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Iraq to receive 4x4 and 6x6 vehicles from Navistar Defense Shephard News / March 20, 2020 Navistar Defense has been awarded an $11.44 million FMS contract to supply Iraqi forces with an unspecified number of 4x4 and 6x6 transport trucks and recovery vehicles. Spare parts for these vehicles will also be included. Five bids were made for the FMS contract. According to the US DoD, the vehicles should be delivered by 28 February 2021. They will be assembled at locations in Ohio and Tennessee with the US Army Contracting Command ensuring the fulfillment of the contract requirements.

Dayton Business Journal / March 23, 2020 One of the Dayton region's largest manufacturers is part of a lucrative contract with the U.S. Army. Work will be handled locally. Navistar Defense, a Melrose Park, Illinois-based company that is a subsidiary of Navistar International Corp., won an $11.4 million deal for general transport trucks, recovery vehicles and spare parts. Work will be performed at the company's Springfield facility, as well as a location in Ooltewah, Tennessee. The foreign military sales deal will support the government of Iraq, according to the U.S. Department of Defense. Work is expected to be complete by Feb. 21, 2021. Navistar beat out four other companies for the contract, which was delivered by the U.S. Army Contracting Command in Michigan. The contract is significant as it will bring in a substantial amount of new work for the company's Springfield operation. It also helps strengthen Navistar's relationship with the military, and may lead to future deals. Navistar is the fourth-largest manufacturing company in the Dayton region. It has more than 2,100 local employees and 2.1 million square feet of manufacturing space, where it produces medium, heavy-duty and severe service trucks. Navistar also is one of the Dayton area's 20 largest employers.

DefPost / March 22, 2020 Saudi Arabia’s ERAF Industries and Navistar Defense, LLC announced the signing of a Memorandum of Understand (MoU) between the two companies. This important step demonstrates Navistar Defense’s commitment to the Kingdom of Saudi Arabia’s Vision 2030. ERAF Industries brings the necessary and required local manufacturing capabilities, technology and services to the Saudi Arabia defense industrial base. “The MoU contains a framework for cooperation satisfying obligations under the Kingdom’s Vision 2030 economic plan,” said ERAF Chairman, President & Chief Executive Officer Abdullah Alameel. “It establishes a mutually beneficial cooperation between the two companies to jointly approach the opportunities in the Kingdom by utilizing their synergy in strong technical, logistical, industrial capabilities and effective collaborative effort.” “Navistar Defense has a proud history of delivering and sustaining tactical mobility and logistical support vehicles for the U.S. military and its allies,” said Navistar Defense Chief Executive Officer Ted Wright. “The United States and the Kingdom of Saudi Arabia have a strong relationship established 75 years ago and we look forward to enabling the Royal Saudi military by addressing their vehicle requirements. Cooperation between Navistar Defense and ERAF is an important step in growing our presence in the Middle East, especially in Saudi Arabia and in supporting the Kingdom’s Vision 2030 plan.”

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Commercial Carrier Journal (CCJ) / March 23, 2020 Paccar has issued a recall that affects approximately 35,671 Peterbilt tractors from model year 2015-2020 equipped with a left-hand under hood jumper terminal, according to National Highway Traffic Safety Administration documents. Affected trucks include Peterbilt 365, 389, 567 and 579 models. In the affected trucks, the positive battery jumper terminal cable may be too long, allowing it to chafe against the left front suspension spring and result in an electrical short circuit, which increases the risk of the fire. Paccar will notify owners of affected trucks, and dealers will inspect the battery jumper terminal cables and replace them as necessary. Owners can contact Paccar customer service at 1-940-591-4220 with recall number 20PBA. NHTSA’s recall number is 20V-130. The company also issued a separate recall for approximately 233 model year 2016-2020 Peterbilt 320 and 520 models with dual foot valves and a liftable tag or tri-drive rear axles. The rear brake signal hose in these trucks may be missing a quick release valve, possibly causing a delay in their brake release timing. Paccar will notify owners, and dealers will check the trucks for a quick release valve, installing one if necessary. Owners can contact Paccar customer service at 1-940-591-4220 with recall number 20PBB. NHTSA’s recall number is 20V-132.

