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Aug 2, 2012

TRUCKS MARKETS WORLDWIDE * ANALYSIS

* Emerging Economies:  Driving Truck Production

San Jose,CAL,USA -Proformative -Jul 31, 2012: -- Continued uncertainty and a slow economy has caused heavy truck makers in the U.S. to lower their domestic production forecasts for the third quarter... Paccar recently announced that it expects to deliver 10 percent fewer tricks in the third quarter as a result of falling demand in North America. The company produced 37,700 heavy trucks in the second quarter. While U.S. and European sales have fallen in recent years, demand for heavy trucks is up in the BRIC countries... Emerging economies continue to be a bright spot for the purchase of heavy equipment. Fleet Owner Magazine reported that due to high international demand, many manufacturers are creating a more vertical integration among parts and engine components. Companies are moving to create truck platforms that are usable throughout the globe in order to increase profitability and streamline production...

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Sep 2, 2011

ANALYSIS * USA - Why the world faces a massive traffic jam

Sustainability is the biggest issue facing global business in the 21st century

Atlanta,GA,USA -CNN, by Bill Ford-June 26, 2011:   ...  While breakthroughs like improved battery technology will likely provide a solution to the CO2 challenge, another issue -- "Global Gridlock" -- is quietly taking its place...  Global gridlock can be defined by numbers. The world's population is growing and is becoming more affluent. There are approximately 6.8 billion people in the world today. Within our lifetime, that number will approach 9 billion. Today, there are about 800 million vehicles on the road worldwide, but by midcentury that number could grow to between 2 and 4 billion...  If we continue to follow the personal mobility model that is now in place, the world's roads are going to become too crowded. Commutes will become longer; traffic jams will become larger and more ubiquitous. Economic opportunity will be stifled. More time and resources will be squandered while people try to get from point A to point B. This all threatens the promises of both physical and social mobility, which in turn lessens opportunities to improve the world's standards of living...  There's no single answer to this new threat to our mobility, and it isn't going to be solved by one person or group...  We need smart cars and smart infrastructure that communicate with each other while using real-time data to maximize their efficiency. We also need to tie in innovative and unique solutions that in their own way address global gridlock. Some of these solutions already are already being developed...

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Mar 10, 2011

TRUCK MAKERS ANALYSIS * India - Global OEMs and Suppliers Bracing for Tremendous Growth in Demand and Production of Low-Cost Trucks

The demand for low-cost trucks is set to experience steady and robust growth over the next 5 years

London,EN,UK -Andhra News (India) -March 9, 2011: -- The rising reliance of emerging economies on cost-effective light, medium and heavy commercial vehicles coupled with a recessionary environment in developed economies is creating tectonic changes in demand for trucks worldwide... New analysis from Frost & Sullivan, Strategic Analysis of Global Low-cost Truck Market, reports that over 3.2 million low-cost commercial trucks will be manufactured globally in 2016. Around 29 low-cost truck models will be introduced by global OEMs by 2016, indicating the rapid expansion and pertinence of low-cost light commercial vehicles (LCVs), medium commercial vehicles (MCVs) and heavy commercial vehicles (HCVs) in global markets. Powertrain, chassis, safety, comfort and convenience and other marketing related expenses will be key focal points for cost reduction in an endeavour to create low-cost trucks...   The low-cost truck will be initially fuelled by demand from BRIC nations, gradually finding traction in developed economies and eventually supported by the growth in the Next 11 economies. The changing nature of commercial vehicle activities under an environment of rising urbanisation, economic and energy price volatility and robust growth in demand for cost-effective commercial vehicles are compelling global truckmakers and suppliers to participate in this growing segment... This implies that a new segment is being created rapidly in the global commercial truck market offering growth opportunities to truckmakers and suppliers alike. This is also offering the opportunity to mature market OEMs to attain rapid volume growth in both local and global markets... In an endeavour to penetrate and grow in global markets, Asian OEMs have created low-cost truck platforms that are customisable to meet local market needs. The North American and European OEMs are acknowledging the threat and also realising the opportunities that they can avail through participation in the global low-cost truck market...

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Dec 1, 2010

Analysis * USA - Bigger trucks would cost more than they would save

US Trucking Industry Pushes For Heavier Trucks On Roads

New York,NY,USA -Gerson Lehman Group, by Toby Kolstad -November 23, 2010: ...  Hardly anyone disputes the fact that bigger truckloads will do more damage to the nation’s highways than loads limited to 80,000lbs...   The proposed increase in the maximum heavy truck permit fee from $550 to $800, a 45.5% increase compared to the 25% increase in truck weights, gives tacit recognition to this problem without addressing past underpayments. Many of the infrastructure problems the nation is facing today are related to the damage heavy trucks have done in the past, along with the underfunding of highway maintenance programs... The trucking industry is expecting to suffer a capacity problem related to the full enforcement of the Highway Administration’s CSA 2010. Increasing the weight limit on trucks would go a long way in offsetting these new safety regulations. Some shippers who are worried about their logistical support from this industry may even endorse the idea of bigger trucks... The teamsters oppose the idea because of safety, by they could be, and probably will be bought off by higher wages. The latter may even be necessary for the trucking companies to attract enough drivers who can comply with CSA 2101...

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Aug 18, 2010

ANALYSIS * USA - New CSA: Risk up for small carriers

One in five carriers is still at risk of an intervention even under the new CSA 2010 procedures

Brookfield,WI,USA -Fleet Owner, by Wendy Leavitt -Aug 18, 2010: ... According to a report issued this week by auditing service Rair. The company did another in-depth analysis of more than 60,000 fleets to gauge how the risk factors for carriers were impacted by the revisions the Federal Motor Carrier Safety Administration (FMCSA) recently made to CSA 2010... Using essentially the same methodology as the federal government, RAIR uncovered some significant changes, according to JJ Singh, CEO, but one thing remained the same: 20% of carriers overall are still at risk of an intervention. The big difference is that the smallest fleets (1-5 vehicles) saw their increase by half. It rose from 10 to 15%, according to the report. Fleets with 6-15 vehicles also saw a slight increase - from a 23% risk of intervention to a 25% risk. At the same time, the very largest fleets (501+ vehicles) saw their intervention risk fall from 72 to 42%. Fleets with 51-500 vehicles now have a 34% risk of intervention, down from 54% under the old procedures... (Photo from media.nj: trucks at Port Newark,NJ)

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Oct 4, 2009

OPINION * USA - Paccar Closing Strike-Hobbled Peterbilt Plant

Management 1, Organized Labor 0 ...


(B) Aerial view Peterbilt Motors' Denton, TX, plant

New York,NY,USA -GLG Group, by John Schulz -October 2, 2009: ... That's the final linescore from the hardball labor negotiations between the United Auto Workers Local 1832 in Madison, Tenn., and Paccar's Peterbilt Motor Co... For the record, the company says it is closing the Class 8 manufacturing plant because of the precipitous decline in demand for heavy trucks... Given trucking's notoriously cyclical demand cycles, these boom and bust periods are not unusual. Any company that doesn't see the waves can't last very long in trucking... But that's not what's driving this decision. This move is about hardball labor negotiating tactics, and nothing else... One can see how Peterbilt is telegraphing its labor strategy through this move. It is moving all its truck manufacturing to a state-of-the-art plant in Denton, Texas, outside Dallas. Oh, did I mention the Denton plant is union-free? Yes, it is... The Peterbilt plant manager in Nashville, Larry Vessels, is quoted in this Nashville Business Journal story as saying the impasse with the UAW had nothing to do with the decision to shutter the plant... If you believe that, I've got a bridge in Brooklyn I'd like you to look at it...

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