ArvinMeritor unveils new Mascot Truck Parts facility
ArvinMeritor, Inc. officially opened a new 100,000-square-foot facility for Mascot Truck Parts in Mississauga, Ontario, Canada, to benefit aftermarket customers and improve operational efficiencies. The facility – which remanufactures transmissions, drive axle carriers, drivelines and steering gears – combines three smaller, separate facilities in Mississauga.
“Mascot is one of our key product brands for our aftermarket business, and it has built a significant reputation for quality, customer service and extensive product knowledge,” said Terry Livingston, general manager-North America, for ArvinMeritor’s Commercial Vehicle Aftermarket. “At the center of our remanufacturing strategy are two key factors: same day/next day availability through strategically located distribution centers (25 for Mascot), and an all-makes portfolio that enables customers to make one phone call for their post-engine overhaul, drivetrain needs.”
From the new operation, more than 1,200 axle carriers and transmissions are shipped monthly throughout North America, including five truck OEMs and a host of select authorized outlets. “The consolidation allows for quicker decision-making and reduced cycle-times, as well as consistent processes for all products,” said Glenn Hanthorn, president of Mascot, which also operates remanufacturing centers in Edmonton, Alberta; Moncton, New Brunswick; and Boucherville, Quebec.
Additionally, an on-site customer-service call center remains a central part of the customer-focused operation. “Our one ‘super’ remanufacturing facility utilizes the best practices from all the former facilities,” explained Hanthorn, “while removing their shortcomings and allowing room for growth.”
Under the management direction of Hanthorn; Tony Macharacek, regional operations manager; Bill Statham, general manager; and Guido Sala, senior quality manager, the business unit has increased its production capacity for axle carriers and transmissions by roughly 20 percent due to the consolidation, while lean initiatives introduced at the facility allow more space for further growth. Centralizing in one location has enabled more efficient production, including reduced parts inventory, labor costs and manufacturing overhead, according to the company.
Monthly tonnage down 4.5%, year-to-year down 12.2%
The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index fell 4.5 percent in March, marking the first month-to-month decrease of 2009. The gains during the previous two months, which totaled 4.5 percent, were erased with March’s drop. February’s increase was revised down to 1.5 percent.
In March, the SA tonnage index equaled just 101.4, which is its lowest level since March 2002. The fleets did report higher volumes than in February, as the not-seasonally-adjusted (NSA) index increased 10.2 percent, but that is well below the 15 to 20 percent range that NSA tonnage usually rises from February to March. In March, the NSA index equaled 104.7.
Compared with March 2008, tonnage contracted 12.2 percent, which was the second-worst year-over-year decrease of the current cycle. In December 2008, the largest year-over-year contraction, tonnage dropped 12.5 percent from a year earlier.
ATA Chief Economist Bob Costello said he wasn’t too surprised at March’s reading. “Many fleets were telling us during March that freight was getting a little better,” Costello said. “The problem is that freight should be significantly better in March, which is why the seasonally adjusted index fell. While the industry is desperate for some positive news, it is unfortunate that March’s data suggests the industry has not hit bottom just yet.”
ATA calculates the tonnage index based on surveys from its membership. The report includes month-to-month and year-over-year results, relevant economic comparisons and key financial indicators. The baseline year is 2000.
Caterpillar announces reman supply agreement with Eaton
Caterpillar Inc. announced that it recently reached an agreement with Eaton Corp. to have Eaton’s heavy-duty transmission remanufacturing business done by Caterpillar’s Remanufacturing Division.
The agreement calls for Caterpillar to remanufacture Eaton heavy-duty transmissions at its facility in Summerville, S.C., beginning in the third quarter.
The companies say the agreement brings together the Fuller Reman brand and the reputation of Caterpillar’s Remanufacturing Division.
February NAFTA trade down 30%
Trade using surface transportation between the United States and its North American Free Trade Agreement partners Canada and Mexico was 30.9 percent lower in February 2009 than in February 2008, dropping to $47.9 billion, the biggest year-to-year percentage decline on record, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation.
