A Monthly Update of Global Trucking News

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

American Trucks - some interesting recent developments
 

Early in the life of WorldWatch, we devoted a considerable amount of space to pondering the future of American trucks as we have come to know them.

It is a well-known fact that US operators have a fierce loyalty to a particular type of Class 8, or premium 6x4 heavy hauler. Typically, it can be recognized as having a conventional, or bonneted cab, followed by a capacious sleeper "box" sitting on a lengthy chassis frame with the front axle set well forward to take full advantage of the axle spread-based all-up weight legislation that is enforced in numerous states. Technically, the driveline mix is made up of a Cummins, Detroit Diesel or Caterpillar engine, driving through a member of the Eaton/Fuller gearbox family to a set of ArvinMeritor or Dana rear drive axles.

Over the years, this "recipe", with its highly standardized component mix, has resulted in a high standard of performance coupled with unparalleled reliability and serviceability for US truckers, irrespective of the badge up front, as most manufacturers offered largely the same menu of aggregate options.

So what is changing? Firstly, with sales currently around 200 000 units per annum, the US Class 8 market is still big in world terms but, in the face of the huge development costs needed to meet increasingly stringent environmental legislation, is now less able to justify unique products developed specifically to meet its preferred profile.

Secondly, all the major truck manufacturers supplying the US market have formed, or joined, global alliances and while PACCAR (Peterbilt/Kenworth) remains firmly under US control, Freightliner, Sterling, Western Star and Mack are now foreign-owned and Navistar/International Truck and Engine has recently formed an association with European manufacturer MAN. These intercontinental groupings need to achieve considerable product rationalization across their global operations to maintain profitability and quite understandably, they have been bringing pressure to bear on American operators to accept the more vertically integrated product philosophy common in Europe and Asia.

Some recent developments have added considerable fuel to this debate. The announcement that International Truck and Engine Corporation will, from 2007, offer its own MAN D20-derived 11 to 13-litre engines in Class 8 trucks is an important change of direction for this manufacturer. Inevitably, in view of ITEC's historic importance as a customer for the 11-litre Cummins ISM engine, speculation has surfaced over the future viability of this engine family in the US, while parallel concerns have also been voiced in Europe over the continued availability of the Europeanised Cummins ISMe version beyond Euro 3.

Although Cummins has recently announced upgraded increased-displacement versions of the smaller ISBe range for Euro 4 from October 2006, no news of a parallel ISMe development has been reported thus far. 

ITEC has reportedly said that both Cummins and Caterpillar C-11/C-13 alternatives will remain on the option list for its Class 8 models but should the manufacturer place understandable major emphasis on the "in-house" power unit choice in its mainstream promotional efforts, it could mean fewer Stateside engine sales for both Cummins and Caterpillar.

In an entirely different area, media attention has also been directed to the PACCAR badging carried boldly by the new 12,9-litre DAF engine which was exhibited at Hannover in 2004. Long seen as potentially the "last defenders" of the thoroughbred American truck, PACCAR may also be considering a more integrated approach, in future. Finally, the announcement that DaimlerChrysler, now in control of Detroit Diesel, will not offer the very popular Series 60 to non-group truck manufacturers beyond 2006, confirms that the previously wide engine choice available to all American truck buyers will be reduced by, at least, a third.

These developments are early - but significant - indications of change in the established order. The "system" has historically relied on the unrestricted availability of a full range of products and options from the proprietary suppliers to sustain it but these emerging question marks suggest that the degree of free choice may be reducing.

ITEC is already very active in smaller diesel engine manufacture, so the new MAN-based power units will further entrench its growing position as a vertically-integrated manufacturer and, should PACCAR elect to go the DAF engine route, additional pressure will be brought to bear on the remaining independent engine suppliers in their efforts to fund new product development. The option clearly exists for Cummins and Caterpillar to move closer to one or other individual global vehicle manufacturing groups and, in fact, Cummins has already established an engine-manufacturing joint venture with Iveco and tractor builder New Holland in Europe. If this scenario develops any further, however, it is highly unlikely that vehicle brands outside of any resulting group affiliations will continue to have free access to the proprietary engines, as already evident from the upcoming Detroit Diesel situation. 
 

We can still expect, for some time, to see typical American trucks remain in the frame. But, visually "American" does not necessarily mean "mechanically" all-American, as recently proved by Volvo Truck North America's VT 880 which, despite its impressive Yankee looks, is very much a Swede under the skin. This flagship model is only one of a number of dedicated US-market bonneted Volvos intended to get the D16 engine which, at ratings up to 466 kW, is the new power supremo on American roads. That fact, in itself, may well prove to be motivation enough to convince some loyal and patriotic American truckers that the time is right to try something intrinsically, if not visually, "foreign". The pressure is mounting, and we await further developments with interest.

HCCI Update

Back in the April edition of WorldWatch, we provided some updated news on new technology developments in the world motor industry, including commentary on BMW's efforts to develop a hydrogen-burning reciprocating engine. Subsequently, we have discovered that MAN is following a similar development philosophy for heavier vehicle propulsion, having exhibited a tangible example of this thinking at the UITP Congress and Exhibition in Rome during June.
 

MAN TGA 18.350 with L cab with 350-hp D20 Common Rail diesel engine.