Navistar suspending truck production, DTNA ‘in task force mode’ Jason Cannon, Commercial Carrier Journal (CCJ) / March 23, 2020 Navistar International Corp. announced Monday it was suspending production at its truck assembly plant in Springfield, Ohio, for at least two weeks in response to supply chain disruptions caused by the COVID-19 coronavirus pandemic. Navistar joins Mack Trucks and Volvo Trucks North America who each Friday morning announced they were shutting down facilities in Macungie, Pennsylvania, Dublin, Virginia or Hagerstown, Maryland through this Friday. Daimler Trucks North America, in a letter widely distributed Friday, said all its manufacturing facilities in North America “are in task force mode to maintain the continuity of our operations. The supply chain continues to be relatively stable, allowing us to continue to deliver trucks on time. So far this month, our on time-delivery rate continues to be at a very high level. The environment is changing rapidly and we are adapting every day,” the company wrote. A DTNA employee tested positive for COVID-19 last week at its Detroit Powertrain campus in Michigan, but after closing to clean and disinfect the company expects to be back up and running today. The Department of Homeland Security has designated transportation equipment manufacturing part of the nation’s Critical Manufacturing Sector, “therefore, we have a duty and an obligation to support you at this crucial time,” DTNA wrote in its letter sent to customers, “while still protecting the health and safety of our collective workforce and acting in accordance with the law.” Kenworth Friday declined to comment on its production plans and Peterbilt has yet to respond to an inquiry seeking comment.

Ford credit rating cut by Fitch Bloomberg / March 23, 2020 Ford Motor Co. and its Ford Motor Credit Company was downgraded by Fitch Ratings as the coronavirus pandemic sends shock waves through supply chains, decreasing demand across the auto industry. Fitch downgraded Ford’s credit rating one notch to BBB- on Monday with a negative outlook. The company’s price target was lowered March 11 by Morgan Stanley analyst Adam Jonas who cited “demand shock” sparked by the virus. “The downgrade of Ford’s IDR to ‘BBB-’ with a Negative Outlook reflects Fitch’s significant concerns about the effect that the global coronavirus mitigation actions currently underway will have on the company’s near-term financial performance and credit profile,” the company said in its report. “Fitch currently believes the company has the financial flexibility to manage through an extended shutdown of its facilities, but concerns are increasing that a combination of an extended shutdown followed by weak demand in a global recessionary environment could further pressure the company’s credit profile.” Moody’s Investment Service downgraded Ford to the first rung of speculative grade last September, and the auto giant sits just one step above junk at S&P Global Ratings. The company was upgraded to investment grade from junk in 2012. CEO Jim Hackett is now under pressure to accelerate his $11 billion restructuring after a disastrous rollout of the redesigned Explorer led to dismal earnings and a disappointing profit forecast. While Hackett maintains the support of Executive Chairman Bill Ford, great-grandson of founder Henry Ford, he shook up his management team in February by installing Jim Farley as his new number two executive to speed up the company’s turnaround efforts.

Falling oil prices are a double-edged sword. While we all enjoy inexpensive gasoline and diesel fuel, financially sound energy companies are an essential part of a national's overall economy, and national security. As we speak, many in the U.S. are heading towards bankruptcy due to these low prices. Yes, they did need to overhaul their business models, shifting from purely "drill, drill, drill!" to generating adequate free cash flow.......and most have now accomplished that. But at these price levels, it's impossible for far too many to escape bankruptcy.

