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FYI - Renault and Volvo worldwide truck deliveries in year 2015, versus the same period in 2014: January 2015 - Renault up 24% / Volvo down 4% February 2015 - Renault up 26% / Volvo down 13% 1st quarter 2015 - Renault up 35% / Volvo down 8% April 2015 - Renault up 12% / Volvo up 9% May 2015 - Renault up 5% / Volvo down 1% 2nd quarter 2015 - Renault up 7% / Volvo down 4% July 2015 - Renault up 8% / Volvo down 5% August 2015 - Renault up 60% / Volvo down 6% 3rd quarter 2015 - Renault up 20% / Volvo down 2% October 2015 - Renault up 16% / Volvo down 1% November 2015 - Renault up 54% / Volvo down 10% 4th quarter 2015 - Renault up 29% / Volvo down 7% Full Year 2015 - Renault up 22% / Volvo down 4% Renault brand truck sales rose in every month of 2015. Renault brand truck sales rose in excess of 10% during 9 of those months.

Volvo Group Press Release / April 22, 2016 Maintained profitability on slightly lower sales In the first quarter of 2016, profitability was maintained thanks to a lower cost base and focus on adapting to changes in demand. This was despite slightly lower revenues. Sales amounted to SEK 71.7 billion (US$8.8 billion), a decline of 4%, half of which was due to currency effects. Operating income totaled SEK 5.3 billion (US$650.8 million), representing an operating margin of 7.5%. Martin Lundstedt, President and CEO - In Q1, 2016 net sales decreased by 4% to SEK 71.7 billion from SEK 74.8 billion in Q1 2015. Adjusted for currency movements and acquired and divested units, sales decreased by 2%. - Operating income amounted to SEK 5.344 million, compared with SEK 7.066 million in Q1 2015, excluding restructuring charges of SEK 229 million in Q1 2015. - Operating income in Q1 2016 includes a capital gain of SEK 885 million from the sale of the external Volvo IT operation, while operating income in Q1 2015 included a capital gain of SEK 2,471 million from the sale of shares in Eicher Motors Limited [India]. - Adjusted for capital gains and restructuring charges (in 2015), operating income amounted to SEK 4.459 billion (US$547.5 million), down from 4.595 billion in Q1 2015, corresponding to an operating margin of 6.2% (versus 6.1 in Q1 2015). - Currency movements had a negative impact of SEK 417 million (US$51.2 million) on operating income. - Operating cash flow in the Industrial Operations was negative in an amount of SEK 10.4 billion (US$1.28 billion) (down 1.7%) ----------------------------------------------------------------------------------------------------------------- CEO’S COMMENTS Maintained profitability on slightly lower sales In the first quarter, profitability was maintained thanks to a lower cost base and focus on adapting to changes in demand. This was despite slightly lower revenues. Sales amounted to SEK 71.7 billion, a decline of 4%, half of which was due to currency effects. Operating income totaled SEK 5.3 billion, representing an operating margin of 7.5%. Truck markets are following the trend we have seen since last year. While truck deliveries declined 5% in total, we succeeded in improving our operating margin in the truck business to 7.8%. Demand in North America is slowing from high levels. In the first quarter, the organization did a good job in adjusting capacity for lower volumes. Volumes in South America decrease due to the already weak demand in Brazil. It will be some time before demand improves. Asia is showing a stable trend. The European market is performing strongly and order intake increased by 23%. We are pleased that both Volvo and Renault Trucks continue to grow. Volvo Trucks launched a number of product news in the construction segment. Volvo CE’s sales decrease marginally. Through a strong focus on profitable product segments and markets, we achieved the same margins as in the first quarter of last year. The market share continued to increase in the heavy segment. We launched several new products at Bauma, the leading construction industry show. Most attention was focused on our new articulated hauler and our new excavator, both with load capacity increases that will generate significant productivity gains for customers and mean entry into new segments. Sales developed well for buses coming from strong order intake at the end of last year, and this trend has continued into the first quarter. Despite strong deliveries during the quarter, profitability was adversely impacted by currency effects. Volvo Penta performed well during the first quarter, with increased sales and strong profitability. Our financial services operation is an important part of our total offering. Earnings rose slightly compared with the year-earlier quarter, and return on equity was 13.5%. During the quarter, we reported a capital gain of SEK 885 million from the divestment of parts of our Volvo IT operation. In the long term, the deal with HCL will also generate significant cost savings and allow the Volvo Group to concentrate the remaining IT competence around the core business. As of this quarter, sales of services and spare parts are disclosed separately. This is an important part of our business, and in combination with our products they create tailor made customer solutions, greatly contributing to the profitability of our customers through increased availability, improved reliability and lower costs. Sales of services and spare parts, excluding financial services, accounted for 23% of net sales. During the quarter we also implemented our new brand based organization for trucks with clear profit responsibility for each brand and business area. Furthermore, a new governance model is implemented with the aim of further increasing customer focus, moving decisions closer to customers and securing clarity about our areas of improvement. Through continuous improvements we can create further efficiency in important areas such as quality, delivery precision and service offerings and thereby an improvement in customer satisfaction. This will step by step continue to improve the Group’s profitability. Martin Lundstedt, President and CEO ----------------------------------------------------------------------------------------------------------------- The Numbers In the first quarter of 2016, deliveries from Volvo Group’s truck operations amounted to 48,037*, down from 51,657 in Q1 2015. Volvo brand sales fell to 24,315 units globally and 5,797 in North America, down 8 percent and 41 percent respectively compared with Q1 2015. Mack brand sales fell to 5,176 units globally and 4,843 in North America, both down 21 percent compared with Q1 2015. Continuing to lead the group with strong sales, Renault Truck sales rose to 11,222 units globally and 10,065 in Europe, rising 8 percent and 13 percent respective compared with Q1 2015. UD (Nissan Diesel) brand sales rose to 5,397 units globally and 4,394 in Asia, up 9 percent and 10 percent respectively compared with Q1 2015. * Excluding Dongfeng, Dongvo (UD China) and VE Commercial Vehicles (Eicher) For a PDF version of the report, please click here: http://www.volvogroup.com/SiteCollectionDocuments/VGHQ/Volvo%20Group/Investors/Financial%20reports/2016-q1/q1_2016_eng.pdf

