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The Wall Street Journal / April 5, 2016 Dealer inventories of unsold heavy trucks are at their highest level since before the financial crisis as weak freight demand sidetracks new orders from trucking companies Orders for new big rigs plunged and inventories of unsold trucks soared to their highest levels since just before the financial crisis, as uncertainty about future demand and a weak market for freight transportation weighed on truck manufacturers. About 67,000 Class 8 trucks are sitting unsold on dealer lots, after sales in March dropped 37% from a year earlier to 16,000 vehicles. Inventories haven’t been this high since early 2007. At present, there are too many trucks chasing too little freight. Companies that placed large orders in late 2014, only for customers to move less freight than expected last year, are reluctant to buy more vehicles now. Last month, it was reported that spot market rates for dry vans fell 18% between February 2015 and February 2016, an indication of weak demand. Fleets are being very cautious in the current uncertain economic environment. Freight has slowed due to the manufacturing recession, so they have sufficient trucks to meet current demand. Aaron Tennant, owner of Simplex Leasing Inc., a trucking company in Jamestown, N.D., said that last June, anticipating market growth, he placed an order of 115 new Navistar International trucks to replace 75 trucks and expand his fleet to 245 vehicles. But that growth has not come. “Once this order is complete, I’m probably not going to consider buying any new trucks until at least October or November,” he said. “It’s definitely coming from caution. The market has softened in the last year.” Analysts say the backlog of Class 8 trucks appears to be about six months, and truck and truck component manufacturers like Paccar, Navistar and Meritor are likely to see further pressure on their share prices and earnings. They believe the companies most closely tied to the Class 8 vehicle production cycle will likely have a difficult time exceeding expectations this year.

Freight could move more efficiently in the US if it allowed "interlinks" coast to coast (aka. B-doubles, B-Train).

Jay Leno / Popular Mechanics / November 10, 2010 One of my heroes was a guy named Abner Doble, an engineering genius and a perfectionist, who built his first steam car when he was in high school. Later, as an MIT student in 1911, Abner built a steamer with a condenser that turned vapor into reusable water; not even the Stanley Steamer had that range-extending feature. Some years later, Abner, with assistance from his three brothers, founded the Doble Steam Motors Corporation. But he was a much better engineer than businessman; his outfit built just 36 cars from 1922 to 1931. I own two of them, both 1925 Model Es. One is a sedan, chassis No. 18. The other car, a roadster with chassis No. 20, was once owned by Howard Hughes. My Dobles are only two cars apart, but they are vastly different because Abner constantly tinkered with the car's design and mechanics. They say this incessant re-engineering meant that each model cost over $55,000 to develop. At a time when a Model T sold for $260, the Doble cost about $20,000, which would be roughly­ $250,000 today. And that was a big problem, even for what was, by 1925, the best steam car on the road. Plus, Abner was doggedly pursuing steam propulsion when all signs pointed to the internal combustion engine as the powerplant of the future. He was, in effect, perfecting the VHS tape when DVDs had just been released. Abner could indulge himself because money wasn't initially an issue. His grandfather made a fortune selling tools to gold miners and his father perfected a power-generating water turbine. Financial troubles, however, eventually dogged the company. The brothers bickered and sued each other. Abner was convicted and then acquitted on appeal in a stock manipulation scandal. I think he was a lot like Preston Tucker. He sincerely wanted to build a good car, but some of his practices were questionable. At least Doble's customers got an incredibly sophisticated automobile for their money. Superheated steam from a 1200-psi front-mounted boiler drives a four-cylinder double-­compound engine, which in turn powers the rear axle via a set of spur gears. The engine's high- and low-pressure cylinders reuse steam as it goes between the cylinder pairs, maxi­mizing efficiency. There are also complex water and oil pumps, a powerful 1-kilowatt electrical system to run the ¾-hp blower, pumps, lights and ignition, and a number of quartz rods that automatically regulate the steam temperature. Unlike a Stanley, where you need a match or some other flame to fire up the boiler, the Doble self-ignites. The starting process begins by turning the key and pulling up the floor-mounted water-pump knob. There's a ticktickticktick from the water pump as it pressurizes the coils and pushes out air bubbles, generating 300 to 500 psi in seconds. Push the water-pump knob back down, turn on the ignition: zzzzoooouuuuu! Now you have fire, which can be fed by a variety of fuels, usually kerosene. Tubes coiled inside the firebox hold about a gallon of water and provide a lot of surface area for quick heat transfer. That, combined with about 2 million Btu of heat, quickly builds up steam, and you can pull away within a minute. Since the crankshaft drives the rear wheels, there's no transmission and therefore no shifting. Open the hand throttle and acceleration from a dead stop is smooth and continuous. The Doble just continues to pull all the way. It only has about 150 hp, but the torque output is huge: 2200 lb-ft at the rear wheels. If you're on a hill, you just keep your finger on the throttle lever and it holds the car right there. Once it's up and cooking, the fuel is burned almost completely, like a propane torch, so when it's running, visible emissions are minimal. Care and maintenance are very labor-intensive, but as the owner's manual states, "Your man can do that." My roadster came from the Nethercutt Collection in Sylmar, Calif. The late J.B. Nethercutt paid 10 guys for two years to restore it to exactly what Abner intended. I'd had my eye on it for 20 years. Dobles are like any other rare artwork. You say you're interested, and decades go by. And you either get a phone call or you don't. Hughes's old car came very complete, so there have been just a few fittings to replace. Dobles have to be surgically clean and airtight to eliminate power losses through leaks; they need to hold a vacuum so the water returns to the boiler when everything cools down. I've driven this car more miles than it's been driven in many years, and it pulls away faster than you'd ever think possible in an 85-year-old car. But its steering is slow and heavy. We're trying different lubricants, and we think the steering box will loosen up. And like most cars of its era, it didn't come with front brakes. I call the Doble's binders the antistop brakes: They slow the car a little, but since there's no engine braking, they're scary. I'm going to install front brakes. The smoothness and force of the acceleration, however, never fail to amaze me—it's like the Hand of God pushing you along. I was running at 85 mph the other day, and there was more to go. It's dead silent on the road, just wooooooooshhhhhh!!! Back in the day, Hughes was clocked at 132.5 mph on a Texas highway, faster than anything with an internal combustion engine. It proves what I've always believed: The last days of an old technology are almost always better than the first days of a new technology.

