Industry Focus – April 2008

People In The News
Following are personnel changes that recently occurred in the trucking industry:

  • Karmak, Inc. appointed James R. Costa, Sr. western area manager. Additionally, the company named John Lebel chief technology officer.
  • Champion Laboratories named Mary E. Blair vice president, global procurement.
  • Ron Alvarez joined Phillips Industries as national sales manager, OE service.
  • Valerie Arnold joined Bayne Premium Lift Systems as purchasing manager.
  • Hendrickson named Jerry Reynolds director of North American field services.
  • Webb Wheel Products hired Duane Ricketts as president of its OES Aftermarket Business unit and Ken Kelley as vice president of sales, marketing and business development.
  • Grote Industries’ military products manager, Matthew Drake, was elected to the Corporate Advisory Panel of the National Guard Association of the United States.
  • Heil Environmental appointed Tim Tarte to lead its OEM and aftermarket parts business.

Tonnage Up in January
The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 2.4 percent in January, after rising an amended 1.5 percent in December 2007.

ATA recently revised the seasonally adjusted index back five years. The new seasonal factors resulted in slightly lower truck tonnage volumes for 2007 than previously reported.

ATA’s truck tonnage index fell 1.5 percent in 2007 from the previous year. ATA originally reported a 1.4 percent drop. December’s tonnage level, meanwhile, increased a modest 1.5 percent; down from the previously reported 4.1 percent gain. ATA annually revises the index as part of its calculation for the upcoming year’s seasonal factors. ATA also restated the not seasonally adjusted data for several months in 2007 as some carriers amended tonnage levels at year end. The not seasonally adjusted index surged 11.4 percent from December to 113.6.

According to ATA Chief Economist Bob Costello, “The economy is either in a mild recession or on the brink of one, and we are hearing anecdotal reports that freight volumes slowed in February. I anticipate that truck tonnage will recover before the general economy, but I am withholding judgment on whether truck tonnage is in a recovery mode until I analyze another month or two of data.”


Power Heavy Duty Adds Member
Power Heavy Duty announced Ewell Equipment Co., Inc. in Lufkin, Texas, has joined their membership.


Coca-Cola’s Hybrid Order Is Eaton’s Largest
Coca-Cola Enterprises will purchase 120 new vehicles equipped with Eaton Corporation’s hybrid-electric drivetrain system this year, Eaton announced. It is the largest single order of the hybrid system, surpassing a 20-truck order last year by Coca-Cola.

According to Eaton, Coca-Cola reports the hybrid vehicles reduce emissions by about 32 percent and decrease fuel consumption by up to 37 percent versus the non-hybrid trucks in the company’s fleet.

“We have been working with Coca-Cola Enterprises since 2003 to assess our systems,” said Dimitri Kazarinoff, general manager for emerging technologies at Eaton’s Truck Group. “Coca-Cola is demonstrating its commitment to reducing pollution and greenhouse gases, and Eaton is pleased to be a part of this effort. We are looking forward to working with them to deploy the systems into their transportation network.”


PSI Chooses Victory Packaging as Supplier of the Year
Pressure Systems International (PSI), manufacturer of the Meritor Tire Inflation System, named Victory Packaging as its Supplier of the Year for 2007. Criteria used to make this selection included on-time delivery, product quality, ability to react to demand changes, and willingness and ability to assist in improving PSI products.

“In 2006/2007, Victory did a great job helping us redesign our packaging, particularly for the MTIS ThermAlert product where we need to protect the thermal press plug assembly,” said Steve Ottemann, vice president of operations, PSI. “The improved packaging helped us contain our costs and at the same time, ensure undamaged product gets to our customers.”


Navistar Re-files Engine Lawsuit Against Ford
Navistar International Corp. announced Feb. 28 that it is again seeking hundreds of millions of dollars from Ford Motor Co. in a long-running disagreement over a diesel engine contract it claims the automaker violated.

Navistar, which originally sued Ford last June for alleged breach of contract, said it re-filed the lawsuit after mediation last year failed to settle the dispute. Navistar, based in Warrenville, Ill., claims Ford broke its contractual promise that it would be the company’s primary manufacturer and supplier of V-6 and V-8 diesel engines in North America.

