Small Business Resources, Business Advice and Forms from AllBusiness.com

Many Names, Fewer Choices

Sometimes less is necessary. The seemingly fast-fading recession reined in spending and rendered waste from many corporations, including those that build trucks. Tight money and new government regulations have weeded out several slow-selling models, leaving room for more successful and useful vehicles.

There remains a truck or tractor for every purpose, if not every preference.

Options lists have been pared by growing "strategic alliances" among builders of heavy trucks and component suppliers, while consolidation of ownership has accelerated in recent years. These developments have pushed Class 8 manufacturing toward "vertical integration," where a truck builder makes or controls most of the parts that go into his vehicles. Buyers of light- and medium-duty trucks take it for granted, but surveys show most heavy-truck customers don't like it.

News in Class 8 trucks continues to be dominated by engines—primarily, the greater complexity and higher cost brought by the latest exhaust emissions regulations. These went into effect in October 2002 for most builders, and those exempt at that time now face them effective this January. Builders are pondering what will be needed to meet the next round of limits, coming in January 2007.

However, there is almost no angst among midrange truck customers over the new, costlier '04 engines, perhaps because these people use their trucks as part of larger businesses, and are not primarily truckers.

Manufacturers of Class 6 and 7 trucks report sales of more automatic and automated transmissions. Overall percentages range from 30 to 100, depending on application, as operators realize productivity and maintenance benefits to be had with easy-to-drive trucks. The trend has accelerated steadily since the early '90s. Allison automatics still account for the bulk of midrange sales, but Eaton automated mechanical products are catching on and a Mercedes-Benz product will soon be available on medium-duty Freightliners and Sterlings.

Conventionals continue to constitute 80 to 90 percent of medium-duty sales here, depending on locale, and that's where domestic builders are putting their money. Hino, which has imported only low-cabovers, is converting to conventionals. This month, it's unveiling Class 4 through 7 conventional-cab models with Hino diesels and North American driveline components. And it plans to significantly expand its dealer network.

Aside from expansion of models in the various midrange weight classes, four domestic builders now offer extended cabs and four-door crew cabs, and several can build a 4×4 or 6×6, either right in the factory or at a nearby modification center.

Quality of cabs, chassis and components continues to increase, as manufacturers refine their assembly lines, motivate their workers and, in general, better the craft of truck building. Trucks contain more electronic circuitry, which make them run better, but are the devil to deal with for the technologically ignorant or inept.

The October 2002 emissions regulations have affected domestic diesel builders—those who suffered the wrath of the Environmental Protection Agency for alleged cheating in the '90s—and their customers. These include buyers of medium and heavy trucks powered by Caterpillar, Cummins, International, Mack and Volvo diesels.

Come January 2004, all diesels will have to meet the same limits, so more trucks will go up in price. These include GM, Isuzu and the imports—all those diesel builders not penalized by the EPA in its consent decree. Most engine makers not already using exhaust-gas recirculation say they will. Caterpillar, of course, is neither using EGR for its "bridge" Clean Power diesels nor its new ACERTed models.

Paring Power

Most Class 8 truck builders used the changeover to October '02 engines to pare their power options. Freightliner LLC, for example, stopped installing most Cummins engines and made Mercedes-Benz its standard heavy-duty diesel in all makes. The midrange MBE900 and heavy MBE4000 diesels do not have exhaust-gas recirculation, so have been selling for relatively low prices—$1,000 to $6,500 less than for comparable Cat engines—and gaining customers.

Come January, MBEs will need cooled EGR to comply with emissions limits that most domestic diesels had to meet last October. But it is a simple system with reed valves instead of a variable-geometry turbocharger, according to Detroit Diesel, which handles marketing for the MBE models. So the markup for an MBE4000 should be about $3,000—thousands less than for competitors' EGR'd heavy diesels.

Meanwhile, Detroit Diesel's own Series 60 is the best-selling engine in Freightliners, including a series of severe-service trucks and tractors built for the U.S. Army. The Army's FLD-SDs are exempt from the '02/'04 emissions limits, so their Series 60s don't have EGR while civilian engines do. Otherwise, various Caterpillar models are optional and popular in civilian Freightliners, Sterlings and Western Stars.

By early this year, Caterpillar's combined medium- and heavy-duty market share had zoomed to about 40 percent, partly because it avoided EGR. Numbers have dropped, however, as Cat is paying stiff penalties to the EPA because its Clean Power "bridge" engines are not quite clean enough to meet the October limits. To limit the tens of millions in penalties, Cat's put truck builders on allocation until its fully compliant ACERT models reach full production.

The 8.8-liter C9, the first ACERT, is now available, and others are due out by year's end. But ACERTs are complex in their own way and cost many millions to develop. The company needs to recoup those costs, and also claims that ACERT engines will be as good on fuel as pre-October models. So Cat believes customers will be willing to pay hefty premiums for ACERT models, as they have for non-EGR Clean Power engines.