Trucks.com.au / March 30, 2016 Perth local Gregg Riley isn’t new to the transport industry, only joining the owner-driver ranks around 12 months ago. Gregg says the price of his Kenworth K104 truck and the guaranteed work that came with it was the inspiration behind the change. "I’ve done north-west and east-west among other things. I’d been doing this rail stuff for two years for a mate of mine when the truck and work presented itself, so away I went," he explains. Gregg subbies to Daynite Towing, and runs containers to clients around Perth. It’s all express rail and quick hitch as the containers are on trailers ready to go. He just snaps on the trailer and heads for customers’ depots, drops off a full one and exits with an empty one. It’s easy as. While Gregg spends some time waiting for trains, he doesn’t have to worry about waiting for forklifts and finding containers. "You take the train waiting in your stride," he says. "When everything is running to plan and I don’t encounter any holds up, it’s just in and out." When we caught up with Gregg he was taking a break at the Shell/Coles Express truck stop in Kewdale. Although an industrial area, it was fairly quiet day, although Gregg explains it was a far different scenario the previous week. "There had been a major derailment and interstate trucks and container trailers were everywhere. "I think just about anybody with a container trailer was here," he grins. "It certainly seemed that way. "Of course that affects us but there isn’t much you can do about a derailment." Like many people in the industry, Gregg had a fascination with trucks as a kid and completed an apprenticeship as a diesel mechanic. "I was working on trucks and then went mining for 14 years. I was working on Haulpaks, all the big gear. "The mines were good. I wasn’t driving them around and around in circles, I was fixing them. Following the mines, he drove long-haul to WA’s northwest for seven years, before giving it away to run local. "It was a good job, and the country up there is beautiful with many wide open spaces," he says. "I didn’t do two-up so when you left Perth you were your own boss for the following three or four days." Although he says he’s now driving around in circles doing local runs, he doesn’t mind it at all. "We all work odd hours, and there’s a lot of night work. But the roads are quiet and you just get in and get the job done." To make it easier, Gregg says Perth’s network of roads is one of the best compared to other capital cities. "The roads are continuously getting better and more user-friendly, that’s for sure. "All the road work around here that’s been done in the last 18 months is absolutely brilliant. It makes our lives a lot easier." 2004 Kenworth Gregg’s K104 is a 2004 model with a C15 Cat under the floor, 18 speed gear box and has Kenworth’s 460 rear suspension. "I’m a Cat man … definitely. It does the job really easily, rides well with the airbags, even when I’m bobtail," he enthuses. Gregg knew the K104’s history before he bought it, making the decision a little easier. "I used to work for the company that owned it from new, Marsue Transport. I have its full service history. "I actually drove it when it was near new," he adds. Gregg has no desire to go back onto the long distance. He’s more than happy to sleep in his own bed each night, and have weekends off. "I’ve done long runs already and love what I am doing now, even though it’s been a quiet year." Gregg refers to the downturn in the mining industry which has had major ramifications throughout the state. "Everyone has been affected from everyone’s spending habits. They don’t buy anything that is not essential so that in turn equates to less freight. "But I’m happy just to plod along with my ‘old girl’." Gregg admits to spending a significant amount on doing up his 12 year old truck, and putting it a lot of hard work to have it in its current presentable state. "I haven’t washed or polished it for a while but I try and keep it tidy," he continues. "That’s the joy of being an owner-driver with a trade behind me. I can take care of everything and keep the costs right down, and legally too." Despite its age, Gregg has no plans to upgrade the K104 in the near future. "I’ll just keep looking after it," he says. "I’ve been a company driver and worked for some top companies, but this will do me." Photo gallery - http://www.tradetrucks.com.au/truck-reviews/1603/used-truck-of-the-month-2004-kenworth-k104/

