Band of Truckers

Caterpillar continues to grow its many arms. The enormity of products from the world’s biggest maker of earth moving equipment could fill its own magazine. When it specifically comes to its on-highway branches, Cat mostly focuses on engines and transmissions for big rigs on the road, but now the famous yellow brand is extending its focus with partner Navistar (we covered this tentative announcement last June).

Now Caterpillar Inc. and Navistar International Corp. (the manufacturer of International brand commercial trucks, MaxxForce brand diesel engines and a zillion other things) have signed a definitive agreement to produce Caterpillar heavy-duty vocational trucks for sale in North America and form a 50/50 joint venture that will pursue global commercial truck opportunities outside of North America. It sounds like a mighty alliance indeed.

“This joint venture leverages the complementary strengths of two great companies to serve global markets,” said Daniel C. Ustian, chairman, president and CEO of Navistar. “The venture will be distinctively positioned to offer customers world-class on-highway trucks through the unequaled sales and service network of Cat and International dealers around the world and the deep product expertise of Navistar.”

First off, the 50/50 joint venture will develop, manufacture and distribute commercial trucks in regions outside of North America and India. Markets for the joint venture products will be assessed individually with initial focus being Australia, Brazil, China, Russia, South Africa and Turkey. It is anticipated that the portfolio of products will feature both aero nose and cab-over designs and will be sold under both the Caterpillar and International brands. The first products are expected to be available as early as the third quarter of 2009.

“We believe this clearly is an opportunity where the whole is greater than the sum of the parts,” said Dee Kapur, president of Navistar Truck Group. “While Cat and Navistar do not compete in our core businesses, each brings distinctive capabilities to the table and have common goals to expand the base of engine, truck and equipment customers worldwide.”

But more interesting to our readers, under the strategic alliance Caterpillar and Navistar will develop and manufacture a new line of heavy-duty Caterpillar vocational trucks for North America only. The new Caterpillar trucks will be co-developed by Caterpillar and Navistar and manufactured in Navistar’s Garland, Texas, facility. The trucks will be sold and serviced through the Caterpillar North American Dealer network.

“The heavy-duty vocational trucks will be purpose-built to complement Caterpillar’s existing product line and will give Caterpillar dealers an unmatched ability to support customer needs from extraction through delivery,” said George Taylor, director and general manager of the Caterpillar Global On-Highway Department.

The Caterpillar trucks will feature key Caterpillar proprietary components and technology and will target customers who operate in a wide variety of vocational applications such as earth moving, quarry, waste, mining, general and heavy construction, logging and road construction.

“Caterpillar is proud to be working with an innovative leader to provide our customers distinct Caterpillar vocational trucks in North America,” Taylor added.

Crash Course in Financing

Ford Completes Debt Restructuring Initiates, Reducing Expenditures by $9.9 Billion

Car and truck companies like Ford Motor Co. are hoping to hit cruise control here soon. The Big 3 (including General Motors and Chrysler) are all in the middle of massive restructuring plans in hopes of continued operation into the near future and beyond. In early April, Ford set out to prove it was Ford Tough, announcing the completion of debt restructuring initiatives that will reduce Ford’s Automotive debt by $9.9 billion from $25.8 billion at Dec. 31, 2008, and lower Ford’s annual cash interest expense by more than $500 million based on current interest rates.

“By substantially reducing its debt, Ford is taking another step toward creating an exciting, viable enterprise,” said Ford president and CEO Alan Mulally. “As with its recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth.”

In total, Ford and Ford Credit will use $2.4 billion in cash plus 468 million shares of Ford common stock to reduce Ford’s outstanding Automotive debt by $9.9 billion. This debt restructuring, together with previously announced agreements with the United Auto Workers, will substantially strengthen Ford’s balance sheet. On March 4, 2009, Ford and Ford Credit announced the major components of a comprehensive debt restructuring: (1) a conversion offer in which Ford offered to pay a premium in cash to induce the holders of any and all of the $4.88 billion principal amount outstanding of its 4.25 percent Senior Convertible Notes due Dec. 15, 2036, to convert the Convertible Notes into shares of Ford’s common stock; (2) a $500 million cash tender offer by Ford Credit for Ford’s senior secured term loan debt; and (3) a $1.3 billion cash tender offer by Ford Credit for Ford’s unsecured, non-convertible debt securities.

What does it all mean? Ford is setting up a comprehensive debt restructuring plan that is expected to strengthen Ford Motor Co.’s balance sheet by reducing long-term debt obligations.

Calling for Backup

Camera Systems Help Ensure Smart and Safe Driving Practices

Sometimes an extra set of eyes is just what the situation ordered. On a busy jobsite, where man and machine come at you from all directions, double vision can help operators steer safely through the dangerous and dusty seas of a construction zone. Rear camera systems from manufacturers such as ASA Electronics, ECCO Group, Intec, Obserview and Rostra Precision Controls have been installed on numerous agricultural and construction equipment, landscape machinery and plenty of heavy-duty and mid-size trucks.

There’s an array of monitors and cameras that can be paired to create the best system to fulfill most tasks at hand. The monitors can range in sizes from 3 1/2 to 7 in. and are available in black and white or color outputs. Most monitors can accommodate the use of more than one camera, changing views from single to split screens to show the multiple angles of the individual units. Manufacturers usually offer a traditional backup camera, for the rear of a vehicle and side cameras that aid in visibility on the left or right sides of the vehicle. The cables are used to attach the camera to the monitor and are available in lengths from 15 to 75 ft.

