Rising of Ford Motors

• May
• 15

As a company that has manufacture automobiles since the early 1900s, Ford Motor (NYSE: F, Bullboard) needs little introduction. Aside from its eponymous line of Ford vehicles, the company also produces Lincoln and Mercury, owns a 33% stake in Mazda (OTO: MZDAF, Bullboard), and controls Volvo (OTO: VOLVY, Bullboard). In the past couple years, Ford sold its Hertz (NYSE: HTZ, Bullboard) line of car-rental locations and is in the process of selling Land Rover and Jaguar to India-based Tata Motors (NYSE: TTM, Bullboard) for a reported $2.3 billion.

While rising crude oil prices and pressures at the pump have turned consumers away from the company’s line of SUVs and award-winning pickup trucks, Ford is in the early stages of a turnaround masterminded by CEO Alan Mulally. In April, total auto sales retreated 12.2% to 200,727 cars and trucks. However, while truck sales plunged 18.3%, the new Focus compact saw sales spike 43.5% from a year ago. What’s more, Fusion sedan sales rose 22.4%.

The turnaround is also apparent in the company’s quarterly earnings reports. On April 24, Ford announced that it swung to a first-quarter profit of $100 million, or five cents per share, due to cost reductions in North America and strong international profits. Analysts were looking for a loss of 15 cents per share. Many analysts touted the results as proof that Mulally’s plan is on track. Ford also said it bought out 4,200 hourly workers during the quarter as part of its ongoing restructuring plan.

These strengthening fundamentals are also having an impact on Ford stock. Since the beginning of the year, F has risen more than 21%, easily outpacing the S&P 500 Index’s loss of more than 4%. During this time frame, the equity has enjoyed the support of its 10-day and 20-day moving averages – trendlines that F has not closed a session below since March 19.

Worldwide Volvo Trucks

• May
• 12

In 1980 Volvo bought White after White’s bankruptcy filing. The Canadian assets were purchased by a consortium of two Alberta energy companies, and were renamed Western Star Trucks.

Throughout the 1980s, Volvo produced White and Autocar, as well as distributing European-made Volvo. The White high cabover engine model was also badged a Western Star and sold through that company’s Canadian dealer network.

In 1987, Volvo acquired the heavy-duty truck models of General Motors, and began marketing the WhiteGMC badge, although all of the legacy GMC product lines were discontinued by 1990.

In 1997 the WhiteGMC name was discontinued, and all models were badged either Volvo or Autocar. In 2000, the remaining Autocar products were discontinued, and the nameplate was retired (temporarily) after over 100 years.

In 2001 Volvo acquired Renault Vehicules Industriels, including Mack Trucks in the United States. In order to secure the approval of the authorities to proceed with the merger, Volvo had to agree to divest of its low-cab-forward (LCF) models, known as the Xpeditor range, due to the degree the combination of this product with the Mack MR and LE series dominated the refuse markets in which these vehicles are predominantly used.

In 2001, Volvo divested of the Xpeditor product and the rights to the Autocar trademark. The purchaser was Grand Vehicle Works LLC, a private equity venture based in Indiana that also produced stripped chassis for vans and recreational vehicles, and walk-in van bodies for parcel delivery service.

Today, Volvo produces Volvo and Mack class 8 truck models at plants in Dublin, VA, and Macungie, PA. Affiliate Volvo Powertrain produces engines and transmissions at its Hagerstown, MD, facility, for use exclusively in the North American market.

Volvo hikes the cost of new plant as steel prices bite

• May
• 1

It is increasing the price of  new machines and components by five per cent with immediate effect.

Other plant manufacturers are thought to be mulling over the move with a view to introducing their own price increases once the effect of the Volvo announcement has been assessed.

Industry insiders claimed that rival producers would keep close tabs on the market to see if customers were willing to pay the extra cost before  increasing prices.

Volvo Construction Equipment, the plant arm of the Swedish conglomerate, produces a range of equipment including scrapers, graders, excavators and dump trucks.

The move will affect all new orders of machines, attachments and parts but existing deals will be honoured.

Executive vice president Scott Hall said price increases were inevitable as the prices of steel and other commodities were rocketing to such an extent it was no longer able to absorb these hikes. He also blamed demand across developing countries, notably China.

Mr Hall said: “Manufacturers of heavy construction equipment are being particularly hard hit by the current record prices of commodities such as steel, oil, iron ore and rubber. With no sign of commodity prices cooling, it has become unavoidable that these costs be offset.”

