14 consecutive months. “The situation of global truck markets has been challenging for several months and has recently got worse. Especially in the Nafta region, but also in the Middle East, demand is weaker than previously expected,” Wolfgang Bernhard, head of Daimler’s global truck and bus division, said in a statement. Daimler’s statement did not provide estimated sales numbers for this year. Daimler Trucks is a unit of Daimler AG and the parent company of Daimler Trucks North America (DTNA), which is the market leader in Classes 6-8 sales. DTNA spokesman David Giroux told Transport Topics the company “could not comment at this time regarding further workforce reductions at its plants.” In January, DTNA announced plans to lay off an estimated 936 employees, or 30% of the 3,100 workers at its Cleveland Truck Manufacturing Plant in North Carolina, which makes heavy-duty Freightliner and Western Star trucks. U.S. Class 8 retail sales for DTNA, which also includes the niche nameplate Western Star, in 2015 were 100,214, good for a 40.3% market share. “Although the forecast is for lower numbers than in 2015, we continue to anticipate a high level of earnings in the full year. 2016 will be one of Daimler Trucks’ most profitable years, due not least to the successful continuation of our efficiency actions,” Bernhard said. “While the news [from Daimler] is certainly negative," Michael Baudendistel, an analyst with Stifel, Nicolaus & Co., wrote in a note to investors, "this reduced outlook does not come as a surprise given the weak year-to-date order data in Class 8 trucks, though Classes 5-7 orders have been somewhat stronger than anticipated, and due to the fact that we believe Daimler's prior guidance was somewhat optimistic. Following Daimler's reduction, their outlook is now roughly in line with our prior outlook.” Baudendistel’s note last week forecast 2016 Class 8 production would be 230,000 units in North America, down nearly 30% from 2015 production of about 323,000 units. “Our estimate is below other analyst's current forecast of 236,522 units.” Against this backdrop, Daimler Trucks said it will intensify the efficiency actions that are already being taken. In Brazil, further workforce adjustments will have to be made, for which Daimler Trucks has made a voluntary severance offer, it said. In this context, Daimler Trucks anticipates expenses totaling up to about $112 million as a special reporting item in 2016. However, nothing has changed with regard to the medium- and long-term growth drivers and success factors for the key markets of Daimler Trucks, the company said. “ Along with managing volatile truck markets, we continue to pursue our strategy systematically. With our technologically leading position, global presence and intelligent platform concepts, we will take further determined measures also in the future,” Bernhard said.

Driving the Kenworth T680, T880 Truck News / May 19, 2016 Kenworth demonstrates comfort, efficiency and versatility of T680 and T880 models A US$400-million investment by Paccar in the development of the Kenworth T680/T880 cab platform appears to be paying off. “It has really revolutionized our business,” Kurt Swihart, director of marketing with Kenworth said of the T680 on-highway and T880 vocational models. The T680 was launched in 2012 and the T880 at the end of 2013. The two models now represent about 90% of the production at Kenworth’s Chillicothe, Ohio truck plant, which this week played host to a Right Choice customer event. More than half the trucks Kenworth is building today are T680s, its flagship on-highway model. Additional sleeper configurations have been added to the truck over time, and that roll-out is now complete. The T680 can be had with a 76-inch mid-roof or high-roof, a 52-inch mid-roof or 40-inch sleeper. Swihart said most customers are ordering the 76-inch condo-style high-roof bunk. But for those in tanker or flatdeck applications, the mid-roof can provide up to a 5% fuel economy benefit, while still allowing a 6’8” driver to stand upright. The T680 Advantage is a fuel economy spec’ that was introduced in 2014 and now accounts for about a third of T680 sales. The Advantage comes with a series of fuel-saving specifications – chassis fairings, automated manual transmission and fuel-efficient drive axles – as well as the Paccar MX-13 engine. Swihart said it offers about a 10% fuel economy improvement versus a non-optimized spec’. Subtle refinements to the