Simon Humphries explains Isuzu's updated F-series Trucks.com.au / March 5, 2016 We talk to Isuzu Australia chief engineer Simon Humphries about the recently updated F-series Isuzu Australia has revealed a new medium-duty line-up with a fresh engine range, interior, and transmission option to the local market. Matt Wood chats with Isuzu Australia chief engineer Simon Humphries to find out his thoughts on the new F-series, the new four-cylinder 4HK1 and six-cylinder 6HK1 engines, the company’s plans in Australia, and the changing global truck sales market. Video - http://www.tradetrucks.com.au/product-news/1604/video-isuzu-f-series-update-launch/

Prime Mover Magazine / April 5, 2016 After it was made public that the next Melbourne International Truck, Trailer & Equipment Show (ITTES) will see more than a dozen Australian and world premieres, global media attention has reached a record high. Show Director, Simon Coburn, has announced that a total of 11 national and international publications will report on the Show next month. In Australia, the event will be covered by leading industry titles Prime Mover, Trailer and Diesel, as well as Big Rigs and the Australian Diesel Mechanic Magazine. International publications include New Zealand’s Truck & Driver and Truck Journal, as well as Germany’s KFZ-Anzeiger and Trailer Journal. International heavyweight, Global Trailer Magazine, will also report on the iconic event. For the second time after 2014, ITTES has also partnered with Australian Custom Trucks and its sister publication, Bling’d Up Trucks, again. The two titles will be supporting ITTES’ second Invitational Show & Shine competition, offering a massive prize pool of over $30,000. “It’s great to see that the Show is receiving so much media attention from around the world,” said Coburn. “With so much innovative equipment on show, it is definitely an occasion hard to miss, especially in the trailer and component field.” Given that the freight task in Victoria is expected to triple by 2050, Coburn added the 2016 edition of ITTES will be an “important opportunity” for Australian operators to find the right response to future challenges in front of a global audience. “With so much media attention and pressing issues to be addressed, I am sure the 2016 ITTES will become the most comprehensive showcase of new and innovative equipment ever seen in Australia.”

Transport Engineer / March 31, 2016 Waste management business Wicks Group has taken delivery of its first Renault trucks – a 44-tonne Range T and a Range C 8x4 drawbar unit. Both vehicles are supplied by dealer Border Trucks, of Carlisle. The Range T520 tag went into service in September on bulk tipper duties. It features tipping and walking floor hydraulics, Voith retarder, Dura-Bright alloys, light bar and a 9-tonne front axle. The Range C drawbar skip carrier, fitted with Mult-ilift XR24S:55 hook-lift equipment, was delivered earlier this month. David Wicks, managing director of the Cumbria-based operator, says he was impressed by the competitive three-year warranty package, as well as the positive press he’d seen for the Range T’s features and reliability. The Range T is already matching or improving on the fuel performance of Wicks Group’s other vehicles, achieving 7 mpg: “This is a very good return for the type of work it does and I am confident that the fuel returns will improve further over time as the vehicle runs in.” Both the Range T and Range C, adds Wicks, have won over his drivers. .