Sydsvenskan / April 22, 2016 Profit and orders fell for truckmaker Volvo, but not as much as analysts had expected “We had a decent quarter,” says CEO Martin Lundstedt. Truck and construction machinery manufacturer AB Volvo reported a pretax profit of 5.299 billion kronor for the first quarter of 2016. That compares with profit of 5.697 billion crowns same period the year before. Analysts had on average expected a profit of 4.356 billion kronors. “It's still about making sure that our cost savings bite, and they do. We are strengthening the underlying profitability of the truck business, going from 7.3 to 7.8 percent,” said Martin Lundstedt about the past quarter. Lundstedt thinks that the company has a good compliance and manages to adapt to market fluctuations, above all in North America, where order intake was halved from high levels, and deliveries declined by over 30 percent. About 1,200 people, almost every tenth employee, Volvo has been laid off there. At the same time, business is good in Europe where order bookings rose 23 percent during the quarter. Question: Sales have been stagnant for several quarters, and now falling slightly. When will it turn around? Lundstedt: The main reason for that is how the market conditions looks, not our relative market position. We also see that we are taking market share in a number of key areas, including in Europe. Turnover amounted to 71.707 billion kronor, compared to 74.788 billion kronor a year earlier. Order intake, net, falling markedly. During the first quarter amounted to 50,046 vehicles against 56,770 a year earlier. Analysts had on average expected, however, an even larger decline, to 48,871 trucks. Deliveries in the first quarter also fell to 46,110 trucks, down from 48,326 trucks in the first quarter of 2015. Martin Lundstedt noted however that the operating margin in the truck segment ended up at 7.8 percent in the first quarter. "Volumes in South America decreased due to the already weak demand in Brazil. It will be some time before demand improves. The trend in Asia is stable. The European market is developing strongly and we note an increase in orders of 23 percent," said Lundstedt. Currency movements during the quarter have reduced earnings by 417 million. It occurred particularly in the bus segment, which experienced good sales after a strong showing of orders at the end of 2015. "Shipments in the quarter were high, but profitability was negatively affected by currency effects," said Lundstedt. After reporting 660 million kronor of credit losses in China for the 2015 fourth quarter, AB Volvo's construction machinery unit Volvo CE reported sales of 149 million kronor in China for the first quarter while continuing to lead the company’s credit losses.

DAF Trucks Prague / April 21, 2016

Economic Columnist Torbjörn Isacsson, Göteborgs-Posten / April 22, 2016 Expectations of AB Volvo's quarterly report are large and how it will go forward with Chinese partner Dongfeng Today, Volvo Group will present the first quarter report of what is now a largely new company. And the reaction was expectations for big improvements going forward. Volvo concluded a report heavy week on the Stockholm Stock Exchange. In a fairly short time, the truckmaker has undergone major changes in board members, management and structure. In terms of ownership, Swedish investment giant Industrivärden remains Volvo Group’s dominant investor. But it is a completely new Industrivärden as Volvo’s board is represented by their new CEO, Helena Stjernholm. With the spoils are also other new requirements of ownership. Financial newspaper Dagens Industri reports that Board Chairman Carl-Henric Svanberg spearheaded two years to ensure that profitability is increased. Otherwise, Dagans Industri correctly predicted that previous Scania chief Hakan Samuelsson, currently CEO of Volvo Cars, would join truckmaker AB Volvo’s board at the annual shareholders meeting last week. After this year's meeting, eight of AB Volvo’s eleven board members have been replaced since 2013. It’s a dramatic change in such a large company. Nevertheless, there might still be additional changes. After bring in old Scania people at the board level, Scania-fication at the management level has occurred to an even greater extent since ex-Scania President and CEO Martin Lundstedt took the helm at Volvo's leadership. And it's not just top managers who were pulled in, in some cases, they have even brought their secretaries. For a Volvo, which for decades has been a pronounced senior executive-led company, the new line-up of ownership, directors and top management is revolutionary in scope. It is arch rival Scania that so clearly represents the new influences at Volvo, and the risks of internal culture clashes should not be underestimated. Most outsiders agree that it was necessary for Volvo to change. On the structural side, Martin Lundstedt has already attacked the strategies put forward by AB Volvo’s former management consultant McKinsey & Company. In the future, AB Volvo will be far less grandiose, and more about Scania-like organic growth and improved profitability. “We will continue to decentralize and use the power of the organization to drive the company forward,” said Martin Lundstedt. Volvo has long suffered from poor profitability, while the market is weak in many areas. The company has made some tough cuts to realize savings, which will hopefully be reflected in the earnings. With today's report, a great deal of attention will be paid to how AB Volvo’s joint venture* with Chinese truckmaker Dongfeng is developing. If successful, the JV would make Volvo the largest truckmaker in the world by volume, but profitability is far from proven world class. * In January 2015, Former AB Volvo CEO Olof Persson spent US$886 million to acquire a 45 percent non-controlling stake in Dongfeng Commercial Vehicles, one of Dongfeng Group’s two heavy truck divisions. Volvo first began talks with Dongfeng in 2007, initially demanding an equal 50/50 partnership. Dongfeng steadily refused, and Volvo from 2011 conceded to accepting a non-controlling minority stake.

A lot of truth to what you said. Many would argue the United States has not had a "great" president since Reagan. In other words, for almost three decades. Many dislike Obama, and I understand why. But I humbly suggest that George W. Bush was every bit as bad. And the stature of H.W. Bush has diminished over time.