package have been ongoing. For example, a new chassis fairing design is flared to better deflect air along the side of the trailer and away from the underbody. The new fairing replaced the previous one May 9. More customers are spec’ing automated manual transmissions, Swihart noted, adding these now account for about 70% of T680 sales. “A couple of years ago, maybe a quarter of T680s would get automated manual transmissions,” he said. “That has nearly tripled over the past three to four years.” Kenworth has also added a battery-based idle management system to its portfolio to provide eight to 12 hours of air-conditioning. It can be coupled with an optional bunk heater and/or inverter for heating and power requirements. The company has supplemented this with a new auto start/stop system, which automatically starts the engine when the batteries need a boost. This new feature also monitors engine oil temperature and will start when necessary in cold weather to prevent fuel from gelling. Also new to Kenworth is its TruckTech+ remote diagnostics platform, now installed on 10,000 vehicles. “That’s the seed of a much broader connected truck platform,” Swihart said. Another new offering is Bendix Wingman Fusion, a collision avoidance system that combines camera and radar technologies. Wingman is being ordered in about 30% of T680s, Swihart noted. The company is also enjoying a higher take rate for its proprietary Paccar MX-13 engine. The T880 vocational truck is also enjoying an increased market presence. Kenworth still offers its predecessor, the T880, but most vocational customers have converted over to the new model. Vocational buyers as well are showing greater acceptance of the MX-13, which can produce up to 500 hp and 1,850 lb.-ft. of torque. Complimenting the MX-13 is the new MX-11, which can provide a weight savings of 400 lbs compared to the 13-litre. Launched in January, the MX-11 can produce up to 430 hp and 1,550 lb.-ft., adequate for many vocational applications such as dump and ready-mix, Swihart said. “The majority of sales have been in ready-mix applications,” he added. “But it’s also a great engine for dump applications, bulk haul – anywhere customers are looking for any way to be able to take weight out of the overall vehicle package.” The 40-inch mini-sleeper was designed for vocational operators, especially those in the oilfield or in heavy-tow applications where the driver is only occasionally out overnight. It offers a 260-lb weight savings compared to the previously smallest available 52-inch bunk. Turning to medium-duty, Swihart said Kenworth is coming off a record year in which it controlled 9.2% of the Canada/US Classes 6/7 segment. Sales were buoyed by the introduction of a new T370 configuration with 46,000-lb rear suspension rating. “We think there’s a significant market opportunity out there,” Swihart said of the ‘Baby 8’ or heavy-medium-duty segment. It’s geared towards municipal, dump, tanker and other vocational applications. A fleet of eight Kenworth trucks was made available for test drives. I spent time in the Kenworth T880 with 40-inch bunk, since it was designed with Canadian operators in mind. The T880 cab offers comforts and amenities that were carried over from the on-highway product and were once the exclusive domain of linehaul drivers. The sloped hood and expansive one-piece windshield offered excellent visibility. The MX-13 engine with 500 hp and 1,850 lb.-ft. of torque was quiet to operate and pulled the 60,000-lb gross load uphill without any trouble. We were hauling cement blocks on a flatdeck trailer. The engine brake was remarkably quiet. The T880, much like its on-highway brother, was incredibly comfortable to drive. The 40-inch bunk featured a slim 24-inch mattress. You wouldn’t want to live in this truck but it’s a nice option to have when you’re making the occasional overnight run to someplace remote. Three rear windows offered visibility out the back and let in additional daylight. Extra storage can be found underneath the bed. I also drove the T680 Advantage with 76-inch high-roof sleeper. This truck featured the new flared side fairing and was loaded up with safety options, including Bendix Wingman. It beeped at me when I followed too closely and would go so far as to apply the brakes while in cruise if necessary. I didn’t test that claim on this drive but I’ve seen it demonstrated before in controlled environments. It works well and should eliminate most rear-end collisions. Wingman Fusion now has the ability to detect stationary objects. That’s new. And its cameras can actually read roadside signage and tell on the driver who’s exceeding the speed limit. Like the T880, the 680 offers incredible visibility and smooth, quiet ride. It was powered by the Paccar MX-13 engine rated at 455 hp and 1,750 lb.