Transport Engineer / March 30, 2016 Crosshands, South Wales based operator John Jones has acquired two more 8x4 Mercedes-Benz Arocs tippers, following a back-to-back evaluation of an earlier Arocs against a 32-tonner from an unnamed competitor. The first Arocs was a 3245 truck with Thompsons tipping body, while the latest arrivals are both 3248 versions, with the more powerful 476bhp 12.8-litre engine, driving through 12-speed Mercedes PowerShift AMTs (automated manual transmissions). The new tippers, which join John Jones’ 20-strong tipper fleet, have been mounted with Hardox-built Predator Ultimate bodies supplied and fitted by Abba Commercials, of St Helens. “Not only is the Mercedes-Benz more fuel-efficient – we’ve calculated that it burns 15% less diesel than its rival – but the difference in AdBlue consumption is also remarkable,” comments company director Gareth Jones. Jones says the competing vehicle uses “four times” as much AdBlue as the Arocs. “This has a cost implication, of course, but because our trucks are frequently away for a week at a time it also means the driver has to take supplies with him to top up the tank between returns to our depot.” Beyond that, Jones adds that the Swansea branch of Mercedes-Benz dealer Euro Commercials stood out in comparison to its competitor. “The Euro team were extremely attentive and professional throughout the ordering process and have since been much more helpful and flexible when we’ve come to arrange the six-weekly inspections and services,” he explains. Aside from the standard Mercedes-Benz safety spec, John Jones has added camera systems that display a view down the nearside when drivers indicate left, as well as proximity sensors and audible alarms that trigger on left turns. .

Commercial Motor TV - sponsored by DAF Trucks / April 1, 2016

Volvo Trucks Press Release / March 29, 2016

Volvo completes sale of IT operation Volvo Group Press Release / April 1, 2016 The Volvo Group has completed the final agreement with HCL Technologies for the sale of its external IT operation and related assets and the outsourcing of its IT infrastructure. As announced earlier the transaction was implemented on March 31, 2016 and will entail both sustained cost savings and a capital gain corresponding to SEK 900 M. The capital gain will have a positive impact, in a corresponding amount, on the Volvo Group’s operating income and net financial debt in the first quarter of 2016.

Daimler Press Release / March 30, 2016

MAN Truck2Truck - European Truck Platooning Challenge 2016 MAN Truck & Bus Press Release / March 18, 2016

Wabco is a leader in disc brakes. They're NG22MAX is a good unit. But I actually like Haldex the best at the moment.

Heavy Duty Trucking / March 31, 2016 Wabco North America says air disc brakes (ADBs) are now selling at a high enough rate that it is building a plant in the United States to manufacture them instead of importing them from Germany. The company is spending $17 million to erect the factory in Charleston, S.C., said Jon Morrison, Wabco’s president, Americas. Production will begin this fall, and will help bring down the cost of ADBs for truck buyers. Air disc brakes go on 15% of new Class 8 trucks and about 10% of new trailers, he said. That reflects 60% year-over-year growth in ADB sales in the last couple of years. Penetration should rise another 5% in three to five years. Disc brakes’ advantages over drum brakes include better performance, longer pad life, easier maintenance, and fewer out-of-adjustment problems that lead to citations. Millions are being used in Europe and have proven safe, reliable and economical, Morrison said, and the word is getting out here. European truck builders adopted ADBs years ago and customers accepted them, he explained. In North America, many truck components are specified by buyers who prefer air drum brakes for their familiarity, economy and satisfactory performance. Drum brakes meet the latest federal stopping distance requirements, so have been viewed as entirely adequate. Discs have been heavier and more costly than drums, too, but that’s changing through careful design, Morrison said. The latest Wabco product is about 10 pounds per brake lighter than a typical drum brake. Prices will come down through greater volume, and the new factory in South Carolina will further lower the cost of manufacturing by shortening the supply chain. Lower prices should bring ADBs in line with drums and encourage more sales, he said. Related reading - http://www.truckinginfo.com/channel/maintenance/article/story/2015/12/reduce-your-maintenance-burden-with-air-disc-brakes.aspx