Overdrive / April 21, 2016 Paccar and Allison Transmission have partnered to release the Allison TC10 fully automatic transmission in new Peterbilt and Kenworth trucks. The TC10 transmission will be offered in Kenworth T680 and T880 models and Peterbilt Models 567 and 579 with both Paccar and Cummins engines. “We are looking forward to offering the TC10 to our Peterbilt and Kenworth customers,” said Landon Sproull, Paccar assistant vice president. “Allison’s reputation for quality and technology is well known.” The TC10 is offered with 10 forward speeds and two reverse, and it uses a patented torque converter and a twin counter shaft design. The transmissions include a five year or 750,000-mile warranty. Related reading: http://www.bigmacktrucks.com/topic/42167-international-prostar-to-feature-allison-tc10-automatic-transmission-with-cummins-isx15/#comment-307179 http://www.bigmacktrucks.com/topic/41589-allison-cites-fuel-savings-using-tc10-transmission/#comment-302188 http://www.bigmacktrucks.com/topic/37502-driving-the-international-prostar-with-allison-tc10-transmission/#comment-264588 http://www.bigmacktrucks.com/topic/34803-allison-tc10/#comment-234387

Heavy Duty Trucking / April 21, 2016 U.S. Senator Tom Carper (D-Del.) has introduced a bill to extend the Diesel Emissions Reduction Act (DERA) through 2021 to continue to provide grants from the U.S. Environmental Protection Agency to reduce emissions from older diesel-powered trucks and equipment. The act, which was first passed in 2005, was first renewed in 2010. It's set to expire this year, and has provided about $30 million a year in EPA-administered federal grants. Carper introduced the renewal bill April 20 that includes co-sponsors Sens. James Inhofe (R-Okla.), Barbara Boxer (D-Calif.), and Shelley Moore Capito (R-W.Va.). "Retrofitting older, diesel engines with American-made technology can provide enormous environmental and public health benefits, while creating jobs here at home," Carper said. "This program continues to be a bipartisan, commonsense approach to curbing toxic diesel emissions, promoting public health, and spurring economic growth." The DERA program helps reduce emissions from older diesel powered vehicles and equipment by providing incentive funding through a competitive process for equipment owners and operators toward the purchase of new technology engines, approved emission controls or retrofit devices to reduce emissions, or total engine replacements. "While new diesel technology and fuels have achieved near zero emission levels, DERA is the leading program that upgrades or replaces older diesel engines with newer technology to reduce emissions," said Allen Schaeffer, executive director of the Diesel Technology Forum. According to a new report issued by the U.S. Environmental Protection Agency in March, more than 73,000 older diesel powered engines were upgraded or replaced between 2008 to 2013 with DERA funding, which resulted in clean air benefits and fuel savings. The DERA funding retrofitted or replaced 73,000 vehicles and equipment; reduced particulate matter emissions by 14,700 tons; saved 450 million gallons of fuel; and generated almost $13 billion in environmental benefits, according to the report. The program awarded $520 million in grants. “The federal share of DERA funding represents a small share of the total cost of each project to encourage owners to retrofit or replace with new clean technologies,” Schaeffer said.

Earnings Watch: Lower Truck Sales Hit Dana, Rush Enterprises' Profits Heavy Duty Trucking / April 21, 2016 A truck component manufacturer and one of the nation’s largest truck dealer networks continue the trend of many businesses reporting lower first quarter earnings as truck sales are down from a year ago. Dana Holding Corp. saw its profit decline by 25.6% to $45 million from a year earlier. Earnings per share moved lower from 38 cents to 30 cents, missing a consensus estimate from Zacks Investment Research by 9 cents. Revenue fell 9.9% from a year earlier to $1.45 billion, with foreign currency exchange rates lowering this by figure by $72 million. The Ohio-based maker of Spicer brand truck drivetrain components also saw its light vehicle business sales drop from $637 million a year earlier to $613 in the most recent quarter, also negatively affected by foreign currency rates. Sales in Dana's commercial vehicle driveline business fell by 23.1% to $333 million. “Lower volumes reduced [commercial] sales by $79 million, primarily due to higher share with a key customer in the first half of last year, weaker Class 8 production in North America this year, and weaker demand in Brazil, where medium- and heavy-truck production was down 35% from first-quarter 2015,” Dana said in a statement. “Foreign currency, principally a weaker Brazilian real, lowered sales by an additional $20 million.” Company sales were also lower in the quarter for Dana’s off-highway and power technologies businesses. However, its light vehicle driveline and power technologies business units posted combined currency-adjusted sales growth of $28 million, 3% higher than a year ago, driven by higher light-vehicle end-market demand in North America and Europe, as well as new business gains, according to the company. Rush Enterprises Net Income Falls 85.7% The truck mega-dealer network Rush Enterprises Inc. reported its first quarter profit plummeted to $2.4 million from $16.8 million a year ago but says it has already started cost-cutting measures, including closing some locations. Earnings per share fell to 6 cents from 41 cents as revenue fell 10.3% to $1.07 billion. Adjusted earnings per share came in at 18 cents, 2 cents better than expectations by Zacks Investment Research. "As we expected, increased capacity from near-record Class 8 truck sales in 2015 significantly reduced used truck residual values, and continued softness in the energy sector had a negative impact on our new Class 8 truck sales, aftermarket revenues and profitability this quarter," said W.M. "Rusty" Rush, chairman, CEO and president. "Our Class 4-7 new truck sales, however, remained strong, slightly outpacing the U.S. medium-duty truck retail sales.” Part of Rush Enterprises’ expense reduction plan is the consolidation of 12 Navistar locations in Georgia, Illinois, Indiana, North Carolina, Ohio, Oregon and Utah in the first half of the year. The company has already consolidated its Alice, Texas, location into a newly constructed dealership in Corpus Christi. “This was not an easy decision to make,” said Rusty Rush. “However, with changes in technology and, in certain cases, the local markets, we were no longer able to justify operating these locations in such close proximity to our other dealerships." He said the company does not expect to realize the full benefit of these changes until mid-year, and it caused the company to incur an $8.1 million restructuring charge, reducing earnings per share by 12 cents in the first quarter. According to Rush Enterprises, while U.S. Class 8 retail sales were 53,203 units in the first quarter, down 6% over the same time period last year, the company’s Class 8 sales decreased 34%. Market analysts are forecasting U.S. retail sales for Class 8 trucks to be 207,000 units in 2016, an 18% decrease compared to 2015, but Rush said he believes sales this year could be less, as excess truck capacity and low used truck valuations may prompt many fleets to delay new Class 8 truck purchases. Rush's Class 4-7 medium-duty sales increased 22% over the first quarter of 2015, accounting for 5.7% of the total U.S. market and also outpacing U.S. Class 4-7 truck sales in the first quarter, which increased by approximately 20% over the first quarter of 2015. Market analysts are forecasting U.S. retail sales for Class 4-7 vehicles to reach 220,850 units in 2016, a 1% increase over 2015. "Our medium-duty business remained strong this quarter, primarily due to stable demand across the country from a range of market segments," said Rusty Rush. "Our solid sales performance was also the result of several large fleet deliveries into the lease and rental and recycling markets. We continue to see strong sales of our ‘Ready-to-Roll' work-ready inventory particularly in Florida and California. "With the forecast for Class 4-7 new truck sales relatively flat over 2015, we expect our solid sales performance to continue throughout the year, keeping pace with the U.S. Class 4-7 retail market.” Rush’s aftermarket business accounted for approximately 67% of the company's total gross profit in the first quarter of 2016, with parts, service and body shop revenue up 1.5% as compared to the first quarter of 2015, according to the company "Energy sector activity continued to decrease and adversely impact our parts and service business, but we were able to help offset some lost aftermarket revenues with general maintenance and repair of vehicles, particularly in the western and southeastern parts of the country, largely driven by increased construction activity and improved economic conditions in these regions," said Rush. Many analysts have been expecting overall corporate earnings in the first quarter to be down from a year ago for a variety of reasons, including a U.S. dollar being strong against foreign currencies, reduced manufacturing output the past several months, lower oil prices causing some energy operations to cut back, and generally anticipated sluggish overall economic growth. So far, such conditions have contributed to three major fleets – Knight Transportation, Landstar Systems and Werner Enterprises – reporting lower first quarter earnings earlier this week.