February was the fourth consecutive month with a yearly decline of greater than 13 percent. During the first two months of 2009, the value of surface trade dropped 29.1 percent compared to the first two months of 2008.
The value of U.S. surface transportation trade with Canada and Mexico rose 1.0 percent in February 2009 from January 2009; month-to-month changes can be affected by seasonal variations and other factors. Surface transportation consists largely of freight movements by truck, rail and pipeline; about 88 percent of U.S. trade by value with Canada and Mexico moves on land.
The value of U.S. surface transportation trade with Canada and Mexico in February was down 0.5 percent compared to February 2004, and up 24.3 percent compared to February 1999. Imports in February were up 19.5 percent compared to February 1999, while exports were up 30.3 percent.
U.S.-Canada surface transportation trade totaled $29.8 billion in February, down 33.8 percent compared to February 2008. The value of imports carried by truck was 32.0 percent lower in February 2009 compared to February 2008, while the value of exports carried by truck was 28.1 percent lower. Michigan led all states in surface trade with Canada in February with $3.1 billion.
U.S.-Mexico surface transportation trade totaled $18.1 billion in February, down 25.7 percent compared to February 2008. The value of imports carried by truck was 26.4 percent lower in February 2009 compared to February 2008, while the value of exports carried by truck was 15.4 percent lower. Texas led all states in surface trade with Mexico in February with $6.1 billion.
The TransBorder Freight Data are a unique subset of official U.S. foreign trade statistics released by the U.S. Census Bureau. New data are tabulated monthly, and historical data are not adjusted for inflation.
ArvinMeritor says it recycles 89% of waste materials globally
ArvinMeritor, Inc. announced – as part of its global sustainability platform – that it has increased its recycling rate year-over-year to 89 percent from 83 percent. In 2008, more than 486 million pounds of materials from around the world – including metals, cardboard, wood and paper – were recycled for other applications, the company said.
During the same time period, the company said its manufacturing facilities in Carrollton, Ky. and Venissieux, Lyon, France, found beneficial uses for more than 120,000 tons of used foundry sand that otherwise would have been added to landfills. Carrollton provided sand for the construction of a nearby interstate, while Venissieux provided sand to be used for road construction and the production of cement blocks.
The company said it also has established a global greenhouse emissions inventory, which is a key component of its sustainability plan. The company said its facility in Asheville, N.C., implemented electricity conversion measures that helped reduce greenhouse gas emissions by more than 4,600 metric tons by aligning power usage with production schedules and making use of more efficient air compressors and boilers; at the company’s manufacturing facility in St. Priest, Lyon, France, volatile organic compounds (VOCs) were reduced by more than 60 percent due in part to converting high-solvent VOCs to water-based paints and installing improved painting efficiency equipment, including new paint robots; and in Chatham, Ontario, Canada, the company completed three water conversion projects that helped reduce water consumption by two-thirds, or more than 100,000 tons.
ArvinMeritor is one of 77 companies profiled in the 2009 Business Roundtable Report, “Enhancing Our Commitment to a Sustainable Future: 2009 Progress Report,” that highlights leading U.S. companies who are advancing sustainability through environmental, social and economic programs.
Decisiv adds financial expertise
Decisiv, Inc., the provider of an advanced web-based technology designed to enable more informed and timely decisions critical to maintaining commercial vehicles, announced that Peter. T. Garahan, acting CFO, has joined the Decisiv Board of Directors. Garahan brings more than 30 years of executive level business experience to Decisiv, including roles at private and public companies where his financial management skills were instrumental in raising funds through public offerings and through venture and strategic financing.
“Peter Garahan’s background and extensive knowledge of financing growth stage businesses will help us position the company for rapid growth,” said Dick Hyatt, president of Decisiv. “As the use of the Decisiv Service Management Platform by fleets, service providers and OE truck manufacturers and component suppliers expands, his experience in related industries also will be very valuable as we refine our market strategy.”
