December 1999 A Newport Communications Service since 1970

Navistar International has been too internally focused & now wants to get closer to its customers, Truck Group President Steve Keate tells Newport editors in recent interview. But company won’t get between customers & dealers, he says. Its role: develop tools & sales approach for dealers. Possible: packages spec’d across more vocations. In the works: Internet new truck locator similar to one it has for used trucks. Keate insists they won’t sell trucks online: “We want to use the Internet to provide more timely product & service information & get more customers into dealers.” Keate has seen a downturn in orders last 6 months, expects 2000 Class 8 sales to be down 20% from ’99.

Volvo Trucks N. America is developing new services 3-4 times faster than new products, says President/CEO Marc Gustafson. Coming: a web site where customers can search new & used truck inventories; spec new trucks; pre-qualify for financing; pay-as-you-go programs that charge for miles driven & keep the maintenance/repair business in dealer shops. Gustafson says his service (vs. product) emphasis has full approval of Volvo in Sweden. Since he heads Volvo’s global sales & marketing, it’ll likely be adopted worldwide.

Paccar’s information technology programs win No. 1 ranking in PC Week’s 1999 Fast-Track 500 world rankings of companies’ most innovative use of technology. Paccar’s network aims at “Internet-everywhere nature of the coming e-business world,” says Tom Plimpton, executive vp. Programs involve all 16 plants & 13 parts distribution centers worldwide, & include electronic parts restocking at dealerships & fleets, emergency repair service locators, finance & insurance on the web, as well as digital truck design & robotics in manufacturing. Two new divisions, Paccar.com & e-Paccar, handle e-commerce strategies.

Oct. Class 6-8 truck sales were a seasonally adjusted 36,251 units, down 5.5% from September but still strong considering manufacturer reports of weakening orders, says economist Jim Haughey. His projection for ’99: 434,183 units,up 22.3% from ’98. HDT freight volume growth is at 6.9% & will likely dip to 4.3% next year. Reasons: drops in housing construction, household goods purchases, motor vehicle sales & business equipment purchases. Higher fuel & driver costs are holding carrier profits steady despite revenue gains.

Battle over emissions regs & EPA authority to impose them may go to Supreme Court. Appeals Court was 1 vote shy of 6 needed to review a ruling that put stricter soot & smog standards on hold. Since 2 of the 11 judges didn’t participate, EPA says it has good argument for appeal. Last spring an Appeals Court panel, in 2-1 vote, said EPA overstepped its authority in setting the rules.

“What none of us wants is a reprise of the 121 ABS fiasco ... when NHTSA mandated use of technology before it was ready,” says Freightliner President/CEO Jim Hebe. The industry, he says, needs to move forward with safety technology before it’s required by the government “and perhaps we’ll be far enough down the road ... to incorporate it on our terms, not Uncle Sam’s.” Freightliner’s rollover prevention system, available late 2000, will be standard on new Century Class S/T. A lane departure warning system, now an S/T feature, will be offered on Columbia & Argosy models. The S/T data logging unit can now record information before & after driver airbag deploys.

Paccar posts record profits of $144.7 million on sales of $2.2 billion for 3rd quarter ’99 vs. $96.6 million on $1.9 billion 3rd quarter ’98. 9-month profits: $403.7 million on sales of $6.4 billion — both records. Profits same period last year were $301.9 million on sales of $5.5 billion. Chairman/CEO Mark Pigott says orders have moderated but “backlogs remain healthy.”

Paccar buys 14% of Rush Enterprises, largest N. American Peterbilt dealer. GM of Canada to market Isuzu W Series low-cab-forward medium trucks. Mitsubishi Fuso Truck of America launches MFTA Canada. Sales director Brian Shantz says they’ll market full line of Class 3-7 cabover trucks & chassis. Mexico’s Dina to build medium duty trucks for Western Star. Sterling Truck Corp. begins operations in Mexico. First products: L7500, LT7500, LT9500 & ST9500 SilverStar. New Acterra Class 5-8 line coming next summer.

Volvo moves into China via joint venture with China Nat’l Heavy Duty Truck Corp. Operations to begin first half of 2000. Annual sales expected: 10,000 trucks — 25% of current market — within 5 years. The European Commission is investigating monopoly concerns regarding Volvo’s acquisition of Scania.

U.S. DOT “partnerships” will test advanced safety systems for trucks. Freightliner will lead tests of its “Rollover Stability Advisor,” with hazmat hauler/trailer builder Prixair, Roaduser Int’l & U. of Michigan Transportation Research Center. Volvo Trucks N. America will lead tests of collision warning & advanced braking systems with U.S. Xpress, N. Carolina A&T University. Mack-led team will test infrastructure-assisted hazard warning system with McKenzie Tank Lines, Xata Corp. & Virginia DOT. Navistar Int’l, along with 3M & Altra Technology, will participate in tests of snowplow-equipped collision warning & lateral guidance system led by Minnesota DOT. Federal grant programs total $12.7 million. Partners will add $7.7 million.

