May 31, 2011

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OEMs and Analysts See Additional Rise in 2011 Truck and Trailer Forecasts

FleetOwner.com
The increasing pace of truck and trailer orders is leading many OEMs and analysts to raise their equipment sales forecasts for the year.

For example, Volvo Trucks North America (VTNA) recently raised its forecast for U.S. Class 8 sales this year from 220,000 units to between 230,000 to 240,000 units.

Truck Tonnage Increases 4.8 percent in April for 17th Straight Year-Over-Year Gain

Transport Topics
Truck tonnage continued its steady growth last month, rising 4.8 percent above April 2010 volumes, the 17th straight year-over-year gain, American Trucking Associations reported.

ATA said May 25 that its advance seasonally adjusted index reached 114.9 in April. It said the gain was slower than the 6.5 percent year-over-year growth posted in March and that the index was down 0.7 percent when comparing April with the prior month.

Class 8 Truck Fleet Dips 1.2 % As Firms Purge Older Models

Transport Topics
U.S. truck owners registered more heavy-duty vehicles in the year’s first quarter than a year earlier, but also purged older trucks at an even faster rate, causing the nation’s Class 8 fleet size to drop for the fifth time in the past six quarters.

Registrations of new trailers also declined.

Oregon Copper Content in Brakes Bill is Dropped in State Legislature

Heavy Duty Trucking Magazine
An Oregon bill that would have required the elimination of copper in motor vehicle brakes won't go any further this session.

Oregon Senate Bill 945 failed to meet the May 24 deadline to be heard in the Oregon House and will not be considered further during this legislative session.

Eaton Unites Light Vehicle and HD Aftermarket, Truck Clutch Units

Transport Topics Magazine
Industrial manufacturer Eaton Corp. said it has combined its truck and automotive aftermarket divisions with its heavy-duty clutch building subsidiary into a single entity called the global aftermarket and clutch business unit.

Eaton, Kalamazoo, Mich., manufactures transmissions, clutches, hybrid power systems and other components for heavy-duty truck manufacturers, and makes a diverse range of products for the industry’s aftermarket. It also makes many of the same parts for cars, as well as for the automotive aftermarket industry.

MEMA Signs Letter Supporting Critical, Rare Earth Mineral Bill

MEMA Washington Insider
MEMA and a coalition of manufacturers and automakers sent a letter this week to Senate Energy and Natural Resources Committee Ranking Member Lisa Murkowski (R-Alaska) supporting her efforts on bipartisan legislation to address weaknesses in the U.S. domestic supply chain of critical minerals. Sen. Murkowski’s legislation, S. 1113, seeks to create a comprehensive U.S. plan to address domestic supply chain disruptions that could arise from Chinese export quotas on rare earth minerals.

The bill directs the relevant agencies to inventory the U.S. supply of critical minerals, classify which minerals are critical to U.S. industry and create an interagency working group to study possible solutions to streamline the permitting processes for mines and processing operations.

ATA Report Sees Continued Trucking Gains Through 2022

Fleet Maintenance Magazine
After a dip during the Great Recession, the U.S. freight economy, particularly for trucking, is projected to grow significantly in the years ahead, according to American Trucking Associations’ U.S. Freight Transportation Forecast to 2022.

The Forecast, the product of collaboration between ATA, IHS Global Insight and Martin Labbe Associates, lays out the current state of the freight economy where trucking is the leading mode of transportation and projects an even more robust role for trucks in the future.

Commercial Trailer Order Backlog Grows Despite Falloff in Order Activity

Heavy Duty Trucking Magazine
Commercial trailer backlogs reached 101,244 units in April. While backlogs grew during the month, net orders posted a 30 percent decline from the previous month, according to ACT Research.

ACT also noted that industry backlog is 141 percent above levels at this time last year, while build was nearly double the rates witnessed in April 2010.

Trucking Outlook Set for August '11 Commercial Vehicle Outlook Conference - Registration Open

E-trucker.com
Trucking analysts Noel Perry of FTR Associates and Peter Nesvold of Jefferies & Co. will deliver their insights and projections about the trucking industry during the Commercial Vehicle Outlook Conference Aug. 24-25 in Dallas.

They will discuss equipment sales, capacity, fuel prices, employment and freight trends at the conference which unfolds on the eve of the Great American Trucking Show Aug. 25-27 at the Dallas Convention Center.

Volvo Trucks Assembles 500,000th Truck in U.S.

Truck Parts and Service Magazine
Volvo Trucks has presented Wilson Trucking Corporation of Fishersville, Va. with the keys to a brand new Volvo VNL 300, the 500,000th Volvo truck assembled in the United States.

To commemorate Volvo Trucks’ North American milestone, company officials presented the new Volvo VN, assembled at Volvo’s New River Valley plant in Dublin, Va., to Wilson Trucking Chairman Chuck Wilson, President Guy Wilson and members of the Wilson Trucking staff. Wilson Trucking’s Volvo VNL 300 is equipped with a Volvo D13 engine, I-Shift automated manual transmission and one-of-a-kind badging to distinguish the truck as the 500,000th Volvo assembled in the U.S.

Caterpillar Uses Cash, Avoids Issuing Stock for $7.6 bn Purchase of Bucyrus

Dow Jones News Service
Caterpillar Inc. (CAT) has scrapped plans to issue up to $2 billion worth of stock to pay for its purchase of mining-equipment manufacturer Bucyrus International Inc. (BUCY)

The world's largest maker of construction equipment will rely on its cash on hand for the more than $3 billion not covered by the company's debt package for the $7.6 billion purchase of Bucyrus. At the end of the first quarter, Caterpillar had about $3.6 billion in cash from its machinery and engine businesses, including $1.1 billion of free cash flow left over after capital expenditures and $350 million from the sale of a company-owned dealership.

US DOT Conducts Thousands of Surprise Safety Inspections Motorcoach Carrier

WASHINGTON –U.S. Transportation Secretary Ray LaHood today announced that the Federal Motor Carrier Safety Administration (FMCSA) and its state and local law enforcement partners conducted more than 3,000 surprise passenger carrier safety inspections over a two-week period in May that resulted in 442 unsafe buses or drivers being removed from the nation’s roadways.

The strike force issued out-of-service citations to 127 drivers and 315 vehicles during the unannounced inspections that took place from May 1 – 15.

US Capital Equipment Financing Up 11 Percent in April vs Year-Ago

Dow Jones News Service
Financing volume for business equipment rose 11 percent in April from a year ago and the delinquency rate on existing equipment loans declined, signaling further improvement in the equipment-financing industry, according to a monthly survey of banks and finance companies released Monday.

Respondents to the Equipment Leasing and Finance Association's survey said they financed $5.1 billion of new equipment last month, compared with $4.6 billion a year ago. March's volume was down from the $6.2 billion reported in March. The $521 billion-a-year commercial leasing and financing industry has been steadily recovering after the U.S. economic recession and limited access to credit sent the industry into a tailspin in 2009. From January through April, survey respondents provided financing for $19.6 billion of equipment purchases, up 27.2 percent from the same period in 2010.

Senate Panel Considers New EV Technology Bills

IHS Global Insight Daily Analysis
A spate of legislation has been introduced in the US Senate and brought up before the Senate's Energy and Natural Resources committee for consideration last week that would dramatically expand the introduction time-table for electric vehicles in this country.

The initiatives would, according to the Detroit News, create a broad program of grants, technology and infrastructure standards, and implement many programs that extend electrification efforts into the heavy truck segments as well. The grant program would be aimed at getting 400,000 PHEVs on roads in the next few years by providing up to USD250 million in grants for governments and public-private partnerships.

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