Ford to suspend production in India, South Africa, Thailand, Vietnam Reuters / March 23, 2020 Ford Motor Co. said on Monday it will temporarily halt vehicle and engine production at its factories in India, South Africa, Thailand and Vietnam in response to the growing impact of the coronavirus. In India, the suspension began on March 21 and will be followed by other markets, the company said, adding that the shutdowns will continue for several weeks. "We are continuing to act in real time and taking added safety measures by temporarily halting production at our manufacturing sites in the international markets," International Markets Group President Mark Ovenden said. Last week Ford, along with General Motors and Fiat Chrysler, said it would temporarily suspend production in North America due to coronavirus risks. It also suspended production at its plants in continental Europe. Ford last week also moved to hoard cash, drawing down $15.4 billion from two credit lines and suspending its dividend. It abandoned its 2020 financial forecast and said the cash would be used to deal with a squeeze on capital caused by shutdowns in production.

France 24 / March 20, 2020 Hydroxychloroquine has been used for around 70 years to treat malaria, rheumatic conditions and other ailments. Now its potential use in the fight against coronavirus has become a source of hope for many, following encouraging results from a clinical trial in France on Monday. But experts caution that there is still uncertainty about its effectiveness. A very old drug is coming back to the fore. The successful testing of hydroxychloroquine for use against the coronavirus in France’s second city Marseille on March 16 created high expectations amid this surging epidemic – especially in light of Donald Trump’s announcement on Thursday that the US Food and Drug Administration has approved its use for this purpose Didier Raoult, director of a university hospital institute in Marseille, explained that he had conducted a clinical trial in which he treated 25 Covid-19 patients with hydroxychloroquine. After six days, only 25% of patients who took this drug still had the virus in their body. By contrast, 90% of those who had not taken hydroxychloroquine continued to carry the Covid-19. In the wake of this announcement, French pharmaceutical giant Sanofi offered to donate millions of Plaquenil (a trade name for hydroxychloroquine) to continue the tests, while the French government’s spokesperson Sibeth Ndiaye hailed the “promising results” and promised to expand clinical trials for this treatment. It was a Chinese study published on March 9 that first put the spotlight on this anti-malaria drug in the context of the current pandemic. Researchers at the University of Beijing demonstrated its effectiveness in an in vitro trial – that is to say, an experiment on cells in a laboratory. This drug is regularly touted as a potential solution whenever a new virus appears. One “possibility is that chloroquine may alter the ability of the virus to bind to the outside of a host cell in the first place (which is an essential first step for entry) ”, noted Robin May, a professor of infectious disease at Birmingham University.

Last week's Senate Republican relief package would give US airlines $58 billion of taxpayer money. Mitch McConnell tried to distinguish it from the notorious bank bailouts of 2008. “We are not talking about a taxpayer-funded cushion for companies that made mistakes. We are talking about loans, which must be repaid, for American employers whom the government itself is temporarily crushing for the sake of public health.” But the airlines are big enough to get their own loans from banks at rock-bottom interest rates. Their planes and landing slots are more than adequate collateral. Why do airlines deserve to be bailed out? (And for that matter, why do the Indian's casino business deserve an $18 billion handout?) Over the last decade, US airlines spent 96 percent of their free cash flow, including billions in tax savings from the Trump tax cut, to buy back shares of their own stock. This boosted executive bonuses and pleased wealthy investors but did nothing to strengthen the airlines for the long term. Meanwhile, the four biggest carriers gained so much market power they jacked up prices on popular routes and slashed services (remember legroom and free bag checks?). United CEO Oscar Munoz on Friday had the audacity to warn that if Congress doesn’t bailout the airline by the end of March, United will start firing its employees. But even if bailed out, what are the odds United Airlines would keep paying all its workers if the pandemic forced it to stop flying? A government (aka. taxpayer) bailout of United Airlines would be for shareholders and executives, not workers.

Yes that was a factory option, high ground clearance 20-inch diameter fuel tanks, in lieu of 24-inch diameter tanks.

