Trucks, Parts, Service 0519

Welcome to the new TPS magazine

A TAX IN TRANSITION? A new coalition is fighting to reduce trucking’s federal excise tax requirements

May 2019

TPSmagazine.com

Trump, trade and tribulation

16

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contents

Volume 56 Number 5 May 2019

TPSmagazine.com @TPSMagazine

Cover Story

/truckpartsandservice Trucks, Parts, Service

Editorial

Editor: Lucas Deal Equipment Editor: Jason Cannon Online Associate Editor: Bill Grabarek Associate Editor, Trucking: Tom Quimby editorial@truckpartsandservice.com

Design & Production

Art Director: Richard Street Advertising Production Manager: Leah Boyd production@truckpartsandservice.com

Sales

Director of Media Sales: Seth Becker sales@truckingmedia.com

Corporate

Chairman Emeritus: Mike Reilly President/CEO: Brent Reilly Chief Operating Officer: Shane Elmore Chief Financial Officer: Kim Fieldbinder Senior Vice President, Sales: Scott Miller Senior Vice President, Editorial and Research: Linda Longton Senior Vice President, Acquisitions & Business Development: Robert Lake Senior Vice President, Data: Prescott Shibles Senior Vice President, Digital: Nick Reid Senior Vice President, Strategy and Marketing: Julie Arsenault Vice President, Events: Stacy McCants

3200 Rice Mine Rd NE Tuscaloosa, AL 35406 800-633-5953 randallreilly.com Trucks, Parts, Service (ISSN 0895-3856) is published monthly by Randall-Reilly, LLC, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406. Periodicals postage paid at Tuscaloosa, AL and additional offices. Subscriptions: $50 for one year, outside USA add $10. For change of address and other subscription inquiries, please contact: truckparts&service@ halldata.com. POSTMASTER: Send all UAA to CFS. (See DMM 507.1.5.2); NON-POSTAL AND MILITARY FACILITIES: send address corrections to Trucks, Parts, Service 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406.

All advertisers for Trucks, Parts, Service are accepted and published by Randall-Reilly, LLC. on the representation that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold Randall-Reilly, LLC. harmless from and against any loss, expenses or any other liability resulting from any claims or suits for libel violations of right of privacy or publicity, plagiarisms, copyright or trademark infringement and any other claims or suits that may arise out of publication of such advertisement. RandallReilly, LLC. neither endorses nor makes any representation or guarantee regarding the quality of goods and services advertised herein.

TPSmagazine.com

Are FET changes on the horizon? 8 Features 16 Trump, trade and tribulation 24 Gearing up for hybrid trucks

Departments 1 2 6 28

Editorial Staff Editorials Industry Report News

29 32 39 40

Safety Recalls Products Classified Ads Advertisers’ Index

Online Resources

Visit our website for more business and technical guidance, industry news, event and product information at TPSmagazine.com May 2019 | Trucks, Parts, Service

1

editorial | Lucas Deal

The new TPS : A shared focus to better serve your customers

By Lucas Deal, Editor lucasdeal@randallreilly.com

T

Under the new TPS brand we will continue delivering ruck dealers and independent parts and service busitimely market news you’ve always received from Successful nesses always have been competitors.

As rival channels serving North America’s trucking Dealer and Truck Parts & Service while also providing valuable fleet, the battle wages constantly for customers and market educational content researched and written specifically to share. Truck and trailer dealers’ businesses are differentiated benefit truck dealers and aftermarket businesses. by their new equipment divisions and franchise associations We’ll continue to cover topics distinct to each channel with OEMs, but when it comes to their with the same laser focus you’ve come priorities and goals, both dealers and to expect from both brands, but we’ll independent aftermarket companies are address collective challenges found in The new TPS in harmony in their focus to keep their both market segments with the goal customers on the road. of assisting all operations. will It is because of that singular focus We believe this month’s issue is and the challenges that come with it, an excellent example of the changing the entirety of Randall-Reilly is pleased to introduce market dynamics found within the trucking’s changing Trucks, Parts, Service (or TPS for short). aftermarket and dealer channels. Our In merging the comprehensive dealer cover story focuses on a new coalition and melding market knowledge of Successful Dealer led by the American Truck Dealers with the unrivaled independent after(ATD) to repeal the federal excise and market expertise of Truck Parts & Service, tax on heavy trucks and trailers — an initiative that, if successful, will the new TPS will support the entirety of independent dramatically alter the age of America’s trucking’s changing and melding dealer truck fleet. and independent aftermarket channels.

We also have two great articles You may be thinking this sounds channels. addressing the parts and service crazy. That the dealer and independent marketplace that provide valuable markets are about as similar as oil and information for anyone in the chanwater.

We acknowledge there are indeed some exclusivities to the nel, regardless of affiliation. The first tackles how tariffs imposed on the import of foreign goods and raw materials have channels, but the markets also have a lot more in common impacted parts pricing; the second looks at hybrid trucks than you might admit. and the tooling and tech training required to maintain this Think about the biggest issues facing your business. unique new equipment.

Recruiting quality employees, identifying and evaluating We recognize this is a change, but it’s one we believe is potential customers, addressing e-commerce, driving efnecessary for the betterment of both channels. There’s no ficiency in your service department, improving earns and turns, marketing your business, ownership succession or exit reason a truck dealer can’t learn tech recruiting tips from an independent shop or an aftermarket distributor can’t learn planning. These challenges aren’t unique to your operation warehouse optimization tactics from a franchised truck or your side of the aisle. Neither are many of the solutions. dealer. Good ideas are universal.

And we know. Because we plan to bring those solutions Welcome to TPS. We’re glad you’re here. to you.

support

dealer

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Trucks, Parts, Service | May 2019

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editorial | MacKay & Company

Blurring aftermarket

By John Blodgett MacKay & Company

T

front end by the seller, the result could be a loss of margin. he aftermarket is getting more confusing and more Distribution points also are becoming a little more coninteresting simultaneously. Every couple years we fusing.

Paccar dealers now have standalone TRP-branded complete a survey with fleets on their awareness stores. Daimler has similar plans for its Alliance brand. of component brands, specifically what we call “value line” Some truck dealers own independent parts distributors brands. and body shops with locations sometimes outside of their These brands include private label, white box, all-makes dealership-defined AOR. or other names — basically any option other than an OEThis isn’t new, but it is growing. Some engine distributors genuine replacement part. When we completed the first in the last several years have been lookof these surveys several years ago, we ing more like independent garages and/or listed eight to 10 brands. Originally, we The aftermarket independent parts distributors rather than just had truck manufacturer brands and engine specialists. Many independent parts a few component manufacturer brands. is getting distributors that used to just sell parts have We have since seen a proliferation of expanded to also offer service. these brands, and our last survey had 22 I don’t think fleets concentrate on changes of them and I am sure we missed a few. and in the distribution channel. They want qualWhile those brands are still in the ity parts, availability and good service opmarketplace, several more have been tions. I think it is imperative for distribution added from component manufactursimultaneously. businesses to communicate what they offer, ers, trailer manufacturers, independent especially if it has changed. parts distributors and truck dealerships.

I was in Brazil several years ago to reIn one form or another, all are meant to search that country’s aftermarket. As part of this trip I met provide different options to potential parts buyers. with the head of the nation’s truck dealer association, who As you can imagine, we have a wide range of responses on also ran one of Brazil’s largest truck dealerships. After our what brands fleets recognize and use. Most fleets run more than one truck brand, which potentially has them exposed to meeting, he suggested I speak with another business, which I recognized as one of the largest independent heavy-duty value lines from two OEMs and two truck dealer organizations, not to mention brands they could be exposed to if they parts distributors in Brazil. He then told me his family owned this business as well. work with independent distributors, which most do.

I remember being very surprised that one of the largest There is the potential for confusion for fleets on what OE dealers was connected to one of the largest independent parts brand they should purchase. The seller (be it a person parts distribution businesses. At the time, I thought this or website) may not effectively determine, or in some would not fly in the U.S. Now, several years later, I am not cases know, which brand best meets the fleet’s application, sure we will get to see that same business scenario in the profile or buying preference. All these factors come into play — and then add to the mix whether the fleet purchases U.S., but the lines of distinction among distribution channels are certainly getting blurred. genuine OE parts. If the proper work is not done on the

more confusing more interesting

John Blodgett has worked for MacKay & Company for more than 20 years and is currently vice president of sales and marketing, responsible for client contact for single- and multi-client projects. He can be reached at john.blodgett@mackayco.com.

