The Lockwood Report

NAVISTAR: DON'T COUNT IT OUT

July 18, 2012 Vol. 8, No. 15

Unless you've been on holiday in some remote spot without access even to carrier pigeons or smoke signals, you'll all know by now that Navistar International announced on July 6 that it was giving up on 'advanced EGR' as its sole engine emissions technology. Instead it will combine that with liquid-based aftertreatment to meet present and future Environmental Protection Agency standards. Early in 2013, the company will field a Maxxforce 13 engine using what it calls 'ICT+' (in-cylinder technology plus), meaning exhaust-gas recirculation plus selective catalytic reduction (SCR) aftertreatment. A 15-liter MaxxForce engine with ICT+ will follow, and then the 11-liter motor, but no timeline was given for them.

The acknowledgement of failure to make EGR work was only implicit in the webcast press conference called to announce this huge shift in direction, but the reality was clear enough -- significant market-share loses and a huge US$172-million loss in the second quarter. Fully $104 million of that went to cover warranty claims for the company's poorly-performing 2010 engines.

There had been speculation (including my own) that Cummins might be involved in this change of direction, but Navistar says it's developing its SCR answer in-house. In fact the company is about to introduce a medium-duty truck in Europe, the DuraStar 4400, which will meet the Euro V emissions mandate using SCR.

Call me crazy, but I'm not willing to dismiss the Cummins idea quite yet. We'll see.

Let's also clarify something about Caterpillar's engines in this context. I've had questions asked about how Cat fits in here, given that its present engines are made by Navistar and re-badged, though the 15-liter model does use Cat's tried and true block. As I understand things, the responsibility for certifying Cat's diesels to EPA standards has always fallen to Navistar, being the manufacturer, which means in turn that future Cat motors will also use the same SCR to be found in MaxxForce engines, starting with the 13-liter model next year.

It's worth a reminder that all 2010-compliant diesels from all the manufacturers still use EGR, albeit in a less aggressive form than pre-2010 engines, and certainly less so than the 'advanced' version that Navistar couldn't make work. SCR is simply an added aftertreatment system. One of the interesting aspects of the MaxxForce re-engineering process will be to see how far they dial down EGR rates.

It's also worth noting that the new ICT+ technology was actually launched last week in a medium-duty truck in the Brazilian market. The point being that Navistar may not have to play quite so much catch-up as people think in coming up with an acceptable SCR system for North America.

There are some commenters who seem to be writing Navistar off, given this engine mess and the substantial losses -- financially and otherwise -- that have resulted, but hold on. This remains a very big company that does not depend solely on North American truck and engine sales for its livelihood. It has a vibrant military-vehicle business, to name one other key enterprise, it's a big player in the school-bus world with a 48% North American market share, and then there are the Monaco recreational vehicle and Workhorse-brand motorhome and stepvan subsidiaries. It's also a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Which is not to mention a huge aftermarket parts and service presence, nor its deal with Caterpillar to sell trucks and engines in offshore markets.

In fact, foreign markets represent an increasingly large part of the company's business, and its success in partnering with Mahindra in India is quite real, for example. And remember, few other countries outside of North America and Europe present emissions limits quite as stringent as ours, meaning EGR will be quite suitable in many parts of the world.

A couple of months ago Navistar also announced plans to expand its collaboration with Chinese truck maker Anhui Jianghuai Automobile Co. (JAC). They're partnering on new commercial vehicle opportunities like the design, development, manufacturing, and distribution of school buses for the Chinese market. The agreement also calls for the export of light- and medium-duty cabover trucks from JAC in China to Navistar dealers in Brazil.

So yes, Navistar has one mighty big hurdle in front of it in terms of making its engine technology work here in North America and rebuilding a somewhat tarnished reputation, but it's still in the game. And if Volkswagen buys it, which still isn't out of the question, then watch out.

CHINA ALSO BECKONS GREAT DANE, by way of Henan Bingxiong Refrigerated Truck Co. (known as Ice Bear). With capital supplied in part by Great Dane's owner, CC Industries (CCI), the Chinese company will expand its  manufacturing facilities. As part of the investment, Ice Bear will also make use of the American trailer-maker's operating resources and engineering talent to grow its leading market position in the domestic Chinese market.

Established in 1993, Ice Bear manufactures insulated and refrigerated trucks designed to carry perishable freight at specific temperatures.

The cold-supply-chain market in China is underdeveloped compared to the west, says CCI, with most perishable foods shipped by non-refrigerated trucks. It's estimated that this results in 20-40% food spoilage loss, valued at over US$65 billion annually. Rising income levels and higher food-safety expectations by both the Chinese government and consumers are expected to drive a more sophisticated distribution approach and thus a demand for refrigerated trucks.

PETERBILT’S MODEL 579 HAS SMARTWAY DESIGNATION, the company reports. The Model 587, Model 386 with and without LNG, and Model 384 had already received the U.S. Environmental Protection Agency’s SmartWay designation.

The Model 579 meets SmartWay’s comprehensive set of fuel-saving, low-emission equipment specifications for new class-8 long-haul tractors and trailers.

Like its cousin, the Kenworth T680, the Model 579 was introduced earlier this year at the Mid America Trucking Show. Both have recently entered full production.