GM suppliers preparing to manufacture ventilator parts Dustin Walsh, Automotive News / March 22, 2020 Parts suppliers for General Motors are preparing to manufacture parts for at least 200,000 ventilators in an effort to stave off a projected shortage of the machines in the fight against the deadly respiratory illness COVID-19. Meridian Lightweight Technologies Holdings Inc. of Southfield, Michigan, is helping GM procure six different compressor parts made of magnesium for an estimated 200,000 ventilators, said Joe Petrillo, director of North American sales. The parts are too small for Meridian's machines, but the company has connected GM with Twin City Die Castings Inc. in Minneapolis and Myotek, which operates manufacturing plants in Manistee, Michigan, and China. "We coalesced as an industry," Petrillo said. "Usually we [Meridian, Twin City and Myotek] compete, but in this circumstance, we're not competitors." The Society of Critical Care Medicine projects that 960,000 coronavirus patients may become critically ill in the U.S. and need to be put on ventilators. The organization estimates there are only about 200,000 ventilators in the country. Michigan Gov. Gretchen Whitmer said Friday the State Emergency Operations Center is working to find creative ways to bring more ventilators to Michigan. It's estimated the state has only 1,000 right now. "We are working to see how we can increase the number of ventilators in our state," Whitmer said. "I feel like we are making some progress, but if the federal government is able to procure some ventilators and ship them to Michigan we will be incredibly grateful." President Trump tweeted Sunday: "Ford, General Motors and Tesla are being given the go ahead to make ventilators and other metal products, FAST! Go for it auto execs, lets see how good you are?" Petrillo said the plans to start production as early as Monday were being sent Sunday afternoon. "We're off and running. The tool shops are designing tools right now," said Eric Showalter, CEO of Mytek. "We're able to at least start to kick off tools in China to build these things. If we get paid, we get paid. We're all just trying to help where we can." GM announced last Friday it partnered with Bothell, Wash.-based Ventec Life Systems to increase production of its ventilators. Ventec will leverage GM's logistics, purchasing and manufacturing prowess. It's unclear whether GM is establishing another assembly line at Ventec's production plant or will manufacture the additional ventilators at one of its plants. GM said it has "teams hard at work," Jim Cain, senior manager of sales and executive communications. Canadian supplier Magna International Inc. has also been contacted to manufacture ventilator parts and is "currently investigating possibilities," confirmed Tracy Fuerst, vice president of corporate communications. So has powertrain parts supplier BorgWarner Inc. "We have been approached and are currently evaluating if we can support the effort out of our facilities," said Michelle Collins, manager of marketing.

Mack Trucks sold thousands of BCR kits through our parts departments.

So my sister has the Corona virus and is not doing well. She lives 400 miles from me in St. George, Utah. She has a hard time breathing. She has a deep dry cough, sore everything, fever. went to the hospital. They took a sample and turned her away! No results for 5 days they say. By then she could die. WTF? Luckily she has a hyperbaric chamber and that infuses tons of oxygen into a person's blood. Seems like that's the only thing helping keep her alive. These dumb ass hospitals turning someone away who clearly has it. She recently had surgery so that's why her body most likely couldn't fight it off so far. I hope the government gets those malaria drugs to hospitals ASAP. It's not smart to turn someone away that had 99% chance of having it. WTF? Obviously the state isn't well prepared. I have not been in personal contact with her or anyone in my family as they live 400 miles away. I hope they expedite these drugs or I'll fly around the world to go get it for her. Also, why send her home where it could spread? Trevor Milton - CEO, Nikola Motor Company