-ft. The 53-ft. van trailer was empty, so power was obviously available in abundance. Both the T680 and T880 have a nicely appointed automotive-styled interior. The high-def NavPlus HD screen can be used to display anything from additional gauges to turn-by-turn directions. I also spent time behind the wheel of a T880 mixer and T880 super dump, two configurations that show off the versatility of this model. Photo gallery - http://www.trucknews.com/equipment/driving-kenworth-t680-t880/1003072164/

Bataclan owners condemn Eagles of Death Metal frontman's suggestion their guards were complicit in massacre The Guardian / March 11, 2016 [American] Jesse Hughes said six of the security team did not turn up at Paris venue on 13 November, and it ‘seems rather obvious that they had a reason’ The owners of the Bataclan in Paris have reacted angrily to the suggestion by Eagles of Death Metal frontman Jesse Hughes that its security guards were complicit in the massacre [go figure] that left 89 concertgoers dead on 13 November 2015, calling his remarks “insane”. “Jesse Hughes spread some very grave and defamatory accusations against the Bataclan teams,” the Bataclan’s owners said in a statement. “A judicial investigation is undergoing. We wish to let justice proceed serenely. All the testimonies gathered to this day demonstrate the professionalism and courage of the security agents who were on the ground on 13 November. Hundreds of people were saved thanks to [their] intervention.” In a video interview with Fox Business Network, Hughes had been asked if anything had seemed unusual when he arrived at the venue that evening. “When I first got to the venue and walked in, I walked past the dude who was supposed to be the security guard for the backstage,” he said. “He didn’t even look at me. I immediately went to the promoter and said, ‘Who’s that guy? I want to put another dude on.’ He says, ‘Well, some of the other guards aren’t here yet.’ And eventually I found out that six or so wouldn’t show up at all.” He added: “Out of respect for the police still investigating, I won’t make a definite statement, but it seems rather obvious that they had a reason not to show up.” Hughes also said he had noticed people at the venue who didn’t look like regular Eagles of Death Metal fans. “Right before we walked onstage, there were two dudes in shorts and trench coats, [who] were standing, without talking, heads down in the corner, by where the entrance out into the venue is from backstage,” he said. “We have a joke that if you’re not smiling at one of our shows, you surely can’t be there to see the Eagles of Death Metal, because you don’t know what you’re in for. Shawn [London, the group’s sound engineer] looked at me and said, ‘They certainly don’t look like they’re here for one of our shows.’” This is not the first time Hughes has commented on the events of 13 November in surprising fashion. During an interview with the French TV station iTélé in February, he said the killings had not made him reconsider his attitudes to gun ownership. “Did your French gun control stop a single [expletive] person from dying at the Bataclan?” he said. “And if anyone can answer yes, I’d like to hear it, because I don’t think so. I think the only thing that stopped it was some of the bravest men I’ve ever seen in my life charging head-first into the face of death with their firearms. “I know people will disagree with me, but it just seems like God made men and women, and that night guns made them equal,” he said. “And I hate it that it’s that way. I think the only way that my mind has been changed is that maybe until nobody has guns everybody has to have them. “Because I’ve never seen anyone that’s had one dead, and I want everyone to have access to them, and I saw people die that maybe could have lived, I don’t know.” The Californian hard-rock band were on stage at the Bataclan when three terrorists entered the venue and began shooting with assault rifles and throwing hand grenades. It was one of a series of attacks in Paris that night that left 130 people dead. Islamic State claimed responsibility for the murders.

