Monday March 31 2008

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German Deutz to Invest in Capacity Boost, Business Expansion in 2008

German engine maker Deutz AG plans to invest more than 100 mln euro ($158 mln) in the construction of new plants, in the expansion of its services and in product development in 2008, CEO Helmut Leube told news conference on March 27.

In the first place, the company intends to build a factory for replacement engines in Chiemgau, Bavaria, southeastern Germany, and to expand its production capacities in Cologne, western Germany, and in Spain. Furthermore, Deutz will decide by the end of 2008 whether to produce engines for construction machines or fork-lift trucks in the USA.

Cummins and Foton Launch China Partnership

US-based Cummins and China's Beiqi Foton Motor have officially launched China's biggest engine production joint venture. The two partners hold equal shares in Beijing Foton Cummins Engine Company, which will have an annual production capacity of 400,000 units. Investment of more than CNY2bn (US$285mn) has been directed to the plant, which will produce 2.8- and 3.8-litre engines based on Cummins technology. All engines will meet Euro IV emissions standards, as Foton is looking to sell its vehicles, powered by the engines, overseas.

The plant will become operational in September 2008 with commercial production of the 3.8-litre engines to begin in May 2009 and the 2.8-litre versions to follow in September 2009. The company expects to achieve sales of between 800,000 and 1mn units by 2010. Around 20 percent of sales will be exports and a spokesperson for Foton commented that the partnership with Cummins will expand the Chinese firm's international presence. For Cummins too, the new joint venture is the company's largest light diesel engine plant outside of the US.

Are You Marketing Green? New SmartWay Website for Green Loans

With just a single online application, users of a new EPA SmartWay web site can apply to multiple lenders for loans to buy SmartWay certified tractors and trailers, as well as SmartWay approved equipment such as idle reduction systems. The new site offers access to a pool of private lenders with the capability of writing loans for as little as $2,000 or as much as $50 million, according to EPA SmartWay.

Although the loans are not federally guaranteed, borrowers may benefit by having a network of 300 lenders compete for loans, according to SmartWay’s Paul Bubbosh. It takes about 10 minutes to fill out the free online application, and borrowers can decide which lenders get to see their data, he said during a press conference at the Mid-America Trucking Show. A toll-free telephone number (877-767-8875) has also been set up for anyone without web access.

Daimler Truck’s Patterson Seeks to Clear the Air on SCR

After announcing its subsidiary Detroit Diesel will deploy selective catalytic reduction (SCR) aftertreatment—which uses urea—to meet EPA 2010 emissions rules, Daimler Trucks North America (DTNA) sought this morning to dispel what it regards as misinformation about SCR that it believes is confusing North American fleet owners.

“We will be utilizing Daimler’s BlueTec technology for our Detroit Diesel engines beginning in 2010,” said Chris Patterson, president & CEO of DTNA (which produces Freightliner, Sterling and Western Star trucks), speaking at a media briefing before the opening of the Mid-America Trucking Show . “The technology…is the only means of meeting the stringent 0.2 g/kWh NOx standard for heavy-duty diesel engines in 2010 while actually reducing diesel fuel consumption in comparison with the technology used in 2007 engines.”

Half Empty or Half Full? Opinions from the CV Industry Leaders

Manufacturers and suppliers here at the Mid-America Trucking Show say they are starting to see some positive economic signs indicating better days may not be so far off. However, that doesn’t mean major business challenges – especially high fuel prices – are going away any time soon.

“It’s not smooth sailing in the economy right now, with fuel prices at $4 a gallon for diesel and housing starts down,” said Carsten Reinhardt, president of the commercial vehicle systems division at ArvinMeritor. “But there are signs the industry is coming back. We’re more bullish than most about that.”

2009 HD Dialogue to be held February 16, 2009 in Orlando, Florida

The 2009 Heavy Duty Dialogue will be held in Orlando, Florida on Monday, February 16, the day prior to the opening of Heavy Duty Aftermarket Week (HDAW). HDD will again focus on the global commercial vehicle industry and the forces that shape its future.