Australasian Transport News (ATN) / March 24, 2016 A new book charts the fascinating 60-year history of the IVECO/International factory at Dandenong in Victoria For decades, International was the biggest truck brand in the world, and dominated the truck scene in Australia. For those who don’t know, or have forgotten, this is all laid out in a new book: Inter to Iveco – an Australian Truck Story, by former chief engineer of the truck division of International Harvester Co. of Australia, Colin McKenzie. International Harvester was an American company formed in 1902 with its roots going back to the mid 1850s with the McCormick Harvesting Machine Company. IH set up shop in Australia in 1912, and went on to lead the local truck scene until the early 1990s. International became the first company to build trucks in Australia when it opened the famous Dandenong factory in 1952. It seems strange now but right up to the late 1960s or so, the crux of the operation were fuel-guzzling petrol-powered engines. The first Perkins diesel engines slotted into Inters were less than 100 horsepower (73kW). Meanwhile as McKenzie says: "Diesel powered Mercedes-Benz 1418s and Mack B61s showed in the early 1960s they were viable alternatives to the petrol powered Internationals." Many will also remember how similar some models of Inter and Dodge were, and that’s because International and Chrysler shared some components in the 1960s. In a situation which continues today, government regulations on axle weights, overall vehicle lengths and engine emissions had a huge impact on the rise and fall of particular models. Colin McKenzie admits to a few duds amongst them, which overall had good reputations for quality and reliability. He says the fate of smaller Inter models was sealed by an interesting development in 1980-84. "In this period the Japanese manufacturers, Isuzu, Hino, UD Nissan and Fuso, appeared in the market, powered by higher performing diesel engines that were durable. "These trucks had pleasing styling and were keenly priced, thanks to a very attractive currency position, so the writing was on the wall for the longer-serving International, Ford D series and Bedford models." It all went pear-shaped in a big way for International Harvester Australia in 1982 – the middle of a recession – when the debt-ridden parent company in America put the Australian branch into receivership. Colin McKenzie says: "IHA was over confident of its ability to maintain its customary market leadership and probably had over invested in support initiatives, such as the massively expensive proving ground in Anglesea and the engineering centre in Geelong." These assets were later sold off – Anglesea to Linfox. In America, IH sold off its tractors and farm machinery division to Case in 1985, and the truck division was formed into a new company called "Navistar International Corporation" in 1986. So it is now 30 years since the creation of Navistar. Later IVECO sold Internationals in Australia under a licensing agreement with Navistar. The last Australian-built International rolled off the production line at Dandenong in 2010. The brand is due back this year, imported from the US. Check out the full feature in an upcoming/current issue of ATN.

This is the best that Volvo’s Mack brand head can find for the all-important post of Mack brand senior vice-president of sales? This is an April Fools' Day joke…..right? Throughout the entire American truck industry, they couldn’t convince a single “qualified” individual with a rich heavy truck background to leave their current employer and join Volvo’s Mack brand. Hmm. Even a troubled Navistar has managed to attract some premium individuals from Paccar*…..and it’s paying off! (experience.....it's an amazing thing) * http://www.bigmacktrucks.com/topic/31266-bill-kozek-named-to-head-navistars-north-america-truck-and-parts-business/#comment-184477 http://www.bigmacktrucks.com/topic/40325-navistar-snags-another-high-quality-paccar-man-to-head-sales/#comment-292232 Since leaving Daimler (custom chassis), Jon changes jobs with regularity. After almost 13 years at Daimler, he heads to the school bus segment with Blue Bird? Randall more or less replaces Stephen Roy, who had been named President of North American Sales & Marketing effective January 1, 2014. Roy has now been demoted from Mack brand top executive to watching over Volvo's "uptime" unit. (http://www.bigmacktrucks.com/topic/34049-mack-names-stephen-roy-top-executive/) ----------------------------------------------------------------------------------------------------------------------------- Work Background - Jonathan M. Randall : VP Sales and Marketing - Hines Specialty Vehicle Group (current owner of Crane Carrier and Kimble mixer bodies) January 2015 – March 2016 ? Employment tenure - 1 year, 3 months VP, OEM & Aftermarket Sales - Hines Specialty Vehicle Group February 2014 – January 2015 Employment tenure – 1 year VP, Sales and Marketing - Wrightspeed Inc (electric trucks) 2013 – 2014 (1 year) Employment tenure – 1 year General Manager, Parts and Service - Blue Bird [Bus]Corporation 2012 – 2013 (1 year) Employment tenure – 1 year Director, Sales & Marketing - Daimler Trucks North America - Freightliner Custom Chassis July 2007 – April 2012 Employment tenure – 4 years, 10 months) Director, Product Marketing - Daimler Trucks North America - Freightliner September 2004 – August 2007 (3 years) Employment tenure – 3 years Manager, Service Marketing - Daimler Trucks North America October 1999 – September 2004 Employment tenure – 5 years VP, National Accounts - Idealease March 1995 – September 1999 Employment tenure – 4 years, 7 months Account Manager - TNT Express February 1993 – December 1995 Employment tenure – 2 years, 11 months Regional Manager, E. & J. Gallo Winery August 1990 – January 1993 Employment tenure – 2 years, 6 months