The lawsuit, re-filed in Cook County Circuit Court on Tuesday, Feb. 26, states that Ford itself plans to manufacture a 4.4-liter diesel engine in North America by late 2009 or 2010, and that the engine will be used in the F-150 pickup truck and possibly other vehicles.

Navistar has been the exclusive diesel engine supplier for Ford’s heavy-duty pickup trucks since 1979.

Ford spokeswoman Kristen Kinley told the Associated Press that the company, based in Dearborn, Mich., intends to fight the lawsuit at a trial set for November. “We maintain that the lawsuit is without merit, and we are honoring commitment of the contract,” Kinley told the AP. “We intend to prove that in court.”

The re-filed lawsuit is separate from previously reported litigation between the two companies. In 2007, Ford filed a lawsuit against Navistar involving 2007 engine pricing and prior period warranty claims on Power Stroke diesel engines. Navistar countersued, stating that pricing is consistent with contractual agreements and that the warranty claims are without merit. Navistar later amended its counter complaint and asked for more than $2 billion in damages.


President Bush Tours Volvo Exhibition
Volvo Group CEO Leif Johansson showed President Bush Volvo Group’s version of environmentally adapted, heavy-duty transportation at a recent Washington International Renewable Energy Conference in Washington D.C. Seven Volvo Group trucks, each capable of operating on different renewable fuels, were presented.

“Each of the trucks seen by President Bush can be driven without any net contribution of carbon dioxide to the atmosphere,” said Johansson. The display also included a Mack hybrid-electric vehicle (HEV), which will be delivered to the U.S. Air Force under a cooperative research and development agreement. Currently, the U.S. Air Force is testing four Mack HEV trucks.

During his address to conference participants, President Bush said, “Expanding use in ethanol and biodiesel requires getting more cars on the road that use these alternative fuels. We expect the private sector to respond.”

Noting Mack and Volvo’s efforts to lessen their environmental footprint, Bush continued, “Technology is changing. Five years ago those trucks would not have been available for people at this exhibit to look at. Today they’re on the road. As a matter of fact, the U.S. Air Force is using these kinds of trucks. Things are changing.”


ArvinMeritor Creates Aftermarket Driveline Specialists Team
ArvinMeritor’s Commercial Vehicle Aftermarket business unit has established a driveline sales team dedicated to the support of distributors and OEM dealers who sell the company’s driveline products and universal joints.

The team is led by Rick Clay, driveline product manager, and Sandy Landgren, senior drivetrain product manager. It includes four driveline sales specialists: Jeff Jeffers in Minnesota, Mike Rogers in Texas, Dave Watson in California and Kerry Poulos in Ohio. They will provide product training, technical support and sales strategies on selling replacement drivelines and U-joints, says the company.

“Superior service and support are the best ways to build brand preference and loyalty,” said Clay.


Leggett & Platt Wins New Product Innovation Award
Leggett & Platt Commercial Vehicle Products won The Work Truck Show 2008 New Product Innovation Award for its mobile workspace shelving, storage areas, rugged docking stations and vehicle mounts featuring eCoupled technology.

Leggett’s use of eCoupled technology converts vehicle work and storage surfaces into wireless charging centers, eliminating the need for portable charging devices and electrical outlets, says the company.

The Work Truck Show 2008 was held in conjunction with the 44th annual National Truck Equipment Association convention in February in Atlanta. Show attendees voted for the most innovative product introduced by exhibitors participating in the New Product Spotlight program. Leggett competed against 78 other companies to win the award.


Bendix Manager Will Co-chair MEMA Brand Protection Council
Andrew Cifranic, brand manager for Bendix Commercial Vehicle Systems LLC, has been selected to serve as the co-chair of the Motor & Equipment Manufacturers Association (MEMA) Brand Protection Council.

The council helps direct MEMA and the industry’s response to the growing challenges of intellectual property, diversion, noncompliant products and counterfeiting issues, as well as provides a forum for industry members to share best practices and dialogue. In addition to overseeing the council’s quarterly meetings, Cifranic will help guide the council as it directs the industry’s collective actions with lawmakers and other groups. As co-chair, he will be able to recommend solutions to counterfeiting issues and suggest future seminar topics.


