THE CAT/NAVISTAR DEAL REVISITED

July 02, 2008 Vol. 4, No. 14

Not a lot of earth-shattering news to report this time, not like my last newsletter. Two weeks ago the subject was a meaty one, namely Caterpillar’s departure from the on-highway engine business and the somewhat foggy announcement of its intention to develop an on/off-road vocational truck with its Illinois compatriots at Navistar. I say ‘foggy’ because the telephone press conference that brought this news to motor noters like me was just a touch shy on detail. Like really shy.

One of the more murky aspects of this deal, which is really more a firm intention at this point, I believe, had to do with the statement that the two companies would work together “to develop, manufacture and distribute commercial trucks in select regions” outside of North America. The product offering would include “a full line of medium- and heavy-duty trucks, both conventionals and cabovers.”

I got to wondering about the cabover side of that plan – how, and for that matter why, would they find the resources to develop new ones? It seemed very, very unlikely. Sure, in many places beyond these shores the cabover is still king, but there’s any number of awfully good European and Japanese COE trucks already out there, with distribution and service organizations in place. Well, someone much smarter than I am reminded me that Navistar still builds the old International 9670 cabover in Brazil, suggesting that this must be the foundation that Cat and Navistar have in mind. I wonder. A decent truck in its time, but it’s one or two generations behind the current crop of cabovers. Just thinking out loud here, but I suppose that might not be a serious hindrance in some markets where technical sophistication would be overkill anyway. We’ll have to wait and see if anything actually comes of this.

The only other possible answer, and this seems a bit unlikely, is some sort of arrangement with Germany’s MAN, the source of the coming International MaxxForce 13-liter engine. With a relationship already established, I suppose the very competent MAN TGX or more likely the TGS cabover might be persuaded to dress in Illinois colors in some lesser markets where it isn’t already in evidence. Stranger things have happened in this sometimes frenzied global marketplace where any alliance seems possible.

And a medium-duty cabover? Well, the only obvious answer there is the Ford LCF re-badged and presently sold as the International CityStar. It started life as a Mazda, if I’m not mistaken, yet more evidence that name badges are more plentiful than the technology behind them these days. The difficulty there is that Navistar and Ford aren’t getting along all that well presently.

One winner in all of this, of course, is Cummins. Already riding a wave of success both globally and at home, the Indiana engine-maker is now the only independent choice in North America. And the investment community loves it.

In its 14th Quarterly Truck Survey, for example, UBS Securities LLC calls Cummins a solid “Buy”. The survey noted that “nearly 80%” of survey respondents said they’d rather have an EGR engine than an SCR motor in the post-2010 era, and two thirds of them said they’d prefer the Cummins.

I suspect Detroit Diesel, especially, will have something to say about this as we near 2010. It’s the most vocal of the SCR crowd, and will be singing the praises of its 2010 emissions technology very loudly indeed.

Predictably perhaps, the UBS survey found that Cat’s recent announcement will hurt its sales running up to 2010. The investment outfit says that over 20% of truck buyers who would have bought a Cat in 2008 or 2009 have changed their minds, knowing that the company is leaving the business. In fact, Cat is quite firm that it will support its on-highway engines pretty much ad infinitum.

Another angle in all of this news concerns dealers, and apparently North American International franchise holders are none too happy with the plan for Cat to build a severe-service vocational truck based on the International 5000 and 7000 series machines in time for 2010. It’s by no means clear how much International componentry there will be in the Cat truck, but the power will definitely come from a 13-liter International MaxxForce engine if the plan goes ahead. And the cab, I have it on good authority, will be based on the old International 9300.

The dealers see badge engineering at work, I guess, and thus another parts and service distribution channel competing against them.

A MORE POSITIVE NOTE IS SUNG BY VOLVO, which has just seen alternative-power research funding by the co-operative efforts of the Swedish Energy Agency and the U.S. Department of Energy extended. The two government bodies will be providing a three-year grant to the Volvo Group in a combined amount of US$18 million, split 50/50, for the development of hybrid technology and engines for alternative fuels. This is an extension of the one-year research and co-operation agreement signed between the three parties a year ago. The aim is simple enough: reducing truck use of fossil fuels.