French festivals ditch Eagles of Death Metal over singer's comments The Guardian / May 20, 2016 [American band member] Jesse Hughes alleged he saw Muslims celebrating during Paris attacks and that Bataclan staff were involved in assault Two French festivals on Friday cancelled shows by Eagles of Death Metal, the band whose 13 November show in Paris turned into a bloodbath, after the frontman made remarks critical of Muslims. The Rock en Seine and Cabaret Vert festivals took issue with an interview by singer and guitarist Jesse Hughes, who renewed allegations that Muslim staff at the Bataclan club had been involved in the attack. “As we are in total disagreement with Jesse Hughes’s recent allegations given in an interview with an American media [outlet], both Cabaret Vert and Rock en Seine festivals have decided to cancel the band’s performance,” said a statement by the two festivals, which take place in late August. Eagles of Death Metal had briefly become heroes in France after jihadi extremists attacked their concert, killing 90 people in the deadliest of a series of coordinated assaults that claimed 130 lives across Paris. But Hughes has since proved controversial in his remarks. He is known for his rightwing politics and champions gun ownership as well as Republican presidential candidate Donald Trump. In an interview published last week, Hughes called for greater scrutiny of Muslims in the west and alleged that conservative Christians were unfairly being blamed for global problems. “I saw Muslims celebrating in the street during the attack. I saw it with my own eyes. In real time! How did they know what was going on? There must have been coordination,” he told Taki’s Magazine, a publication from Greek-born conservative commentator Taki Theodoracopulos, which has faced criticism for its writings on race. Trump has voiced similar allegations of US Muslims celebrating the 9/11 attacks, a claim for which there is no documented evidence [if it’s not “documented”, then it automatically can’t be true]. Hughes alleged that a Bataclan security guard had inquired about the background of his girlfriend, who is of Mexican origin, supposedly with an eye to warning her of the impending attack if she was Muslim. Hughes in March also gave an interview in which he alleged an inside job. The Bataclan strongly disputed his assertions, saying the club’s security is likely to have saved hundreds of lives. ------------------------------------------------------------------------- Alleged Muslims attackers murdered 130 people in Paris on that day. The concert’s band’s head exercises his freedom of speech, and reports what he saw. France slams him for being critical of….Muslims, goes into full tilt damage control. Go figure. It would be nice to know the truth.......for once.

Interesting thread........steel Freightliner cabs and the prototype Freightliner conventional. http://forums.aths.org/PrintTopic160572.aspx

Along the lines of what Volvo's "Scania Gang" head said in 2014: "Europe is now thinking about piloting the European Modular System. There is already a 'pilot' up and running in Sweden. It's been there for 50 years. In Scandinavia we are running trucks that are 25.25 metres long - 6.5 metres longer than in the rest of Europe. So we are able to replace three trucks with two, resulting in less congestion, less road-wear and a reduction in fuel consumption of 15 to 25 per cent. Even more important: we have no related safety issues." Scania CEO Martin Lundstedt October 2014 Related reading - http://www.bigmacktrucks.com/topic/44881-spain-says-%E2%80%98hola%E2%80%99-to-the-2525-metre-truck/

Without admitting to it, truck operators (military and civilian) want to spec automatic transmissions so that they can put virtually anyone behind the wheel due to a shrinking professional truck driver base (rather than confront the reasons for that dilemma and address them). But that's not what automatic transmissions (e.g. AMT) were intended to do. They were designed to compliment the skills of a proper, experienced truck driver. The trend of putting light vehicle (e.g. cars) drivers in trucks via the automatic transmission is a recipe for trouble.....as we see here. In any regard, the MOD lost face today with the trashing of four very expensive German trucks. Related reading - http://www.bigmacktrucks.com/topic/45224-shifting-away-from-manual-transmissions/

Penticton Western News / May 19, 2016 A member of a long-established Penticton family in British Columbia, Canana is celebrating his love of vintage vehicles with a generous donation towards Penticton Regional Hospital. Jim Leir recently sold a restored 1918 Mack AC “Bulldog” truck which his father, Hugh Leir, purchased after the First World War for use at the family’s sawmill in Penticton. The $30,000 in proceeds are being donated to the South Okanagan Similkameen Medical Foundation’s campaign to provide medical equipment for the new patient care tower at PRH. “It’s a bit of a family heirloom. It is a very rare vehicle,” he said. “They were war assets and my Dad bought two of them. This was the only one left.” The Mack was one of several hard rubber-tired trucks working at the mill at the time, hauling lumber and shunting freight cars in the yards. “My brothers and I learned to drive it when I was a kid,” Jim recalled. “It had to be cranked to start it and the radiator often boiled over, throwing scalding water onto our laps.” It took Jim about five years to restore the truck some 25 years ago. “When my father sold the sawmill in 1966, I rescued what remained of the truck and stored it until I began the restoration in 1981.” Jim took it to several classic truck shows throughout Western Canada and the U.S., including the Peach City Beach Cruise in Penticton. He recently sold it to a friend in Kelowna who also collects vintage vehicles. “I wanted it to stay in the Valley, being a vintage piece. It’s gone to a great home.” Jim still owns a number of other antique vehicles