A Monthly Update of Global Trucking News

Compiled Exclusively for FleetWatch by Frank Beeton of Econometrix (Pty Ltd.

Aussie B-Doubles to grow an extra metre

The Australian Trucking Association's annual convention was held at the end of March and during the proceedings, positive signals emerged that the New South Wales Ministry of Roads and Economic Reform was preparing to formalize new regulations for B-Double combinations.

For the benefit of readers not familiar with Australian transport terminology, B-Doubles are very similar, conceptually, to South African interlinks and are made up of a 6x4 truck-tractor drawing two semi-trailers with the foremost (A-trailer) having an exposed portion of frame at its rear which, in turn carries the fifth wheel coupling to the rearmost (B-trailer) unit.

The B-Double concept was first legalized, under permit, in the early 1980's at a Gross Combination Mass of 59 tons, with a designated overall combination length of 23 metres. These parameters grew to 62,5 tons and 25 metres around one decade later, before settling on the 68 ton/25 metre limits in force up until now.

During this evolutionary period, the benchmark load for B-Doubles was determined at 34 standard freight pallets. This tended to define the minimum total clear deck length requirement of the rigs at around 17 metres but made the dimensions of the tractor unit extremely critical. In effect, it resulted in short wheelbase, cab-over-engine (forward control) configurations becoming obligatory for optimum loading but also resulted in a very high proportion (estimated at 70%) of rigs running technically overlength, if only to optimize mass distribution or accommodate the fitment of non-productive extras such as 'roo bars. Manufacturers like Kenworth, who would normally have supplied bonneted US-spec tractors to the Australian market, were obliged to develop (very successfully) special short cab-overs for the purpose but refrigerated rigs were forced to cut back below the preferred 34-pallet norm to remain within the law.

Australian operators - and their associations - have campaigned vociferously for some relaxation of the overall length rule and it now appears that they will get their way. The new regulations are expected to permit operation at 26 metres overall length, subject to a limitation on the foremost kingpin-to-rear-of-last-trailer dimension of 20,6 metres.

There is a specific condition to the official sanction that load masses will not increase as the main intent of this concession is to legalise existing rigs, ease the burden of 'fridge operators and free up the operators' choice of prime mover configuration. It also appears likely that obligatory fitment of Front Underrun Protection Systems and reduced engine brake noise standards will be legislated as trade-offs against the dimensional concession.

Operators are expected to respond by looking at longer-wheelbase tractors which are generally considered to offer stability benefits, larger, more spacious cabs and where practicable, bonneted units. Other specification issues under pressure from the operator community - and reportedly being reviewed by the authorities - include an increase in the steer axle mass limit to 6,5 tons and the removal of Australia's archaic "vertical exhaust" requirement for trucks over 4,5 tons GVM.

Increasingly, a debate is emerging in Australia over achieving the ideal balance between government environmental and safety legislation and the road transport industry's future capacity to effectively handle the nation's transportation task. The industry is requesting some legislative fine-tuning to enable the national fleet to keep track with the country's transportation needs without vehicle numbers growing in an exponential manner.

In Australia, the rail alternative is hardly a national option but road freight transport still finds itself lobbying hard, through its representative bodies, for an equitable operating environment. There's a lesson here for other countries to heed.

Yankee Viking

Volvo's VT880 - very American and aimed squarely at the owner-operator community.

Question: Which 6x4 truck-tractor is American-built, has a very long bonnet and tons of power but doesn't carry a recognizable US nameplate?

Answer: Volvo's VT 880.
For some time, this Swedish manufacturer has been building dedicated products for the North American market which play to local truckers' preferences for conventional (normal control) layouts and standardised drivetrains. Having absorbed such iconic US brands as White, GMC and Mack (via Renault) along the way, Volvo soon realized that it needed to adopt a cautious approach to becoming a dominant player on that continent if it was not to scare away the substantial chunks of market share that were intended to be inherited with the acquisition process.

It was apparent that American truckers would not, overnight, take European-style Volvo F-Series trucks to their collective hearts so a range of specialized products, not too far off the preferred local stereotype, was developed - as a first step - to condition the market to at least accepting a Volvo nameplate on their trucks.

Volvo's final objective, like any other global player, is to eventually achieve the highest possible level of vertical component integration for its product range. European Volvos have, for many decades, been among the most "thoroughbred" of trucks with virtually everything except fuel systems, electronics and "hang-ons" being produced in-house. Even Volvo's US affiliate, Mack, was, until fairly recently, more of an integrated marque than most of its compatriots, taking particular pride in its high-torque rise engine designs. So, the preferred strategic direction has never been in doubt, but the tempo of its implementation was, of necessity, fairly modest.

Enter the aforementioned VT 880, shown recently, for the first time, to the press in Phoenix, Arizona. Visually, this truck is very American and aimed squarely at the owner-operator community with its long, square "hood", chromed grille, massive front bumper, set-back cab, 1 956 mm integrated sleeper section, and polished metal battery box/toolbox/fuel tank "package" below the cab doors. Inside the sleeper, the lower bunk, when not in use, converts to a cozy dinette tucked under the upper bunk. Reported driving impressions have been extremely positive in respect of quietness and, despite the long bonnet, visibility. 

Drivetrain options include the 15-litre Cummins ISX engine family but Volvo would dearly like to sell most VT 880's with the special Exhaust Gas Recirculation version of its own D16 engine that it has developed specially for the US market.