New study by California S. Coast Air Quality Management District claims diesel exhaust tops all toxic air contaminants for cancer risk. Regional smog regulators now considering stiffer emissions rules — but promise changes will be technologically & economically feasible. California Trucking Assn. says study is sensationalized & exaggerated.

Meritor Automotive posts $194 million profit on sales of $4.5 billion for fiscal year ended September 30. ’98 profit was $147 million on sales of $3.8 billion. 4th quarter profit was $65 million on sales of $1.2 billion vs. $23 million on sales of $3.8 billion 4th quarter ’98. 4th quarter heavy vehicle systems sales: $758 million, up $156 million from 4th quarter ’98. HVS sales for year were $2.9 billion vs. $2.4 in 1998. 4th quarter sales of truck axle, brake & transmissions were up 26% from ’98. Sales of other HVS products slipped 8% due primarily to lower government demand.

Trend to more responsive systems & intelligent vehicles will lead to EBS, but that’s probably 5-7 years away, says AlliedSignal Truck Brake Systems President Mohsen Sohi. “It has to go through an evolution. The customer has to see the value.” Company plans improvements to its ABS electronic controller through relationship with Delco & will “supercharge” development of EBS through its joint venture with Knorr-Bremse.

DAT Services load-posting volume in typically strong Oct. was 60% over ’98’s record high, says Portland, OR, freight matching & transportation information company. “Attribute it to confidence that consumer spending will remain high for the holiday season,” says Market Research Analyst Michael Grant. “November postings should drop slightly, but will still be at excellent levels.”

Cummins Engine reports 3rd quarter ’99 profit of $53 million on sales of $1.6 billion vs. $110 million loss on sales of $1.5 billion 3rd quarter ’98. 9-month profit was $135 million on $4.8 billion sales vs. $50 million loss on $4.7 billion same period last year. 3rd quarter worldwide heavy truck sales were $459 million, up 20% from 3rd quarter ’98. Sales to medium duty truck market were $121 million, down 14%.

Detroit Diesel posts record 3rd quarter profit of $11.9 million on sales of $588.2 million vs. $10.1 million profit on $543 million 3rd quarter ‘98. Profit for first 9 months was $37.2 million on $1.8 billion sales vs. $17.7 million on $1.7 billion sales. 3rd quarter sales of on-highway engines were $398 million, up 19% from 3rd quarter ’98. Shipments of Series 60 engines rose 23%.

Dana President/CEO Joe Magliochetti says strong N. American light & heavy truck demand offset shortfalls elsewhere “but our sense is that this may not be sustainable in the fourth quarter.” Company posted record 3rd quarter profit of $161.5 million on sales of $3.1 billion vs. $98.3 million profit on $3 billion 3rd quarter ’98. Heavy Truck Group business was up 10%.

Class 6-8 utilization was 87.6% 3rd quarter ’99, up 1.2 points from 3rd quarter ’98 & a record for the period, according to MacKay & Co. Class 8 utilization was 88.8%, up 0.9 points from last year. Owner-operator utilization was down 3.8 points, all other segments showed gains. Class 6-7 utilization was 83.3%, up 1.6 points. Only agribusiness & lease/rental increased. Trailer utilization was 86.8%, up 4.2 points. Only construction/mining/refuse declined.

J.B. Hunt orders 1,525 Cummins ISX 400 ST2 engines for its new Freightliner Century Class trucks. Wabash gets $30 million order for 48-foot flatbed trailers with company’s new coating system from D.M. Kaye & Sons Transport, Greer, SC. Truck-Lite Co. is Kenworth’s ’99 Supplier of the Year. RailAmerica says it will sell trailer builder Kalyn/Siebert & concentrate on railroad business.

Rollins Leasing to buy UPS Truck Leasing as part of strategic alliance with UPS Logistics. Rollins will be preferred provider of lease & rental vehicles to UPS’ Worldwide Dedicated Services. Worldwide will buy Rollins Logistics & become preferred provider of logistics services to Rollins. UPS Truck Leasing services 9,000 vehicles out of 45 truck lease/rental facilities throughout the U.S.

Rollins Leasing buys Keen Leasing, including 13 locations & 2000 vehicles. Hyundai Precision America enters Canadian trailer market. RODI Power Systems adds portable air-cooled diesel electric generators to heavy duty diesel line. Robert Bosch Corp. to build $150 million diesel fuel injector plant in N. Charleston, SC. FleetPride buys Atlanta-based Wheels & Brakes Inc. New TV series, 18 Wheels of Justice, to use Kenworth T2000 Advanced Technology Truck.

Newport’s truckinginfo.com debuts with daily industry news, reports on trucking-related stocks, product & services guide, diesel prices, load finder, weather & trucking-related career center. Address: www.truckinginfo.com

Tim Leuliette resigns as vice chairman, Detroit Diesel Corp., forms Heartland Industrial Partners with financier David Stockman. Pair reportedly plans to buy small auto suppliers, improve them & take them public. Accuride Corp. reorganizes as two business units, names Terry Keating sr. vp/general mgr., Heavy Vehicle Operations; Dick Giromini sr. vp/general mgr., Light Vehicle.