4

Trucks, Parts, Service | May 2019

The Power10

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Call us at 1.800.225.1845

or visit us at

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Truck sales strong despite slipping orders in first quarter The new truck market received good news last month when the American Truck Dealers reported in its first quarter Truck Beat report that falling first quarter truck orders aren’t impacting medium- and heavy-duty sales.

According to NADA Senior Economist Patrick Manzi, commercial vehicle sales are up 12.7 percent year-over-year through March. Manzi says the heavyduty market has spurred most of that growth, up 24.5 percent in the first quarter.

Medium-duty sales were up 2 percent.

“Although truck orders have slowed in recent months from high levels last year, long order backlogs should lead to robust sales through 2019,” he says.

“As the year progresses, we expect tight supplies of new Class 8 trucks to prop up values and keep demand steady for used trucks.”

Regarding orders, ACT Research and FTR both reported preliminary Class 8 order totals in March were below 20,000

New truck orders

n ACT n FTR

units for the third consecutive month as the market corrects from last year’s order boom. ACT estimated 15,700 units and FTR estimated 15,200 units — the latter stating it was the lowest single order for March since 2010.

Used market prices holding firm

Trailer orders on the decline

The typically volatile used truck market has been surprisingly steady thus far in 2019, according to J.D. Power’s used truck market research.

Though prices fell in February and March, J.D. Power says overall pricing in its benchmark auction model was up 4.3 percent year-over-year in Q1. Retail sleeper prices were up 13.2 percent in January and February.

J.D. Power Senior Analyst Chris Visser states that looking forward, “year-over-year comparisons should reach parity and then turn mildly negative. Freight-focused economic measures are less stable than last year, but we expect pricing to remain healthy through the second quarter.”

Shrinking 2019 build openings weakened trailer orders in March, with ACT Research estimating 15,600 orders for the month and FTR estimating just 13,500. FTR says its preliminary order total is the smallest month since September 2016, and the smallest in March since 2008.

Frank Maly, ACT director of commercial vehicle transportation analysis and research, says OEM decisionmaking may be a reason for the sudden downswing, since orders sat in the 24,000 to 28,000 range in the prior three months.

“We continue to hear that OEMs are reluctant to fully open the 2020 order boards,” he says.

What fleets are saying Optimism in the fleet community slipped during the latter half of 2018 but remains strong, TPS sister publication Commercial Carrier Journal (CCJ ) reported in its quarterly MarketPulse report released in March.

CCJ’s MarketPulse report, which surveys 200 senior executives of for-hire trucking companies, states carrier sentiment for business conditions in December 2018 was 6.22, well off of June 2018’s all-time high of 7.68. Sentiment fell most sharply among respondents with up to 100 power units (from 6.47 to 5.87), though responders with more than 100 power units also slipped from 6.73 to 6.34.

Looking into 2019, 49.2 percent of survey respondents forecasted even better business conditions for January to June, adjusting for seasonality, while 42.3 percent expected similar results and 8.5 percent expected business conditions to worsen.

6

Trucks, Parts, Service | May 2019

Adjusting for seasonality, how do you see business in the next six months?

n Overall n Up to 100 power units n More than 100 power units

A 8

tax in transition?

Trucks, Parts, Service | May 2019

trucks

F

ederal excise tax (FET) has been a burden on the dealer market for decades. The American Truck Dealers (ATD), after years of fighting the tax alone, recently introduced the Modernize the Truck Fleet (MTF) coalition, a trade association alliance spearheaded by the “There are a lot of dealer group to strengthen its fight for the repeal of FET. little in The coalition has revolutionthe law … It puts us in ized the FET debate, creating a pathway toward resolution for a position where we which America’s truck dealers have long searched. But will the have to determine the dealer market truly be able to rid itself of FET? Those involved believe a and are subject repeal is possible but is continto if we gent on two factors: finding an adequate replacement for FET’s get that wrong.” revenue stream and ensuring any FET repeal/replacement — Steve Bassett, president, General Truck Sales, and ATD vice chair measures are included within a larger infrastructure bill.

Pull off those tasks and those within the MTF coalition believe the dealer market’s long FET nightmare finally could be over.

nuances

intent of the law penalties

What is FET, and why is it such a pain point?

A new coalition is fighting to reduce trucking’s federal excise tax requirements

By Lucas Deal, Editor lucasdeal@randallreilly.com

TPSmagazine.com

The trucking industry has been burdened by FET for more than a century. Introduced as a temporary revenue stream to fund the U.S. military during World War I in 1917, ATD says the tax code supporting FET has been altered and expanded many times.

The most significant change to that tax code came in 1982, when the government shifted the tax to the first retail sale of an asset after decades of being assessed at the wholesale level. This change, which moved the responsibility of collecting the tax from OEMs to their franchisees, transformed FET from a simple pass-through expense for dealers to a complicated mathematical formula coupled

May 2019 | Trucks, Parts, Service

9

trucks

“To me, this is an issue of fairness.

We’re asking these fleets to commit to cleaner, more fuelefficient trucks but

charging them more to buy them.”

ATD Chairwoman Jodie Teuton, vice president, Kenworth of Louisiana, introduces the Modernize the Truck Fleet coalition at the 2019 ATD Convention in January in San Francisco.

with rigorous payment requirements and severe penalties for non-compliance. It’s been that way ever since.

“It’s a difficult tax to administer and its one of those things where if you get it wrong it can be a disaster,” says ATD Chairwoman Jodie Teuton, vice president, Kenworth of Louisiana, who introduced the MTF coalition at the 2019 ATD Convention in January.

As it exists today under Internal Revenue Code (IRC) Section 4051, a 12 percent FET is imposed on the first retail sale of a truck chassis, body and trailer “of the kind chiefly used for highway transportation in combination with a trailer or semitrailer.”

Yet not every component installed on a new asset is beholden to the tax. Tires, for example, are exempt because their excise tax is paid during acquisition by the OEM, while other components may be taxable in one specification or duty cycle but not another.

“There are a lot of little nuances in the law,” says Steve Bassett, president, General Truck Sales, and ATD vice chair. “Such as ‘Is it taxable if it’s going to be a farm truck that won’t go on the road much?’”

10

Trucks, Parts, Service | May 2019

He adds, “It puts us in a position where we have to determine the intent of the law and are subject to penalties if we get that wrong.”

Why should FET be repealed?

Dealers say their frustration with calculating and paying the tax is not their primary reason for fighting it.

FET is counterproductive to one of the government and trucking industry’s primary shared goals: to reduce emissions and improve fuel economy for America’s medium- and heavy-duty truck population.

“To me, this is an issue of fairness,” says Teuton. “We’re asking these fleets to commit to cleaner, more

— Jodie Teuton, vice president, Kenworth of Louisiana and ATD chairwoman

fuel-efficient trucks but charging them more to buy them.”

Basset adds, “I think we all want cleaner, safer and more efficient trucks on the road and FET hinders our ability to do that. It doesn’t make a lot of sense.”

That sentiment is shared by the other associations in the MTF coalition: NTEA — The Association for the Work Truck Industry, the Truck Renting and Leasing Association (TRALA), the Truck and Engine Manufacturers Association (EMA), the National Trailer Dealers Association (NTDA) and the National Tank Truck Carriers Association (NTTC).

As EMA President Jed Mandel said when his group joined the coalition,

How FET is paid IRS documentation states that, generally, “semimonthly deposits of excise taxes are required. A semimonthly period is the first 15 days of a month (the first semimonthly period) or the 16th through the last day of a month (the second semimonthly period).”

The agency adds, “the deposit of tax for a semimonthly period is due by the 14th day following that period. Generally, this is the 29th day of a month for the first semimonthly period and the 14th day of the following month for the second semimonthly period.”

