A Monthly Update of Global Trucking News

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

Truck sales record 'Down Under'
 

Volvo achieved 3,7% overall penetration, but with 10,6% of heavy-duty segment

With the 2004 South African truck market for vehicles over 3 500 kg GVM having broken through the 20 000 unit barrier for the first time since 1982, readers may well wonder how our ultra-competitive friends across the Indian Ocean fared last year. Rather better than us it seems, with a record total of 31 673 equivalent units sold, although it is instructive to note that South Africa's all-time record, achieved way back in 1981, was only slightly less at 30 742 units.
 

Kenworth sold 230 units for 22,3% with overall truck marketshare of 7,3%

This record Australian market total - which was 15,9% up on the 2003 result - was reportedly driven by a strong and stable domestic economy which generated burgeoning demand levels for consumer goods. The general opinion was that the truck supply industry, bodybuilders and ancillary equipment providers had never had it so good and anybody who did not make money in 2004, was unlikely to be successful in the future. In among the raw statistics, there were some interesting facts to note:

• GM-Isuzu retained its position as the overall market leader with 21,3% market share. 2005 plans for the manufacturer include a revamped N-Series and more power for the extra-heavy Giga models.

• Hino, which now has exclusive Australian distribution rights to the Dutro (Dyna) range, came in with a final sales total of 4 398 units for 13,9% market share but repeated its 2003 leadership of the important medium-duty category (8 501- 15 000 kg GVM).

• Kenworth maintained its dominance of the heavy-duty (over 15 000 kg GVM) sector, selling 2301 units for 22,3% of that category and returned an overall truck market share of 7,3%. 

• Iveco was, once again, the best of the European participants but with a reduced overall market share of 4,9%, although it should be noted that some of the 1 564 units retailed were sourced from ITEC in the USA. Iveco manufactures much of its Australian lineup locally and it was reported that a revamp of its Dandenong plant, in preparation for the introduction of future Stralis-derived models, had resulted in some product shortages during the year.

• Volvo, without the help of affiliated Mack, achieved 3,7% overall penetration but, with 10,6% of the heavy-duty segment, is closing in on second-placed Iveco (11,3%). Adding the 10% Mack heavy-duty contribution, the group's achievement would have overtaken Iveco but was still some way off Kenworth's outstanding achievement.

• Cumulatively, DaimlerChrysler's Freightliner, Sterling and Mercedes-Benz brands achieved 16,6% of the heavy-duty category. General opinion is that this stable has the greatest potential to win Australian market share and considerable efforts are being made to improve the quality perceptions of its products "down under". During 2005, the Mercedes-Benz Axor will be launched into the market, along with the new Sterling HX, which is powered by the MBE 4000 engine. DaimlerChrysler stablemate Western Star is distributed independently in Australia and during 2004 achieved a creditable sales total of 545 units, mainly for extreme duty off-road and roadtrain applications.

Faster roll-out of MAN's TGL expected
MAN's intercontinental roll-out of the TGA (the hyphen seems to have now been dispensed with) was fairly conservative with the company determined not to repeat the difficulties experienced by some competitors with earlier advanced technology vehicle introductions. As a result, operator acceptance has been favourable and the manufacturer has gained some marketing high ground. It will be interesting, therefore, to track the international launch strategy for TGL (see story in last month's FleetWatch), despite indications that the main emphasis will initially be on traditional markets in Germany, Great Britain, France, Italy, Spain and Poland.
 

OPERATOR acceptance of the MAN TGA has been favourable gaining some marketing high ground

The generally lower productivity profile of "distribution" vehicles, which travel shorter distances and spend proportionally more time being loaded and unloaded, will eliminate much of the technical risk to which TGA was exposed and this should encourage MAN to get on with the job. There is no logistic or cost benefit to marketing parallel but completely different vehicle ranges and these new products from the MAN Osterreich AG plant in Steyr, Austria should, therefore, be seen on the roads of the rest of the world in fairly short order. Last month's FleetWatch report stated that they will arrive in South Africa as early as next year.

ZF's new automated transmissions
The new ZF AS Tronic lite automated mechanical transmission, offered as the TipMatic option on MAN's new TGL Series (see above), is based on the 6 S 850 Ecolite unit. This design incorporates a "mechatronic" electro-hydraulic shifting module which, as the manufacturer reportedly points out, makes it independent of on-vehicle pneumatic systems. As such, fitment of this transmission does not require any modification of the parent vehicle's pneumatic system and can also now be offered on chassis in the 6 to 12 ton GVM ranges - even if they are not equipped with air or air/hydraulic braking systems.

ZF has also announced that the slightly larger AS Tronic mid, intended for cruiserweight commercial vehicles, is to be launched later in 2005. This pneumatically-operated single-countershaft unit will reportedly combine an unsynchronized three-speed basic transmission with synchronized range and split sections to provide 12 speed capability. Application options will include Power Take-Offs and direct or overdrive top gears.

ZF's new eTronic six-speed automatic transmission for rear-wheel-drive vans and pickups under 6,5 tons GVM, launched at the IAA show last September, has now also entered production. This unit, which can be operated in full-automatic or manual modes and is available with a clutch-driven PTO, is now being offered as an option on Iveco's latest Daily range of light trucks and vans. 

