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Ford's 2014 profit fell 56 percent amid new-product blitz 'Strong growth' predicted for '15 despite darker outlook for Europe Automotive News / January 29, 2015 Ford Motor Co. posted a drop in fourth-quarter profit and said earnings fell 56 percent in 2014 as it introduced 24 vehicles worldwide while U.S. market share declined. Annual net income fell to $3.2 billion from $7.2 billion in 2013. Ford earned $52 million in the fourth quarter, marking its 22nd consecutive profitable quarter, but that was down from $3 billion in the same period a year earlier, when results were boosted by favorable tax benefits. “2014 was a solid yet challenging year for Ford -- with our investments and a record number of new products launched around the world positioning us for strong growth this year and beyond,” CEO Mark Fields said in a statement. “The entire Ford team remains focused on our three priorities of accelerating our One Ford plan, delivering product excellence and driving innovation in every part of the business.” Annual revenue was down 2 percent, to $144.1 billion, as Ford booked fewer trucks and other vehicles coming off the assembly line. Ford's results still beat most Wall Street expectations. Ford shares rose 2.7 percent to $14.85 as the overall markets rallied today. The fourth-quarter results included a previously disclosed $800 million pretax charge related to currency devaluation in Venezuela. Excluding that and other special items, including costs related to job cuts in Europe and Asia Pacific, Ford earned a quarterly operating profit of $1.1 billion, 15 percent less than a year ago. In North America, Ford earned $6.9 billion last year, 22 percent less than it did in 2013. As a result, about 50,000 hourly UAW members at Ford will receive profit-sharing checks averaging $6,900. Last year’s profit-sharing checks averaged $8,800, a record. The payouts, to be made in March, will total about $345 million. 2015 outlook As production and sales of the vehicles introduced in 2014 ramp up, Ford said it expects to earn a 2015 pretax profit of $8.5 billion to $9.5 billion, which matches the guidance it provided in September. Fields said Ford expects to produce the majority of its 2015 profits in the second half of the year, as inventories of the recently introduced vehicles rise, whereas historically the first half tends to be more profitable. Ford CFO Bob Shanks said the company’s 2015 operating margin would improve from last year’s 3.9 percent, which was a drop from the 5.4 percent it managed in 2013. “I think we’ll do much better than that in 2015,” Shanks told reporters at Ford headquarters this morning. “We do expect to see a substantial increase in our wholesales this year. You’re going to see a pretty big step up … and our share improve as well. You’re going to see a lot of strong growth numbers from Ford in 2015.” F-150 'flying off lots' Ford has said dealers will have a full supply of the redesigned F-150 around April. Ford started shipping F-150s from its Dearborn Truck Plant in November, and its truck plant in Kansas City, Mo., which was down for a month to retool, reopened this week. Shanks said the F-150 launch is going “extremely well,” with the Dearborn plant now up to full speed. “Vehicles are literally flying off the lots,” he said. “Mix is extremely rich. Pricing is very, very healthy.” Ford sales slipped 1 percent in the U.S. last year, with its share falling to 14.9 percent from 15.9 percent at the end of 2013. Executives have attributed the decline to the F-150 production changeover, though other nameplates also underperformed their segments. The full-year results, equal to $1.16 a share, were slightly above Wall Street’s expectation of $1.11. The fourth quarter was Ford’s fifth consecutive quarter of positive automotive operating cash flow. Its Asia Pacific region achieved a record $589 million operating profit for the year. European outlook In Europe, Ford’s losses narrowed to $443 million in the fourth quarter and $1.1 billion on the year. Ford lowered its guidance for Europe, saying it expects to do better than last year but worse than the $250 million loss it previously projected. Ford Motor Credit Co. had its best year since 2011, earning $1.9 billion in 2014. That was 6 percent better than a year ago, driven by increases in both lending and leasing. Among the company’s biggest problems is Venezuela, where it has changed its accounting methods to reflect the difficulty of operating its business there. “We don’t see anything changing going forward,” Shanks said. “We have difficulty getting access to hard currency.” Including the accounting charge, Ford lost $1.2 billion in South America last year, compared to a $33 million loss there in 2013. That contrasts with the growth Ford is experiencing in Asia Pacific, where the company’s joint ventures in China produced a $1.3 billion profit. Ford market share in China rose from 4.1 percent in 2013 to 4.5 percent in 2014.

Auto Maker Sees Revenue, Market Share Rising After Challenging 2014 Wall Street Journal / January 29, 2015 Ford Motor Co. pledged to put weak earnings behind it with a strong 2015 forecast, but persistent losses in Europe and emerging markets show the challenge of kicking results into overdrive. On Thursday, the No. 2 U.S. auto maker reported a sharp drop in fourth-quarter net profit, due largely to accounting moves. But margins also eroded as revenue slipped 4.5% and costs piled up for product launches in its North American home market. Chief Financial Officer Bob Shanks referred to 2014 as a “solid, but challenging” period. An economic downturn in Russia, weakness in South America and costs from a record pace of U.S. recalls hit Ford hard, forcing the auto maker to miss its original full-year profit outlook. Still, the Dearborn, Mich., auto maker topped analysts’ forecasts for operating profit in the quarter ended Dec. 31, posting profit before special items of $1 billion, or 26 cents a share, compared with $1.3 billion, or 32 cents a year earlier. Net profit slipped to $52 million during the period, down significantly from the $3 billion recorded a year earlier. Ford had a sizable one-time tax benefit that bumped up results in the fourth quarter of 2013. Profit in the latest quarter was hit by lower sales volumes, a $700 million charge for removing Venezuela from its consolidated operations and restructuring costs in Europe and Australia. Revenue declined even as industry sales sizzled in the period. The pressure is on to deliver better results this year. The first six months of Chief Executive Officer Mark Fields ’s tenure were marked by sales declines in key products and regions. Mr. Fields also has called 2015 a “breakthrough year.” Russia, in particular, poses a big problem this year for Ford, which has invested heavily in the region over the past five years. Weakening conditions there caused Ford to lower its expectations in Europe overall. Similarly, General Motors Co. , which reports earnings next week, said on Thursday it was temporarily shuttering a plant in Russia that makes its Opel brand vehicles. “We need to take more action in Russia,” Mr. Shanks said in an interview. Ford, which runs a joint venture with Russia’s Sollers JSC, has laid off hundreds of workers and cut production as the nation’s weak economy and falling currency hurt demand. Mr. Shanks didn’t say what actions Ford would consider, but ruled out removing the business from consolidated operations. Ford’s global revenue declined $1.7 billion in the quarter to $35.9 billion because of lower vehicle sales around the globe, including fewer deliveries in a North American market that is at a near-decade high. Ford has forecast a big turnaround this year with new vehicles entering the market late in 2014 that promise to increase sales and revenue. The auto maker suffered a slowdown late in the year due to a critical production changeover for its top-seller, the F-150 pickup truck. Adjusted for one-time costs, including the Venezuelan effort and costs related to cutting jobs in Asia and Europe, Ford earned 26 cents a share, better than the 23 cents expected by analysts polled by Thomson Reuters. For the year, Ford posted a $6.3 billion operating profit and kept its forecast for 2015 pretax operating profits at between $8.5 billion and $9.5 billion. In North America, traditionally Ford’s strongest region, quarterly pretax profits fell to $1.55 billion from $1.8 billion the previous year. Ford didn’t reap much of the benefit of having its Dearborn, Mich., truck plant back online after shutting it for several weeks in the third quarter as production was still slow. Car makers book revenue when cars are shipped to dealers, not when they are sold to consumers. Ford’s quarterly losses in Europe shrank to $443 million from $529 million a year earlier. Ford finished its restructuring last year with the closing of its Genk, Belgium, plant. Overall, Ford reduced capacity in the region by 18% and closed three plants, but it isn’t projecting profits in the region this year. Losses in its South American business expanded to $187 million from $126 million. Asia-Pacific profits fell to $95 million from $109 million on higher warranty costs and exchange rates. Deliveries in the region rose only slightly. Profits at its finance arm, Ford Motor Credit, rose to $408 million from $355 million a year ago.