Before purchasing two cameras, the customer should make sure the monitor can accommodate more than one camera with split screen views; most monitors have extra inputs for additional cameras. However, if there is no extra slot for a wire, a control box is needed. This device allows the wires from multiple cameras to be plugged into the box and then a single cord is routed from the box to the actual monitor. The box is typically compact in size and can be mounted under a seat or the vehicle’s dashboard. The cost of a system can range anywhere from $200 to $2,000, depending on the type of monitor, number of cameras, camera model and other options such as a DVR for recording the camera images.

Spring Renewal

Recording a Six Month High, Chrysler LLC Reports Best Sales Results for the Year

As the economy slowly creeps toward summer, manufacturers are hoping the warm weather and the new job season will drive consumers and companies to buy new vehicles and equipment. Chrysler LLC was sent a heavenly sign in March, when its total U.S. sales for March surpassed 100,000 units for the first time since last September, which included Dodge Ram sales increasing 34 percent in March compared to the previous month.

“The market is starting to show small signs of life that need to be nourished like seedlings,” said Jim Press, vice chairman and president, Chrysler LLC. “The fact that we exceeded 100,000 units for the first time since last fall is encouraging and evidence that our improved quality and mileage, as well as value represented in Employee Pricing Plus Plus are just what the doctor ordered for recession-wary customers who are reluctant to make long-term purchases. It’s too early to see a trend, but spring shows signs of hope.”

On April first (and we assumed this wasn’t an April Fool’s hoax), Chrysler LLC reported March U.S. total sales of 101,001 units. Chrysler retail market share increased to an estimated 10 percent vs. 9.9 percent in March 2008. Total March sales include a fleet reduction of 44 percent year-over-year for the same period, as the company continues to emphasize retail over fleet and better overall designs.

“Our internal warranty data shows that we have achieved the lowest claim rate in our company’s history, with a 30 percent improvement in the last 12 months,” said Press. “And reinforcing the company’s improved quality and customer satisfaction initiatives, as reported by the National Highway and Traffic Safety Administration, Chrysler had the industry’s lowest number of recalls in 2008. We attribute this to a focus on designing and building in quality during previous years.”

Sales of the Dodge Ram were up 34 percent (19,328 units) in March compared to February. The all-new 2009 Dodge Ram 1500 has more than 35 new or improved features, including a frame design incorporating high-strength steel and first-in-segment multi-link coil spring rear suspension that improves ride and handling characteristics without sacrificing payload and towing capacity. The new Dodge Ram has received a “five star” rating from the National Highway Safety Traffic Administration for the driver and front passenger.

The Haul Monitor

Don’t Tow the Line — Pull Ahead with these Clever Trailer Products

Bri-Mar Expands Rascal Dump Trailer Line

It’s pleasing to see Bri-Mar’s Rascal dump trailer series grow a little larger (although we’re still hopeful for even cooler names for their product lines — like the “Rapscallions” or “Scallywagons”). The Chambersburg, Pa.-based Bri-Mar Mfg. released two new models into the wild, including the R508LP-3 and the R510LP-5. These big tip trailers are popular with homeowners, small companies and start-up businesses, intended as a cost-conscious alternative trailer for the transporting and dumping of mulch, firewood, brush, debris, feed and other lightweight materials. These two new models give a wider range of choices for this level of trailer. The R508LP-3 features a low profile 5- x 8-ft dump bed, 3,000-lbs GVWR, 1.9-cu yd capacity and 4-in. channel mainframe. The R510LP-5 includes a low profile 5- x 10-in. dump bed, 5,000-lbs GVWR, 2.3-cu yd capacity and 5-in. channel mainframe. For more information, go to www.ceunbound.com/info.

White Night Rear Lighting System

Tow masters need not fear the dark. Channel the powers of illumination with the White Night Rear Lighting System (from Cruiser Stainless Accessories) to automatically light the way when backing tow vehicles. The brilliance of this product provides an 80-ft spread of white light behind and to the rear sides of the vehicle when in reverse gear, dramatically improving visibility and safety when towing. The White Night utilizes two big, bright 55-watt halogen lamps mounted in a high impact black plastic case. A toggle switch on the unit also allows manual operation. The White Night is compact and mounts to the hitch receiver tube of most Class 1 to 4 trailer hitches. Available fixed mount version allows full function of the light while the hitch is being used to tow. The best part: No drilling is required and the unique Plug-N-Go feature makes White Night one of the easiest lighting products on the market to install. For more information, go to www.ceunbound.com/info.

Terex ASV Tracked Utility Trailer

Granted, the Terex ASV ST-50 Scout utility vehicle is not a truck. But eventually we plan on driving one to work each day, so we’re ok including this go-anywhere vehicle in our trucks-only department. The 50-hp tracked utility vehicle from Terex (it runs on a patented Posi-Track suspended undercarriage) is ideal for hauling a wide range of materials or equipment over rugged or soft ground conditions. The tracks are free rolling and rollers are supported by sealed, maintenance-free bearings.

The trailer actually connects to most any vehicle equipped with a 2-in. hitch and includes a 2-in. hitch receiver at the rear so multiple trailers can be “ganged.” Multiple tie-down points are incorporated into the design to secure a variety of loads, with an operating weight of 1,975 lbs (empty) and a carrying capacity of 7,000 lbs. But even with those heavy loads the trailer is not going to exert a lot of pressure on jobsites. Its ground pressure is only 1.12 psi when empty. Load it with tools, supplies or spoils and tread lightly. For more information, go to www.ceunbound.com/info.