Available in a power range from 373 kW to 466 kW and with up to 3 050 Nm of torque, the D16-powered version of Volvo's US flagship is now, reportedly, the most powerful highway truck which can be purchased in North America. Clearly, this positioning strategy has been adopted with small fleets and owner-drivers - and their "bragging rights" - very much in mind. Volvo clearly hope that the lure of such power, coupled to a design configuration aimed specifically at this market segment, will cause more patriotic Yanks to put away their earlier prejudices and more readily accept the idea of a "foreign engine". Will this work? Time will tell!

Quantum Leap?

Toyota has just launched its latest generation HiLux pickup and HiAce van models on to the Australian market. The HiLux is recognizably from the same Innovative International Multi-Purpose Vehicle product family as the equivalent new model range recently launched, and now in production, here in South Africa.
 

Toyota HiLux - now in Australia and looks the same as the model launched in South Africa.

Although there have been many positive comments about the new model's dynamic performance and build quality, your scribe has been more impressed by the new direction in bakkie styling that has materialized in this manifestation. There seems to have been a distinct effort to separate the styling elements of the cab from the loadbox, particularly in the double-cab models, where the window line of the cab has been deliberately "uncoupled", by its rakish angle, from the upper edge of the loadbody.
 

Toyota HiAce - is from the same family as the new South African Quantum.

In the past, it always seemed that pickup stylists were trying to convince us that the separate cab and body elements were, in fact, a continuous unit. The loadbody on the latest HiAce also sets entirely new standards in the smoothness of its styling. It will be interesting to see if local customers take to this new, very stylish design, or if they will demand something with a more rugged and work-friendly image in future.

Australia's new HiAce is an interesting manifestation. It is, in fact, from the same family as the new South African Quantum! Why use a different name in South Africa? Clearly, it's because the earlier generation HiAce will continue to be supplied to the local taxi industry as the Siyaya. But, the revelation that the Quantum is really the latest HiAce poses some interesting questions. Will the Siyaya survive beyond the legislated changeover to unleaded fuel scheduled to be initiated early in 2006, or will the Quantum, with its diesel engine option, be Toyota's main future offering to the taxi industry after recapitalisation, to take on the likes of the recently-announced Russian Gazelle? 

International Stirrings

Slowly but surely, a new international powerbase in the truck industry is busy taking shape and the description "international" has not been chosen lightly in this instance. Consider the evidence.
 

International - in name and nature.

Towards the end of 2001, American truck specialist International Truck and Engine Corporation announced that it had entered into a joint venture with the Ford Motor Company to form the Blue Diamond Truck Company. This entity would provide market coverage in the segments below ITEC's traditional stronghold in the top Class 8 (heavy hauler) category and provide access to additional sales volume through Ford's North American distribution network.

Then, the following year, ITEC fully absorbed South American diesel engine manufacturer Maxion, with its manufacturing operations in Argentina and Brazil. Subsequently, in 2005, this arrangement was further expanded by the acquisition of another Brazilian engine builder, MWM, and the consolidation of all the company's South American engine interests - which was announced concurrently - provided a substantial power unit design, development and production capability.

Finally - and possibly the most significant development of all - was the announcement at the beginning of this year that Navistar had established a strategic component manufacturing alliance with German manufacturer MAN Nutzfahrzeuge AG. Analysts praised this arrangement as highly rational, considering the complementary nature of the two manufacturers' geographic spheres of influence within the world market, as well as MAN's own very considerable engine manufacturing capabilities. 

To set a historical perspective, the International Harvester Company was formed back in 1902 out of a merger between the McCormick and Deering agricultural interests. (The actual roots of this business went back as far as 1847). International Harvester subsequently became a major player in the US truck market, producing pickups and school bus chassis as well as medium and heavy-duty trucks. It also achieved considerable export success in territories such as Australia and South Africa.

In its later years, IHC's participation in the heavy truck market was mainly as a supplier of traditional US "component" trucks, with major aggregates bought in from proprietary manufacturers such as Cummins, Detroit Diesel, Eaton-Fuller, Rockwell (Meritor) and Hendrickson. Progressively, IHC's non-automotive business, including tractors and earthmoving equipment, together with the corporate name, was sold off and, in 1986, the manufacturer re-emerged as a truck specialist organization called Navistar International, with operations being subsequently conducted under the name of International Truck and Engine Corporation. 

The co-operative business model currently being pursued by Navistar/ITEC has not yet fully emerged but progress to-date is worthy of some study. Earlier mergers and acquisitions in the truck industry have tended to be "big bang" events, typified by the absorption by DaimlerChrysler of Freightliner, Western Star and Sterling; Volvo's reverse takeover of Renault and Mack; and Paccar's expansion into Europe to embrace Foden and DAF.

These groupings have all faced demanding cross-cultural challenges, mainly due to the differences in entrenched customer preferences on both sides of the Atlantic. ITEC seems to be treading a far more cautious path, consolidating its own areas of strength but also looking for partnerships with peer companies that are not, traditionally, direct competitors - at least in a geographic sense. There is also evidence that dependence on outside engine suppliers is being systematically reduced, which may reflect an internal perception that the independence of the traditional proprietary supply base is under threat.

The foregoing background sets the scene for the latest announcement concerning ITEC's co-operative activities. This time, it's with Indian utility vehicle specialist Mahindra & Mahindra. The agreement reportedly covers the local production, marketing and export of light, medium and heavy commercial vehicles and the sourcing of materials and components.

The resulting joint venture, which will require a combined investment of more than $US80-million, is to be known as Mahindra International and will be owned in the ratio of 51:49 by M&M and ITEC respectively. Production of trucks and buses for the Indian market, at a 90% local content level, is due to commence in 2007.