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trucks

replacement has always been our stumbling block in the past. That’s what excites us about the coalition. We have some really big hitters on there.

Hopefully we can work together to find a solution.”

He says one potential resolution that’s found support from different members of the coalition is a diesel fuel consumption tax, which would still generate revenue from vehicle owners but would spread their financial President Donald Trump participated in a roundtable discussion on tax reform and was presented a letter asking for his support of the Modernize the Truck Fleet FET repeal during burden over the life of their asset rather a visit to Nuss Truck & Equipment in April. Trump is seen here with Nuss Truck & Equipment than as an upfront expense. A conPresident Bob Nuss. sumption tax also would help promote the acceptance of the new safety and forward toward turning an FET repeal “FET increases the cost of purchasing fuel-efficiency technologies the EPA new, modern heavy-duty trucks, and as into reality. ATD says the coalition ofand its partners are pushing within the fers a unified front to send to Washsuch we endorse repealing the FET to industry, Parker says. ington to lobby for a change to the lower barriers to deploying the clean“If we are truly sincere about adantiquated tax. est and safest trucks available. We are dressing global warming and climate Yet Teuton and Steve Parker, presienthused to help lead this important dent, Baltimore Potomac Truck Centers change, why wouldn’t we want to get effort to modernize the truck fleet.” cleaner and safer trucks on the road?” and immediate ATD past chairman, TRALA President Jake Jacoby says adds Bassett. add the biggest issue with repealing his organization’s members know the Parker and his pain of FET implementation first hand. FET isn’t convincfellow dealers also ing legislators that TRALA members purchased 27 per“I think there is a highlight the steadicent of new Class 8 trucks last year and the outdated tax is ness of a consumpflawed, it’s devisnearly 25 percent of all medium- and tion tax compared ing a revenue-genheavy-duty units. in [Washington, D.C.] with the volatile erating alternative “If we figure an average price of of ‘We have to do nature of new truck to support the $125,000 for a new Class 8 unit, that’s Class 8 truck Highway Trust $15,000 right up front. That’s a major something.’ Historically, sales. orders have fallen Fund. impediment for [our members],” he nearly 50 percent “I think there says. And while Jacoby says some priyear-over-year are open minds on vate carriers may be willing to extend and agriculture are the through March, ACT trade cycles to reduce new vehicle costs, both sides of the Research and FTR aisle in Washingthat’s not really an option for lease and two issues that are Intelligence report, ton,” says Teuton. rental providers. as .” plummeting truck“Everyone who wants a lease wants a “Some legislaing’s FET investment tors have some brand new vehicle,” he says.

— Jake Jacoby, TRALA president in the trust fund. familiarity with There are other fuel-based solutions FET but they rarely know exactly how What are the chances it works. Once you explain it, they usu- on the table, too. MTF members say of a repeal? they want to be open to any potential ally understand why we’re doing what With the creation of the MTF coalireplacement methods so as to bring the we’re doing.” tion, the ATD believes the trucking best options to legislators.

Parker says, “The pay-for industry has taken an important step

common feeling

transportation

not contentious

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Trucks, Parts, Service | May 2019

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“We want to be flexible and accommodating. We don’t want to say, ‘This is what it has to be’ and be set in stone,” says Teuton.

But bringing a solution to the capital hardly assures change. ATD garnered Republican and Democratic support for FET repeal bills in both chambers last session only to see the bills die with the new Congress in January.

The organization may push to reintroduce those bills but would prefer to include a repeal-and-replace strategy as part of a larger infrastructure bill that’s been teased around Washington for years.

Jacoby believes bipartisan support for such a grand bill still exists if both parties can set down their spears long enough to write the legislation.

“I think there is a common feeling

“The pay-for replacement has always been our stumbling block in the past. That’s what excites us about the coalition. We have some really big hitters on there. Hopefully we can work together to find a solution.”

— Steve Parker, president, Baltimore Potomac Truck Centers

in town of ‘We have to do something.’

Historically, transportation and agriculture are the two issues that are not as contentious,” he says.

“Infrastructure is not a partisan issue,” adds Teuton, “and what you don’t want to do when you’re talking about building roads and bridges is make it a partisan issue.”

Yet the unpredictably of politics means there’s no timeline MTF can follow in developing a repeal-andreplace proposal. Parker believes its

best the coalition work quickly to create a solution it can propose any time infrastructure discussions begin on Capitol Hill.

And to do that, ATD urges its dealers to get involved — both with the coalition and their local legislators. Teuton assures her fellow dealers that the reward will be worth the investment.

“I’m not going to say if [we repeal FET], I’m going to say when,” she says.

“When we win this battle it’s going to be good for every one of us.”

FET as defined by the IRS The parameters regarding a federal excise tax on heavy trucks and trailers is contained in IRS Internal Revenue Code (IRC) Section 4051.

According to the IRS, Section 4051 imposes a 12 percent federal excise tax on the first retail sale of the following articles: Automobile truck bodies and chassis having a gross vehicle weight of over 33,000 lb.

Truck trailer and semi-trailer bodies and chassis suitable for use with a trailer or semi-trailer having a gross vehicle weight of over 26,000 lb.

Tractors of the kind chiefly used for highway transportation in combination with a trailer or semi-trailer having a gross vehicle weight over 19,500 lb., and a gross combined weight over 33,000 lb.

Additionally, the IRS states, “’First retail sale’ means the first sale, for a purpose other than resale or leasing

14

Trucks, Parts, Service | May 2019

in a long-term lease, after manufacture, production or importation. The tax is 12 percent of the price for which the article is sold. The person making the first retail sale is liable for the tax.

“If, however, any person uses an article taxable under IRC section 4051 before a first retail sale, tax is imposed on the article as if the article had been sold at retail by that person.”

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Trump, trade and tribulation

16

Trucks, Parts, Service | May 2019

parts

Tariffs are creating industry uncertainty and cost increases for suppliers, distributors and end users.

By Bill Grabarek, Online Associate Editor billgrabarek@randallreilly.com

P

art of President Donald Trump’s platform when running for office four years ago was to address the foreign trade imbalance. It’s doubtful a business would be against a more level playing field with its global trading partners. However, when Trump took action last year, he did so with both guns blazing.

While his deliberate measures were celebrated by certain business sectors and Clevel executives, other industries didn’t view them to be quite as helpful — most notably, the aftermarket industry.

“The White House is saying the president was elected, in large part, to restructure our trade policy in the U.S. and I don’t think you can find a single one of our members who doesn’t agree with him that we want free, open trade that makes the U.S. more competitive,” says Ann Wilson, senior vice president of government relations, Motor & Equipment Manufacturers Association (MEMA). “The problem people need to understand is these tariffs are not being paid by other countries like China or Europe. These are being paid by manufacturers in the United States.”

TPSmagazine.com

May 2019 | Trucks, Parts, Service

17

parts

What Trump has done

Effective March 23, 2018, Trump imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, with exemptions for certain countries and a process for companies seeking exclusions. His decision was based on the findings of two reports by the Department of Commerce (DOC), which concluded the global excess capacity for producing steel and aluminum is “weakening our internal economy” and jeopardizing national security.

Following an investigation into intellectual property violations by China, 25 percent tariffs went into effect on $34 billion worth of various Chinese imports on July 6, 2018, 25 percent tariffs went into effect on another wide array of imports worth $16 billion the following month and 10 percent tariffs went into effect on roughly $200 billion worth of assorted imports on Sept.

24, 2018.

On Feb. 17, 2019, the DOC sent to the White House a report regarding possible tariffs on imported vehicles or vehicle parts. The president has 90 days from receipt of that report to determine if any action is necessary, and then he has an additional 180 days to continue conversations with any countries negotiating trade terms with the U.S. Also in play is the United StatesMexico-Canada Agreement (USMCA) signed in October 2018. The pact is an update of the North American Free Trade Agreement. While the signing could save the $1.2 trillion open-trade zone it created between the countries in 1994, it gives Trump the ability, on the grounds of national security, to place quotas on vehicles and parts Canada and Mexico can export into the U.S. The USMCA must still be ratified

18

Trucks, Parts, Service | May 2019

by the three countries.