Heavy Duty Trucking / March 30, 2016 Mack Trucks has announced that Jonathan M. Randall was named the senior vice president of North American sales, effective April 11, 2016. In his new position, Randall will report to Dennis Slagle, president of Mack Trucks. He brings with him 23 years of experience in the heavy-duty commercial vehicle industry and has held senior positions at several original equipment manufacturers. Randall will be based out of Mack Trucks global headquarters (i.e. the Volvo Group North America HQ) in Greensboro, North Carolina. He holds a Bachelor of Arts degree from Colorado State University. Volvo Group Press Release - http://www.volvogroup.com/group/global/en-gb/volvo%20group/worldwide/volvo-group-north-america/_layouts/CWP.Internet.VolvoCom/NewsItem.aspx?News.ItemId=151662&News.Language=en-gb

They were using credits, as FCA is doing today in the light vehicle segment. The law allows that. But the issue to remember is, aside from the extremely arrogant Ustian, the Massive EGR (MEGR) system used by Navistar was designed and funded by the EPA (with your tax dollars........but without your informed knowledge or consent). Your incompetent and unqualified EPA decided that MEGR (EGR levels from 35% to 50%) was the optimum emissions technology for the United States (instead of SCR!), but they needed at least one truckmaker to run with their ball........and a politically correct Ustian quickly agreed to do it (because the EPA was paying most of the tab). And as Paul says, after the EPA's MEGR system failed, Navistar has been hung out to dry..... -------------------------------------------------------------------------------------------------------------------------- EPA Suing Navistar Over 2010 Engines Transport Topics / July 16, 2015 The U.S. Environmental Protection Agency on July 14 filed a lawsuit against truck maker Navistar International Corp. alleging that the company in 2009 began the manufacture of 7,750 heavy-duty diesel engines it offered for sale in calendar year 2010 that did not meet emissions standards applicable to 2010 engines. “None of the subject engines were covered by a certificate of conformity [nor exempt from the prohibition against selling, offering for sale, introducing or delivering for introduction into commerce engines not covered by a COC] when they were sold, offered for sale, introduced or delivered for introduction into commerce by defendants,” the EPA said. “Additionally, each and every delegated assembly engine was ‘fully assembled, except for aftertreatment devices’ in 2010 and is therefore not a model-year 2009 engine.” A certificate of conformity verifies that a heavy-duty diesel engine meets EPA’s standards limiting the emission of oxides of nitrogen and non-methane hydrocarbons. Navistar could face penalties of up to $37,500 per day for each violation of the Clean Air Act. “We dispute these allegations,” Navistar spokesman Steve Schrier told Transport Topics. “We believe our 2010 engine transition was appropriate, and we intend to aggressively defend our position going forward.” In its complaint, EPA said that on Nov. 3, 2010, the EPA sent Navistar a request “seeking certain information as part of an EPA investigation into Navistar’s compliance with the emissions standards.” “EPA generally sought information from Navistar relating to the names, build dates, model years, vehicle information numbers, serial numbers, engine classes, dates of installation and assembly, and other information related to engine and vehicle manufacturing operations of Navistar,” the lawsuit said. On Feb. 4, 2011, Navistar provided an initial response to EPA claiming the information being sought was confidential. The EPA said it has determined that some, but not all, of the information submitted to the agency in a spreadsheet deserves “confidential treatment.”

Transport Topics / April 1, 2016 Peterbilt Motors Co. announced the introduction of a newly formulated paint for heavy-truck cabs and sleepers that is designed to enhance coating color and durability. The company said the coating also has environmental benefits as it reduces carbon use. The new formulations are available in base and clear coat applications that are applied robotically, the statement said. They also can also be used for aftermarket repainting and refinishing. “The new paint coatings have better color characteristics for greater gloss, reflectivity and luster,” said Leon Handt, Peterbilt’s assistant general manager of operations. “Resistance to environmental damage, such as acid rain, de-icers and bird debris is also increased.” The coatings are applied at Peterbilt’s Denton, Texas plant, where the company has implemented other environment-related steps such as a no-idle policy and carpooling.