kept on his current property in Summerland, including a 1913 KisselKar. Despite the German-sounding name of the company’s founding family, these cars were made in Wisconsin. Other vehicles remaining in his collection include a 1935 Ford pickup truck and 1948 International 10-ton flatdeck. Jim was born in 1928, one of 11 children who lived at their family’s distinctive stone house, now home to the Leir House Cultural Centre. His oldest sister Marjorie, turned 100 last year, although two brothers and two sisters have passed away. The Leir home in the 1930s and ‘40s was situated in what at that time was considered the outskirts of Penticton. “It was in the centre of 10 acres of cactus, rocks and trees. It was a great place to grow up, we didn’t have to go out of the yard,” he said. The current Penticton Regional Hospital property was the site of a “hobo jungle” during the Depression Years, as many jobless men camped out next to Ellis Creek. “We knew all these guys,” Jim said. “They used to go by our place on the way into town.” Now Leir is happy to see the money from the sale of the 98-year-old Mack truck help out the Foundation’s PRH tower campaign, noting his family’s long-held ties to the community and the hospital. “I’m very pleased to be able to do it,” he said. “It’s a good place to put the money.” Construction of the $312.5-million PRH project starts later this spring. http://sosmedicalfoundation.com/jim-leir-turns-antique-truck-into-prh-gift/ .

The Daily Mail / May 19, 2016 Three people have been seriously injured and two others left needing hospital treatment after four Army vehicles driving in convoy crashed into each other and an articulated lorry. Four men and a woman were all injured in the horror crash which occurred on the A17 near Swineshead Bridge in Boston, Lincolnshire, just before midday today. Police said four military Rheinmetall-MAN HX-Series 4x4 tactical trucks were driving in convoy when they crashed into each other. A tractor-trailer travelling behind them also went into the back of the last truck and jack-knifed into the other vehicles. Rescue crews, including four air ambulances, four fire engines and four police cars, were all scrambled to reports of a 'huge collision', while witnesses said it sounded 'like a bomb going off'. Fire crews spent two hours cutting the drivers of the trucks and the HGV out of the wreckage. Three men were airlifted to hospital - two to the Queen's Medical Centre (QMC), in Nottingham, and one to Addenbrooke's, in Cambridge - and a woman was taken to QMC by land ambulance. One other person was also injured in the collision. A worker from the nearby Adrian Padley Motors, who witnessed the crash, there was an 'there was an almighty bang and the sound of screeching metal'. He added: 'The four Army trucks all went into each other and a lorry travelling behind them smashed into the last one and spun round to hit the others. 'It is a miracle anyone came out of it alive. I don't know why the front truck suddenly stopped but it was a huge collision. 'It was lucky the road wasn't very busy. All four drivers of the Army trucks and the lorry driver were cut out of the cabs which had been virtually flattened.' Luke Spencer, who works nearby, said: 'We heard it. It was a screech, a bang and then loads of screams. 'It was like a bomb going off.' Police closed the road in both directions while the drivers were rescued and the road cleared of debris. A spokesman for Lincolnshire Police said: 'The RTC happened shortly before noon and involves four trucks. Each of the drivers has been injured. 'Three men have been airlifted to hospital - two to the Queens Medical Centre, in Nottingham, and one to Addenbrookes, in Cambridge - and a woman has been taken to QMC by land ambulance. 'The road has been closed at Bicker Bar roundabout and at the junction with the Boardsides turnoff. Diversions are in place.' Armed services spokesman Squadron Leader Martin Tinworth said: 'It's Army units. It's some personnel that have been injured.' Lincolnshire Fire and Rescue said there were 32 firefighters at the scene. Photo gallery - http://www.dailymail.co.uk/news/article-3599441/Four-people-airlifted-hospital-four-Army-trucks-collide-HGV-horror-crash.html

Transport Engineer / May 19, 2016 Chilled food logistics business Samworth Brothers Supply Chain has placed its largest ever single order for trucks, 35 Volvo FH tractors – also the first Volvo vehicles to join the operator’s 100-strong fleet. Key to the deal was Volvo’s offer of one white-liveried FH-500 vehicle with I-Shift dual clutch and extra seats for Samworth’s new driver academy. “A significant factor behind Volvo’s success in winning the 35-truck order was the fact that they grasped the driver academy concept and worked with us jointly to come up with the special training vehicle,” says general manager Matthew Preston. “We wanted the best truck for exclusive use by the driver academy and, with the FH-500 I-Shift Dual Clutch with its extra seating, we believe we have that.” The other 34 vehicles are all FH-460 6x2 tractors units and Volvo was also chosen for its fuel performance, as Preston explains: “We looked at five makes over a four-week period. Each manufacturer recommended the truck type they offered for the fuel trial and we measured fuel usage via the truck’s telematics and also at the diesel pump.” Each vehicle was tested with a mix of single- and double-deck trailers. So far, he says, the FH tractors are performing “above average” for the fleet. Driver acceptance was also crucial and, of the shortlisted vehicles, all drivers voted for Volvo. The trucks are maintained in-house by the Samworth Brothers Supply Chain vehicle maintenance unit at Leicester. Support is provided by Volvo Truck and Bus East Anglia’s dealerpoint at Bardon, which was also involved in the training and handover process. “The experience of moving from one brand to another was handled highly professionally and to our satisfaction,” adds Preston. .