William Zollars to president/CEO, Yellow Corp., from president, Yellow Freight System. He succeeds Maurice Myers who resigned to head Waste Management. Former Treasury Secty. Robert Rubin joins Ford Motor Co. executive board. Former Navistar Int’l Truck Group President Don Defosset to exec vp/COO, Dura Automotive Systems. Mike Toelkes to national accounts sales mgr., Paccar Leasing, from vp-sales & marketing, Dorsey Trailers.

Jose Manuel Canal to Navistar Int’l vp sales & distribution, Mexico, Brazil & export. He succeeds Dennis Webb who was recently named vp/general mgr. of Navistar’s heavy vehicle center. Stanley Boris to vp/CFO, NationaLease, from managing director, Volvo Business Services, N. America. Jim McConnell to national fleet sales mgr., Mitsubishi Fuso Truck, from district sales mgr. Dennis Webb to general mgr., Modine Aftermarket Div., from general mgr., Commercial Heating, Ventilating, Air-Conditioning & Refrigeration Div.

AlliedSignal Truck Brake Systems names John Flad vp-aftermarket sales, Dan Martin vp-OE sales worldwide. Darrel Brown to vp-mfg., East Mfg., from service mgr.; Rick Ford to service mgr. Barry Curran to vp, Ancra Material Handling Systems Div., from vp/managing director., Advanced Handling Systems.

Valvoline names William Dempsey sr. vp/managing director, Valvoline Int’l; Steven Kirchner sr. vp, worldwide marketing; Gerald Wipf sr. vp & president, Valvoline Instant Oil Change. Richard Baldisseri to national sales mgr., Air-Weigh. Michael Hurts to director, OE/OES sales, Brakepro.

The Maintenance Council of ATA honors 3 with Silver Spark Plug Awards: Hershel Brown, maintenance director, Proline Carriers, Nashville; Eileen Lindberg, Peterbilt account mgr, on-highway truck sales, Detroit Diesel; & Kevin Otto, director-advanced diagnostics, Cummins Engine. Jesse Kirk, chairman, American TruckSource, named ’99 Peterbilt N. American Dealer of Year. Kirk was ATD/Heavy Duty Trucking Dealer of Year in ’96.

TIP N. America President Frank Mileto is inaugural chairman of Truck Renting & Leasing Assn. Trailer Renting & Leasing Council. David Galt, administrator, Montana DOT Motor Carrier Services Div. elected chairman, Heavy Vehicle Electronic License Plate Inc. Walt Keeney, president, Food Express, Arcadia, CA, is vice chairman. Stephen Scully, Scully NationaLease, elected chairman, Nat’l Truck Leasing System.

U.S. RETAIL TRUCK SALES REPORT

CLASS 8 CLASS 7 CLASS 6    (33,000 LBS. & OVER GVW)   (26,001-33,000 LBS. GVW)   (19,501-26,000 LBS. GVW)   MANUFACTURER  OCT   YTD SALES   YTD SHARE   OCT   YTD SALES   YTD SHARE   OCT   YTD SALES   YTD SHARE   Chevrolet 0 0 0.00% 618 5,701 5.14% 270 2,246 5.67%   Ford 0 146 0.07% 230 6,737 6.08% 2,127 18,091 45.64%   Freightliner 7,550 70,319 32.49% 1,891 18,882 17.03% 1,144 11,188 28.22%   GMC 0 0 0.00% 1,176 13,747 12.40% 684 3,151 7.95%   Hino 0 0 0.00% 6 157 0.14% 48 544 1.37%   International 4,065 34,357 15.87% 6,124 57,588 51.94% 185 1,154 2.91%   Isuzu 0 0 0.00% 6 66 0.06% 100 1,306 3.29%   Kenworth 2,122 23,978 11.07% 170 1,744 1.57% 0 0 0.00%   Mack (Renault) 3,092 25,554 11.81% 65 520 0.47% 78 631 1.59%   Mitsubishi-Fuso 0 0 0.00% 14 206 0.19% 82 734 1.85%   Nissan Diesel (UD Trucks) 0 0 0.00% 5 95 0.08% 65 598 1.51%   Peterbilt 2,256 22,227 10.27% 103 1,167 1.05% 0 0 0.00%   Sterling 1,067 11,926 5.51% 398 4,265 3.85% 0 0 0.00%   Volvo 2,371 23,846 11.02% 0 1 0.00% 0 0 0.00%   Western Star 290 2,932 1.35% 0 0 0.00% 0 0 0.00%   Other 132 1,176 0.54% 0 0 0.00% 0 0 0.00%   Totals 22,945 216,461 100.00% 10,806 110,876 100.00% 4,783 39,643 100.00% Compiled by Heavy Duty Trucking Magazine Source: Ward’s Communications