Garahan, currently a real estate developer, served earlier in his career as executive vice president of Mitchell International. Other roles he’s held included serving as a senior financial executive at three publicly traded companies and as a senior operating executive of four private companies. He has also served on the board of directors of several private and publicly traded companies.
“Having worked with members of the Decisiv management team over several decades, I believe strongly in their capabilities,” Garahan stated. “Decisiv’s Service Management Platform represents a great opportunity to leverage innovative technology with a strong and growing network of truck industry partners, resulting in measurable improvements for fleets, OEMs and service providers. I look forward to using my financial and executive skills, as well as my industry experience, to help the company dramatically expand its business in this $50 billion plus market segment.”
SAF-Holland facilities recommended for ISO/TS 16949 certification
SAF-Holland has announced that its North American facilities aligned to its Powered Vehicle Systems Business Unit have been recommended for ISO/TS16949 certification by Det Norske Veritas Certification, Inc. (DNV). ISO/TS16949 is recognized globally as the quality automotive standard, superseding previous European and QS-9000 standards.
“ISO/TS 16949 certification satisfies the growing need by global vehicle manufacturers for a unified certification standard,” said Sam Martin, chief operating officer for SAF-Holland. “The formal recommendation for our Powered Vehicle Systems facilities competitively positions us to serve those customers that are now demanding ISO/TS16949 certification.”
John Wieringa, vice president of the Quality & Environmental Systems for the Powered Vehicle Systems Business Unit of SAF-Holland, noted that the certification process, which has been going on over the past 18 months, was a cross functional effort involving SAF-Holland associates and various vendors throughout North America.
“The team was extremely dedicated in preparing for the final certification audit,” said Wieringa. “Their hard work and focus was a critical factor in achieving this important step in the ISO/TS 16949 certification process.”
The North America facilities of SAF-Holland recommended for approval are all Powered Vehicle System facilities in the U.S., including facilities in Michigan (2), Texas (1) and North Carolina (1); the Powered facility in Ontario, Canada (1 of 2) also was recommended. SAF-Holland operations in Singen, Germany and Brazil already have attained ISO/TS 16949 certification.
Cummins says 1Q net income down 96%
Cummins Inc. this week reported lower sales and profit in the first quarter 2009 as the global recession affected demand for the company’s products around the world. Sales for the quarter were $2.44 billion, down 30 percent from $3.47 billion during the same period in 2008. Earnings before interest and taxes of $28 million, or 1.1 percent of sales, fell 91 percent from $315 million, or 9.1 percent of sales. Net income attributable to Cummins Inc. was $7 million, a 96 percent decrease from $190 million a year ago.
The first-quarter results include a $66 million charge to cover the costs associated with job reduction actions taken in the quarter. Cummins announced plans to reduce its work force by more than 4,100 employees and contract workers during the quarter in response to lower demand for its products. Excluding the restructuring charge, net income attributable to Cummins Inc. was $51 million and EBIT was $94 million, or 3.9 percent of sales.
All four of the company’s business segments experienced sales decreases compared to the first quarter 2008, with the largest declines coming from the engine and components segments. Based on the first-quarter results and company forecasts for the remainder of the year, Cummins today revised its sales and earnings guidance downward for 2009. The company now expects 2009 sales to be slightly more than 30 percent lower than 2008 and anticipates EBIT of 5 percent of sales for the year, excluding the restructuring charge.
“The first quarter was, as we expected, extremely challenging, and we do not see the economy or our markets improving for the remainder of 2009,” said Tim Solso, chairman and chief executive officer of Cummins, based in Columbus, Ind. “We have taken significant actions to lower our costs and improve our productivity in response to the global recession, which has affected virtually every market in which we operate around the world. We are confident that those actions, which will continue as necessary, will allow us to earn a reasonable profit in 2009, generate positive cash flow and enable us to continue to invest in the products and technologies vital to our future success.”
In addition to reducing its work force worldwide, the company said it has made significant reductions in discretionary spending and has prioritized capital expenditures further to focus on the most critical projects, especially those associated with the launch of new emissions-compliant products in 2010. Capital spending in the first quarter was $64 million compared to $90 million in the same period a year ago and $213 million in the fourth quarter 2008.