Continuation of contracting truck markets: Daimler Trucks changes its outlook for 2016 Daimler Press Release / May 19, 2016 EBIT from ongoing business and unit sales to be significantly lower in 2016 than in 2015 2016 will nonetheless be one of Daimler Trucks’ most profitable years Weaker development especially in NAFTA region and Middle East Unchanged outlook for Group EBIT from ongoing business The world’s major truck markets are in a period of sustained contraction. Daimler Trucks, the leading truck manufacturer worldwide, has therefore adjusted its outlook for this year. Daimler Trucks now expects EBIT from the ongoing business and unit sales to be significantly lower in 2016 than the very good levels of last year. In 2015, Daimler Trucks achieved the best EBIT in its history of €2.7 billion. Profitability this year is to remain very high also after the adjusted outlook. Dr. Wolfgang Bernhard, Member of the Board of Management of Daimler AG and Head of the Daimler Trucks and Daimler Buses divisions, stated: “The situation of global truck markets has been challenging for several months and has recently got worse. Especially in the NAFTA region, but also in the Middle East, demand is weaker than previously expected. We have therefore adjusted our outlook for the rest of this year. Although the forecast is for lower numbers than in 2015, we continue to anticipate a high level of earnings in the full year. 2016 will be one of Daimler Trucks’ most profitable years, due not least to the successful continuation of our efficiency actions.” In recent weeks, the situation in major markets has changed significantly. In the NAFTA region, Daimler Trucks is defending its clear market leadership with its strong product portfolio. At the same time, there has been no revival of orders received, especially in the heavy-duty segment (Class 8). The overall market for Class 6 to 8 trucks will contract by approximately 15% in 2016. This can be only partially offset by the market development in Europe. Although demand in Europe is significantly higher than last year, the competitive situation has become much more intense and is influencing market players’ pricing. Another factor is that the persistently low price of oil is having a sustained negative impact on demand in the Middle East. Furthermore, the development of markets in Brazil, Indonesia and Turkey is negative. The outlook for those markets has been worsening since the beginning of the year and continues to worsen. The Brazilian market will contract by about 20%, now that the political and thus also economic situation there has deteriorated once again. The same applies to Indonesia, where Daimler Trucks anticipates a decrease of about 15%. Demand in Turkey will also be substantially lower than last year, due not only to purchases being brought forward to 2015, but also to very negative geopolitical conditions. Against the backdrop of this development, Daimler Trucks will intensify the efficiency actions that are already being taken. In Brazil, further workforce adjustments will have to be made, for which Daimler Trucks has made a voluntary severance offer. In this context, Daimler Trucks anticipates expenses totaling up to €100 million as a special reporting item in 2016. However, nothing has changed with regard to the medium- and long-term growth drivers and success factors for the key markets of Daimler Trucks. “Along with managing volatile truck markets, we continue to pursue our strategy systematically. With our technologically leading position, global presence and intelligent platform concepts, we will take further determined measures also in the future,” stated Bernhard. Daimler continues to assume that Group EBIT from the ongoing business will increase slightly in the year 2016.