Press Release / January 28, 2015 Comments by Martin Lundstedt, President and CEO: “Scania’s net sales rose to a record level of SEK 92 billion (US$11,098 billion) and earnings for the full year 2014 increased to SEK 8,721 million (US$1,052 million). Record service volume, record earnings in Financial Services and positive currency rate effects were partly offset by a weaker market mix. Total order bookings for trucks increased during the fourth quarter, compared to the previous quarter. The increase was primarily related to an upturn in Europe, which is in line with the seasonal pattern in the European market. Scania has strengthened its position in the European market with increased market share compared to 2013, among other things through a leading Euro 6 range and a broad range of engines for alternative fuels. Order bookings in Latin America decreased. Low economic activity and uncertainty about the subsidised financing programme in Brazil had a negative impact. In Asia, order bookings decreased compared to the previous quarter, related to the Middle East. Order bookings in Russia held up but the outlook for the region is uncertain. In buses and coaches, order bookings were sequentially higher, driven by Asia. In Engines, order bookings and deliveries reached all-time high levels. Scania is continuing its long-term efforts to boost market share in Services and revenue increased by 8 percent to a record SEK 18.8 billion (US$2,267 billion) during 2014. Financial Services reported record earnings, with operating income of more than SEK 1 billion (US$120.6 million). Regarding transmissions, Scania has initiated extensive cooperation with MAN, which will mean a stronger product offering and generate significant synergies in the longer term.” For more information: http://mb.cision.com/Main/209/9714285/337099.pdf .

Successful Dealer / January 22, 2015 Penske Used Trucks has opened three more locations in Dallas, metro Atlanta and Ontario, doubling its commercial truck dealership footprint in North America. The company now has six locations including Phoenix; Torrance, California; and Charlotte, North Carolina. “These commercial truck dealerships have proven to be an effective sales channel for our company,” says Jack Mitchell, Penske Vice President of Remarketing. “We are picking strong truck resell markets when deciding on new locations. The centers complement our website, call center and Penske dealer representative sales efforts.” The Dallas and Mississauga, Ontario locations are open six days per week. The Conyers, Ga. location is open Monday through Friday.

Press Release / January 27, 2015 Wheel-End Management System Meritor and Temper Axle Products Corp. of Fonda, New York have partnered to offer Doctor Preload and Temper-Loc spindle nuts for quick preload, or "tight" bearing adjustments on a variety of steer, drive and trailer axles. Proper preload settings improve the life of tires, bearings, spindles and wheel seals and decreases ABS faults. When used together, the Doctor Preload bearing adjustment tool and the Temper-Loc single-lock nut system help fleets meet the SAE J2535 optimal bearing setting of a light preload. Preload settings maintain a slight force on all rollers in tapered roller bearings to minimize vibration and angular movement in wheel-ends. "Meritor's solution with the Temper Axle products is a cost-effective alternative to preadjusted hubs now on the market," Bickford said. "The ability to set a proper preload is critical to reducing fleet operating expenses and vehicle downtime," he added. "Fleets already using the system are finding it to be a valuable addition to their maintenance practices." Doctor Preload is easy to use and requires minimal training. Qualified technicians can set proper preload on each wheel-end bearing with reliable and repeatable processes in less than one minute. It is backed by millions of hours of precision-load cell testing and hundreds of thousands of road miles. "We created the Doctor Preload tool and Temper-Loc nut system in response to the all-too-common loose bearing setting or slight endplay, which we found leads to premature tire wear," said Ray Piascik, vice president of Sales and Marketing, Temper Axle Products Corp. "Improved tire mileage is a compelling benefit, especially when it can be achieved with minimal added effort." Doctor Preload tools are covered by a 1-year warranty while Temper-Loc nuts are covered by a 3-year warranty from the date of installation. Genuine Meritor Hubcaps A new line of Meritor hubcaps is now available as part of an expanding portfolio of wheel-end replacement products. The offering includes aluminum and clear poly hubcaps that meet the operating demands of most heavy-duty applications, said Pete Freeman, senior product manager, Wheel-Ends. Meritor hubcaps are a direct replacement for many competitive models. The hubcaps are available in standard cast aluminum with or without side fill-plug, high-impact clear poly. They can also be purchased with or without a vented plug and high-impact clear poly for hub odometer applications. Each hubcap is packaged with a gasket or O-ring as required. Meritor's wheel-end component portfolio includes automatic and manual slack adjusters, standard and premium wheel seals, wheel bearings, hubs, drums, brake chambers, camshafts and new and remanufactured brake shoes. All wheel-end products are available through the Meritor Aftermarket distribution centers in Florence, Kentucky and Brampton, Ontario, Canada. To order, customers can visit meritorparts.com or call 888.725-9355. .

Western Star trucks plant partially idled after blaze that caused $510,000 in damages Oregon Live / January 28, 2015 Cleanup continued Wednesday at the Western Star truck factory on Swan Island, one day after a fire that halted some production and forced 700 workers to evacuate. No one was injured, but the blaze caused an estimated $510,000 in damages before it was extinguished Tuesday morning, said Lt. Damon Simmons, a Portland Fire & Rescue spokesman. Operations may resume as early as Thursday, said David Giroux, a spokesman for parent company Daimler Trucks North America. The German-owned truck maker, headquartered in Portland, is one of the city's largest manufacturing employers. The fire started when sparks created by an employee grinding near the plant's paint booth ignited flammable liquids in the area. The fire bypassed the sprinkler system and spread to the ceiling. Seven units and 30 firefighters responded to the blaze, and put out the flames within 35 minutes, Simmons said. Most of the damage was structural. No trucks were affected, Giroux said. He said idled employees can use sick leave or vacation days to continue to be paid as cleanup continues. Normal operations could resume Thursday at the earliest, he said.