“Cash management is a top priority for the company this year,” said Pat Ward, chief financial officer. “We remain well-positioned with a strong balance sheet, low debt and significant liquidity. Despite the challenging economic conditions, the company did not need to use any of the $1.1 billion credit facility that was put in place last summer.” At the end of the first quarter, Cummins said it had $353 million in available cash and cash equivalents and a total available liquidity of $1.8 billion.
ArvinMeritor adds Allison automatic transmissions to reman line
ArvinMeritor Inc. announced this week that it has added two key product families to its growing aftermarket portfolio for commercial vehicles: remanufactured Allison automatic transmissions, and all-makes power steering gears and pumps. The new remanufactured transmissions will be sold under ArvinMeritor’s Mascot product brand and include Allison AT, MT, HT, 1000, 2000, 2400, 3000 and 4000 series automatics.
These models are operating on a wide range of vocational truck and bus applications where the expected service life of the vehicle is long but the operating demands on the transmission are high, the company says; the Mascot transmissions (both automatic and manual models) are remanufactured to the original equipment manufacturer’s exact engineering specifications, and the units are an exact fit, with no modifications necessary for installation.
ArvinMeritor says its new all-makes steering gears and pumps remanufacturing program includes more than 600 parts numbers from brands such as Vickers, Hoburn, Luk, Sheppard, Eaton, Saginaw, TRW and ZF; the steering gears and pumps are available for a wide range of commercial vehicles and applications, and include serial-number traceability and color-coded instructions to properly identify the installation method.
Doug Wolma, Commercial Vehicle Aftermarket general manager of remanufacturing for Troy, Mich.-based ArvinMeritor, says that remanufactured automatic transmissions and steering gears and pumps will meet the aftermarket customer’s growing needs for performance, service life and product support at a fraction of the cost of new component. “Remanufacturing also provides the environmental benefit of extending the productive life of a part that might otherwise be scrapped,” Wolma says.
ArvinMeritor says the remanufactured transmissions and steering gears and pumps are stocked and distributed through 25 Mascot Truck Parts facilities in Canada and the United States, allowing expedient delivery of quality products and service across North America.
Decisiv expands integration with Detroit Diesel eParts catalog
Decisiv Inc., provider of a Web-based technology designed to enable more informed and timely decisions critical to maintaining commercial vehicles, announced today, April 29, that it has expanded the capabilities of its Decisiv Service Management Platform (DSMP) to include Detroit Diesel MBE 900 and MBE 4000 engines. The company says the integration with eParts, the Internet-based catalog for Detroit Diesel engine information, provides fast and easy access to comprehensive parts content for the MBE models.
“The Decisiv Service Management Platform in use at authorized Detroit Diesel and Freightliner Trucks service locations is now enhanced by the addition of real-time access to Detroit Diesel’s eParts information for the manufacturer’s MBE 900 and MBE 4000 models,” says Dick Hyatt, president of Decisiv, based in Glen Allen, Va. “This new capability further expands the DSMP’s features and capabilities and enables our growing number of service location subscribers to build repair estimates for MBE engines faster and with greater accuracy.”
Decisiv says the integration of the Detroit Diesel eParts Catalog and the DSMP continues its efforts to add new sources of in-context information from component manufacturers. For MBE models, the platform determines the unique engine serial number and uses it to navigate the user to the appropriate location in eParts, according to the company; part information then can be transferred to the Decisiv estimate and presented to the customer for review and approval.
Developed over nearly eight years, the Decisiv Service Management Platform provides a common and consistent service initiation and write-up process and eliminates the need to log into separate systems and open separate windows when a truck equipped with an Detroit Diesel MBE 900 or MBE 4000 engine arrives at a service location, according to the company; in addition to faster in-context access to source information, the platform provides a communications bridge between service location subscribers and their customers, streamlining the service initiation, review and approval process.