Volvo Group suspends Volvo and Mack production Jason Cannon, Commercial Carrier Journal (CCJ) / March 20, 2020 Volvo Trucks North America and subsidiary Mack Trucks confirmed Friday morning that they will be the latest to join a growing list of truck and auto manufacturers to shutter assembly operations due to the COVID-19 coronavirus outbreak. Mary Beth Halprin, Volvo Group vice president of public relations and corporate affairs, told CCJ Friday that, while the company has no reason to believe there are any cases of COVID-19 in any of the Mack, Volvo Trucks or Volvo Group powertrain manufacturing facilities in Macungie, Pennsylvania, Dublin, Virginia or Hagerstown, Maryland, “we have decided to temporarily suspend production as part of the effort to slow the spread of the virus in our communities.” Effective Thursday, March 19, Mack and Volvo Trucks suspended production through Friday, March 27. Moving forward, Halprin said the company would monitor the outbreak and communicate additional decisions to employees on a regular basis. “During this suspension,” Halprin said, “we will be exploring new ways of working and possible approaches to production that would allow for increased social distancing in the facility. The health and safety of our employees and communities will be our primary concern as we work to make the most informed decisions we can during this uncertain time.” Kenworth Friday refused to comment on its production plans. CCJ has also reached out to Freightliner, Navistar and Peterbilt for comment but has yet to receive a response. General Motors, Fiat Chrysler and Ford have already announced the suspension of manufacturing at their sites.

Waste Haulers Exempt from HOS Regs Amid COVID-19 Heavy Duty Trucking (HDT) / March 20, 2020 The Federal Motor Carrier Safety Administration (FMCSA) released their Expanded Emergency Declaration and an accompanying Frequently Asked Questions document as it relates to Hours of Service (HOS) regulations during the COVID-19 national emergency. The new declaration and FAQs specifically exempt waste haulers from HOS are in direct response to a request by the National Waste & Recycling Association (NWRA) in a letter to Acting Administrator Jim Mullen. Other requirements under Parts 390-399 which include vehicle maintenance, inspection, and driver qualifications are also waived for waste haulers. The declaration is as follows: This Emergency Declaration provides regulatory relief for commercial motor vehicle operations providing direct assistance in support of emergency relief efforts related to the COVID-19 outbreaks, including transportation to meet immediate needs for: . . . (2) supplies and equipment necessary for community safety, sanitation, and prevention of community transmission of COVID-19 . . . The FAQ issued by FMCSA clarifies this specifically with regard to our industry: Are haulers of household waste and medical waste covered under the terms of the declaration? Yes, transportation for removal of both household and medical waste is covered as “supplies and equipment necessary for community safety, sanitation, and prevention of community transmission of COVID-19.” “We extend our thanks to FMCSA for recognizing the vital role of the waste industry by including us in their Expanded Emergency Declaration. NWRA remains committed to working with federal and state officials to ensure our members can properly and safely respond to this health crisis,” said NWRA President and CEO Darrell Smith.