Fleet Owner / January 28, 2015 A high-pressure diagnostic leak detector for medium- and heavy-duty diesels was introduced by Redline Detection at Heavy Duty Aftermarket Week. THe HD PowerSmoke can replicate high-pressure boost loads in both intake and exhaust systems with the engine off to safely and quickly identify leaks, according to the manufacturer. Using a proprietary bladder to pressurize intake and exhaust systems, it lets a technician complete a diagnostic leak test without major engine disassembly within 10 minutes, according to Redline, which has long built a similar "power smoke" tool for light-duty diesels. The test can identify the root causes of problems such as excessive regeneration of diesel particulate filters (DPFs), plugged DPFs and other leak-related problems that trip engine warning codes. The new tool allows technicians to vary test pressures from 2 to 20 PSI. It creates a dense, long-hanging vapor that can be seen easily even with minor leaks. Unlike dyes used by other diagnostic tools, the vapor does not coat sensors or void warranties, according to Redline, which reported that HDPowerSmoke has just been mandated as an essential tool by one major U.S. truck maker.

Fleet Owner / January 28, 2015 A diesel fuel filter that removes 95% of emulsified water and an air filter with nanotech media for high-dust conditions were introduced by Luber-finer at Heavy Duty Aftermarket Week The MP995 fuel filter is designed to protect common rail high-pressure fuel injection systems from clogging and damage caused by water and particulates common with ultra low sulfur diesel (ULSD) and biodiesel blends Featuring a microglass/synthetic laminate media, the new fuel filter is 95% efficient at removing emulsified water and 99.5% efficient at trapping particulates as small as 4 microns, according to Luber-finer. Initial applications include Cummins ISL, ISM, ISC and ISX engines. The new MXM Nanotech Air Filter is designed for off-road and other high-dust applications. It replaces the more common cellulose media with a nano fiber surface over a synthetic fiber layer, providing overall efficiency of 99.85%, according to the company. It will be available for a wide range of vocational trucks including the Mack Granite Series, the International 7000 Series, and trucks powered by the Detroit Diesel 60 Series. Both new filters will be available in March. http://www.luber-finer.com/documents/brochure/en/LF0105-MXM-Filter-brochure-041414-Web.pdf

Press Release / January 28, 2015 Further positioning the company for growth, Meritor announced a long-term contract with PACCAR. This seven-year agreement secures preferred product positioning for rear axles in North America and Australia. In addition, Meritor now has enhanced optional positioning for brakes, drivelines and front axles. “We are excited to enter into this long-term agreement with PACCAR and further strengthen our relationship in such a significant way,” said Ike Evans, chairman and CEO, Meritor. “The Meritor team is fully committed to delivering industry-leading products to support PACCAR in building great trucks.” "Securing new contracts, such as with PACCAR, is a result of the effort the Meritor team has put forth to drive the company toward greater shareholder value as part of our M2016 strategy," said Evans.

In 2010, due to advances in oil technology, most of the global car makers went to 0W-20 engine oil. They also recommended owners of pre-2010 cars switch over to the new 0W-20 oil. It provides the same protection as the previous 10W30 and so forth, but also yields greater fuel economy (easier winter starting is a secondary benefit). This trend will be heading our way as well.

Focus on Transport and Logistics / January 27, 2015 The delivery of 60 new MAN TGS 26.440 6x4 long-haul tractors for its line-haul operations in southern Africa brings Imperial Cargo’s MAN fleet to 100 units, and with it a new benchmark in the company’s total cost-of-ownership figures. The 60 new trucks will average 16,000 km per month. They were purchased with a 36-month/600,000 km rental agreement, with the assistance of MAN Financial Services. The trucks are equipped with MAN’s 12.4-litre, in-line MAN D26 common-rail diesel engine rated at 324 kW (440 hp) at 1,700 to 1,900 r/min, and a torque output of 2,100 Nm at 1,000 to 1,400 r/min. They feature double bunk cabs, ZF AMT 12-speed transmissions fitted with ZF retarders, air suspension and hypoid rear axles. Servicing blue-chip, fast-moving consumer goods clients like Distell, Woolworths and Nampak, Imperial Cargo’s line-haul operation extends across South Africa and Namibia. “Each truck carries a payload of around 36 metric tons (79,366lb), and the TGS strikes the perfect balance between power, tare mass and fuel economy, giving us new benchmark total-cost-of-ownership figures,” says Imperial Cargo Group’s Christo Theron. “The MAN TGS 26.440 BLS is the tractor type in our line-haul fleet achieving an average of two kilometres per litre (55.6 L/100 km/), compared to an average 1.8 km per litre by competitor brands,” he adds. Others, besides management and the accountants, are also delighted. “Our drivers say it’s the best truck in the fleet; it’s comfortable and easy to drive. They are quite reluctant to get behind the wheel of anything else,” notes Theron. Imperial Cargo has its headquarters and three depots in South Africa’s Western Cape, with other depots in Gauteng, Kwa-Zulu Natal, the Eastern Cape and Namibia. Its cross-border services include freight transport to other sub-equatorial countries including Zimbabwe, Zambia, Angola, Botswana and Mozambique. “A key objective of MAN in southern Africa is to gain market leadership in the long-haul sector by supplying fuel-efficient trucks that significantly lower total cost of ownership. The injection of 60 new MAN TGS 26.440 BLS derivatives into the Imperial Cargo fleet is testimony to the technological leadership of the vehicle. It is also extremely encouraging to know that, as an organisation committed to safety, quality and environmental protection, Imperial Cargo has found the MAN TGS more than capable of meeting its stringent criteria within these areas,” says Geoff du Plessis, managing director of MAN Truck & Bus South Africa. Imperial Cargo deployed its first MAN trucks in 2012, following successful in-fleet trials of the TGS 26.440 BLS. Theron stresses that the company runs rigid test programmes on all new trucks entering the fleet, primarily looking at fuel consumption figures. It wasn’t solely the cost of ownership, however, that persuaded the company to step up its MAN fleet. “Apart from the impressive fuel-consumption figures, which have remained consistent over the last two years in our existing TGS fleet, the after-sales service we get from MAN’s Cape Town branch is exceptional. Response times are swift and monthly performance meetings between my team and MAN’s Cape Town branch ensure that we adhere to our service-level agreements,” says Theron. “On-site vehicle servicing by MAN technicians at our workshops keeps our uptime levels at an optimum.” Warren Atkinson, key accounts manager: Cape Region, MAN Truck & Bus SA, says that the industry watchword remains true: “Our sales team sells the first unit – the workshop and after-sales service sells the rest.” He confirms that service was a critical factor behind securing the order from Imperial Cargo. “As a quality-driven, RTMS-accredited fleet, Imperial Cargo requires hands-on service support and round-the-clock availability of MAN technical personnel; factors which are integral to our service level agreements. Our team at MAN Cape Town is fully geared to satisfy all Imperial’s requirements.” Theron stresses that, while the handover was the highlight of the function, it was also a celebration of the relationship between the two companies, which is founded on trust, reliability and team support. Du Plessis says that being chosen for superior technology and customer-focused after-sales service was hugely significant for MAN. “This order of 60 TGS units proves we have the right product for long-haul applications in southern Africa, as well as the right people to service the trucks and our customers in a manner that builds their business. All of us at MAN are proud to be associated with Imperial Cargo and we look forward to a partnership that continues to grow in strength.” .