The principle, under development at MAN since 1992, is claimed to involve considerably less cost and complication than the widely favoured alternative of fuel cell-based energy conversion. MAN's H 2866 UH engine on show in Rome was based on a standard diesel engine block and achieves emission levels that substantially improve on the Euro 5 standards which are still more than three years away from implementation. The top end of this engine is said to closely resemble MAN's natural gas units with the addition of a water-cooled exhaust manifold to cope with hydrogen's high combustion temperatures. The manufacturer also claims that this type of engine will be considerably less expensive to produce and have a less critical hydrogen fuel purity requirement than the far more involved fuel cell alternative.

Further news has also surfaced regarding the development of the Homogeneous Charge Compression Ignition (HCCI) technology for internal combustion piston engines. To recap, HCCI has been developed using lean-burn, low-temperature techniques to achieve increased thermal efficiency in the engine, coupled with the elimination of nitrogen oxides in the emissions. The second half of the name "Compression Ignition" indicates a similarity to conventional diesel engine practice but the preceding portion "Homogeneous Charge", denotes that the fuel and air are mixed before the charge enters the upper cylinder environment.

Herein lies the major challenge to the further development of this technique in that the combustion "event" within the cylinder is not triggered by way of a spark from an electrical plug, or the delivery of atomized fuel by an injector. In essence, the combustion event in a HCCI engine can be described as a "benign knock" but without the destructive implications that such a spontaneous event would imply for a normal spark-ignited engine.

HCCI is being touted as a technology that could raise efficiencies in petrol engines by 20% bringing them much closer to diesels in terms of fuel economy, but at around half of the cost - and with greatly reduced emission levels. This may suggest that HCCI petrol engines have the potential to become a viable alternative to diesels in the future, in both conventional and hybrid driveline applications, assuming that the appropriate progress can be achieved in the development of the controls, actuators and sensors that would make the combustion process more predictable. In order to progress this technology direction, it has recently been announced that General Motors, Robert Bosch and Stanford University will be embarking on a three-year, $US 2,5 million joint HCCI development programme.

The prospect of an engine that can offer diesel-like levels of efficiency but at a lower cost and with considerably less demanding emission control requirements, may suggest that HCCI technology has a place in the heavy vehicle arena. It will be interesting to observe as this technique and its control mechanisms evolve, if reasonable tolerance to varying fuel types and qualities can be built in. In any event, with the BMW, MAN and GM/Bosch/Stanford research programmes up and running, it seems that the reciprocating internal-combustion engine will not be going away any time soon, either as a primary source of power, or as the electrical current-generating element in hybrid-driveline combinations. In the heavy vehicle arena, where viable and reliable development tends to be more evolutionary than revolutionary, this is good news indeed.

MAN heading downmarket?

It has been reported from Germany that consultants are currently advising MAN Nutzfahrzeuge AG on a possible move into the sub-7,5 ton Gross Vehicle Mass market through a joint-venture with an unnamed existing van manufacturer. The objective of such a strategic reorientation would be to broaden the range of products which could be supplied through - and serviced by - MAN's dealership network.

Inevitably, observer speculation has arisen over who the potential van-producing partner may turn out to be. In Europe, there is a wide potential choice, including DaimlerChrysler (Mercedes-Benz), Iveco, AWD, Volkswagen, Ford, Renault, Fiat/Peugeot, and General Motors.

Equally inevitably, before any official announcement is forthcoming, the speculative spotlight may tend to fall on Volkswagen, in view of that manufacturers' previous association with MAN through the VolksMAN light truck co-operative venture and the seeming lack of product overlap higher up the mass scale between MAN and VW.

However, in recent times, VW has shown signs of some global ambition to be more widely represented in the truck industry through the expansion of the geographic area penetrated by its Brazilian truck and bus range and by maintaining a substantial financial interest in Scania. Under these circumstances, Volkswagen may not be that keen to establish further formal links with MAN, which, as discussed above, is now also globally allied with Navistar/ITEC.

DaimlerChrysler, Renault, Iveco and the latter's parent, Fiat, would be unlikely choices being direct or associated competitors to MAN in the heavier commercial classes. But, no such consideration would affect a possible tie-up with Ford, GM, AWD and Peugeot, none of whom are currently substantial players higher up the mass scale. Watch this space for further developments!

India adds new braking power

The growing market for larger and faster trucks in India, coupled with more stringent compulsory braking standards being phased in by the government between October 2005 and October 2006, has prompted the establishment of two important new braking specialist joint ventures in that country.

Firstly, Knorr-Bremse AG of Germany has linked up with Tata AutoComp Systems Limited in the establishment of a new plant in Hinjawadi to manufacture air brakes and electronic brake control systems for supply to local vehicle manufacturers. This operation, which has already commenced production, will be owned on a 70:30 basis by Knorr-Bremse and TACO, respectively, and is to be integrated into Knorr-Bremse's global development, manufacturing and marketing network.
 

KNORR-BREMSE AG of Germany has linked up with Tata AutoComp Systems Limited.

Over in Chennai, Sundaram-Clayton Limited, a WABCO-TVS Group joint venture, has inaugurated a new production facility to manufacture air brake system components for trucks, trailers and buses. The new 11 million Euro facility replaces an established operation which has served Indian vehicle manufacturers for the past 42 years. The Sundaram-Clayton JV was first initiated in 1962 to manufacture air brake components and aluminium castings for local and export OEM and aftermarket requirements. 

The second round of new Indian mandatory braking requirements which comes into force in October, 2006, will reportedly require commercial vehicles to be equipped with automatic slack adjusters and anti-lock braking systems.