Colin Timms of construction plant analyst Off Highway Research said the manufacturer had introduced the price increase at exactly the right time. He said: “Because of the strength of the market at the moment - there are long delivery times and the plant manufacturing sector is running at an all time high - this round of price increases are likely to stay.”

Ray’s Transport get 10 out of 10 from Volvo

• April
• 30

Cheshire-based, Ray’s Transport Ltd, have added three new Volvo FH-480 articulated trucks to replace older vehicles in their all-Volvo fleet.

Since Ray’s Transport Limited began trading over seven years ago, Managing Director, Ray Duckworth has purchased a number of marques. However, as Ray commented, “Having tested the market with a number of manufacturers I’ve remained loyal to Volvo over the past few years,” adding that, “After operating over 15 Volvos in recent years I can honestly say that their exceptional reputation is greatly deserved.”

In terms of vehicle performance, the latest Euro 4 Volvo FH additions to the 10-strong fleet were specified with 480 bhp, Globetrotter XL cabs in ‘Prestige’ trim, I-Shift automated transmission and all plated for 44 tonne GCW.

Ray added, “With over 27 years in the haulage industry I have seen a number of costly problems with manual transmission systems. However, as all my newer vehicles have the I-Shift system, they have been fantastic and more importantly, problem free.”

The three vehicles were purchased from Area Sales Manager, Mark Lingard at Thomas Hardie Commercials in Middlewich, where they will be serviced and maintained.

Along with the rest of Ray’s fleet the vehicles can be seen operating from their Winsford base across the North-west, working on a number of contracts including Morrison’s foods and Maxi Haulage.

Eclispe: Diagnostic update to be announced at CV Show

• April
• 29

CV truck and trailer diagnostic equipment specialist supplier Eclipse Automotive will announce an upgrade for its EclipseTest Pad Diagnostic package at the Commercial Vehicle Show next week. The new Version 15 software further extends the applications of this all-makes diagnostic package still further, adding new systems capabilities on Volvo, Scania, Iveco, MAN and Mercedes-Benz models – to name just a few.

The new software extends fitter capabilities, providing fleet engineers, independent repairers, dealers and local authority users with the tools to diagnose a wide range of faults across a broad range of mixed fleets.

Specific recent enhancements include activation and adjustment function implementation on Renault VI models to include diesel injection testing, engine regulation, automatic gearbox, suspension and instrument checks on the Magnum and Premium ranges. Volvo specific additions include clutch initialisation of all I-Schift and Geartronic gearboxes, while new wiring loom data for Scania R and P range models extends the depth of coverage for Scandinavian-built trucks.

Recent upgrades have empowered fitters with the ability to identify many more problems on many more on-board systems. WABCO’s ECAS CAN air suspensions and MTS doors management systems are two cases in point.

The Eclipse Test Pad package for trucks and trailers is a true all makes diagnostic system, providing one of the most comprehensive diagnostic tools for specialist repairers of CV trucks, trailers and buses.

Keep on trucking

• April
• 28

 Intelligent transport technology using telematics is set to transform the logistics world forever.
It’s 3am in the morning as the Irish truck driver passes Rouen and spots a sign for Le Havre. “Not long now,” he thinks, as he envisions a meal and some shut-eye on the voyage home. His reverie is disrupted by a call from an operator at the supply hub back in Dublin.

“Jimmy!” the operator beckons. “Will you cool it on the speed. You’re doing over 120km per hour. You’ve been driving non-stop for the past few hours. Be careful or you’ll kill someone. Slow it down!”

This scenario sounds futuristic, but the technologies are in place to allow businesses keep an eye on assets such as trucks using a combination of mobile technology and internet mapping systems.

The field of expertise, known as telematics, is being used by businesses to boost efficiency, security and also to eliminate road injuries and even deaths.

Vehicle telematics systems can be used for a variety of purposes from managing road usage, pricing vehicle insurance, tracking fleet vehicle locations to cold-store logistics, retrieving stolen vehicles and accident prevention.

Truck-makers capitalise on Russia’s growth

• April
• 24

Leading Swedish truck maker Scania doubled its sales in Russia last year, making the country its third largest market.

Scania makes buses in St. Petersburg, wants to build trucks, and is looking to add value through its service network

“We are now in more then 30 cities of Russia with Scania service centres. We are adding service centers from ten to fifteen every year. Actually, in 2010 we will have more than fifty service centers all over Russia,” the president of Scania Russia Rajmo Lehtio said.