Volvo Trucks North America, UAW Reach Agreement
A three-year contract agreement was ratified by United Auto Workers’ members ending a strike that began Feb. 1 at Volvo’s New River Valley, Va., plant, Volvo Trucks North America announced. The agreement – which went into effect March 17 and expires March 16, 2011 – covers approximately 2600 UAW Local #2069 members at that facility.

Employees were expected to return to work on March 24, when the plant will begin ramping up to an average daily production rate of 146 vehicles a day, the company said.


Bridgestone M775 Drive Tires Now Available
Bridgestone Firestone North American Tire, LLC now is offering fleets in the U.S. the new Bridgestone M775 on/off-highway drive radial, a popular tire with logging and oil field service fleets in Canada.

Ideal in severe-service applications, the aggressive drive tire delivers good traction and removal mileage while usable at highway speeds to 65 mph, says the company. The block tread and open shoulder design digs into soft surfaces, such as mud and snow, for traction while angled block sipes enhance wet traction by breaking up pocketed water for a grip on wet surfaces.

The tire incorporates four steel belts and an all-steel casing so it can be retreaded for any axle position. Split belt construction helps the casing resist cuts and punctures by enveloping debris, which reduces belt damage for longer tire life and enhanced retreadability, according to the company.

The M775 us available in three sizes: 11R22.5, 12R22.5 and 11R24.5 in “H” load ranges for a total load capacity of more than 24,000 lbs. per axle in dual fitments.


New York City Transit Authority Chooses Haldex Consep Valve
The New York City Transit Authority announced that it has included the Haldex Consep Valve into its new bus builds starting in May. The New York City Transit Authority will be purchasing 850 buses from Daimler Chrysler Bus North America.

The Haldex Consep condenser/separator is a low maintenance way of pre-treating hot, moist air before it reaches an air dryer and is particularly useful where there is high air demand or severe-duty cycles such as in transit and vocational applications, says the company. The product also is intended for any vehicle with problematic compressors that pass excessive amounts of oil.


Correction:
The February issue of Truck Parts & Service magazine incorrectly described RigMaster’s genset in an article on idle reduction technologies. The information should have read: It is available with either a two-cylinder, 14 hp Caterpillar or Perkins diesel engine; a 6 KW AC 110-volt generator; and a 60-amp alternator. The automotive-style heat/air conditioning is belt driven off the APU engine.


Record High Fuel Bills Expected
The trucking industry is forecasted to spend $135 billion on diesel fuel this year – $22 billion more than last year – according to the American Trucking Associations. The cost to fill the fuel tanks on a typical tractor-trailer has increased 116 percent, or $615, in just five years, according to the organization.

ATA President and CEO Bill Graves said the trucking industry is experiencing the highest prolonged fuel prices in history. Historically, fuel represented the second-highest operating expense for motor carriers, accounting for as much as 25 percent of total operating costs. For some motor carriers, however, fuel is beginning to surpass labor as their largest expense.


TMC Releases Update for VMRS
The Technology & Maintenance Council (TMC) released its third update for Version 1.05 of the Vehicle Maintenance Reporting Standards (VMRS).

This latest update of VMRS 2000 contains more than 500 new or revised codes, many of which cover the bus body and emissions-related components used in the transportation and equipment industry. It includes all codes assigned as of November 27, 2007.


Financing Available for Retrofitting MTIS by PSI
Pressure Systems International (PSI) announced the availability of a financial lease option to add the Meritor Tire Inflation System (MTIS) to existing equipment without a major up-front capital expenditure. The company negotiated with Wirth Business Credit to offer creditworthy fleets a 36-month lease-to-own program, which covers all product and labor costs required to retrofit trailers with MTIS.

“Our program recognizes that fleets whose equipment is equipped with MTIS are likely to save an amount each month in reduced tire expenditures and added fuel savings that is equal to or greater than the monthly lease payment – so it’s a good deal for everyone,” says Jeff Kuglen of Wirth Business Credit.

Frank Sonzala, executive vice president, PSI, added, “We’ve been eager to find a program whereby fleet operators can realize the savings and benefits of adding MTIS to their existing equipment without the sometimes difficult initial outlay of cash for the product, and we’re pleased that Wirth has agreed to offer this program to our customers. With fuel prices soaring higher, properly inflated tires are a financial must.”

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