Senate Bill Includes Hours-of-Service Fix; Demands Speed-Limiter Rule Heavy Duty Trucking / April 21, 2016 The transportation spending bill advanced by the Senate Appropriations Committee on April 21 fixes wording in earlier legislation that muddied what the status of the 34-hour restart would be if a study by the Department of Transportation cannot show that the restart changes benefit drivers. The HOS provision in the FY2017 Transportation, Housing and Urban Development (THUD) appropriations bill also aims to prevent drivers from abusing the restart rule by capping the amount of time they can spend behind the wheel or on duty at 73 hours per week. The bill’s language puts it this way: “If the 34-hour restart rule in effect on June 30, 2013, is restored, then drivers who use the 34-hour restart may not drive after being on duty more than 73 hours in a 7-day period." The American Trucking Associations told HDT it appreciated that the committee included a provision in the THUD bill that will enable truck drivers to “continue utilizing the hours-of-service restart provision if a congressionally mandated study is unable to demonstrate the July 2013 restart restrictions improve driver safety and health.” As for the hours-of-service cap, ATA stated that it knows that “while professional truck drivers do not work wildly inflated weekly work hours that anti-truck groups claim, we understand the Subcommittee’s sensitivity to claims [that] a handful of drivers might abuse the restart rule to work long hours in a week. We look forward to working with members in both chambers and on both sides of the aisle to ensure that professional truck drivers continue to have the opportunity to get extended off-duty rest periods that reset their work week.” ATA added that the Senate language appears to “retain the ability of drivers to reset their work weeks by taking an extended 34-hour off-duty period, with the recognition they are still limited to 73 hours of work (driving or other duties) in seven calendar days.” The $56.5 billion bill, which passed 30-0 with strong bipartisan support, also directs the Transportation Department to issue its proposed rule on speed limiters for Class 7 and 8 trucks by April 28, 2016. The bill includes $16.9 billion in discretionary appropriations for the Department of Transportation, which the Senate committee said was $1.7 billion below the FY2016 enacted level and $2.5 billion below the President’s request. “Within this amount, funding is prioritized on programs to make transportation systems safe, efficient, and reliable. The bill ignores the budget request to shift certain programs from discretionary to mandatory spending,” stated the committee. The legislation also directs that $44 billion from the Highway Trust Fund be spent on the Federal-aid Highways Program, consistent with the FAST Act highway bill. The committee said the THUD bill “continues to allow state departments of transportation to repurpose old, unused earmarks for more important infrastructure projects.”

Senate bill retains 34-hour restart, could rework hours of service rules Commercial Carrier Journal (CCJ) / April 21, 2016 The U.S. Senate’s Appropriations Committee April 21 passed 30-0 a bill that corrects a legislative mess-up from December that put the 34-hour restart in jeopardy. The bill makes clear that the 34-hour restart remains available for use by truck operators should a pending study by the Department of Transportation find that pre-July 2013 restart rules are more effective for truckers’ fatigue levels than those that took effect July 1, 2013. Should that be the case, the bill would also kick in a few changes to hours of service limits. Specifically, it would set a 73-hour cap on the amount of time truckers can spend on duty in any consecutive seven-day period if utilizing a 34-hour restart. According to the bill’s text obtained by CCJ, “the 7-day measurement period moves forward 1 day at midnight each day.” Current 60 hours in 7 days and 70 hours in 8 days provisions would remain intact. The legislation, the 2017 FY Transportation and Housing and Urban Development funding bill, only stipulates that the new 73-hour limit would come into effect following the completion of a 34-hour restart. If the DOT study finds otherwise — that the July 1, 2013-enacted restart regs are the safer rules — then hours of service regulations from July 2013 would go back into effect. In that case, truckers could use a 34-hour restart to reset their weekly clock, but the restart would be required to contain two 1 a.m. to 5 a.m. periods and would be limited to use once per week. The new 73-hour cap would not go into effect in such a scenario. The changes to truckers’ hours of service rules were prompted by the need for Congressional action to fix a technical problem enacted by last year’s omnibus funding act. The provisions in that law pertaining to the 34-hour restart could kill the 34-hour restart entirely, per some interpretations. Such a scenario would deny truck drivers the ability to use a restart to reset their weekly on-duty clock, if needed. The Senate’s action with the Transportation and Housing and Urban Development (THUD) bill shows Congress may intend to do more than clarify its December 2015 mess-up. Lawmakers and lobbyists appear instead to be using the need for Congressional action as a means to circumvent the Federal Motor Carrier Safety Administration and the formal executive rulemaking process to enact hours changes. The hours reforms in the Senate bill have several major hurdles to clear before being enacted, however. The bill must still be passed by the full Senate, where amendments may be offered to change the provisions or remove them entirely. The same provisions must also be taken up by the U.S. House and passed there. The two chambers have not passed a lone Transportation and Housing and Urban Development (THUD) funding bill in several years, settling for so-called omnibus funding bills late in the year. If that’s the case this year, the provisions would need to be included in such a bill and passed by both chambers of Congress. Other trucking-related initiatives in the bill include a deadline for DOT to finish work on a rule to mandate the use of speed limiters on heavy trucks and assign more federal funds to the deployment of autonomous vehicles. CCJ will post more on the trucking-related provisions within the bill when it’s text becomes available.