Fleet Owner / January 27, 2015 Ryder System has converted its bulk oil program over to a low-viscosity, high-efficiency engine oil. The company is now using 10W-30 oil in all lease, rental and maintenance customer vehicles as part of its regular preventative maintenance program. By using the more efficient oil, Rydersaid customers will achieve up to a 1.5% improvement in fuel economy. In addition, the move will translate into a collective reduction of almost 110,000 metric tons of carbon (CO2) emissions annually. “As a leader in our industry, we have a unique opportunity and ability to improve cost efficiencies and reduce the environmental impacts of our operations, as well as those of the tens of thousands of customers we serve,” said Scott Perry, vice president of supply management and global fuel products. “This initiative is the latest example of proactive steps we take to continually improve the performance and sustainability of our customers’ fleets.” Ryder said it uses approximately three million gallons of engine oil in its operations each year. Through the company’s automotive waste recycle and reuse program, it annually recycles approximately 3 million gallons of used oil, 100,000 million gallons of oily water, 12,000 drums of used oil filters, 47,000 gallons of solvent, and 100,000 automotive batteries.

Transport Topics / January 27, 2015 Specialty truck maker Oshkosh Corp. reported its fiscal first-quarter profit declined from a year ago, and Caterpillar Inc. said its fourth-quarter income fell. Oshkosh's net income was $34.7 million, down from $54.9 million. Revenue for the quarter ended Dec. 31 was $1.35 billion, down 11.6% from the same period last year, the company said Jan. 27. The Oshkosh, Wisconsin-based company's commercial segment sales rose 9.1% to $210.2 million, while access equipment sales gained 7.2% to $716.7 million. Fire and emergency sales fell 15.6% to $167 million, and defense sales plunged 44.1% to $269.3 million. John Sommers II for TTOshkosh reaffirmed its projected fiscal-year 2015 adjusted earnings of $4 to $4.25 per share and sales of $6.5 billion to $6.6 billion. Caterpillar reported its fourth-quarter net income declined to $757 million, from $1.03 billion a year earlier. Earnings per share for the Peoria, Ill.-based company declined to $1.23 per share, compared with $1.54 a year earlier. Revenue declined to $14.24 billion from $14.4 billion a year earlier. Caterpillar said it expects full-year 2015 earnings per share of about $4.60 per share, or $4.75 per share excluding restructuring costs.

AP / January 27, 2015 A fire at the Western Star Trucks plant in Portland, Oregon triggered the evacuation of hundreds of workers, but the blaze was quickly put out and there were no injuries. Lt. Damon Simmons of the Portland Fire Bureau says the Western Star manufacturing plant fire on Swan Island at 6936 North Fathom Street started at about 8 a.m. Tuesday in a spray-painting booth at the manufacturing plant. The fire started in a paint booth and spread into the roof. The initial area didn't have sprinklers, and firefighters said the flames were difficult to extinguish. The fire involved flammable liquids, so several systems had to be shut down before the fire could be extinguished. Investigators have yet to determine the cause of the fire or the damage estimate. Western Star Trucks is a subsidiary of Daimler.

Car & Driver / January 27, 2015 Bad news for anyone who values privacy and the Fourth Amendment. The Wall Street Journal reports that the U.S. Justice Department has been secretly expanding its license-plate scanning program to create a real-time national vehicle tracking database monitoring hundreds of millions of motorists. WSJ pulls no punches in describing the program, calling it nothing less than “a secret domestic intelligence-gathering program.” The program, established by the Drug Enforcement Agency in 2008, originated as a way of tracking down and seizing cars, money, and other assets involved in drug trafficking in areas of Arizona, California, Nevada, New Mexico, and Texas where illicit drugs are funneled across the border. But according to documents obtained by the American Civil Liberties Union through a Freedom of Information Act request, and reviewed by WSJ and The Guardian, the goal of the program has always been nationwide expansion—a fact that was never publicly disclosed. “Many state and local law-enforcement agencies are accessing the database for a variety of investigations, according to people familiar with the program, putting a wealth of information in the hands of local officials who can track vehicles in real time on major roadways,” WSJ reports. The paper was unable to determine whether the program falls under the oversight or approval of any U.S. court. The program uses camera systems at strategic points on major U.S. highways to record time, location, and direction of vehicle travel. Some locations take photos of drivers and passengers, which are sometimes detailed enough to confirm identity, WSJ reports. Perhaps more chillingly, the documents reviewed by the news outlets indicate that the DEA has also employed license-plate-reading technology to create a “far-reaching, constantly updating database of electronic eyes scanning traffic on the roads to steer police toward suspects.” Internal documents indicate license-plate readers in locations in New Jersey, Florida, and Georgia, feeding information into a database at the El Paso Intelligence Center, or EPIC, in Texas. Member police agencies from across the country can search EPIC for vehicle records. “Anyone can request information from our [license-plate reader] program, federal, state, or local,” says a May 2010 email quoted by WSJ. Another document, a memo between the DEA and Customs and Border Protection, hints at the clandestine nature of the program: “this in no way implies that Congress will appropriate funds for such expenditures.” The stated goal of the DEA program is to “seize cars, cash, and other assets to combat drug trafficking,” part of a controversial practice known as “asset forfeiture,” where law enforcement seizes a suspect’s possessions, sometimes without evidence of a crime. But state and local law enforcement have tapped the program to hunt for vehicles tied to kidnappings, killings, rapes, and other crimes. Internal documents from 2010 indicate that the database aided in the seizure of 98 kilograms of cocaine, 7336 kilograms of marijuana, and $866,380 in cash. Those familiar with the program also told WSJ that the system helped authorities find abducted children as part of the Amber Alert system. A Justice Department spokesperson told WSJ the system complies with federal law, saying “it is not new that the DEA uses the license-plate reader program to arrest criminals and stop the flow of drugs in areas of high trafficking intensity.” A spokesman told WSJ that the agency reduced the length of time it retains data, from two years down to three months. But opponents point to the rapidly expanding size and capabilities of the program as privacy concerns for law-abiding citizens. Senator Patrick Leahy, senior Democrat on the Senate Judiciary Committee, called for “additional accountability,” saying Americans shouldn’t have to fear “their locations and movements are constantly being tracked and stored in a massive government database.” “This story highlights yet another way government security agencies are seeking to quietly amplify their powers using new technologies,” Jay Stanley, a senior policy analyst with the ACLU, told the U.K.–based Guardian. “With its jurisdiction and its finances, the federal government is uniquely positioned to create a centralized repository of all drivers’ movements across the country—and the DEA seems to be moving toward doing just that,” the ACLU warns. https://www.aclu.org/how-government-tracking-your-movements http://www.theguardian.com/world/2015/jan/27/millions-of-cars-tracked-across-us-in-massive-real-time-spying-program