Cummins continues to tout the reliability and driveability of its EGR'd ISM and ISX. However, no single post-October engine—Cummins' or anybody else's—has achieved especially high individual miles. Thus, the jury is still out on the longevity of EGR gear.

Cummins' ISC and ISL models are not EGR'd and therefore can be sold at attractive prices. ISC and ISL are running on emissions "credits" issued by EPA because the high-volume Dodge-spec ISB has been cleaner than required. The Consent Decree prohibits Cummins from advertising its ISC/ISL advantage, but it'll be there, with no EGR, until January 2007.

Other engine-related developments at other truck builders:

  • International can't get enough Cats because of the allocation, so emphasizes Cummins big-bore engines in its 9000i, 5000i and 7000 heavy-duty models. Cummins would like to forge an alliance.

    For January '04, International's own DT466 used in all 4000 series and HT530 diesels in many 7000 models have been highly modified with cooled EGR, new injectors, variable-geometry turbos and other improvements. The 530 is enlarged to 570 cubic inches, becoming the HT570, with 340 to 370 horsepower and 1,150 to 1,300 pounds-feet of torque.

  • Paccar's supplier agreement with Cummins makes those engines standard, but most buyers of Kenworths and Peterbilts prefer Cats.

  • Volvo dropped Detroit several years ago, and last year quietly axed the Cummins ISC and ISL, which were lightweight options in two vocational truck series. One is the VHD, which now comes only with Volvo's own VED12. That engine is standard in the VN, and Cummins' ISX is optional.

    A new 16-liter D16C for Europe and other markets will eventually be brought to North America, but Volvo won't say when or for what models. Top rating for the D16C in Europe is 610 horsepower, so this could be an exciting addition to the Volvo, and perhaps Mack, product lines. But what then would happen to Cummins' ISX?

  • Mack, Volvo's sister company, has made the ISX the only engine available in its long-nose CL, but only a few hundred are sold each year. Mack still offers the Cummins ISL in its Granite vocational truck, but more than 95 percent are sold with Mack's own 12-liter diesel.

    By 2007, Mack and Volvo will share a new family of modern diesels, though they'll be tailored for each brand. Thus, the "exclusive" vendor agreements that Mack and Volvo signed with Cummins not long ago seem to be worth less and less.

Bye to FLD, RD

The October '02 changeover to the new engines was Freightliner's cue to drop its venerable FLD highway models. But the FLD severe-duty versions continue, including the militarized trucks and tractors for the U.S. Army and civilian models with new-series engines.

Mack has announced the end of its long-running RD vocational model. This got EGR'd diesels last October, but soon will be dropped because the modern Granite and Granite Bridge Formula have become very popular with customers. The RD, one of the last models to use the mid-1960s cab from the famous R model, will be gone by year's end.

Continuing is the old-series RB, with its setback front axle; and DM, with its offset cab, until Granite-derived replacements can be engineered.

Ford

Mexico-built "Blue Diamond" F650 and F750 trucks and tractors use Ford's two- and four-door SuperDuty steel cabs on International Class 6 and 7 chassis. Buyers thus get versatile, feature-rich but lower-cost cabs on premium chassis, Ford notes. Diesel powertrains include the International-built Power Stroke V-8, Cummins ISB and Cat 3126E/C7. International's I-6 diesels (probably with a Ford name) might be offered later. Non-compete agreement with Freightliner (which bought Ford's HN80 heavies in '97) precludes Class 8 models until '07, but dealers can install lift axles, and have.

Oshkosh

Long a volume supplier of heavy military and airport crash vehicles, Oshkosh Truck is also known for its S Series front-discharge concrete mixer chassis (right) with Cat, Cummins and Mack engines. It also sells the Cummins-powered Highland conventional-cab 6×4 or 6×6 mixer chassis featuring independent front suspension from one of its military models. Oshkosh owns McNeilus, which builds concrete-mixer and refuse-collection bodies, and Pierce, maker of custom fire apparatus.

Autocar

Two years ago, Grand Vehicle Works Holdings acquired the now 106-year-old Autocar name and modern Xpeditor products from Volvo, and has aimed the Class 8 low-cabover-engine trucks at trash haulers. It's now pursuing operators of mixers, concrete pumpers and other specialty applications. Initial units were built under contract by Volvo, but Autocar's own factory at Hagerstown, Ind., now makes the regular cab WX64 (far left) and low-profile WXLL64; there's also a WXR64 with right-hand drive. Starting last month, the trucks got a larger, roomier cab. Caterpillar and Cummins diesels to 385 horsepower are among the components offered.