Transport Topics / April 21, 2016 A fiscal 2017 transportation funding bill that would set the allowable time truckers may work before taking a break at 73 hours per week was advanced by a Senate panel April 21. The Appropriations Committee voted 30-0 to report a $56 billion transportation funding bill to the floor. But the committee adjourned without engaging in debate over trucking policies related to the allowable workweek schedules for truckers. Republican leaders who control the chamber have not indicated when the bill, which would provide funding for transportation programs, would be debated. The hours-of-service provision in the bill would retain the ability of drivers to reset their workweeks by taking an extended 34-hour off-duty period, with the recognition they still be limited to 73 hours of work, whether driving or other duties, in seven calendar days. “A driver who uses that restart rule may not drive after being on duty more than 73 hours in any period of seven consecutive days,” according to the bill. The provision targets a technicality pertaining to truckers’ rest rules in a fiscal 2016 funding law, the interpretation of which could result in relying on the rolling recap of weekly work limits of 60 hours in seven days and 70 hours in eight days. The fiscal 2016 funding law was intended to address only the 34-hour restart having to do with the consecutive 1 a.m.-to-5 a.m. rest periods, which took effect in 2013. The restart regulation was suspended upon enactment of a fiscal 2015 funding bill. American Trucking Associations welcomed the hours-of-service language in the fiscal 2017 funding bill. “ATA is pleased that the committee took such swift action on a bipartisan fiscal-year 2017 Transportation, Housing and Urban Development appropriations bill, which includes a provision that underscores Congress’ intent that America’s truck drivers can continue utilizing the hours-of-service restart provision if a congressionally mandated study is unable to demonstrate the July 2013 restart restrictions improve driver safety and health,” ATA Press Secretary Sean McNally told Transport Topics. While ATA and segments of the transportation sector expressed strong concern over federal hours-of-service regulations, a few groups have come out against the provision. The Advocates for Highway and Auto Safety has accused trucking interests of “writing a brand new regulation behind closed doors.” “There was absolutely no discussion or debate about a controversial provision slipped into the bill that will rewrite the Obama Administration’s truck driver hours-of-service rule and promote even more fatigue among truck drivers,” said Cathy Chase, the group’s vice president of governmental affairs, on passage of bill. “This action is especially egregious considering tomorrow marks the one-year anniversary of the devastating crash which killed five nursing students from Georgia Southern University. The driver in that crash had a history of falling asleep at the wheel in previous incidents.” Also, the fiscal 2017 funding bill would require the U.S. Department of Transportation to advance a rule on speed limiters for trucks. A segment of the trucking industry backs a proposal requiring speed limiters. Overall, the fiscal 2017 funding legislation would provide nearly $900 million for the National Highway Traffic Safety Administration, $644 million for the Federal Motor Carrier Safety Administration’s safety initiatives, $525 million for an infrastructure grants program and $259 million for the Pipeline and Hazardous Materials Safety Administration. “This bipartisan bill makes important investments in our nation’s infrastructure,” Collins said April 21. Added Sen. Jack Reed of Rhode Island, the top Democrat on the transportation funding panel: “The new funding and policies in this bill will help improve the safety of our roads.”