Navistar Fined $7.5M in Truck Emission Case Heavy Duty Trucking / April 1, 2016 The Securities and Exchange Commission on Thursday charged Navistar International Corp. with misleading investors about its development of an advanced technology truck engine that could be certified to meet U.S. emission standards. Navistar, without admitting or denying the charges, reached a settlement with the SEC and agreed to pay a $7.5 million penalty. Separately, in a complaint filed in federal court in the Northern District of Illinois, the SEC charged former Navistar CEO Daniel C. Ustian, who left the company in 2012, with misleading investors and with aiding and abetting violations by the Illinois-based Navistar. Multiple new outlets report they have been unable to get a comment from Ustian regarding the case against him. The SEC alleges that Navistar and Ustian failed to fully disclose the company’s difficulties obtaining Environmental Protection Agency (EPA) certification of a truck engine able to meet stricter EPA Clean Air Act standards that took effect in 2010. “We believe that it was time to put this matter behind us and that this settlement was in the best interests of Navistar and its stockholders. Settling this matter will avoid the expense and distraction of a potential dispute with the SEC and allow us to continue our focus on building and sustaining momentum on behalf of our shareholders,” said Lyndi McMillan, external communications manager for Navistar in a statement to Truckinginfo.com. Navistar and Ustian also are alleged to have repeatedly misled investors about Navistar’s development of the engine, which used exhaust-gas-recirculation (EGR) technology. Navistar later abandoned the effort and adopted the selective catalytic reduction (SCR) technology used by its competitors. “When public companies and top executives discuss important regulatory developments with investors, they must tell the whole truth,” said Andrew J. Ceresney, director of the SEC’s Division of Enforcement. “Here, we allege that Navistar and its former CEO misled investors about their dealings with the EPA and the likely approval of its new emissions technology." David Glockner, director of the SEC’s Chicago Regional Office said, “We allege that in 2011 and 2012, the EPA repeatedly raised serious concerns with Navistar about its applications to certify an engine using EGR technology and that top Navistar officials knew the company had not succeeded in developing a commercially viable engine that would meet EPA standards. Navistar and its then-CEO misled investors about these difficulties in numerous SEC filings, press releases, and public conference calls, and today we seek to hold them accountable for that misconduct.” According to the SEC’s order instituting a settled administrative proceeding against Navistar: “In early 2011, in an effort to reassure investors about its emissions control strategy, Navistar applied for certification of an engine it knew was not ready for production and sale even if the EPA certified it. The EPA did not approve the application and by summer 2011, Navistar decided not to pursue it any longer. “In late 2011, Navistar began preparing another application for EPA certification. Four days after a meeting in which the EPA staff told Navistar that the proposed engine did not appear to meet the certification requirements, Navistar filed its 2011 annual report on Form 10-K, which stated that it planned to apply to have the EPA certify the engine and that it believed the engine met EPA’s certification requirements. “After Navistar submitted a new application in early 2012, EPA staff raised ‘several serious concerns’ that it said would need to be resolved before it could approve the application. Nevertheless, in a press release and filings in March 2012, Navistar characterized the application as a 'milestone,' and in a conference call with analysts and investors, Ustian indicated that certification was proceeding in a typical timeframe and that Navistar could begin production on the engine in June 2012. “In May 2012, Navistar withdrew its January 2012 application and submitted a third one incorporating changes to lower emissions at the expense of fuel economy and other engine performance features. In a June 4, 2012 meeting, EPA staff told Navistar that it had serious concerns about this application as well and the next day informed Navistar in writing that the engine as currently designed was 'unlikely' to be certified. Despite this, Navistar’s June 2012 quarterly filing and conference call suggested that Navistar was unaware of any concerns by the EPA regarding the May 2012 application – one of several misstatements in the filing and call regarding the application. “In July 2012, Navistar announced that it was withdrawing its application and would begin work on an engine using SCR technology.”