Again, the concept of balanced trade and protecting the U.S. from intellectual theft is supported by many; it is the extents to which Trump has gone that has affected the trucking industry and created concern about future moves from the president.

Already making an impact

Keeping tabs on Washington as well as being an outspoken defender of the industry throughout all of this is MEMA, parent organization of the Heavy Duty Manufacturers Association (HDMA).

“What you’re seeing here is a significant increase of costs in steel, aluminum and inputs from China, including [goods] like motors or other parts that come into the U.S. and are being used for further manufacturing,” says Wilson.

“It’s important to keep in mind the cumulative impact of these tariffs have been significant on motor vehicle suppliers, including the heavy-duty aftermarket,” says Wilson. “You’d be hard-pressed to find a member of the heavy-duty aftermarket who isn’t impacted either by steel and aluminum

parts

Following an investigation into intellectual property violations by China, tariffs of either 10 or 25 percent went into effect last year for a wide range of Chinese imports worth billions of dollars.

purchases or importation of inputs from China.”

Wilson adds the good year the trucking industry had in 2018 might be masking the impact of what’s happening in the industry now. Furthermore, she says, CEOs are pleased with the tax cuts the administration was able to get through Congress, but the tariffs on aluminum, steel and goods coming from China have “virtually evaporated” the benefits of the tax cuts.

Earlier this year MacKay & Company conducted a survey of component manufacturers and distributors concerning

TPSmagazine.com

price increases. Distributors and suppliers reported trying to pass on price increases to customers and OEMs, respectively, with mixed if not disappointing results, says John Blodgett, vice president of sales and marketing.

He adds the price increases weren’t all tariff related; demand for components played a role, too.

In the survey, one distributor reported being unable to raise pricing because of a competitive marketplace and, thus, had to lower its profit margin. Another distributor began looking for sources of components unaffected by the tariffs

or those that just had better pricing, Blodgett says.

For Midwest Wheel Companies, most price increases have had to be passed along to the customer to maintain profit margin, says Michael Callison, chief operating officer, adding that the company has had to explain the price increases to its customers.

“We get those comments all the time.

‘Hey, why is it 10 percent higher?’ The question of price has become more of an issue than it has in the past,” he says. “When prices typically go up 1 or 2 percent, I think people expect that.

And a lot of people don’t understand that even if they’re buying a product locally, it isn’t a local product. [Price increases caused by tariffs] are a shock to the system. Even if it’s a $50 part, it starts to add up.”

Like the comments MacKay & Company received in its survey, Midwest Wheel has had to keep one eye on other aftermarket providers and not raise prices on all parts affected by the tariffs.

“In some cases, competition is slow to raise their prices. It’s a case-by-case basis. If we do hold off, it’s usually a hyper-competitive line,” Callison says.

“You don’t want to be the guy that’s 10 percent higher right out of the gate when your competition isn’t, so there is short-term margin erosion.”

Many suppliers are tight-lipped on the tariff topic; however, from Callison’s perspective, “Every vendor has been impacted in some way and it has been passed on to the distributor. I don’t think anybody is immune.”

What’s more, he says vendors have been handling their price increases in different ways, creating confusion for the distributor community. Some suppliers are sending out new price sheets every month or two, some are adding a

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parts

surcharge to the end of invoices, while others have held off on raising prices.

“There’s a lot of inconsistency from vendor to vendor and keeping it managed is difficult for us. I can’t imagine if you have a small staff and are trying to keep up with it,” Callison says.

Lending an OEM perspective on the trade issue is Daimler.

“As a globally active company, Daimler welcomes trade agreements that reduce trade barriers and promote free and fair trade. Free trade and investments are key factors for innovation, employment, growth and prosperity,” says a Daimler spokesperson.

“The U.S. tariffs on steel and aluminum increase the cost of U.S. vehicle production. We have taken the appropriate measures,” the spokesman says. The company declined providing details for competitive reasons.

In March, President Donald Trump considered closing the U.S.-Mexico border and imposing new tariffs on auto and parts imports from Mexico. He backed off soon after as pressure intensified from companies concerned how these measures would affect supply chains.

Take Trump’s statement in late March that he was considering closing Uncertain business climate the U.S.-Mexico border and imposing new tariffs on auto What makes the and parts imports trade issue problem“It’s important to from Mexico if atic and worrisome the country “for for the aftermarket keep in mind the any reason … stops and dealer commuapprehending and nities is the remainbringing the illegals ing uncertainty of of these back to where they it all. Most would came from.” agree the president tariffs have been Trump’s comcan be unpredictments elicited an able; negotiations immediate response with certain counon motor vehicle from a consortium tries, such as China, suppliers, including of associations urgare ongoing; ading the president not ditional or increased the to proceed with the tariffs are still on tariffs. the table; and there’s .”

Their letter stated, an ongoing threat — Ann Wilson, MEMA senior vice president, “Implementing these of the U.S. closing government relations tariffs threatens the its southern border, jobs of millions of American workers which could drastically affect trade. and would likely result in the loss of To say the trade situation is fluid right now might be an understatement. billions of dollars to the U.S. economy.

cumulative impact

significant

heavy-duty aftermarket

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Trucks, Parts, Service | May 2019

The [tariffs pose] a serious economic threat to our nation’s whole economy and the well-being of our manufacturers, dealers, employees and customers.

Any remedy proposing quotas or tariffs would undermine the benefits of tax and regulatory reform and must not be implemented.”

The associations that sent the letter include: The Association of Equipment Manufacturers (AEM), Truck & Engine Manufacturers Association (EMA), Associated Equipment Distributors (AED), the HDMA, the American Bus Association (ABA), the Remanufacturing Industries Council, the American Rental Association (ARA) and the National Marine Manufacturers Association (NMMA).

Four days after Trump’s warning, he backed off as pressure increased from companies concerned what such moves would do to supply chains.

Manufacturers prosper when they have certainty. For example, regulations detail how manufacturers should

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produce goods so they are in compliance with the law. They also prosper when they have economic and trade certainty, Wilson says.

“What this particular trade battle has done is decreased or eliminated any kind of economic or trade certainty that our manufacturers have in the U.S.,” Wilson says. “If you’re a smaller manufacturer, for example, it increases your costs and makes you wonder if you’re going to be able to hire new people. If you’re a global manufacturer, it decreases your willingness to make investments in the U.S. because you don’t know if those investments are going to stand the test of time.”

According to a Daimler spokesperson, “Companies depend on reliable framework conditions, transparency and predictability in order to make long-term investments. Trade disputes always entail uncertainties, both for companies and for customers.”

Callison agrees a trade situation in flux is not good for anyone. “Any unknown isn’t good for business. How do you make a long-term plan?” he says.

“What this particular trade battle has done is decreased or eliminated any kind of

economic or trade certainty that our manufacturers have in the U.S.” — Ann Wilson, MEMA senior vice president, government relations

as intellectual property violations and mandated technical transfers, and have applauded the continued negotiations with China. We just do not believe widespread tariffs are the tool to use to address those issues,” she says.

Regarding the position that the importation of motor vehicles or parts pose a national security risk to this country, Wilson says, “We are dependent on the free flow of goods. It has made our country and our economy stronger. We believe the imposition of these tariffs will actually hurt the economy and, long term, could pose their own type of national security risk by the damage they could do.”

Wilson adds the association and the industry have the support of several legislators from both sides of the aisle, including Sen. Lamar Alexander (RTenn.), Sen. Doug Jones (D-Ala.), Rep. Ron Kind (D-Wis.), Sen. Rob Portman What can be done?

(R-Ohio), Sen. Pat MEMA stresses it “Every vendor has been Toomey (R-Pa.) and has been very clear Jackie Walorski to the administrain some Rep. (R-Ind.). “They’ve all tion that the imposibeen very active in tion of widespread way and it has been this,” she says. tariffs is hurtful to to the Wilson also the economy and stresses the imthis industry. Furdistributor. I don’t think portance of industhermore, the impact anybody is immune.” try stakeholders also is felt in the contacting their communities where — Michael Callison, chief operating officer, government repremanufacturing Midwest Wheel Companies sentatives, whether companies and their they be state or federal officials because employees are located, Wilson says. these officials might not be aware they “When it comes to issues with have companies in their district or state China, we have applauded the adminthat are being affected — and might istration’s efforts to address issues such

impacted

passed on

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Trucks, Parts, Service | May 2019

be further impacted if additional trade measures are implemented.