Earnings Watch: Swift Profit Falls Nearly 16%, Forward Air Doubles Heavy Duty Trucking / April 21, 2016 Truckload carrier Swift Transportation Co. saw net income and revenue decline in the first quarter compred to 2015, while time-definite transportation and logistics provider Forward Air Corp. saw its numbers double. Net income for the Arizona-based fell 15.7% to $31.9 million, from 26 cents per share to 23 cents. Adjusted earning per share were 25 cents, beating a consensus estimate by Zacks Investment Research by 3 cents. Total revenue fell 4.7% to $967.8 million, but revenue minus fuel surcharge improved 1.3% to $906.9 million. According to Swift, the first quarter began with a soft freight environment, which caused the total loaded miles for combined trucking operations to be down roughly 4% on a year-over-year basis through January. “Although freight volumes improved throughout the month of February, March proved to be challenging as freight volumes again weakened year over year, causing our first quarter 2016 combined trucking operations total loaded miles to decrease 1.5% compared to the first quarter of 2015,” the company said in its letter to shareholders. Because of this, Swift said it has moved to downsize its combined trucking fleet by delaying equipment purchases while increasing tractor disposals. “We expect these initiatives to reduce consolidated average operational truck count by roughly 200 units when comparing our first quarter 2016 to our second quarter of 2016, but we will continue to monitor the market and will adjust the fleet up or down as needed,” the company said. Swift said the pricing environment in the first quarter under pressure from weak demand trends and excess capacity. “Pricing was especially difficult within our Intermodal and Swift Refrigerated segments, as we saw intermodal providers reduce rates in an attempt to gain market share. We strategically resisted the impulse to lower our intermodal pricing in response but instead decided to remain disciplined to moving only intermodal freight that meets our pricing and network standards” the company said. “To help offset these pressures, we also implemented several short- and long-term intermodal cost control initiatives.” Intermodal segment revenue less fuel surcharge dropped by 1.8% to $75.9 million in the first quarter of 2016 compared to the first quarter of 2015. Swift said this was primarily driven by a 2.2% decrease in load counts but partially offset by a 0.4% increase in revenue minus fuel surcharge per load. The company's refrigerated operations suffered a loss of business resulting from a change in strategy by two key customers, accounting for most of a $7.5 million drop in revenue minus fuel charge in this segment, which fell to $76.9 million, Swift said. However, the company found new business, most of which is scheduled to begin in the second quarter. Swift said its truckload segment saw first quarter revenue minus fuel surcharges drop $13 million from a year ago to $455.8 million, driven mainly by a 3.4% reduction in loaded miles driven. That was partially offset by a 0.6% year-over-year increase in revenue minus fuel surcharge per loaded mile. Dedicated segment revenue minus fuel surcharge grew 12.1% to $219.8 million in the first quarter of 2016 compared to the first quarter of 2015. “This growth was driven by a 9.2% increase in weekly revenue minus fuel surcharge per tractor to $3,500 primarily due to improved pricing and freight mix, and various new contracts that started over the last 12 months, which contributed to the 1.5% increase in our average operational truck count year-over-year,” the company said. “We are laying the groundwork which should enable us to react and adjust quickly to what we expect will be a more favorable second half of 2016,” Swift said. “We anticipate the capacity-demand equation will tighten up in the back half of 2016, further bolstered throughout 2017 by the upcoming electronic device mandate." However, the company now anticipates its full year 2016 adjusted earnings per share will be in the range of $1.45-$1.55, down from an estimate of $1.50 to $1.60 when it released fourth quarter 2015 earnings in January. Forward Air Earnings Jump Following Completion of Purchase Tennessee-based Forward Air the company has been only the second trucking company so far this earning season to report an increase in profit (following J.B. Hunt), hitting $13.1 million in the first quarter compared to $4.8 million a year earlier. Part of this is due approximately $11.8 million in one-time deal and integration costs associated with the Towne Air acquisition that were included in the 2015 first quarter results. Earnings per share also moved higher, as expected from an estimate by Zacks Investment Research, hitting 43 cents, up from 16 cents a year earlier. Revenue increased 11.5% to $229.5 million. On an adjusted basis, income from operations of $21.4 million compared with $20.1 million a year earlier, and net income for the current period was $13.1 million compared to $12.1 million in the prior year quarter. Also, on an adjusted basis, income earnings per share for first quarter were 43 cents compared to 40 cents a year ago. “In the aggregate, our results came in as we anticipated," said Bruce A. Campbell, chairman, president, and CEO. "Expedited less-than-truckload was the star performer, and our intermodal business posted a solid performance." According to Campbell, Forward Air has been experiencing lighter volumes in the second quarter. “Also, we have a difficult second-quarter revenue comparison, as a year ago we hadn’t eliminated lower-yielding business that resulted from the Towne acquisition,” he said. “We will, however, continue to benefit from the pricing and dimensional factor changes made over the last two quarters. This, along with post-integration operational efficiencies, should enable us to deliver meaningful earnings growth even if revenue growth remains tepid.” Forward Air is projecting second quarter year-over-year revenue growth to be in the range of 1% to 5%, with income per diluted share to be between 57 cents and 61 cents, compared to an adjusted 51 cents per share in the second quarter of 2015.

Because the American people have been "programmed" from an early age, via school and other, to be generally submissive, realizing they are powerless to effect genuine change. You have to hand it to the powers that be, they really have it down to a science. From age 50 or so, some begin to reflect and question. But it ends there. Paul, this isn't about Obama. It's been happening since 1776. This Tubman event is merely one speck on the timeline.