With a theme of Insight: The Global Commercial Vehicle Industry, the 2008 HD Dialogue conference was an exceptional event by all accounts with over 300 industry leaders in attendance.

Scania Plans Dubai Assembly Line

Swedish commercial vehicle manufacturer Scania is tapping the potential of the Gulf Co-operation Council's (GCC) heavy vehicle market with a new assembly facility in the United Arab Emirates (UAE). Scania has broken ground on the Dubai-based plant, which will assemble trucks from semi-knocked down (SKD) kits, adding locally-sourced components. The plant will become operational in H208, with the capacity to assemble 1,400 vehicles per year, mostly in the construction vehicle segment where Scania sees high demand on the back of infrastructure investments. A second expansion phase will take the plant's capacity to 2,000 units at a later date.

Per Hallberg, head of production and procurement, believes the reduced delivery time afforded by the plant will help Scania to expand its presence in the Gulf states. Indeed, the Swedish firm plans to maintain momentum in its regional expansion with the opening of a regional sales and service training centre in Dubai later in the year. Regional sales director Klas Dahlberg added that Scania's growth strategy for 2009 would include increasing sales in the Gulf states in new segments.

38 Year Industry Veteran, Mack’s Paul Vikner Says Goodbye as CEO

After 38 years in the trucking industry, Paul Vikner made his last public appearance as the host of Mack Trucks' press conference here at the Mid-America Trucking Show. Vikner steps down as Mack president on Mar. 31.

He will continue to serve on the executive committee of parent company AB Volvo, spending a good deal of his time addressing broader industry issues in Washington, DC.

UAW Membership Fell 14 pct in 2007; Now Less than 470,000 Workers

The Washington Post /Bloomberg (3/29, D2, Koenig) reported that, according to the union's report to the Labor Department, "[membership in the United Auto Workers (UAW) fell 14 percent last year, to its lowest in nearly 70 years, as U.S. automakers, scaling back to stem losses, paid factory workers to quit or retire early." The union's membership "declined to 464,910 at the end of 2007," a loss of 73,538 members.

The Detroit Free Press (3/29, Hyde) noted that these are the smallest rolls "since the UAW was organizing Detroit automakers before World War II." Still, "the union's revenues rose 8 percent to $327.6 million in 2007. While dues from members declined, the union boosted income from selling investments by $19.7 million, while interest income grew by $15.8 million."

MEMA Legislative Summit Registration Open, Register Today

Please join your colleagues in Washington, DC on June 10-11 as automotive and heavy duty suppliers come together to advocate for the industry’s legislative priorities in this very important election year.

The Legislative Summit provides measurable benefits for the companies that participate and is a wonderful opportunity to help move the supplier industry forward. All AASA, HDMA and OESA members are strongly encouraged to attend. Registration materials and more detailed information are available by clicking here.

2009 HDAW Dates and Location Announced

Heavy Duty Aftermarket Week '09 will be held in Orlando, Fla., Monday, Feb. 16, through Thursday, Feb. 19.

The Headquarters Hotel will be the Rosen Centre, which will share conference venues with the adjoining Orange County Convention Center. The adjacent Rosen Plaza and The Peabody are also designated conference hotels.

Paccar’s Tom Plimpton Speaks Directly to 730+ Industry Executives

Paccar president Tom Plimpton addressed a sell-out audience of supplier and OEM executives, trade media and others at HDMA’s 18th annual Breakfast and Briefing at the Mid-America Trucking Show.

Following opening remarks and introductions from HDMA president and COO Tim Kraus, HDMA 2008 chairman Joe McAleese, president and CEO of Bendix Commercial Vehicle systems gave a state of the association message and an introduction of HDMA’s board of directors. McAleese then introduced the keynote speaker; Paccar president Tom Plimpton, who addressed the audience and later took questions.

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