Many elected officials don’t think they represent the motor vehicle industry because they don’t have an assembly plant in the areas they represent. But chances are, Wilson says, they have a supplier in their district and they don’t realize it. They often need to be made to understand the impact it could have on the supplier community and its employees.

“Members of the heavy-duty aftermarket, who are paying more for steel and aluminum as well as their imports from China, need to reach out to their elected officials now. And we can help them do that if they don’t know how to do it themselves,” Wilson says.

The trade landscape has changed, according to Wilson, who says what the president has done, in a baker’s world, is akin to dumping a 5-lb. bag of flour on the kitchen floor.

“He has really reset many of the [trade] objectives, many of the preconceived notions of how we’re going to proceed and who we’re going to negotiate with,” she says.

“Even if we want to say there are things that will be addressed during this administration or under a different administration, so much has changed and I don’t think anyone should be under the misconception that we’re going to return things to the way they were prior to when Trump was elected. It’s just not going to happen,” Wilson says. “It’s the 5-lb. bag of flour. You’re not going to get all the flour back in the bag.”

Gearing up for

hybrids Preparing the service channel for new vehicle technology

By Tom Quimby, Associate Editor, Trucking tomquimby@randallreilly.com

W

hen it comes to preparing shops for hybrid powertrains, it’s best to get ahead of the curve, according to Purkeys Founder and Chief Creative Engineer Bruce Purkey.

“Don’t wait until these vehicles are in your yard. Start making plans now. You can’t wait until they get there,” Purkey said recently during a 48-volt hybrid panel discussion at ATA’s Technology & Maintenance Council (TMC) Annual Meeting in Atlanta.

While hybrids vary, the general consensus at TMC is that a 48-volt system makes the most sense for larger class trucks. Benefits? Upfront costs are lower for a mild hybrid, which invites a faster ROI; fewer battery cells means less weight; and 48 volts is below the 60-volt threshold for high-voltage, which means safer working conditions.

But keep in mind that low voltage systems can be dangerous, too.

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“It is not the voltage that kills. It is the current. A small current of 500 mA can stop a heart,” says Prof. John Frala, who instructs classes on alternative fuels including electric and fuel cell vehicles at Rio Hondo College in Whittier, Calif.

Safe working conditions, of course, come from knowing vehicle architecture and, in the case of hybrids, the learning curve is higher where there are more working parts and components than an electric vehicle (EV).

“Hybrid systems have two power sources to deal with,” Frala says. “Most have some form of Atkins cycle gasoline engines or in the truck market a small diesel, such as a 5.9-liter Cummins, incorporated with a small or dual electric motor.

“Most hybrids use a dual planetary carrier in the transmission,” Frala continues. “A full electric has one gear direct drive and varies output by

changing the fields within the electric motor. Depending if the full electric is using a synchronous or asynchronous engine the power output will vary to the drive axle.”

In the case of the mild 48-volt hybrid discussed last month at TMC, the system works alongside existing 12-volt architecture, sparing the added expense of upgrading all electronics to 48 volts.

But there are plenty of challenges too, according to Purkey, who notes that steps need to be taken with wiring and component identification to clearly differentiate one voltage system from another. Color coding and labeling can help, Purkey says.

But knowing the differences in voltages is only one piece of the puzzle.

How a 48-volt system is tested may vary.

“It really depends on how the OEM will construct the battery pack. If four group 31 in series, the actual testing

service

“Don’t wait until these vehicles are in your yard. Start making plans now. You can’t wait until they get there.”

— Bruce Purkey, Purkeys founder and chief creative engineer

Hyliion showcased its new hybrid electric Class 8 powertrain at the 2019 ACT Expo in April.

will be done on the individual battery with the same test equipment once the batteries have been disconnected,” Purkey says. “In the past, batteries in series must always be replaced as a system unlike batteries in a parallel system.

“If the OEM chooses to use a single 48-volt battery pack made up with cells, this pack will take special testing equipment not available at the present time. As with all new technologies, the special equipment will take training,” Purkey adds.

Besides lowering fuel consumption and emissions, the higher voltages in a hybrid require smaller gauge wires.

Also, alternators, starters or any electric motor operating at a higher voltage will be smaller and weigh less because less wiring is required.

“Conduction voltage drop test on these higher voltage systems would require revised or newly designed equipment, but the test procedure would be

TPSmagazine.com

the same,” Purkey says. “The starter and alternator could be a combined motor/generator or could be a system built into the transmission. These types of systems would obviously require training on how to troubleshoot and repair or replace.”

A higher voltage level also will invite additional corrosion concerns, which he says will make ground and wire connections all the more important.

“Fleets will have to pay particular attention to making proper repairs that are totally sealed to ensure long-term integrity of the repair,” Purkey says, adding a TMC recommended practice regarding wire repair up to 48 volts is in production.

Putting safety first

Dana and Hyliion made headlines in March by revealing the industry’s only Class 8 hybrid truck. Fleet interest continues to build for the 6X4HE, which

has received positive reviews for its increased fuel economy, lower emissions and reasonable upfront cost that delivers ROI in roughly two years.

While the 6X4HE may eventually be offered as a factory-installed option, it’s currently offered as a retrofit (it was revealed in a Freightliner Cascadia) and features high- and low-voltage circuits.

Torque boost comes courtesy of Dana’s high-voltage 300-amp electric e-Axle in the rear.

Dana is providing motors, inverters, controls, gearboxes and thermal management technologies for the 6X4HE, and recently published videos offering safety tips for working on high-voltage commercial vehicles.

While the videos focus on allelectric powertrains — voltage shows no bias for the application — safety must come first whether working on a hybrid or all-electric system.

The short but informative videos, hosted by auto celebrity Jessi Combs, provide some much-needed insight into vehicle electrification along with allimportant safety tips. The titles read

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25

service

like a popular FAQ list: Electric Vehicle Architecture Overview, Electric Vehicle Maintenance Schedule, Submerged Electric Vehicle Protocol and Electric Vehicle Maintenance Safety Tips.

It’s that last video that really shows the stark difference between vehicle electrification and the greasy world of internal combustion engines with, of course, the hybrid service tech taking on both.

“Before we jump in, we must put you on a high-voltage alert. The blue, orange and yellow EV wires are the highest of voltage so you must be careful,” says Combs while wearing an arc-rated blue jump suit, arc flash hood, face shield, two sets of gloves and electrically-rated shoes.

Combs advises viewers that Dana’s safety tips are intended to serve as an overview and should not override a shop’s policies or procedures or the OEM’s guidelines.

The Hybrid Shop, a franchise based in Los Angeles that is extending its hybrid and EV maintenance and repair services to commercial trucks and vans, supports Dana’s safety recommendations.

“Dana is correct. Theoretically 48 volts is below 60 where there is no orange color required to mark components. In general, anything over 50 volts can be lethal. The Hybrid Shop recommends wearing safety gear on any hybrid type. There is never enough safety,” says Martin Kruszelnicki, CEO, The Hybrid Shop.

In the video Combs echoes Kruszelnicki’s sentiment.

“This might seem a little excessive, but hear me out,” she says. “An arc blast is four times the temperature of the sun and the gear inside your arc flash kit can help protect you from that.”

Combs doubled up on gloves for

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Trucks, Parts, Service | May 2019

Eaton’s 48-volt hybrid system, which currently is under development, was on display in March at ATA’s Technology & Maintenance Council Annual Meeting in Atlanta.

extra protection: An outer pair of leather gloves covered insulated electrical gloves which are categorized based on voltage levels and will be needed until the vehicle’s system has been safely deenergized.

“Class 00 gloves are for mid-level voltages up to 500 volts DC. Class O gloves are up to 1,000 volts DC,” Frala says. “So, to disconnect a Prius 125vDC msd you need gloves. From that point on no gloves are needed unless a welded contactor is suspected.”