General Motors-Isuzu

Chevrolet and GMC midrange models become Class 8s when equipped with high-capacity axles, including tandem rears. Conventionals like the C-8500 (right) use a wide cab from GM's light-duty vans; new in '03 was a four-door crewcab featuring purpose-built rear doors and good rear-seat legroom. Engines include the Vortec 8100 V8—the only gasoline engine available from any builder in Classes 6 through 8, but not in tandems—and Duramax 7800 or Caterpillar C7 diesels. Tiltcab T-8500 uses an Isuzu-made cab and domestic chassis; its front axle has been moved back several inches to make room for wider, easier-to-climb steps. Isuzu, GM's partner, also sells cabovers as its F Series.

Freightliner

SD (severe-duty) versions of Freightliner's FLD120 comprise Freightliner's primary vocational offerings, and it has made thousands of 6×6 dump trucks and tractors for U.S. Army engineers. New this year is a Business Class M2-112 (right), with vocational truck and regional tractor variants; it replaces the FL112, which phases out late this year. There's also the Condor heavy LCOE for concrete pumper, trash and other vocational uses. Mercedes-Benz's MBE4000 diesel is standard in many models, with the Series 60 from Detroit Diesel (which now reports to Freightliner LLC), Caterpillar and certain Cummins engines also available. The company has slashed costs and returned to profitable operation since a financial crisis and management change in 2000.

Sterling

Part of the Freightliner family, Sterling offers the L-Line (left) as its work-oriented Class 8 model with heavy-duty engines, while the Class 5 through 8 Acterra, which uses the same large steel cab, has medium-duty powertrains. New to the L is the Lightweight Bridge Formula, with forward-set steer axle, aluminum severe-duty cab and other weight-trimming features. Dana's Central Tire Inflation system is now a factory option for on/off-road use, as is a front-driving axle and transfer case conversion done adjacent to the factory. Four-door crewcab was introduced earlier this year. Sterling also sells the Condor heavy LCOE for concrete pumper and other vocational uses. Sterling was first to install Cat's ACERT C9. It also sells Cummins' ISL and ISC, and larger Cat and Mercedes diesels in its medium and heavy models.

Western Star

The distinctive Canadian truck has moved to America—a Freightliner plant in Portland, Ore.—and continues its focus on construction and logging, as well as the premium over-the-road market. Western Star's 4900 comes in BBCs of 132, 123 or 109 inches and a forward-set axle (right). The 4900SA has a setback front axle and slightly rounded nose, replacing the semi-aerodynamic 5900, which was dropped. A 6900 model for extra-heavy duty on- and off-road service is now available with twin-steer front axles. Engines are from Mercedes-Benz, Detroit Diesel and Caterpillar. Western Stars are sold through Sterling dealers.

Unimog

The unique tilt-cab Unimog 500, a Class 7 utility "implement carrier" made by Mercedes-Benz in Germany, entered the U.S. market early this year. The 4×4 has an MBE900 diesel, an 8-speed semiautomatic transmission, two or three low-low gear ranges, fully locking differentials, left- or convertible right-hand steering, and mechanical PTO and hydraulic hook-ups to power a host of tools and equipment available through aftermarket sources. Basic price is $86,000, but the multi-role Unimog can replace several other trucks in a prospective buyer's fleet.

Hino

Mini-mixer and dump truck are among the specialty uses found by customers for Hino's low-cab-forward medium-duty chassis. FD, FE and SG models are among the highest-rated imports available, but Hino will drop them from the American market as it phases in its new conventionals late this year. They'll first be built in Japan, then in California, and use more domestic components than the LCOs now have. Hino has signed a deal with Penske's financial arm to expand its dealer base and greatly boost sales in North America.

Kenworth

Kenworth continues to emphasize premium features for long life and high resale value. The T800 (right) with its setback steer axle can be ordered as a heavy hauler, construction truck and highway tractor, among other things. The traditionally styled axle-forward W900B is often outfitted as a vocational truck in bridge-formula states, in many cases as the W900S, a sub-designation. An Extended Daycab option that adds 6 inches to the cab's rear and several inches of belly room for T and W Series trucks, and a new kit converts AeroCab sleepers to daycabs—making ex-highway tractors more suitable as "work trucks." The midrange T300 becomes a Baby 8 with heavy-duty axles, including tandem rears, and many are set up as dump trucks. Heil dump bodies can now be ordered for most models through KW dealers.

International

International's severe-service offerings are its 5000i (above) with reinforced aluminum cab from the 9000i highway series, and the 7000 with its more automotive steel cab and chromed nose from the midrange 4000. The 5000i conventionals get 11- to 15-liter Cat or Cummins power; the 7000 series have International's DT466HD and HT530 (soon to be the HT570), or 11- to 13-liter Cat or Cummins engines. The 4000 (sold for lighter-duty municipal and other vocational uses) and 7000 can be had with extended cabs or crewcabs.