Car & Driver / April 2016 Until recently, diesel and pickup were words that went together only for buyers of Detroit-brand medium- and heavy-duty rigs, the ones commonly described as three-quarter-ton or one-ton trucks. Hyper-capable, they’re also huge, stiffly sprung machines that far exceed the needs and pocketbooks of buyers who use their trucks for household chores and recreation. The Nissan Titan XD with its Cummins V-8 engine changed the “Detroit-brand” exclusive on diesel pickups while splitting the difference between light- and medium-duty ratings, but it’s still too much truck for many people who might otherwise appreciate a diesel’s fuel efficiency and torque. Ram brought diesel to a broader audience for 2014, offering its EcoDiesel in the 1500 series half-ton pickup, and now diesel has trickled down to the mid-size class in the Chevrolet Colorado/GMC Canyon with a 2.8-liter four-cylinder Duramax. We found the GMC promising when we first drove it, and now we’ve run our full test regimen on a Canyon with the new engine offering. It’s not quick, but that’s not why one buys a diesel. It’s the abundance of low-rpm, cargo-hauling, trailer-pulling, off-road hill-climbing torque that appeals—that and the promise of greater fuel economy. Buyers have to pay dearly for those attributes, however, as GMC doesn’t make the engine available on Canyons in the lower-cost trim levels and commands a significant premium for the Duramax. Diesel sales in the U.S. passenger-car market have fallen off a cliff, tainted by the Volkswagen emissions scandal that has removed the “green” glow of lower CO2 output (directly proportional to fuel economy). In the truck segment, though, diesel sales are hanging tough. Diesel-truck buyers have adapted to the need to periodically add DEF (diesel exhaust fluid), which helps to clean the exhaust, and are generally less motivated by ecological concerns than by capability and fuel efficiency. We measured a significant fuel-economy advantage in comparison to our previous tests of the gasoline-fueled 2.5-liter four-cylinder and the 3.6-liter V-6 Canyon 4x4s. With those trucks, we recorded an overall average of 18 and 17 mpg, while this diesel returned 23 mpg, right in line with its EPA combined rating. During a 200-mile highway test at a steady 75 mph, we averaged an impressive 28 mpg. With a 21-gallon tank, that makes for a range of nearly 600 miles on a long interstate journey. When doing fuel-economy comparisons, consider, too, the need to add DEF when the dashboard indicator advises that remaining range is 1000 miles or less. We didn’t need to add DEF in the two weeks this truck spent with us. The 5.4-gallon DEF tank, which you top up through a secondary filler under the same lid as the one for fuel, should last at least as long as a half-dozen tanks of diesel fuel if you’re working it like a borrowed mule, and up to 10,000 miles normally. A 2.5-gallon bottle from Walmart runs about $8; if you have the dealer pour it, the factory stuff will cost much more. Handling and braking performances at the track were comparable to our measures on other Canyons, cornering at 0.72 g and stopping from 70 mph in 184 feet. All of our tested Canyons were four-by-fours with all-terrain tires, and their figures are competitive—better than we recorded for an off-road-equipped Toyota Tacoma that was slightly smaller and lighter. Although our drivers complained of poor acceleration in the 200-hp gasoline four-cylinder Canyon 4x4, few griped about the 181-hp diesel’s performance even though its test-track numbers were similar. The diesel we tested was in the Canyon’s biggest, heaviest configuration, a Z71 Crew Cab with the long bed, riding on a 140.5-inch wheelbase and casting a shadow 18.7 feet long; it weighed just shy of 5000 pounds. Getting to 60 mph in 9.4 seconds, this example was 0.2-second slower than the gas four-banger. The diesel beat that truck in the quarter-mile by one-tenth of a second, though. The turbo-diesel’s 369 lb-ft of torque paid off, too, in making it slightly quicker (a tenth of a second) to 30, 40, and 50 mph than the gasoline four-cylinder, even though that one had the advantage of being a shorter extended-cab model and was 783 pounds lighter. In around-town duty, a poke at the pedal yields a strong, immediate response in situations where the 2.5-liter gas model needs to spool up some rpm and find a lower gear in the six-speed automatic transmission. That makes the gas version feel like it’s working really hard while the diesel model’s 178 lb-ft torque advantage, available at 2400 fewer rpm, seems to shrug off similar challenges. Your ear has a lot to do with such impressions, and our sound-measuring equipment says the diesel is 4 decibels louder than the gasoline four-cylinder at wide-open throttle, 2 dB louder at idle, but—surprise!—a full 4 decibels quieter at a steady 70 mph cruise. The V-6 was all but inaudible at idle, but it was much louder than the diesel at full song and only 1 decibel quieter at cruise. GM puts extra sound-deadening measures in vehicles equipped with this engine, and the low-rpm torque means you rarely need to mat the accelerator, something we had to do often with the smaller gas engine. This one makes a growly background clatter, not unpleasant but never absent, that’s likely to please the truckers motivated to buy this vehicle for its 7600-pound towing capacity (the rear-drive version has a 7700-pound tow rating). That’s plenty to pull a two-horse trailer, a serious boat, or a camper that would be the pride of your local glampground. Shoppers with lower towing needs are likely to find the better around-town performance and lower buy-in cost of the V-6 a preferable alternative in a light-duty truck. And those who want a diesel truck for work, towing landscaping equipment or the like, probably would be better off with the Ram 1500 EcoDiesel, rated for even tougher duty and available in more-basic trim levels within a few hundred dollars of the $40,735 sticker on the cheapest diesel Canyon. This is because the GMC is offered only in Crew Cab SLE trim and higher. The diesel also will be available in a Denali luxury version for 2017. The diesel option price of $3730 brings a standard trailer-brake controller and an exhaust-brake feature and requires that the buyer choose either the Z71 All Terrain Adventure package ($3585 for off-road suspension, hill-descent control, 255/65R-17 all-terrain tires, and a bunch of cosmetic bits) or the Driver Alert package, which is only $395 for lane-departure warning and forward-collision alert. The latter features aren’t available on four-by-fours, however. Choosing either of those further requires another $575 for the SLE Convenience package of automatic climate control, remote start, and a sliding rear window. And $250 more for a mandatory trailering equipment package, minus a $750 discount on the All-Terrain Adventure package when you’ve chosen all of the above. Getting the diesel, then, adds up to some $7,000 on a four-by-four. Atop those options, our tested truck had a Bose audio upgrade ($500), an 8.0-inch color touchscreen with navigation and Apple CarPlay ability ($495), and Cyber Gray metallic paint ($395), for an option total of $8955 minus the $750 package discount. Despite all this spending on options, our $43,990 Canyon still lacked a full power-adjustable driver’s seat and had just a single zone for its automatic climate control. And this is a lot of money to offset against a 6-mpg improvement in fuel economy. You can do your own math, but it’s pretty clear that there’s reason behind GM’s projection that only one in 10 buyers of its mid-size trucks will opt for the turbo-diesel. That’s still a decent number of folks who will be able to enjoy the advantages the engine offers without having to deal with a truck so large it might not fit in your garage. Still, if you’re looking for outright capability, you’re probably better off with a full-size rig. Photo gallery - http://www.caranddriver.com/photo-gallery/2016-gmc-canyon-diesel-4x4-crew-cab-instrumented-test