CARRIER CELEBRATES AC BIRTHDAY. Carrier Transicold has launched a special website to commemorate this week's 110th anniversary of the invention of modern air conditioning by company founder Willis H. Carrier.

The website holds little-known vignettes about Carrier’s life and work, along with milestones for the company's trailer and container products. The company has also released a hardcover book, Weathermakers to the World, chronicling the entrepreneurial spirit of Willis Carrier and the history of modern air conditioning. It's available at Amazon.

On July 17, 1902, Carrier, a young research engineer just a year out of Cornell University, finalized the design to stabilize the humidity in the air so the dimensions of the paper at the Sackett & Wilhelms Lithography and Printing Company in Brooklyn, N.Y., would remain constant throughout the printing process. Since then this innovation has been applied to everything from malls to manufacturing facilities, buses to businesses and houses to hospitals. A leading engineer of his day, Carrier filed more than 80 patents over the course of his career.

Another Carrier website -- here -- offers images and video relating to the anniversary.

WANT TO WIN A SKEETER BASS BOAT? The Chevron Canada Delo Big Bass Boat sweepstakes still has another couple of months to run. Through September 30, participants can register at www.chevrondelo.com for the chance to win a fully equipped 2012 ZX190 Skeeter bass boat and other prizes. No purchase required.

“Fishing is a North American pastime that’s near and dear to many people who use our Delo products,” says Bob Meachen, lubricants area business manager, Canada. “This promotion is a great way for us to show our appreciation to the hard working people in the markets we serve.”

The sweepstakes prizes include:

* Grand Prize --  a fully outfitted 2012 ZX190 Skeeter bass boat (approximate retail value US$32,000)

* 1st Prize -- an all-expense paid trip to appear on the 'Honey Hole All Outdoors TV Show' with host and bass professional, Bill Wilcox (approximate retail value $15,000)

* 2nd Prize -- four winners will receive a $500 cash gift card each.

The Delo Big Bass Boat sweepstakes is open to legal residents of Canada and the United States who were considered legal adults in their state or province on the day the contest was launched, May 1, 2012.

AND THE SHOW REMINDERS...

The TMC 2012 Fall Meeting & SuperTech12 schedule has been published. The event runs from Sunday September 9 through Thursday the 13th at David L.  Lawrence Convention Center, Pittsburgh, PA. Call 703-838-1763, e-mail tmc@trucking.org, or register online at www.trucking.org/abs/Pages/2012TMCFALL.aspx

At the same time, namely September 10-12, you may want to attend the fifth International Environmentally Friendly Vehicles Conference in Baltimore, MD. Hosted in the U.S. for the first time, this one is about shaping the market for clean and fuel efficient vehicles, sponsored by EPA, the U.S. Department of Energy, and Environment Canada, and supported by the Truck & Engine Manufacturers Association, Society of Automotive Engineers, the International Council on Clean Transportation and others. Sponsorship opportunities and exhibit space are available. Abstracts for papers and presentations will be accepted until April 30. Visit www.efv2012.com

HTUF 2012 will run September 18-20 at the Charlotte Convention Center in Charlotte, NC. The Hybrid, Electric and Advanced Truck Users Forum has been aggressively promoting the medium- and heavy-duty hybrid option in an attempt to speed the commercialization process, and the conference itself has been growing steadily. This year's gathering includes 16 technical sessions and a ride-and-drive on a professional speedway track. HTUF is operated by CALSTART in partnership with and under contract to the US Army TARDEC National Automotive Center. See www.htuf2012.org or call 954-404-8252.

And if you want a trip to Europe, note that this is a Hannover year. The 64th IAA Commercial Vehicles show, a giant among exhibitions, will be held from September 20 to 27, 2012 in Hannover, Germany. See www.iaa.de/en/

Then on November 28-30, the American Trucking Associations (ATA) will host “the first-ever national summit” about the growing use of natural gas in the trucking industry, in Arlington, Va. T. Boone Pickens is the featured speaker. ATA members can register now at a cost of US$199, while non-members can register approximately a month after member registration, at a cost of $499. Call 703-838-1935 or ship an e-mail to natgas@trucking.org. See www.truckline.com

THIS NEWSLETTER IS PUBLISHED every two weeks. It's a heads-up notice about what's going on with trucking technology. I also write here about interesting products that may not have had the 'air play' they deserved within the last few months.

I should remind you that I don’t endorse any of the products I write about in this e-newsletter, nor do I have the resources to test them. What you’re getting is reasonably well educated opinion based on more than three decades in trucking.

If you have comments of whatever sort about the Lockwood Report, or maybe you've tried a gizmo I should know about, please contact me at rolf@newcom.ca
 

ON/OFF-HIGHWAY TIRE

(July 18, 2012) -- New Bridgestone M853 offers extra load capacity

ALUMINUM WHEELS

(July 18, 2012) -- Accuride introduces wheels with new AccuArmor treatment

COBRA NAVIGATION

(July 18, 2012) -- CB maker offers navigation system for trucks

NAVIGATION APP

(July 18, 2012) -- New and improved CoPilot Truck navigation app now available

MOBILE DISPATCH SOFTWARE

(July 18, 2012) -- Cheetah's newest mobile app runs on Android devices