Peterbilt

Peterbilt will build most highway models for vocational duties; their aluminum cabs then get one of several available severe-service reinforcing packages and, of course, stronger chassis. Its principal work truck is the 357 (left), which includes a short-BBC version with special single headlamps, and a medium-BBC variant, which is virtually identical to the 378. The 379—the archetypical "large car" for long-haul owner-operators—is often set up as a dumper. The 385 is a medium-length aerodynamic model that can be a regional tractor, dump truck or something in between. Heil dump bodies can now be ordered through Peterbilt dealers.

Nissan UD

The Class 6 UD 2600 is the importer's main entry in this market, though it also has UD2300 and 3300 (below) models. All claim low lifecycle costs with high-quality cab, chassis and mechanical components. "The smarter the maintenance operation and the better the customer is at keeping records on his vehicles, the more chance we have of doing business with him," a company executive says, echoing statements from other premium builders.

Mitsubishi Fuso

Mitsubishi Fuso Truck of America's unusual Class 6 FM-MR mini-mixer (above), complete with drum and all accessories, has gained a few sales. Other Class 6 and 7 low-cabover models include FK and FM chassis used for cargo-hauling and various niche markets. It has lighter models, too, including the FG 4×4 used by landscapers and equipment servicers.

Volvo

Volvo reports encouraging sales trends and published perhaps the lowest surcharge for a post October '02 engine: $3,500. It has two models: the VN highway truck and tractor, with large, roomy, integrated sleeper options, and the VHD on/off-road vocational truck (left). The government forced Volvo to sell its Xpeditor heavy low COE in '01 (it's now the Autocar Xpeditor) and it got out of medium-duty trucks years ago. The premium-featured and -priced VHD got some under-the-skin and interior improvements of the VN a year ago. Volvo continues to encourage combined ownership of Volvo and Mack dealers (by year's end, more than two-thirds will be), which eventually could sell Mack vocational trucks and Volvo highway trucks. Cummins' ISX is an option in the VN but Volvo's VED12 is standard, and the D12 is the only engine available in the VHD. Sometime between now and 2007, a new high-horsepower 16-liter Volvo diesel will be offered in one or both series.

Mack

Mack's increasingly popular Granite and Granite Bridge Formula (right) have shouldered aside the venerable RD, which ceases production in December. More than nine out of 10 Macks are sold with 12-liter Mack ASET (application-specific engine technology) diesels. But Cummins' 8.8-liter ISL is offered as a lightweight option in Granites, and the 15-liter ISX is the only engine available in the long-nose CL, now a premium vocational truck and tractor. Mack continues its own line of axles, suspensions and triple-countershaft transmissions while offering vendor components. The MR heavy LCOE is a popular chassis for concrete pumpers, but the midrange Freedom LCO is gone.

In addition, make sure to read these articles:

"Strategic alliances" have cut options in Class 6, 7 and 8 trucks, but lots of builders want your business
T T T
art_print Printart_email Email 16x16-digg-guy  Digg It delicious-small  del.icio.us

Related Resources

icon - press release

Press Releases

icon - related resources - pen

Related Posts

kgirard_80
SBA Finally Scratches Seven-Year Itch for Women
To help women-owned businesses compete for federal contracts, Congress enacted a law ordering the Small Business Administration to come up with a plan to meet ...
Read More
kgirard_80
Ruling Boosts SMB Clout Over Federal Red Tape
A little noticed ruling by one of the nation's most influential courts on federal regulatory matters should give small businesses more clout when federal agencies ...
Read More
Tony Wilkins
More answers to your questions Pt 2
Dear Tony Wilkins, I'm Levis Song from China, I have learnt your blog by accident and worship you very much. I gratuate from a ...
Read More
icon - related resources -forms

Forms and Agreements

Business Resources

Sponsored Links

Site Map | Contact Us | FAQs | About Us | Media Kit | Reprints | RSS Directory | Sign Up for Free Newsletters | Disclosure Policy

Copyright © 1999 - 2008 AllBusiness.com, Inc. All rights reserved.
No part of this content or the data or information included therein may be reproduced,
republished or redistributed without the prior written consent of AllBusiness.com.
Use of this site is governed by our Copyright and Intellectual Property Policy, Terms of Use Agreement and Privacy Policy.

Get In-Depth Company Information from Hoover's | Buy a D&B Credit Report | What is in Your Company's D&B Credit Report? | Article Archives
Online Business Database | Online Business Information | Email Marketing Lists | Sales and Marketing Solutions | Business Mailing Lists
Information and opinions on AllBusiness.com solely represent the thoughts and opinions of the authors and are not endorsed by, or reflect the beliefs of,
AllBusiness.com, its parent company D&B, and its affiliates.