ERF Update
 

For those readers still mourning the passing of (real) ERFs from the South African transport scene, here is an update of recent news reports about the marque, which still survives under MAN parentage in the United Kingdom:

• ERF has returned to its traditional role as a supplier to the UK 8x4 tipper market with the introduction of the ECT 10.35TP4 model. This will use a 350 bhp version of MAN's D20 common rail engine coupled to a ZF 16-speed manual transmission.

• The MAN D20 engine also features in the new ERF ECT 10.43MTL 6x2 truck-tractor. The specification of this model, which is aimed particularly at the tanker industry, also includes an MAN TipMatic automated transmission, engine valve brake, air rear suspension with lifting mid axle and single-bunk sleeper cab.

• It would now appear that, with the full implementation of Euro 4 emission standards due in October 2006, ERF will finally discontinue the highly popular Cummins power option it has offered for decades in favour of an all-MAN source engine catalogue. Currently the 385 and 420 bhp Cummins ISMe units are offered as options in the ECT range, in addition to versions of the MAN D20 and D28 families. 

• MAN ERF UK Limited has signed a contract with Britain's Defence Procurement Industry for the supply of over 5 000 trucks and long term support, valued at GBP 1 billion, to the armed forces. The contract takes effect in 2007.

Big Giga for Oz?
For decades, Japanese manufacturers of premium truck-tractors were trapped in a domestic market that would only accept a combination of huge displacement, naturally-aspirated engines, 5 or 6-speed synchromesh transmissions and 2-speed rear axles. Recently, however, the increasing globalization of emission control standards has opened up Japanese operators to a more "international" specification profile of turbocharged and intercooled diesels as well as multi-speed transmissions. In their response to this change, the Japanese marques have suddenly found themselves with products that are more marketable from a global perspective, and have started to exploit some interesting new possibilities.

In South Africa, operators had - until the 1980's - been somewhat ambivalent about Japanese premium tractors. Then, in the Atlantis era, they, in common with all other equivalent trucks, were fitted with European or Euro/American drivelines and fairly substantial numbers of Hino Super Dolphins and Nissan Diesel CW 350's could be seen piloting 57 ton GCM interlink combinations on our national trunk routes. Since then, however, the Nissan Diesel UD 440 has established itself as a truly successful, thoroughbred Japanese-source premium long-distance truck-tractor. Interestingly enough, it is also developing a niche in the off-highway haulage of sugarcane and timber previously occupied by such legends as the International F-210 and Mercedes-Benz 2624 - which speaks volumes for its ruggedness.

Hino's new 700 Series has also garnered considerable positive comment and seems set to expand its manufacturers' footprint in the market place. Up until now, the obvious absentee from this "club" of Japanese-derived "heavies" is General Motors' Isuzu. With the exception of the cruiserweight FVZ rigid, really heavy Isuzus have been absent from the local scene since the mid-1980's. Recent developments in Australia may indicate that this could be about to change.

When the big Isuzus left South Africa, they were known as the C & E Range. Now they carry the "Giga" pet name, and we all know what that means by implication - Big, Very Big! Isuzu is big in Australia. It is the overall truck market leader in the segments over 3 500 kg GVM but the one area where it still has considerable room to grow is in the heavy duty category over 15 000 kg GVM. Traditionally, the upper reaches of this segment have been dominated by genuine US-sourced or Americanised European trucks, and the Japanese have only nibbled at the tipper and lighter tractor applications requiring GCM ratings of around 45 tons. This would explain the considerable media interest being directed at a certain test unit which has recently been under evaluation with Isuzu-GM Australia.

Externally, this test unit looked like a fairly standard Isuzu EXY-Series 6x4 truck-tractor and was badged as such. Closer investigation, however, revealed an uprated version of the 6WG1-TC, 15,7-litre engine, of unspecified output, but estimated to deliver around 375 kW and 2 300 Nm of torque. This tractor was also equipped with twin fuel tanks of 1 100 litre total capacity, relocated air tanks and battery box and a low profile Georg Fischer fifth wheel mounted directly to the chassis frame. The most important difference, however, was to be found in the vehicle's gearbox specification.

Officially designated MJX16, this was identified as Isuzu's "Smoother G" automated mechanical unit, as offered in the Japanese domestic market. It is a 16-speed, twin-countershaft, constant mesh transmission, with electro-pneumatic clutch and shift actuation and has a reported torque input capacity of 2 500 Nm. Features include full automatic or manual modes, dashboard digital display, clutch wear indicator, reverse lock-out, skip-shift selector and three-programme ("Power/Economy/Normal") operation.

The engine's exhaust brake has two stages of operation, with an automatic downshift of the transmission programmed into the second, more aggressive, stage, while the vehicle also has a "limp home" mode which allows recovery under its own power should the electronic or pneumatic systems be compromised. "Smoother G", in common with similar Eaton and Scania systems, retains the fitment of a clutch pedal, although its use is optional. 

The existence of this specification level in the Giga range indicates that Isuzu is technically qualified to challenge Australian B-Double and, for that matter, South African Interlink operations and to mount a wider assault on several export truck markets. In recent times, General Motors has loosened its links with Isuzu in respect of the Japanese manufacturer's own-branded medium and heavy truck products and the joint Isuzu-GM Australian distribution operation is, in fact, 60% owned by Isuzu.

The Japanese company has tended to take more direct responsibility for the marketing of these products worldwide and there have been fairly strong recent signs of intended expansion in Europe and the US. Any serious intent by GM South Africa to expand Isuzu's share of this market would have to include plans for the Giga range, so WorldWatch will watch local developments with interest.