The Wall Street Journal / January 27, 2015 Caterpillar Inc., which has bulked up over the past few years to prepare for a long-term boom in developing-world spending on highways, ports and other infrastructure, is finding the road ahead bumpier than it thought. The Peoria, Ill.-based maker of construction and mining machinery, hurt by falling prices for oil, copper and other commodities, reported a 25% plunge in its fourth-quarter profit and forecast a 9% drop in sales and a 22% drop in per-share earnings for 2015. "It's shaping up to be a much tougher year than we were expecting" three months ago, Mike DeWalt, a Caterpillar vice president, told analysts in a conference call on Tuesday. Business is being hurt by the plunge in crude-oil prices to around $46 a barrel from $80 in October and $100 12 months ago. Also hitting Caterpillar results are lower prices for copper, coal and iron ore, which are deterring mining companies from buying new equipment. "We were hoping that 2014 was the bottom" for the mining slump, Mr. DeWalt said, but now "prospects for a rebound in 2015 are probably just not there." Meanwhile, Caterpillar expects sales to fall in China this year as that country's economy continues to slow. Doug Oberhelman, chief executive, promised further cost cutting in 2015, though Mr. DeWalt said no major plant closures are on the horizon. Restructuring costs this year are forecast at $150 million, down from $441 million in 2014, when the company faced heavy expenses for scaling back a large plant in Gosselies, Belgium. Caterpillar's global workforce at the end of 2014 was 130,743, down 2% from a year earlier. Caterpillar said it expects per-share earnings of about $4.60 in 2015, down from $5.88 in 2014. Coming out of the latest recession, Caterpillar earnings per share jumped to $8.48 in 2012 from $1.43 in 2009. Then a slump in mining investment knocked earnings down 32% for 2013. As Caterpillar rushed to close plants and reduce its workforce, earnings began recovering in 2014, but now the collapse of oil prices has hit potential profit. Lower oil prices eventually will spur world economic growth, said Caterpillar, but the company noted it wouldn't "occur soon enough to have a significant impact on our 2015 sales." After peaking at $65.9 billion in 2012, sales will be down for the third year in a row, Caterpillar expects. The last time the company's sales declined for three consecutive years was in the early 1930s, during the Great Depression. Sales for 2015 could be about $50 billion, down from $55.18 billion in 2014, Caterpillar said. Profit for the fourth quarter came to $757 million, or $1.23 a share, down from $1.0 billion, or $1.54 a share, a year earlier. The quarter's sales edged down 1% to $14.24 billion. Excluding restructuring costs, earnings per share were $1.35 in the latest quarter, down from $1.68 a year earlier. Wall Street had expected earnings before restructuring charges of about $1.55 in the latest quarter. Operating profit from construction machinery dropped 26% in the latest quarter to $362 million, while mining was down 67% to $72 million. The energy and transportation unit, which makes a wide variety of engines, had operating profit of $1.08 billion, up 10%. But that unit, Caterpillar's main source of strength in the past few years, is expected to sputter in 2015 as demand for engines used in oil exploration and development falls. Caterpillar's sales of railroad locomotives also are expected to drop as the company races to catch up with tougher U.S. emissions standards. The surging dollar "will not be good for U.S. manufacturing or the U.S. economy," Mr. Oberhelman said. But Caterpillar benefits in some respects because it has large amounts of production capacity in Europe and Asia. Mr. Oberhelman said the European factories, once "dysfunctional," are starting to perform much better after years of streamlining and cost cuts. The plant in Grenoble, France, where workers took managers hostage during a dispute in 2009, is now a model performer, he said. A weaker euro should make those plants more competitive for exports to other parts of the world. "The currency benefit will just be kind of gravy on that" restructuring story, Mr. Oberhelman said.

The mighty Mack-Scania V-8 is already in the U.S. market, for marine and industrial applications with ratings up to 1,000 horsepower. http://www.scaniausa.com/

VW Group would create a North American market conventional heavy tractor range, just as Volvo did. I feel the basis for this product would come from Scania rather than MAN. Until very recently, Scania had a long history of producing conventionals (most recently, the T -Series). There's certainly a market for the cab-over-engine VW Constellation in the U.S., in the medium-duty and medium-heavy segments. COE design still has merits for local and regional applications. Globally, the M-B Sprinter has a solid reputation. The Ford Transit does as well, but I'm unclear how much they changed it for the US market. Ford US has a habit of taking perfected global market product and changing it......with bad results. Look at the Ford Escape engine fires. The Escape was born in Europe as the Ford Kuga, and has never had engine fire issues outside the US. Hopefully the US market Ford Transit with the Ford UK 3.2-liter diesel will be as reliable as it is in Europe (FYI: Range Rover diesel engines are sourced from Ford). I'd avoid the FIat Ducato (Ram Promaster) though, and the Nissan Titan-based NV Cargo (the lack of a fuel-thrifty diesel option). Up until now, the Volkswagen Crafter was based on the M-B Sprinter, but has a VW-unique front end and VW powertrain (http://pl.wikipedia.org/wiki/Volkswagen_Crafter#mediaviewer/File:VW_Crafter_2.0_TDI_%28Facelift%29_%E2%80%93_Frontansicht,_9._Juli_2012,_Velbert.jpg). But VW and M-B have decided to terminate that cooperation, so the soon-to-arrive next generation Crafter desitined for the US market will be 100 percent VW designed and built.

Press Release / January 26, 2015 Danish logistics giant DSV has ordered 3.000 new trailers from German manufacturer Schmitz Cargobull. On Monday, Søren Lund, equipment director for DSV Road Holding NV, took delivery of the first rail-transportable curtainsider semi-trailer resulting from the 3,000 unit order. The first trailer complete with DSV signage was produced and delivered just ten days after receiving the order. This is all possible due to a sophisticated, well-functioning logistics and production control system which takes account of inbound parts from even the smallest supplier, right up to the detailed production process. In extreme cases, the process is so efficient that it is even possible produce a new trailer within just 18 hours. The 3,000 unit order, to be completed over the next two years, includes both Universal and Mega model trailers. Schmitz Cargobull offers both the advantages of innovative, sophisticated trailer solutions, which underline this promise of quality, and also takes into account economic factors to considerably reduce the total cost of ownership. As such, all trailers are equipped with the ROTOS running gear, which has been completely developed in-house by Schmitz Cargobull, with disc brakes, a maintenance-free axle system and electronic safety assistance systems. In addition, there is the convenient VARIOS height adjustment system for the body, with its simple and self-explanatory plug-in mechanism. Adjusting the height of the body ensures adherence to local country-specific regulations concerning overall trailer height in trans-European goods transport. Yet another important deciding factor in securing the order was the modular assembly system, including the equipment for intermodal traffic: All of the trailers to be supplied can be loaded onto trains or equipped for ferry transport. The components belonging to the modular assembly system are fitted using threaded bolts, meaning that all of the parts can be safely and rapidly replaced in the event of damage or repairs being carried out. It is even possible to retrofit additional components at a later date, thus increasing their flexibility in terms of use. http://www.cargobull.com/en/trailer-for-transport-and-logistics_46_634.html .