States Suspend Weight Limits for Trucks Involved in Coronavirus Relief Transport Topics / March 20, 2020 Officials in multiple states have lifted restrictions on truck weight limits to allow delivery vehicles involved in emergency relief efforts to accommodate more freight during the coronavirus pandemic. About a dozen states have issued suspensions pertaining to these regulations as of March 20. Shawn Wilson, secretary of the Louisiana Department of Transportation and Development, issued a waiver March 18 suspending certain size and weight restrictions on public highways for trucks involved in relief efforts. Wilson recently confirmed he has tested positive for COVID-19. The Mississippi Department of Transportation authorized a similar weight increase March 17. The maximum gross weight under Mississippi’s allowance is 90,000 pounds on a 5-axle commercial motor vehicle. The waiver does not allow trucks to cross load-posted bridges that can’t bear their weight. “By waiving certain regulations, we can help ensure timely and efficient delivery of goods and services,” MDOT Executive Director Melinda McGrath said. Iowa Gov. Kim Reynolds issued a state of emergency March 17 temporarily suspending provisions regarding oversize and overweight loads of food, medical supplies, cleaning products and other household goods. “These are unprecedented times, and the state of Iowa will do whatever is necessary to address this public health disaster,” Reynolds said. “I have authorized all available state resources, supplies, equipment and materials to combat the spread of COVID-19.” Georgia Gov. Brian Kemp’s emergency declaration, issued March 14, contained similar language, suspending restrictions on height, weight, length and hours of operation for commercial vehicles involved in relief efforts. South Carolina Gov. Henry McMaster on March 11 signed an executive order waiving similar rules pertaining to registration, permitting, length, weight and load size. The Virginia Department of Transportation issued a waiver March 19 for carriers hauling relief supplies, water, food, oil, fuel, waste, livestock, poultry and animal feed. Wisconsin Gov. Tony Evers on March 14 gave the state Department of Transportation permission to issue waivers on weight limits for haulers that supply grocery retailers. Maryland Gov. Larry Hogan announced March 19 that trucks involved in relief efforts are allowed to exceed legal weight limits by up to 15%. Hogan also directed the Maryland Department of Transportation to restrict access to BWI Thurgood Marshall Airport to ticketed passengers and employees only. “This truly is one of the most daunting challenges our state has ever faced,” Hogan said. “We are all in this together, and if we all do our part to rise to this challenge and to meet this moment, we will get through this together.” Similar suspensions of weight restrictions for commercial motor vehicles involved in relief efforts have been issued in North Carolina, Nebraska, Illinois and Missouri. These state waivers dovetail with the Federal Motor Carrier Safety Administration’s recent relaxation of certain hours-of-service regulations for motor carriers involved in coronavirus-related relief efforts. The declaration was issued March 13, shortly after President Donald Trump declared a national emergency in response to the virus. Specifically, FMCSA is granting exemption from Parts 390-399 of the Federal Motor Carrier Safety Regulations, which cover hours of service, parts and accessories needed for safe operation, and longer combination vehicles. Drivers are not exempt from requirements relating to commercial driver licenses, drugs and alcohol, hazardous materials, size, weight and registration requirements. Also, motor carriers that are subject to an out-of-service notice are not eligible for the relief. The declaration applies to truck operators involved in direct assistance efforts, such as hauling medical supplies and testing equipment, masks, gloves, hand sanitizer, food and personnel.

I'm seeing the real Pence for the first time. His direct, professional and calm demeanor as chair of the Coronavirus taskforce is impressing me. https://www.npr.org/2020/03/18/815350278/transcript-nprs-full-interview-with-vice-president-pence

“The healthy and optimistic among us will doom the vulnerable,” Landon said. She acknowledged that restrictions like a shelter-in-place may end up feeling “extreme” and “anticlimactic” — and that’s the point. “It’s really hard to feel like you’re saving the world when you’re watching Netflix from your couch. But if we do this right, nothing happens. A successful shelter-in-place means you’re going to feel like it was all for nothing, and you’d be right: Because nothing means that nothing happened to your family. And that’s what we’re going for here.” Emily Landon, chief infectious disease epidemiologist at University of Chicago Medicine .

When things sour, everyone has their hand out. U.S. airlines called on Friday for a government stimulus package. They want the US taxpayer to cover their payroll for around 750,000 jobs. In return for ownership, in return for shares so the country can profit when their stocks return to normal levels, I might agree. United Airlines CEO Oscar Munoz and President Scott Kirby both said that they will suspend their salaries, b ut NOT for the year.......only thru the end of June. Munoz has a $10 million annual salary, and Kirby $5.5 million. Absurd salaries at any time. Southwest Airlines CEO Gary Kelly has volunteered to take a whopping (sarcasm) 10% pay cut. He has a $7.6 million salary. Delta Airlines CEO Ed Bastian, who earns a ridiculous $14.9 million annually, has cut his salary 100% for 6 months. I would think the airline could meet payroll with that $7.45 million savings. No sound from American Airlines CEO Doug Parker who earns $12 million annually. Ups and downs are part of the airline business. One's business model should, to some degree, allow for that. Airlines can't simply take and take, and then ask for free money (subsidies) in a downturn.