The Wall Street Journal / April 21, 2016 Werner Enterprises and Knight Transportation blame too many trucks, too few customers for smaller first-quarter profits Three of the largest U.S. trucking companies reported a drop in profits as demand for freight-hauling services slumped. Werner Enterprises Inc. said first-quarter earnings fell 13% from a year earlier to $20.1 million, while Knight Transportation Inc.’s profits sank 24% to $22.5 million over the same period. Thursday afternoon, Swift Transportation Co. said profits fell 16% from last year, to $31.9 million. Trucking companies say too many big rigs are plying the market, driving down the rates they can charge customers. Demand has also taken a hit from persistently high inventories at major retailers, which reduces the need for shippers to restock stores and warehouses. Rising driver wages are also squeezing profits, they said. “Customers are aggressively working to take advantage of the favorable shorter term trends to the detriment of carriers,” Werner said in a news release. Dave Jackson, Knight’s chief executive, said spot-market trucking prices are declining this year even compared with rates last year that were down as much as 20%. “So if you start to look at it over a two-year period, it’s an unbelievable decline in pricing,” Mr. Jackson said. Mr. Jackson said he expects capacity to tighten and earnings to improve this year as truckers slow the growth of their fleets and manufacturing picks up. Companies ordered 37% fewer trucks in March compared with a year earlier. Swift blamed a “soft freight environment,” including fewer total loaded miles driven and weak pricing, especially in the refrigerated cargo segment. The company said it plans to further delay equipment purchases and get rid of some of its tractors over the next quarter to reduce truck count by 200. Werner, Knight and Swift are among the largest companies in the truckload market, where truckers carry full truckloads of goods for retailers and manufacturers, typically to distribution centers and factories. Raymond James analyst Art Hatfield downgraded Knight’s shares after the announcement, in which Knight also lowered its second-quarter earnings guidance. The company said it is seeing contract freight rate increases from flat to 2% this bidding season, rather than the 2% to 3% it had expected at the beginning of the year. Cowen and Co. lowered its earnings estimates for Werner, writing in a research note that the company “had been just about the only major [truckload] carrier with 2016 fleet growth plans, but such plans are no longer set in stone.” Knight shares ended roughly flat at $26.72 Thursday. Werner’s stock dropped 9.6% to $25.73. Swift shares dropped 4.5% to $17.47. The company released earnings after markets closed. The weak freight market is forcing large trucking companies to find more business in the spot market, where prices are more volatile, as opposed to signing long-term contracts with customers, analysts say. The first quarter “is typically the weakest freight quarter of the year with improvement in Q2,” said Casey Deak with Wells Fargo. “With that in mind, it is not all that surprising that carriers were forced into the weak spot market maybe more than they would have liked. If the core customer base strengthens, we believe that quarterly results could see improvement as early as Q2.” Werner’s revenues fell 3% year-over-year, from $495.7 million to $482.8 million. Knight’s revenue fell 6.3% over the last year to $272.1 million. Swift revenue, including fuel surcharges, fell 4.7% to $967.8 million. Separately, Landstar System Inc., a company that arranges freight services, including trucking loads, for shippers, reported a 3% decline in first-quarter net income to $29.2 million on $711.6 million in revenue.

At a moment when our government should be using its time and effort to focus on serious issues confronting the country and world, why are our employees in Washington wasting their time (my opinion) by going through the motions to put Harriet Tubman on the $20 bill? I, John Q. Public, have not submitted a request for this change to my employees in Washington. I want the face of America’s seventh President, Andrew Jackson, to remain on the $20 bill. Harriet Tubman is one of a long list of famous Americans, but her face doesn’t belong on our currency. “If” Harriet Tubman was worthy of consideration, then why not John Glenn, Thomas Alva Edison, George C. Marshall, Dwight Eisenhower or John Wayne? We have a long-standing and just policy dictating that the face of U.S. Presidents and founding fathers be on United States currency. Harriet Tubman does not qualify. The American people have NOT voted to change our currency policy. If anything, the face of Thomas Jefferson, one of America’s greatest founding fathers, should be transferred from the little used $2 bill to the $20 bill, and the face of three-term President Franklin Delano Roosevelt honored on the $2 bill. $1 bill – George Washington $2 bill – Thomas Jefferson $5 bill – Abraham Lincoln $10 bill – Alexander Hamilton $20 bill – Andrew Jackson $50 bill – Ulysses S. Grant $100 bill – Benjamin Franklin $500 bill – William McKinley $1,000 bill – Grover Cleveland $5,000 bill – James Madison $10,000 bill – Salmon P. Chase $100,000 – Woodrow Wilson

Ford's win with the original GT in 1966 was the culmination of a several year long effort........AND most of all due to the contribution of one lanky Texan named Carroll Hall Shelby.

Please let us know what you learn from TRW.

One can justifiably use Delphi and Dollar Store in the same sentence. Delphi has only ONE major heavy truck fuel injection customer in the entire world......Volvo. Delphi's lack of popularity speaks volumes about dimly their technology is viewed.

Within the Mack brand area of Volvo's U.S. headquarters in Greensboro, North Carolina, there isn’t a single career truck man onboard. I mentioned that here.....last post (http://www.bigmacktrucks.com/topic/44866-local-mack-boss-out-volvo-confirms/). Former Mack brand President and CEO Paul Vikner was the last Mack man (who was thrilled to get out there and retire April 1, 2008). He was replaced by Dennis Slagle, whose background is construction machinery. All you can do is call Customer Satisfaction at +1 (866) 298-6586 and speak with a clueless individual who only knows that a truck is bigger than a car.

Gouging parts pricing is orchestrated by Mack brand owner Volvo (There is no Mack now, it's just a nameplate). Price gouging is Volvo's global market philosophy.

I'm going to be honest with you, I came to expect a (Ross Rhodes) Mack reman engine to have the same life as a new engine, because they were not rebuilt........rather, they were remanufactured. It's an entirely different concept. The Middletown reman assembly line was identical in format to the new engine line at Hagerstown. Every component utilized in the assembly of a Mack remanufactured engine was as good as new.....and sometimes new.

You're trying to do it right and you're willing to pay up for it. But............ In the days of Mack Trucks, when we first opened the Mack Reman center in MIddletown, Pennsylvania (just east of Harrisburg), this massive and state-of-the-art facility was headed by a high caliber gentleman named Ross Rhodes. He created an incredibly professional and highly skilled team of people. He earned and held the respect of this family of people (a huge family if your will), and it showed. The quality of the Mack reman product we shipped out either directly to the dealers or for stock at our seven PDCs (parts distribution centers) was virtually perfect. In all my years at Mack, I never once heard of a reman engine fail. They were as good as a new one.

Brazilian truck collector Osvaldo Tadeu Strada and his 22 restored FNMs. http://blogdocaminhoneiro.com/2016/04/o-colecionador-que-ja-acumula-27-caminhoes/