It's as reported, the truck holding company would be structured so it could be listed if VW Group wanted to raise cash. VW will bring its next generation Crafter van to the US market to compete with the Ford Transit, M-B Sprinter and Fiat (Ram) Ducato. Beyond that, as much as I'd like to see it happen, I doubt that VW will bring its full commercial portfolio to the US market. In the long run, given that VW is obviously serious about the heavy truck segment, global aspirations would, in theory, require the company to participate in the US truck market. Having said that, the US truck market of today is far less attractive than years ago, with low annual sales volumes and slim profits.

Heavy Duty Trucking / January 26, 2015 While competition from natural gas and declining crude prices have reduced attractiveness of hybrid and electric powertrain systems in commercial vehicles around the world, the long-term regulatory and energy outlook shows promise of a strong resurgence for these systems, according to a new study from Frost & Sullivan. The report offers a 2022 outlook compared to the year 2013, when the total global sales of hybrid and electric medium-duty trucks was nearly 2,200 units, while heavy-duty was nearly 300 units. By 2020, Frost & Sullivan projects that the global hybrid and electric medium-duty market will reach nearly 83,800 units. The emergence of low-emission and noise-free zones will create demand for pure electric trucks in pickup and delivery applications, according to the report. The global heavy-duty market is projected to reach nearly 50,800 units, thanks to fully electric trucks in refuse applications, and catenary (overhead electric lines similar to an old-fashioned streetcar) in specialized applications, such as between ports and inland intermodal hubs. OEMs will develop global hybrid vehicle platforms for deployment across different regions, while focusing on production of electric vehicles with local sourcing to facilitate economies of scale in high-growth markets. Key trends the report says will drive this growth: Urbanization: Rising congestion will lead to low-noise and low-emissions zones in crowded cities, as well as subsidies, tax credits and incentives to help make this happen.Advanced battery technologies: Improvements in distance per charge and energy density will dovetail with reduced upfront and lifecycle costs.Emissions regulations in the up-and-coming BRIC countries and ChinaCharging infrastructure: Governments and OEMs find hybrids attractive compared to full electric or CNG because they require limited charging/fueling infrastructureVolatile fuel prices: They may be down now, but fuel prices will continue to go up and down, driving customers toward more fuel-efficient vehicles.Customization: Differentiated products can be built for different duty cycles and applicationsVoltage standardization will provide synergy in electric components such as motors, inverters and batteries in the car and truck segment.Intra-city pick-up-and-delivery, supermarkets, logistics companies, and private fleets that haul lightweight voluminous cargo will present demand for MD-HD hybrid and electric trucks, says the firm. Some key findings: The global medium- and heavy-duty hybrid truck market is set to reach about 90,000 units by 2022. China, North America and Europe will contribute 85.4% of global volumes.Parallel hybrid architecture is expected to penetrate 81% of hybrid truck market in 2022 with series hybrid making inroads in specialized applications.The global MD and HD electric truck market is set to reach approximately 44,800 units by 2022.Chinese manufacturers such as Dongfeng, Foton, FAW and CNHTC are expected to top the global hybrid and electric truck market. Volvo and Daimler are expected to be the non-Chinese members of the top six in the market.