Another major, Volvo Trucks, is setting up a factory in Kaluga region.

“We have an assembly plant in Zelenograd, just outside of Moscow. Last year we produced a little bit more than 500 trucks. In the beginning of the next year we will have a factory with a capacity of 10,000 Volvo trucks and 5,000 Renault trucks. So, it is a very serious step forward into this market,” added deputy managing director of Volvo Trucks Lars Himmer.

The third largest vehicle maker MAN recently won two contracts to sell about 5,000 heavy trucks to Russia.

Russia’s largest truck maker KAMAZ is borrowing $US 200 million for new investment.

Volvo to pay $7M fine for paying kickbacks

• April
• 15

Volvo will pay $7 million for kickback payments to the Iraqi government under a United Nations humanitarian program, the U.S. Justice Department said Thursday.

AB Volvo acknowledged responsibility for actions of its subsidiaries that paid kickbacks to the Iraqi government in exchange for trucks and construction equipment contracts, the department said in a release.

The agreement requires Volvo to cooperate with investigations into the U.N. Oil for Food program, established to allow Iraq to sell oil for humanitarian purposes when economic sanctions were in effect.

The Justice Department also filed charges against subsidiaries Renault Trucks SAS and Volvo Construction Equipment AB in U.S. District Court for the District of Columbia, charging they separately conspired to commit wire fraud and violate the Foreign Corrupt Practices Act.

The documents allege Renault Trucks paid about $5 million in kickbacks to the Iraqi government for about $94 million worth of contracts. To pay the kickbacks, Renault Trucks inflated contract prices before submitting them for U.N. approval.

In a related matter, AB Volvo settled with the Securities and Exchange Commission, agreeing to pay a $4 million fine and $8.6 million in disgorgement of profits in connection with kickback contracts.

President Bush Tours Volvo Group Exhibition of CO2-neutral Trucks in Washington, D.C.

• April
• 14

The President toured the display hall at the Washington International Renewable Energy Conference (www.wirec2008.com) where seven Volvo Group trucks - six Volvo truck models and one Mack Truck - each capable of operating on different renewable fuels, were presented. “Each of the trucks seen by President Bush can be driven without any net contribution of carbon dioxide to the atmosphere,” said Johansson. The display also included a Mack hybrid electric vehicle (HEV), which will be delivered to the U.S. Air Force under a cooperative research and development agreement. Four Mack HEV trucks are currently being tested by the U.S. Air Force.

During his address to conference participants, President Bush noted “Expanding use in ethanol and biodiesel requires getting more cars on the road that use these alternative fuels. We expect the private sector to respond.”

Amazing joint venture with Mack and Volvo on these giant trucks that are using biodiesel to power them,” continued President Bush. “Technology is changing. Five years ago those trucks would not have been available for people at this exhibit to look at. Today they’re on the road. As a matter of fact, the United States Air Force is using these kinds of trucks. Things are changing.”

The Volvo Group is also participating in an environmental agreement developed by the American and Swedish governments. The program aims at reducing the use of fossil fuels through cooperative projects in the areas of energy and automotive development, including advanced hybrid and alternative driveline technology.

Mercedes-Benz to make 12,500 vehicles at Chakan

• April
• 11

Mercedes-Benz India Private Limited, the Indian arm of Daimler AG, is looking at a total capacity of 12,500 units per annum, including passenger and commercial vehicles at its upcoming manufacturing plant in Chakan.

“We are looking at an initial capacity of 10,000 passenger vehicles (two shifts) and 2,500 commercial vehicles, including buses and trucks,” said Piyush Arora, director technical, member of board of management, Mercedes-Benz India Private Limited.

He added that the capacity could be further expanded depending upon the demand.

“Our problem is to get more vehicles and not demand, as that is there,” said Wilfried Aulbur, managing director and chief executive officer, Mercedes-Benz India Private Limited on the sidelines of the rolling of the 20,000th Indian-made Mercedes-Benz from its existing plant in Pune on Wednesday. “The first model to roll out from here way back in 1995 was the E-class and the 20,000th car rolled out today is also an E-class, marking the success story of the product in the market,” said Aulbur. “It is also the 10,000th E-class to be sold in India,” he added.

The company has sold 1,094 cars within the first three months of 2008, as against 690 cars sold during the same period last year. In 2007, Mercedes-Benz had sold a total of 2,491 cars. As far as its Actros trucks are concerned, the company sold 156 trucks last year and this year, till now, 64 trucks have been sold. The assembling of Actros started last November.