Ram’s 1500 eTorque features a 48volt battery that provides boost to the powertrain with electric assist. Brian Spohn, manager of Ram’s vehicle electrification, explains that since its mild hybrid is not all-electric but, instead, has a common ground, personal protective equipment is not required like it is on a high voltage EV or PHEV. But before the hood goes up, techs must undergo training.

“On top of the current training for the Ram 1500, FCA Performance Institute initiated a special course on the eTorque mild hybrid and how to service/diagnose the system,” says Brian Szalk, Ram head of technical training.

“We established this course as an online resource in different languages for quick proliferation and constant access.

Technicians must complete the course before servicing the e-torque system.”

One of the lessons that techs receive focuses on cable colors. An electrified vehicle at or below 60 volts uses blue cable on the motor generator unit (MGU). Anything above that amount would use orange cable.

“The Prime Power Unit and MGU carry protective measures for voltage control,” Spohn says. “In all electrification powertrains, installation and removal must follow the ordered procedure.”

Tooling up for hybrids

Ever see a portable 48-volt battery charger?

Probably not.

As Purkey mentions, the OEMs’ decisions on delivering a 48-volt battery system (whether by stringing 12-volt batteries together or by offering a single 48-volt battery) will determine equipment selections. While multimeters aren’t a concern, analyzers will require new loads and boards, he says.

service

However, at this point, save for Hyliion’s 6X4HE, it’s just too early to run out and buy additional equipment.

Eaton’s 48-volt hybrid system, which was on display at TMC, is still under development. How big of a leap will it be for shops to transition to Eaton’s mild hybrid?

“Not big, because you’re still dealing with standard engine and transmission,” says Carl Smith, Eaton manager of applications engineering of commercial vehicles and Mil Aero. “The air conditioning stays the same. The PTO and motor drive are new components.

They’re both serviceable parts. Obviously, there will be some training on that part of it, but right now, nobody in any high volume is running any 48-volt systems.”

Hyliion Founder and CEO Thomas Healy says fleets won’t be up against that much of a transition when it comes to taking on hybrid trucks.

“One of the great things about hybrid systems compared to a normal diesel

“One of the great things about hybrid systems compared to a normal diesel truck is that the tooling and maintenance requirements don’t vary that dramatically.”

— Thomas Healy, Hyliion founder and CEO

Not your ordinary axle. Hyliion and Dana paired up to electrify this Class 8 truck, which is the only hybrid of its kind on the market.

team could add to their normal care routines,” Healy says. “Additionally, ensuring that shops are outfitted with appropriate emergency equipment, such as a Class ABC fire extinguisher in the unlikely event of a fire, will be important. As an additional precaution, Hyliion uses a battery chemistry for the Hyliion 6X4HE that is designed to be non-combustible and the batteries are designed to disintegrate if the battery enclosure is penetrated.”

ZF Friedrichshafen provides electrification options for cars, trucks and buses that range from a mild hybrid to all-electric. Like other leading manufacturers, ZF believes that all-electric and hybrid drivelines are key to the industry’s future.

This year, European truck maker DAF, a subsidiary of Paccar, will be using ZF’s TraXon transmission in a high-voltage hybrid system. ZF will provide training and tooling.

“As part of our service-ready strategy, we will be offering specific high voltage training to make working on HV systems safe for our end users,” says Dirk Fuchs, ZF technical training manager. “This training will aim at safely discharging the 400-volt system and confirming zero state potential before any repairs are made.

The training shall also instruct how to correctly use the HV tooling and emphasize the need to maintain the test equipment, its calibration and understanding the dangers of badly maintained tooling.”

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May 2019 | Trucks, Parts, Service

truck is that the tooling and maintenance requirements don’t vary that dramatically,” he says. “This is one of the key benefits of shifting to hybrid electrification. While we can’t speak to other hybrid systems, the Hyliion 6X4HE was designed to use the same standard set of tools available in any normal shop.”

The biggest challenge in working with electrified vehicles, Healy says, will be in prepping technicians on how to work safely around higher voltages.

“Training on appropriate personal protection equipment and high voltage disconnection is critical. Site inspections and evaluating unusual wear and tear is something that a maintenance

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RT&T Repair earns HDA Truck Pride Truck Service Expert of the Year honor RT&T Repair of East Dubuque, Ill., was named the 2018 Truck Service Expert of the Year at the 2019 HDA Truck Pride Annual Meeting last month in Orlando, Fla. A customer of Midwest Wheel Companies, RT&T Repair is led by the husband and wife team of Andy and Kimberly Miller. The service shop

has 15 employees, 10 of which are technicians.

In accepting the award, Andy Miller complimented his employees and his partnerships with Midwest Wheel and HDA Truck Pride.

Since joining the TSE program, RT&T Repair purchases with Midwest Wheel are up 191 percent as the company “gives

Andy Miller accepts the 2018 Truck Service Expert of the Year Award.

us the right parts at the right time to fix the trucks the first time,� Miller says.

brick & mortar

Hendrickson is expanding its Trailer Commercial Vehicle Systems operations in northeastern Ohio, recently purchasing 35 acres for a $50 million, state-of-the-art facility.

Great Dane announced the establishment of three new flatbed trailer distribution centers. The locations are Trudell Trailers in Milwaukee; Northeast Great Dane in Florida, N.Y.; and Crossroads Trailer in Denver.

MAHLE Service Solutions is partnering with MAHLE Engine Components to relocate production from York, Penn., to a shared facility in St. Johns, Mich.

Mckinney Trailer Rentals recently celebrated the grand opening of its 15-acre branch location in Denver.

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Trucks, Parts, Service | May 2019

Wisconsin Kenworth, a CSM Company, held an event celebrating the construction of the newest Kenworth truck dealership in La Crosse, Wis., which will nearly double the size of its current location.

Bendix Commercial Vehicle Systems is expanding its Huntington, Ind., footprint with the addition of a sixth

Utility Trailer Sales Southeast Texas is opening a new, dual-use facility located on Route 57 in Eagle Pass, Texas.

location, a 409,000 sq.-ft. facility the company says will enable alignment of its manufacturing operations.

news

mergers & acquisitions ZF acquiring WABCO for $7 billion WABCO Holdings has entered into a merger agreement with ZF Friedrichshafen AG (ZF) in an all-cash deal that calls for ZF to acquire all outstanding WABCO shares for an equity value of more than $7 billion. The companies say the transaction is expected to close early next year.

“We have a history of successful collaboration with ZF, including prototyping industry-first technologies and the strategic fit between our two companies is compelling. [The merger] is a unique opportunity to join forces with the right partner,” says WABCO Chairman and CEO Jacques Esculier.

Truck-Lite acquires Lumitec Truck-Lite has announced the acquisition of Lumitec, a provider of commercial vehicle and marine lighting.

In addition to its marine lighting, Lumitec offers a line of LED lighting for commercial vehicles. John Kujawa, Lumitec founder and president, will continue to lead the business.

“Combining Lumitec and TruckLite allows us to take advantage of each other’s distribution networks and share technology, helping Truck-Lite to expand into different markets while staying true to our core business,” says Brian Kupchella, Truck-Lite CEO.

FleetPride makes acquisition in Arkansas FleetPride has acquired the assets of Patriot Truck and Trailer in Texarkana, Ark. Patriot Truck and Trailer serves the Arkansas, Texas and Louisiana area with fleet maintenance, repair and parts for all makes and models of heavy-duty trucks and trailers.

Through the acquisition, FleetPride says customers in Texarkana will now gain additional access to FleetPride’s breadth of products, national footprint and supply chain, including daily replenishment from FleetPride’s Dallas distribution center.

Big Tex Trailer World acquires upfitting company

Transtex acquires certain assets from SmartTruck

Big Tex Trailer World has acquired Truckfitters, a provider of truck upfitting products and service in Texas.

The companies will continue to operate in the markets where Truckfitters already has a presence in 2019, with additional plans to help expand the Truckfitters brand across additional Big Tex Trailer World locations.

Transtex has announced the acquisition of the TopKit and LeadEdge top fairing assets from SmartTruck.

“With these new aerodynamic assets in our bank of IP, we’ll create new synergies with our continuous investment in R&D. By leveraging our engineering expertise, we’ll develop new products and refine our solutions,” says Mathieu Boivin, Transtex president and CEO.