Today’s Trucking / January 26, 2015 FORD Ask any fleet manager about cost savings, and fuel economy will come up quickly in the conversation. For Ford, there are a number of ways to achieve this, including buying new vehicles. “We are seeing increased growth and sales in the medium-duty segment,” says Mark Lowrey, marketing manager for F-Series Fleet Trucks at Ford. “Our customers are replacing aged vehicles as the economy begins to recover from the recession back in 2008 and 2009.” Ford continues to make improvements and enhancements with a number of different technologies, Lowrey says. They include gas-prep packages for natural gas and propane upfits, automatic transmissions that allow engines to operate at optimal rpm ranges and open opportunities for more diverse driver employment, low-rolling-resistance tires, and gear ratio selections to match engine and transmission performance. For the 2016 model year, Ford’s F-650 and F-750 trucks will be offered with both gasoline and diesel engines, as well as compressed natural gas and propane autogas engine prep packages. All models will come with Ford’s 6-speed TorqShift SelectShift automatic transmission, which features double-overdrive ratios and low-end 3.97-to-one first gear. Ford is offering, for the first time, an optional 6.8-liter V-10 gasoline engine with the 6R140 transmission, as well as the 6.7-liter Power Stroke V-8 turbo diesel engine, which is rated at 270 hp and 675 lb-ft. of torque, and offers B20 biodiesel capability. Ford also added several new interior features, including a 110-volt power outlet, available Sync and Crew Chief factory-installed fleet management telematics, and a rapid-heat supplemental cab heater. A new steering wheel offers advanced controls. Buyers have a choice of hydraulic or air brakes. FREIGHTLINER Freightliner Truck sees a change in how its clients are making truck-buying decisions. “Similar to what we’ve seen in the on-highway segment, medium-duty customers increasingly recognize the importance of purchasing a truck based on the cost of ownership over the lifetime of the vehicle,” says Mary Aufdemberg, director of product marketing. “Customers recognize the lifetime savings when they consider the bottom-line impact of a proven powertrain, durable chassis, industry-leading visibility, customizable easy-to-upfit spec, and strong dealer support.” The 2015 Freightliner M2 106 can be fitted with either a Cummins ISB or Cummins ISL engine and Eaton Fuller 5-, 6-, 8 ALL, 9 ALL, 9- or 10-speed manuals, as well as Eaton UltraShift 5-or 6-speed automated manuals and Allison automatics. Several new option packages include efficiency, which combines Allison’s new FuelSense transmission programming with a Freightliner-exclusive Cummins ISB 6.7 rating of 220 hp and 600 lb-ft. of torque. “This pairing will deliver better fuel economy and reliability than any engine in its class,” Aufdemberg says. “We’ve packaged this powertrain combination with additional fuel economy-enhancing options to further increase mpg.” Because each medium-duty application can be very different, Freightliner offers a variety of customizable options. HINO In 2011, Hino introduced the 195 cabover engine (COE) to Canada, and it has since taken the market by storm. The model represents well over 50 percent of Hino Canada’s vehicle sales and its popularity increases year after year. The 195 is powered by Hino’s 5.1L turbo diesel 4-cylinder engine, producing 210 horsepower and 440 lb.-ft. of torque. The engine is mated to the Aisin A465 6-speed fully automatic transmission for smooth and efficient power delivery. The COE was recently enhanced with the addition of a long-wheelbase option to accommodate freight bodies of up to 22 ft. in length, as well as rear air-ride suspension for shock-sensitive loads. Hino plans to improve front axle capacity for the 2016 vehicles as well as offer an optional 55-gallon aluminum fuel tank. Standard features of the 195 include a magnetic suspension driver’s seat and a Bluetooth sound system. As with all Hino models, the 195 is covered by the company’s exclusive Hino Premium Protection plan consisting of one year free maintenance, free engine oil changes in year 2 and 3, three years of HinoWatch roadside assistance and five year limited engine (and COE transmission) warranty. The Hino 195 is also available in a crew cab configuration or as a diesel-electric hybrid vehicle. ISUZU Fleet managers are often challenged with building a practical truck application with a sensible solution, according to Brian Tabel, director of marketing at Isuzu Commercial Truck. “A truck purchase decision requires a vehicle with maximum uptime. Ease and cost of maintenance, driver efficiency and fuel economy are major components of the challenge to reduce costs and maximize profit — ultimately realizing the lowest cost of operation, which provides the lowest cost of vehicle ownership,” Tabel says. For many customers, spec’ing a vehicle unique to their applications with the benefit of a reduced carbon imprint makes the purchase that much more attractive. While no single engine technology is the answer for all applications, Isuzu offers a pair of its own diesel engines and a General Motors gasoline engine that can burn natural gas or propane. Isuzu 2015 N-Series trucks are available in Class 3, 4 and 5, including: * NPR Gas and NPR-HD Gas with a 6-liter Vortex V-8 rated at 297 hp at 4,300 rpm and 372 lb-ft. at 4,000 rpm; * NPR Eco-Max with an Isuzu 3.0 4JJ1-TC diesel rated at 150 hp at 2,800 rpm and 282 lb-ft. at 1,600 rpm; * NPR-XD and NPR-HD, each with the 4HK1-TC diesel rated at 215 hp at 2,500 rpm and 452 lb-ft. at 1,850 rpm; and * NQR and NRR, also with the 4HK1-TC diesel. Isuzu’s diesel trucks come with an onboard Data Recording Module which creates a vehicle health report. “In addition to reporting operating status of all major drivetrain and major operating systems, it reports driver-operating habits including acceleration, deceleration, braking, speed, fuel consumption and engine idle times,” Tabel says. “Utilization of operation facts can improve driver behavior and safety, and further reduce your cost of operation.” PETERBILT Buying a truck that doesn’t require a commercially licensed driver can make hiring easier, notes Wesley Slavin, Peterbilt’s medium-duty products marketing manager. “Easy to operate, non-CDL trucks open up a much deeper driver pool, so businesses in local delivery applications or utility work, for instance, can operate the vehicles and not necessarily require dedicated truck drivers,” Slavin says. “Customers continue to look for operator-friendly features that help increase productivity, safety and comfort.” For 2015, Peterbilt is offering its Class 6 and 7 medium-duty cabover Model 220, which comes standard with the Paccar PX-7 diesel with up to 260 hp and 660 lb-ft. The 220 is standard with an automatic Allison transmission with a push-button shifter and an electronic braking system. The vehicle’s curb-to-curb turning radius has been reduced by 16 percent, with maneuverability further enhanced with a bumper-to-bumper spec as short as 35 feet. Even at the shortest wheelbase, the Model 220 features an additional 45 inches of payload room. While Peterbilt integrates aerodynamics to increase fuel economy, the biggest saving can come from inside the cab itself. “The biggest impact on fuel economy is the driver,” Slavin says. “It’s even more significant in medium-duty markets where routes are local, there’s urban congestion and it’s often stop-and-go deliveries. So we focus on features that help the driver operate as efficiently as possible.” This year, Peterbilt introduced Driver Performance Assistant, a coaching tool which provides operators with real-time feedback to improve driving habits, resulting in better fuel economy and reduced component wear. Mitsubishi Fuso Medium-duty drivers, just like heavy-duty, have to keep on top of a lot more today than in the past, according to Todd Bloom, president and CEO of Mitsubishi Fuso Truck of America (MFTA). “The days of a fleet owner being able to hire untrained operators to drive a light medium-duty truck are passing,” Bloom says. “With tightened emissions limits, and the more sophisticated emissions controls they have brought to the medium-duty market, the need for driver intervention has also increased. “Five years ago, drivers of Class 3–5 diesel trucks could essentially climb into the seat and drive it away in much the same way they did their personal vehicle. Today, commercial drivers have to be aware of all of the vehicle’s EPA mandated technology, in addition to all of the normal vehicle pre-run inspection and maintenance tasks.” MFTA offers five medium-duty models: the Fuso Canter FE130 (13,200 pounds GVWR), FE160 (15,995 pounds GVWR) and FE180 (17,995 pounds GVWR) standard-cab models, the FE160 Crew Cab (15,995 pounds GVWR), and the four-wheel-drive FG4X4 (14,050 pounds GVWR). All 2015 Fuso models are powered by a three-liter diesel coupled to Fuso’s Duonic 6-speed-overdrive automated manual transmission with fully automatic dual clutch control and creep function. The design focus of the 2015 Canters remains on low cost of ownership, based on long service intervals, high payload capacities and good fuel economy. Since the manufacturer’s vehicles cross a wide range of vocational markets, certain accessories remain optional. “Idle-limit systems are required in some jurisdictions, valuable for fuel sav ings in others, but not universally required or beneficial,” Bloom says. “Cab-mounted air deflectors can save substantial fuel in regional delivery [highway] applications, but do little to boost economy in stop-and-go urban traffic. By making these and other accessories optional, the fleet can choose the content for its trucks that best suits its business, operational and budget requirements.” KENWORTH While Kenworth offers a number of conventional medium-duty trucks, including the T170, T270, T370, T440 and T470, the truck manufacturer recently entered into full production on two updated cabover models, the Class 6 K270 and Class 7 K370. “Kenworth’s new cabovers feature extensive exterior and interior enhancements,” says Kurt Swihart, Kenworth marketing director. New additions include a new dash and gauge cluster, front air disc brakes, an electronic braking module, a push-button control shifter, and Dana rear axles. The K270 and K370 come standard with a 6.7-liter Paccar PX-7 diesel rated at 220 hp and 520 lb-ft. of torque, and an Allison 2100HS 5-speed transmission. Both models also feature a standard air-ride driver’s seat plus a two-passenger bench seat with storage underneath, as well as single driver and passenger seats with a large console in between as an option. Available with wheelbases ranging from 142 to 242 inches in 12-inch increments, the trucks can accommodate bodies from 16 to 28 feet. “All of the available features that come standard with the K270 and K370, such as an adjustable steering column, power-heated mirrors and an air ride driver’s seat, are proving to be a big draw,” he says. T-series conventionals can be fitted with factory-installed front drive axles, rear air suspensions and aerodynamic fairings for tractors. Kenworth recently added Allison’s FuelSense package for medium-duty trucks specified with Allison’s Highway Series or Rugged Duty Series automatic transmissions. Fuel Sense adapts shift schedules and torque based on load, grade and duty cycle to save fuel while retaining performance. NAVISTAR Navistar is focusing on “customerization,” says Bill Kozek, president of North America Truck and Parts. “What we call customerization is about empowering our customers, giving them more options, flexibility and ultimately more control in the process of selecting the right commercial truck and commercial truck components for their businesses.” Last summer, Navistar shipped its first International DuraStar and International WorkStar vehicles housing 9.3-liter N9 and N10 engines with selective catalytic reduction exhaust- emissions equipment to customers. Their ratings range from 275 to 330 hp and 860 to 960 lb-ft. Also available is the Cummins ISB6.7, also with SCR, which produces from 200 to 300 hp and 520 to 600 lb-ft. During a recent earnings call, Jack Allen, Navistar’s executive vice president and chief operating officer, said the company has produced more than 7,000 trucks with the ISB since it was unveiled in the fall of 2013, with 5,000 currently in use. The data that we’re getting back is very positive on fuel economy, on performance, on uptime,” he says. “So we do expect repeat business, but we expect a greater portion of the existing customers’ business.” Navistar still makes non-SCR diesels and still calls them MaxxForce. The MaxxForce DT inline-6 produces from 215 hp and 560 lb-ft. to 300 hp and 660lb-ft. The MaxxForce 7 V-8 makes from 240 to 300 hp and 620 to 660 lb-ft. The 2015-MY International Durastar is available with Eaton 5-, 6-, or 10-speed manual transmissions, Eaton UltraShift 5- or 6-speed automated manuals, and Allison 1000, 2000 and 3000 series automatics. Navistar recently started offering Allison’s FuelSense packages for these transmissions. Dodge Trucks (RAM) Customers are looking to save money by dropping classes instead of vehicles or drivers, says Rudy Albrecht, Ram chassis cab marketing manager. For example, a company might choose to move from Class 6 trucks to Class 5 or 4, which would reduce weight and increase fuel economy. “Truck users are paying more attention to acquisition and operating costs, making sure they get the right truck with the correct capability. Previously the tendency was to buy bigger than they might need just in case they need it down the road,” Albrecht says. Newer model Class 4 and 5 trucks are in many cases equal or more capable than the sometimes decade-old Class 6 trucks they are replacing, Albrecht says. He pointed to the ’15 Ram 4500 and 5500 chassis cabs’ high gross combination weight and tow ratings. A new Max Payload Package on 6.4-liter Hemi-powered Ram 5500s, which is made possible by a new torque converter on the commercial-duty Aisin AS66RC automatic transmission, increases gross vehicle weight ratings to 19,000 and 19,500 pounds on various wheelbases. Those GVW ratings are 500 to 1,000 pounds higher than before. Many customers are choosing the 6.4 Hemi gasoline engine because it costs about $8,500 less than the Cummins diesel, and still does a respectable amount of work. For heavy towing, though, the diesel is still the better choice. “For instance, Ram offers a 10,000-pound-GVWR option on our 3500 chassis cab for customers who don’t typically haul or pull heavy loads, but at the same time it helps them reduce some of the administrative and insurance costs that come with operating heavier trucks.”