"The climate issue and increasing fuel prices make energy use and energy efficiency some of the most important societal issues of our time. The transportation industry has a special responsibility and this research and development co-operation with the U.S. Government is crucial in our efforts to develop the drivetrains and technology required by both our customers and society as a whole”, says Leif Johansson, CEO of the Volvo Group.

Volvo has undertaken to invest another US$18 million of its own money in the research program, which also involves Volvo Group subsidiary Mack Trucks.

IN OTHER NEWS FROM THE SWEDISH COMPANY, Volvo Trucks North America says it’s working on new lightweight sleepers made with advanced composite materials for the U.S. Army. Aiming to reduce truck weight and improve fuel economy, it’s part of the Army’s Military and Commercial Truck Weight Reduction Program. Volvo will be partnering with TPI Composites of Scottsdale, Arizona on the project.

Composite components are not only light but they also resist corrosion, insulate better, and should provide a quieter sleeping environment. Knowledge gained in this project will find its way into commercial products, Volvo says.

The cabs will consist of three pieces: a one-piece composite sleeper, a composite roof, and Volvo’s steel cab Testing will include the ‘cab shaker’, in which a full-size cab and sleeper, complete with all interior fittings, is attached to a large hydraulic device and then subjected to prolonged violent shaking. It’s a tough test of durability and integrity, and a standard part of product development and testing. One of the three cabs will also be subjected to the very severe Swedish Impact test.

Three sleeper cabs will be produced as part of the project, with the first to be delivered in late 2009.

AND ONE LAST ITEM, THIS FROM WEBASTO, which recently got CARB approval for its interesting BlueCool Truck engine-off bunk cooling product. It’s a zero-emissions piece of gizmology, so it’s no surprise that the California Air Resources Board should like it.

The BCT bunk cooler provides engine-off bunk cooling and dehumidification, but Webasto emphasizes that it isn’t an auxiliary power unit (APU). Rather, it’s an “advanced” energy storage system that gathers the kinetic energy of the truck’s drivetrain while traveling down the road and stores it as potential energy until needed to cool the bunk. It needs no additional batteries, and in discharge mode it uses no fuel, thus producing no emissions.

In overall terms (factoring in the fuel used to charge the system while driving), Webasto claims it uses over 80% less fuel than an APU and 90% less than an idling truck. The company further claims that the BCT offers payback “in around half the time it would take with an APU.”

The core of the system is a high-tech cold storage unit that’s charged (frozen) while the truck is running. When the truck is shut down, the system uses small amounts of electricity from the vehicle batteries to circulate chilled coolant between the cold storage unit and a heat exchanger installed in the sleeper. Pushed by four small and quiet air-distribution fans, the cold air is said to keep the bunk cool for up to 10 hours in most ambient conditions. Once charged, the system uses no diesel fuel and therefore produces no emissions. It runs independently of the OEM air conditioning system.

I kinda like this one’s different approach, though I should be quick to point out that it’s not the only APU or HVAC replacement system to get CARB approval. Lest I be accused of blatant favortism.

This newsletter is published every two weeks. It's a heads-up notice about what's going on with trucking technology as well as what you can see at www.todaystrucking.com where you'll find in-detail coverage of nearly everything that's new. Plus interesting products that may not have had the 'air play' they deserved within the last few months. Why not subscribe today?

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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 three decades in trucking. And in the case of the individual product items, I’m presenting simple news from the manufacturer or service provider, with the hyperbole removed and clarification applied.

If you have comments of whatever sort about Product Watch, or maybe a gizmo I should know about, please contact me at rlockwood@newcom.ca.

HYBRID BROCHURE

(July 02, 2008) -- Kenworth shows off medium-duty hybrids for pickup-and-delivery, utility applications

BATTERY MONITORS

(July 02, 2008) -- Xantrex introduces two battery monitors for the mobile market

REGIONAL TIRE

(July 02, 2008) -- Goodyear launches new Kelly Armorsteel KRH tire

AUXILIARY AC

(July 02, 2008) -- Dometic upgrades air conditioning

LEAK DETECTION

(July 02, 2008) -- New true UV LED leak detection flashlight