A
Monthly Update of Global Trucking News
Compiled Exclusively for FleetWatch by Frank
Beeton of Econometrix
(Pty Ltd.
International powers into Brazil
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Navistar,
holder of the International marque will acquire MWM Motore Diesel
Ltda of Brazil |
It has been reported that Navistar International Corporation, the holding company of International Truck and Engine Corporation (ITEC) and its International Engines South America subsidiary, intends to acquire MWM Motores Diesel Ltda of Brazil, subject to Brazilian official sanction.
MWM currently produces a comprehensive range of medium and high speed diesel engines covering the output spectrum from 40 to 230 kW - at the rate of around 85 000 units per annum. It delivers its products to vehicle manufacturers such as General Motors, Volkswagen and Nissan for use in their own pickup, van and truck models. MWM, which was established in 1953, operates out of Sao Paulo and also supplies engines for agricultural, marine and industrial applications.
The MWM business has many potential synergies with International's own existing South American engine manufacturing operations based in Canoas, Brazil, and Jesus Maria, Argentina. The American manufacturer bought in to Maxion International Motores SA in 1999 and renamed the operation International Engines South America after completing its takeover in 2001.
Products range from 70 kW to just over 200 kW output and in addition to serving the two plants' domestic markets, are exported to automotive, agricultural and industrial original equipment manufacturers in Mexico, Australia and the United Kingdom. It is reported that a new company, to be named MWM International Industria da Motores da America do Sul, will be formed to consolidate the group's engine manufacturing interests in the area.
This news is of particular interest for two reasons. Firstly, MWM is an established supplier of engines for several models in Volkswagen's Brazilian truck range and it has recently been announced that vehicles from this source are about to enter the South African market.
Secondly, and from a more strategic viewpoint, ITEC are assuming an increasingly important profile as a diesel engine manufacturer. Although many of its engines are supplied to other manufacturers for installation in their light and medium-class vehicles, it seems that the company may be evolving a strategy that will protect its own power unit supply position, should traditional independent US engine sources dry up for any reason. The MWM acquisition will bring research and development capabilities with it, which will be added to ITEC's own R&D infrastructure.
Factoring in ITEC's recently-announced partnership with MAN, the group's international resources are rapidly expanding, along with its capability to meet increasingly-demanding environmental legislative requirements. Should these same environmental demands oblige Cummins or Caterpillar, for example, to team up with a competing vehicle manufacturing entity, ITEC would be left with some viable in-group engine supply alternatives. WorldWatch applauded the earlier announcement of the ITEC-MAN arrangement as "rational" and we believe that this new expansion of capability in Brazil reinforces that rationality.
US engine manufacturers look ahead to 2007.
With EPA 2004 emissions standard compliance now under their collective belts, American engine manufacturers are focusing, to an increasing extent, on their plans for the next level of regulation, which comes into effect in 2007. These will require reductions of 55% and 90%, respectively, from the current levels of Nitrous Oxide and particulate emissions.
To meet these standards, Cummins will reportedly use a combination of its current cooled-Exhaust Gas Recirculation technology with a crankcase ventilation system and particulate filter manufactured by subsidiary Fleetguard Emissions Solutions. The manufacturer says this plan will provide product continuity by using the existing engine architecture as its development platform.
Cummins has recently gone to considerable lengths to confirm that the durability of its current ISX engine is up to the standard of the legendary pre-emissions N14. Tear-down of ISX engines after just under 1 000 000 kms of commercial service has reportedly revealed remaining life expectancy of 50-75% in respect of the reciprocating parts. In response to new state laws limiting permitted main engine idling time, Cummins has also introduced a power system for cab heating, air-conditioning and appliance use which employs an independent two-cylinder engine coupled to an electric generator.
Over at DaimlerChrysler subsidiary Detroit Diesel, EPA 2007 planning is in place for the company's three current engine platforms, which are mainly supplied to the various Freightliner-controlled manufacturing operations. The new emissions strategy will use a combination of enhanced EGR, upgraded electronic controls, improved turbochargers, diesel particulate filter and closed crankcase breathing on its Series 60, MBE 900 and MBE 4000 engines. More than 75 test units, fitted with 2007-level Series 60 engines, are shortly to enter trial service with selected fleetowners.
Some questions have been asked about how much longer the Detroit Diesel Series 60 will continue as a stand-alone product, especially in view of the recent success achieved by the 12,8-litre OM457-derived Brazilian-built MBE 4000 in the US market, and DaimlerChrysler's Heavy Duty Engine Platform "world engine" strategy. While it seems likely that the Series 60, with planned EPA 2007 enhancements, will still be around until 2010, observers believe that the next version of this engine may well be a "badge-engineered" HDEP derivative. However, it now, reportedly, appears highly unlikely that the Series 60 will continue to be made available to chassis manufacturers, outside of the DaimlerChrysler family, after the end of 2006.
A Stralis for Aussie
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The
EURO-specification Stralis from IVECO ... soon to be in
Australia in a very different form |
Iveco's Stralis flagship has only appeared, so far, in a number of Euro-specification, single-drive configurations. However, news from Australia suggests that the local Iveco operation, which also controls the manufacturer's South African distribution, is about to launch its own, very different, Stralis.
Reportedly built on a 864 mm wide chassis frame sourced from ITEC in the US, the Australian Stralis is said to use the 13-litre Iveco Cursor engine, in ratings up to just over 400 kW output, in tandem with a choice of EuroTronic automated or Eaton manual gearboxes and Hendrickson-suspended Meritor rear drive axles. Yes, that's "axles", because a 6x4 version is to be offered in addition to 4x2 and 6x2 configurations to Australian operators.
The initial reports were not able to confirm the development of additional versions such as those perennial Aussie favourites, twin-steer rigids and US power plant options, in the immediate future but Iveco's entrenched position as the leading European-source truck supplier in that market suggests that these may well be forthcoming- sooner rather than later. It has also been questioned whether the next generation of Iveco's PowerStar conventionals (bonneted trucks), specially developed for Australia from the EuroTech platform, will also be Stralis-derived, with a suitably changed model name.
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FRANK
BEETON also compiles !! AUTO ALERT !!, a fortnightly newsletter
reflecting Global developments in the broader Motor Industry.
Contact him on
(Phone) 011-483 1421
(Cell) 082-602 1004
(Fax) 011-483 2498
or e-mail frankb@econometrix.co.za |