TPSmagazine.com

safety recalls

The following are safety recalls issued by the National Highway Traffic Safety Administration: Daimler Trucks North America is recalling certain 2013-2016 Freightliner Cascadia vehicles equipped with Hendrickson 5-in. drop axles. In certain front axle, brake lining and brake spider combinations, braking may cause high vibrations, resulting in early failure of the tie-rod tube. A tie-rod failure would cause a disconnect between the front wheels, resulting in a loss of steering ability, thereby increasing the risk of a crash.

Mack Trucks is recalling certain 2020 Anthem and Pinnacle trucks. The conspicuity reflectors at the back of the cab may be blocked by the exhaust system. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 108, “Lamps, Reflective Devices, and Assoc.

Equipment.” If the reflectors are blocked, the vehicle’s visibility to other drivers may be reduced, increasing the risk of crash.

Navistar is recalling certain 2016-2020 International LT and 2017-2018 Prostar 73-in. sleeper cab models equipped with feature code 07BKP or 07BKR (exhaust system with horizontal after treatment device and horizontal tailpipe mounted on right side). In the affected vehicles, the rear exhaust hanger bracket may crack, which can cause the forward hanger bracket to also crack. If both brackets crack, the exhaust tail pipe may detach from the vehicle. If the exhaust tail pipe detaches from the vehicle while being driven, it can become a road hazard, increasing the risk of crash.

Paccar is recalling certain 2020 Kenworth T680, T800, T880, W900 and W990 trucks. The rear axles may not contain oil.

Without lubricating oil, the bearings, hub and axle shafts may wear, resulting in the separation of a wheel end from the axle, increasing the risk of a crash.

Volvo Trucks North America is recalling certain 2018-2020 VNL and VNX vehicles configured as 740 and 760 sleeper models. The sleeper bunk window may detach and fall from the vehicle. If a window detaches from the vehicle, it may strike another vehicle or pedestrian, increasing the risk of a crash or injury.

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news

Air disc, axle system supplier enters marketplace HDNABI North America Brake Industry, a privately held manufacturer of air disc brakes and axle system packages, has entered the North American heavy-duty truck market.

“We’ve been building tested, trusted and proven heavy-duty braking systems for a leading Koreanbased automotive company and have recently worked with Hyundai Translead to test and certify HDNABI component system performance,” says HDNABI CEO Yon Yu. “Expanding to serve the entire North American heavy-duty vehicle market is a natural next step.”

The company will be assembling its North American product line near Atlanta.

Meritor makes additional investment in electric CV tech Meritor has announced an additional investment in TransPower, a provider of electrification technologies for large commercial vehicles.

Meritor’s investment will fund continued improvements in the development of controls for its eAxle and commercialization of electric vehicle system solutions from both companies. Through various programs with major OEMs, almost 100 vehicles are planned to be equipped with Meritor and TransPower electrification systems between 2019 and 2020, the company says.

Meritor says its eCarrier platform integrates an electric motor into the axle, freeing up space for batteries and other components.

people in the news Lumileds has appointed Tracy Beecroft senior retail sales manager for North America.

HDNABI North America Brake Industry has hired Dave McInnis as vice president of sales.

Ryder Systems has appointed Scott T. Parker executive vice president and chief financial officer.

APC Automotive Technologies announces Don Orrell has been promoted Beecroft to director of Heavy Duty Sales.

Red Dot Corporation has promoted Nick Janus to CEO.

ROUSH CleanTech has made the following staff changes: Brian Carney has Parker been promoted to vice president of customer success; Dylan Kyle was hired as commercial sales manager; and Adam Wilkum has been hired as business development manager.

Paccar has named Preston Feight as its new CEO. Freightliner Northwest has selected Conrad Eubanks to lead its Pacific Feight service team, replacing retiring Terry French.

Pitts Enterprises has promoted JP Pierson to president of Pitts Trailers.

Double Coin and CMA announced Rafael George’s promotion to international customer service team lead.

Pierson

Jennifer Edwards has been appointed public relations manager for Volvo Trucks North America.

HDA Truck Pride has appointed Jeff Tyler director of program management.

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Trucks, Parts, Service | May 2019

The Motor & Equipment Manufacturers Association has hired Bill Frymoyer as vice president of public policy.

Permatex has promoted Jeff Morgan to national account manager of Automotive Groups — U.S.

Janus

Morgan

Link Manufacturing has hired Anthony Ermitage as OEM account manager. The company also entered into an agreement with John Adami from the manufacturing representative agency NW Heavy Duty to lead Link’s sales efforts with Paccar and Daimler Trucks North America.

Linda Taliaferro, vice president, Global Quality, Meritor, has been recognized with a Role Model Award by Alternatives for Girls for helping young women and girls prepare for and advance their careers in science, technology, engineering and mathematics (STEM).

Continental has hired John Cox for a newly created position to lead its Global Technical Services.

CIMC Intermodal Equipment has announced several promotions at its Emporia, Va., and South Gate, Calif., facilities. Richard Price is director, supply chain; Jamie Phillip is Emporia manager, supply chain; and Robert Soltero is supervisor, supply chain, PDC. Also promoted at the Emporia facility were Elbert Parker, manager of safety, asset management and training; and Jose Perez, production manager. At the South Gate facility, John Garcia has been promoted to manager, warranty training and quality control; Eddie Pulido was appointed senior quality technician; and Thuan Lo was promoted to production planning analyst.

news

API tracking oils incorrectly displaying engine oil certification The American Petroleum Institute (API) has created a list on its website of oils displaying the API engine oil certification marks without authorization.

API states the marketer and oil

brand name, viscosities and sales region for each unauthorized oil are posted along with a photo of each product label. These oils have not been approved by API as meeting any API engine oil standard. As such,

these oils are not eligible to display the API engine oil certification marks.

The API website will be updated as additional oils are identified through API’s Aftermarket Audit Program.

industry calendar July 30-Aug. 2 Aug. 22-24 Sept. 5-7 Sept. 14-18 Sept. 14-19

TPSmagazine.com

Association of Diesel Specialists (ADS) Convention, Orlando, Fla. Great American Trucking Show (GATS), Dallas North American Trailer Dealers Association (NATDA) Show, St. Louis Commercial Vehicle Solutions Network (CVSN) Aftermarket Distribution Summit, Banff, Alberta, Canada ATA’s Technology & Maintenance Council (TMC) Fall Meeting, Raleigh, N.C.

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The Buzz The five hottest products as determined by readers of TPSmagazine.com

Disc brake gets enhancements Bendix Spicer Foundation Brake (BSFB) has announced improvements to its ADB22X air disc brake.

BSFB says one key enhancement is an adjustment mechanism engineered for increased vibration robustness, which improves the running clearance between the friction and rotor, improves pad life and reduces residual brake drag for an extended service life.

The ADB22X also is now coupled with Bendix’s longest-life ADB friction, the BX276 air disc brake pad that includes an additional 2 mm of thickness compared with its predecessor and delivers an 8 percent increase in wearable volume, the company says.

Supplier adds new heavy-duty products Dorman HD Solutions has introduced more than 140 new replacement part numbers.

The new former dealer-only heavy-duty parts extend the company’s wheel hardware, air tanks, sensor, lighting, fuel system and fluid reservoir categories, among others.

Dorman says its featured OEFix product is an exhaust gas temperature sensor (904-7782) for recent Mack (2011-2014) and Volvo (2011-2017) models. The featured HD Exclusive product is a headlight assembly (888-5000) for many models of Mack MR and MRU trucks.

Other featured products include a complete air tank assembly (924-5824) for Volvo (2001-2018) models and an EGR line (598-5943) direct fit replacement for Volvo (2007-2018) models.

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Trucks, Parts, Service | May 2019

Hub cap with heat check indicator RevHD has produced a new line of severe-duty hub caps that can alert drivers if a wheel end reaches temperatures above 250°F. The hub caps also feature spokes across the lens and use thicker material for a more solid build, the company says.

Every box comes with a free TempBolt, which is a heat check indicator that extends if the wheel end temperature reaches 250°F or higher. This indicates the potential for heat damage to the bearings, hub or spindle, RevHD says.