Ex Navistar President Gets His Steve Sturgess - On Everything Trucks / April 3, 2016 (http://www.stevesturgess.com/2016/04/ex-navistar-president-gets-his.html) When I penned the retrospective on the Navistar engine debacle (search Told You So here) I thought I’d said goodbye to the outgoing president Dan Ustian. Not so. Seems the Securities and Exchange Commission is not going to let the mendaciousness of his leadership go unpunished. In a complaint lodged in the US District Court for the northern district of Illinois, Ustian is being called to account for the fraudulent misleading of the investment community about the progress of the 13-liter MaxxForce engine program goals and successes in meeting EPA2010. And, of course, the propping up of the Navistar share value by so doing. If you go back and re-read what I said in the previous posting, you’ll see I got fired for telling that same investment community in late 2010 that his was a house of cards and that Navistar would never be whole till Ustian was gone. ‘Scuse me if I don’t crow a little here . . . Anyway, Navistar is also named as a party to the fraud and within moments of the suits being filed has offered to pay a penalty of $7.5 million to settle. The regulatory agency statement said the company and its former leader “failed to fully disclose the company’s difficulties obtaining Environmental Protection Agency certification of a truck engine able to meet stricter EPA Clean Air Act standards.” The story broke during the first few hours of the 2016 Mid America Trucking Show, and the 57-page complaint was in my e-mail within moments. Navistar said that “Settling this matter will avoid the expense and distraction of a potential dispute with the SEC” according to a quickly responding Transport Topics. No word if this will be accepted as yet. The SEC complaint, with a demand for a jury trial for Ustian, is very specific in detailing how Ustian contrived to mislead the investment community and the press through publicly available Analyst Calls right up until the moment in July 2012 when the whole house of cards came tumbling down. That was when the company declared it would pursue Selective Catalytic Reduction (SCR) as the technology it would employ to meet EPA2010 and not the Advanced exhaust gas recirculation (A-EGR) championed by Ustian and his bunch of yes-men. In fact, reading the complaint is very revealing. There were many in the company’s engineering side talking and e-mailing internally that the Navistar was heading up a blind technology alley but Ustian placed a gag order on them. One in particular is a jewel. In paragraph 60 of the complaint, you can read the following: “In fact, at the time the 2011 Application was submitted to the EPA, the engine described in the application could run only in the testing laboratory. In a February 9, 2011 email regarding the engine covered by the 2011 Application, a Navistar Senior Technical Specialist working on certification matters told other engineers in the certification group: ‘I asked a bigger question. Would this engine ever be drivable in a truck and I got laughs in response.... Translation you have a[n] underpowered 13 liter engine that is coughing, sputtering and wheezing like some terminal cancer patient on a respirator’.” And how about this: “When Navistar’s Vice President of Powertrain Product Development forwarded this email to Navistar’s Vice President of Integrated Product Development and suggested he talk with Ustian about these issues with the D-cert engine, the Vice President of Integrated Product Development responded that Ustian “totally knows it” and advised him to “[t]ell these guys to not worry about this sh[--] and not keep sending emails to each other.” Now here’s the big kicker, and it’s there in the indictment as fact. One of the proposed solutions to the problem that the engine would run – just about – in the test lab but could not possibly power a truck was to propose to EPA that there be two lookup tables for the engine controller: one to be used in test, the other when the truck was going down the road. They made this proposal with a straight face but EPA laughed them down. In the now famous Dieselgate, Volkswagen did the exact same thing, and presumably at just about the same time, though without asking EPA’s permission. The sad thing is that this after-the-fact bolting of the stable door will never reconstitute the fortunes of the many family trucking businesses that had to close their doors because of the unreliability of the MaxxForce and the hubris of one man: Dan Ustian. One has to hope the courts will come down on him like a ton of bricks and put him in the poorhouse along with all those customers he misled and with the financial community he duped.

Navistar settles with SEC over probe into company’s 2010 emissions strategy; former CEO hit with charges Commercial Carrier Journal (CCJ) / April 1, 2016 The Securities and Exchange Commission announced April 1 that Navistar International Corp. agreed to pay $7.5 million to settle the criminal investigation into whether the company intentionally misled investors about its progress in meeting 2010 emissions standards. The SEC also announced April 1 it has brought charges against former Navistar CEO Dan Ustian, claiming the truck and engine maker’s former boss misled investors about the company’s ability to meet those standards. The SEC and Navistar say the settlement does not signify Navistar’s admission or denial of the accusations. In a statement to CCJ, Navistar says it was “time to put the matter behind” it. “This settlement was in the best interests of Navistar and its stockholders,” Navistar told CCJ. “Settling this matter will avoid the expense and distraction of a potential dispute with the SEC and allow us to continue our focus on building and sustaining momentum on behalf of our shareholders.” Regarding the charges against Ustian, twice in 2011 and once in 2012, the company’s proprietary MaxxForce engines were denied EPA certification, meaning they did not meet 2010 emissions standards. The company applied for 2010 certification after the official compliance date because it had built up so-called emissions credits for exceeding earlier emissions standards. The SEC, however, claims Ustian and Navistar applied for the certification despite knowing its engine didn’t meet the standards set by the EPA. The company filed for certification in what the SEC says was a misleading attempt to reassure its investors that its exhaust gas recirculation strategy would work. The SEC claims Ustian intentionally misled the company’s shareholders about the EGR strategy’s ability to meet 2010 standards. All other North American truck and engine makers used a different strategy, the diesel exhaust fluid-based selective catalytic reduction system, to meet 2010 emissions standards. Navistar, however, strayed from the pack to pursue its EGR-only approach, a strategy it eventually abandoned in favor of SCR in late 2012. Ustian stepped down from his post as CEO in 2012. Navistar announced in September it had received notification from the SEC about looming charges. Despite the settlement of the criminal charges, Navistar, Ustian and the company’s former CFO are facing civil lawsuits making accusations similar to those by the SEC. Navistar is also still facing civil suits from trucking companies claiming Navistar knowingly sold heavy-duty diesel engines whose longevity was suspect, given the heavy use of EGR. The EPA has also filed a lawsuit against Navistar over its 2010 emissions strategy.