Transport Topics / January 24, 2015 The Kenworth T880 with the Paccar MX-13 engine was honored as the 2015 commercial truck of the year. The award, which this year focused on the vocational and heavy haul/severe-duty sectors, was announced here Jan. 24 at the American Truck Dealers annual convention. ATD said the Kenworth truck was selected for its design, refined interior, torque, handling and outstanding visibility from the driver’s seat. The other finalists were the International WorkStar 7600 and the Peterbilt Model 567. This T880 is specified with a Paccar MX-13 rated at 500 hp and 1,850 pound-feet of torque. A number of Kenworth representatives, including Preston Feight, assistant general manager for sales and marketing, were in attendance to accept the award. Feight told Transport Topics the award “was the recognition of a great truck” that along with the Paccar engine was “a complete package.” Kenworth and Peterbilt Motors are both U.S.-based truck-making units of Paccar. The judges included a panel of journalists, and for the first time, an active professional driver. Greg Nauertz, a local delivery driver for YRC Worldwide based in Phoenix, participated in the selection process, which took place several days before the ATD convention began. http://www.kenworth.com/media/37274/t880.pdf

Reuters / January 21, 2015 Volkswagen Group may restructure its trucks business so that it could be spun off from the main group, and establish a separate headquarters for it in Frankfurt, German monthly Manager Magazin said, citing company sources. Manager Magazin said the trucks holding company would be structured so it could be listed on the stock exchange in the event that parent company Volkswagen wanted to raise cash. A spokesman for Volkswagen said the company declined to comment on speculation. Volkswagen has hired former Daimler manager Andreas Renschler to integrate its different trucks businesses which include Swedish truck maker Scania and German MAN SE as well as its own VW-branded commercial vehicle business. Renschler will start his job on Feb. 1, and wants to have 50 staff in Frankfurt to run the business, Manager Magazin said. .

With the election of a new director to Paccar who has zero background in the heavy truck industry, it's no wonder why foreign truckmakers now dominate the U.S. heavy truck market. Zenon C.R. Hansen adamantly opposed having anyone on Mack’s board of directors who lacked the necessary qualifications. When Zenon C.R. Hansen returned to Allentown in 1985 to speak at the American Truck Foundation directors meeting, he was asked flatly, if he was brought to Allentown as an adviser for Mack management. Hansen wasn't afraid to openly discuss Mack's recent problems. "All you have to do is read the daily business items, and you will find out that some businesses that existed 10-11 years ago have been absorbed," Hansen said. "Now, I don't think that's going to happen to Mack. What the ultimate outcome is of the problems, or questions, that they have to answer now. I can't tell you. "All I know is that I had a very fine relationship when I was in Allentown with Mack employees. They were absolutely super, and also with the Mack union (United Auto Workers). "From everything I have learned, the present management of Mack has that same relationship. But what the exact problems are, I can't say. I learned a long time ago that you don't talk about something you don't know something about. "I can't say what Mack directors are doing now," Hansen said. "I've been gone 11 years. I don't have the recent background with Mack. Now, maybe I'll have it before I leave, but I don't have it now. As far as I can see, they're doing a fine job. "But I have a very concrete background to compare with - the directors who were running the company before I came (in 1965). We dispensed with those directors and got others who knew something about trucks.