The new RevHD hub cap is made of polished aluminum and includes the gasket and bolts, the company says.

High torque cordless impact wrench Milwaukee Tool has introduced an impact wrench for users who fasten up to 1¾-in. bolts. The cordless M18 FUEL 1-in. High Torque Impact Wrench with One-Key delivers up to 1,800 ft.-lb. of torque while remaining 7 lb. lighter than other corded options currently available, the company says.

The new impact wrench includes the PowerState brushless motor, RedLithium battery pack and RedLink Plus intelligence. OneKey provides the ability to customize, track and manage the impact wrench as well as set a repeatable torque, the company says.

New truck seat Seats Incorporated introduces its new truck seat, Pinnacle, which the company says includes an enhanced EVC cushion comfort system, D2 foam technology, a fully reclining backrest and the longest armrest in the industry.

The Pinnacle also provides an 8-position extendable cushion, 13-degree (+/-) adjustable rake, an air lumbar package, including dual lumbars and side bolsters, and patent pending Click-N-Go EZ exit to make getting in and out of the truck easier.

The Pinnacle comes standard with an ergonomic control panel with intuitive, easy-to-find controls, a bellow suspension cover and two-tone Pinnacle cloth/DuraLeather or two-tone DuraLeather covers, the company says.

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New lights released to market

Aftermarket differential carrier bearing kits

United Pacific Industries (UPI) has introduced two high-powered headlamps.

UPI says its new lamps, part numbers 31082 and 35790, are engineered using DUAL Function technology to change the light bar colors from white to amber when the turn signal is on. The company says lights produced by UPI are DOT and SAE approved, making them functional and road legal.

Dana Incorporated has added premium aftermarket differential carrier bearing kits to its Spicer Select allmakes drivetrain portfolio.

Dana says the kits cover a wide range of drive axle carrier assemblies serviced in the North American commercial vehicle aftermarket and include premium bearings, sealant and adhesive.

Off The Line

Spotlighting a new OEM innovation

New Isuzu truck for beer, beverage industry Isuzu Commercial Truck of America and Supreme and Delivery Concepts have developed a specialty truck for craft brewer Bottle Logic to make deliveries and to be used at live events for promoting its product.

The chassis is an Isuzu NRR with a 150-in. wheelbase and a 19,500-lb. GVWR to accommodate heavier payloads. The Isuzu low cab forward design features a 49.5-degree wheelcut angle for maneuverability, enabling drivers to make deliveries and set up displays in tight quarters that cannot be negotiated by conventional cab trucks.

Isuzu says better visibility enables drivers to see the ground within eight feet of the front of the truck, and an 85-degree door-swing angle means entry and exit are easy for deliveries as well as faster and more efficient set-up.

The NRR is powered by Isuzu’s 5.2-liter turbocharged diesel engine, which generates 215 horsepower and 452 lb.-ft. of torque.

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Trucks, Parts, Service | May 2019

Adapter kits for forklift servicing, repair Stertil-Koni has introduced forklift adapter kits the company says are designed to make the servicing and repair of forklifts easier and safer.

The solution to lift heavy-duty vehicles, often with unequal weight distribution between the front and rear, is two Stertil-Koni adapter kits specifically designed for three- and four-wheel forklifts. These accessory kits are used in conjunction with Stertil-Koni Mobile Column Lifts, the company says.

New long-haul steer tire Cooper Tire has launched a new long-haul steer tire as part of its Cooper PRO Series product line. The tire initially will be available in size 295/75R22.5 with other sizes becoming available in June, the company says.

The tire exceeds SmartWay standard requirements by 15 percent and meets the EPA’s greenhouse gas emissions requirements set for 2021, Cooper Tire says.

The new tire also provides 18/32 in. of tread depth and features a wider footprint, a decoupling groove to minimize shoulder wear and a patent-pending stone ejector design with a stepped groove wall in the tread pattern, the company says.

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Trucks, Parts, Service | May 2019

Buyers Products has released a series of expressway plows designed for high speed highway and interstate use.

The SnowDogg Expressway Plow is a hydraulically reversible plow featuring a flared steel moldboard with a roll-formed top. The deflector is 40 in. high in the middle and 56 in. at the ends, which enables the plow to throw snow farther than a straight-blade and helps improve visibility for the operator, Buyers Products says.

The series is available in 10-gauge, 304 stainless steel or Tuff Kote powder-coated 7-gauge carbon steel, with a trip edge or full trip, the company says. SnowDogg Expressway Plows will be available for the 2019/2020 winter season.

Accessories for heavy-duty wheel aligner John Bean has introduced two accessories for its V6200 heavy-duty wheel aligner it says are designed to add support for vehicles that have additional axle configurations and also to expand coverage to measure trailers where the truck and trailer combined are longer than the standard bay.

John Bean says the V6200 trailer bar sits on a stand creating a stable environment for repeatable, accurate alignment readings and the extra set of all-aluminum wheel clamps are light weight and easily mounted to a wide range of wheels, supporting inside and outside clamping.

Intelligent battery charger with engine start assistance Clore Automotive introduces the 12-Volt 20/10/2A Intelligent Battery Charger with Engine Start Assistance from Solar.

Clore says the PL2545 combines fully automatic operation utilizing a proprietary multi-phase charging process with the ability to charge multiple battery types. With three charge rates, Model PL2545 can manage lead acid batteries of any size up to Group 31 batteries.

The company says the PL2545 is three tools in one unit. It functions as an automatic battery charger to bring depleted batteries to full charge and as an advanced automatic battery maintainer. It also provides engine starting assistance, energizing a depleted battery so that the engine can be started, the company says.

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Drive, trailer tires introduced Commercial windshield repair kit RockPro Enterprises introduces a commercial windshield repair kit.

The company says the kit uses a patented process to repair windshield chips and pits quickly.

The kit includes instructions and adapters to repair both larger pits and all types of corners and edges.

It also includes hot- and coldweather cartridges, as the temperature outside can make a difference in how the resin sets to fill the windshield pits, RockPro says.

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Advanced climate control seating Freedman Seating has introduced ClimaControl, a seating system featuring Tempronics advanced personalized climate seating technology for last mile delivery, commercial walk-in delivery trucks.

Freedman Seating says its new system has been specifically designed for open cabs with active operators where traditional HVAC systems are ineffective. Freedman says the Tempronics climate seating solution has been shown to reduce HVAC energy load in hybrid and electrical commercial vehicles resulting in extended range.

The company says the climate system delivers fast and effective conductive cooling/heating directly to the occupant providing significant thermal relief.

3/30/17 11:42 AM

Trucks, Parts, Service | May 2019

Hankook Tire has debuted three new commercial truck tires.

Hankook’s SmartFlex DL15 tire is a long- and regional-haul drive tire designed with a selfregenerating siping system. It also offers improved fuel economy with an updated central rib and semi-block tread pattern, the company says.

A closed shoulder tread design and improved rubber technology helps improve fuel efficiency for the new e3 MAX DL21 long-haul drive tire. The company says the tire’s design is meant to minimize irregular wear of the tire over its lifetime.

Hankook says the e3 WIDE TL21 is a high-mileage trailer tire with Hankook’s new Spiral-Coil technology to provide strong casing durability over the life of the tire.

Trailer testing product line expanded Lite-Check has expanded its trailer testing product line with the new Evaluator 740.

Designed for lighting and ABS diagnosis, Lite-Check says Evaluator 740 simplifies trailer testing equipment as a single-tool solution. The Evaluator 740 displays all ABS manufacturer fault codes on a four-line LCD. It also includes a fullfunction remote control and is available as AC (110vdc) or DC (battery power) models.

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MORE Prospect Data | Market Share Data | New Prospects RigDig® has been helping truck equipment dealers increase their targeting and prospecting effectiveness with data insights on 1 million+ active trucking entities for nearly ten years: • Arming sales teams with invaluable prospect/client equipment data • Providing up-to-date market share data for your AOR • Identifying new prospect companies in your territories • Assessing growth trends/emerging markets • Guiding strategic planning

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Trucks, Parts, Service | May 2019

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