Navistar, Caterpillar to Build Trucks in China ... Are School Buses Far Behind?

The wires are rife with articles on an agreement reached between Navistar, Caterpillar and the Anhui Jianghuai Automobile Company to begin production next month on medium- and heavy-duty vehicles in China.

Caterpillar announced last year in a separate cooperative agreement with Navistar that it was leaving the U.S. domestic truck engine market, and in the process foregoing its own solution to the 2010 EPA emissions requirements. Instead, Cat is focusing on the construction vehicle market, and this week's agreement with Anhui Jianghuai will make it the largest construction vehicle manufacturer in that growing market.

Meanwhile, the deal with Anhui Jianghuai signals that Navistar is continuing to make inroads the global vehicle and in China, where total vehicle sales have surpassed thos in the U.S. during the first seven months of the year. Writes the Financial Times:

In the first seven months of this year, total vehicle sales rose 23 per cent in China to 7.2m, while it dropped 32 per cent to 5.8m during the same period in the US.

The venture is expected to be set up next month and focus on the production of medium and heavy duty trucks and engines.

It would utilise JAC’s existing production bases while deploying the capital and technology from its US partners. JAC said details of the joint venture would be released soon.

Navistar has also been working with Mahindra Mahindra since 2005 on manufacturing light-, medium- and heavy-duty commercial trucks and buses in India and for export markets. In 2007, Navistar also began producing its advanced diesel engines for Mahindra and Mahindra's trucks and buses in India.

While there was no immediate word on if any of the agreement may parlay into the production of school buses, as Navistar owns IC Bus, there has been an uptick of interest in recent years by Asian-based manufacturing companies in North American school transportation trade shows.

Navistar Points to CARB Research to Back Up Claims Against SCR

Navistar, the parent company of IC Bus, has taken its fight against selective catalyst reduction and for advanced exhaust gas recirculation as the right choice for meeting upcoming EPA 2010 emissions requirements in lowering nitrogen oxide (NOx) emissions at the tailpipe to no more than 0.2 grams. Currently, Navistar is suing the EPA in federal appeals court as it contends the feds by allowing SCR in its regulations will being increasing public health risks due to urea, the additive used in SCR to reduce NOx in the engine that has been used for the past two decades in Europe.

The aggressive marketing performed by Navistar this year has drawn criticism from many in automotive and fleet circles, such as Oliver Dixon's "Spiral of Dispair" article earlier this week on The World Trucks Blog at UK's www.roadtransport.com. But then, Navistar offered a rebuttal by claiming that a June letter penned by Bart Croes, chief of California Air Resources Board research, to the Health Effects Institute, a Boston nonprofit organization planning tests on 2010 engines, that said that the use of SCR represents a "large departure from conventional emission controls by introducing a liquid additive containing an organic form of nitrogen." According to MYETTNEWS.com, The letter goes on:

“Some toxic air contaminants that have been identified with SCR technology include hydrogen cyanide, cyanic acid, nitromethane, hydrazine, acrylonitrile, acrylamide, acetonitrile, and acetamide,” Croes wrote in his letter. “It is hoped that any exotic substances emitted from SCR technology will be at levels insignificant to exposure health effects.”

Although we are encouraged by findings to date, which suggest that the technology can deliver significant reductions of many species of toxicological relevance, this work has also documented the increase in some emissions such as some metals, nitrous oxide and nanoparticles.”

In the August issue of School Transportation News, contributor Bob Pudlewski writes that fleets must individually decide which technology best suits their needs, but either one has an increased price tag.

The debate rages on.

CTO Responsible for MaxxForce Leaving Navistar

Automotive World reported yesterday that Dr. Helmut Endres is no longer with Navistar International Truck & Engine. Endres came to Navistar in 2006 and became chief technical officer and vice president of Powertrain Engineering, helping to develop and to design the company's MaxxForce engine line. Considered one of the world's leading He is one of the world’s leading authorities on diesel engines with a disciplined approach to design, validation, cost controls and product quality.

The magazine reported that Endres e-mail inbox is automatically replying to incoming messages by saying that he left the company this month.

Prior to coming to Navistar, Helmut worked for Volkswagon in Germany for a decade, leading a global team of 2,000 engineers. Among his accomplishments are the development of the high-performance V-10 TDI diesel engine in VW’s Touareg SUV and Phaeton luxury sedan, and the introduction of turbo-charged, direct-injection gasoline engines with low-fuel consumption as well as high power and torque.

The 'New GM' Out of Bankruptcy, Still Committed to School Bus Market

As the industry has been closely watching the demise of GM, there seems to be some good news coming out of Detroit: the automaker is remaining dedicated to its small school bus business as it was emerging bankruptcy sooner than expected. A company spokesman recently told STN that the commitment to manufacturing chassis for the school bus market has not changed [Look for this article in the August STN issue].

Going forward, the big purchasers of GM cutaway chassis on the Chevy Express and GMC Savana platforms are Girardin Minibus and Trans-Tech. Thomas Built Buses also uses some GM. But in filing for bankruptcy, GM was separated from Opel, the German manufacturer responsible for much of GM's diesel expertise dating back to 1929. What could that mean for the diesel business?

Competition is stiff elsewhere, too. As GM's works hard to keep its head above water, the sharks are circling. That's not necessarily in the best interest of the taxpayers, which now effectively own GM, but it could be an impetus to truly a "New GM," as the company is now calling itself.

Speaking of competition, Collins Bus Corporation announced earlier this spring that it is developing a Ford gasoline-hybrid, as the automaker has slowly but surely been leaving the diesel market. Collins Bus as well as its line of Mid Bus and Corbeil products, have also traditionally built bodies on GM chassis, so it will be interesting to see how the recent deal with Azure Dynamics to develop the gasoline hybrid drive train for Ford will play out. Then there's potential Type A chassis production capabilities at Daimler Truck/Freightliner for Thomas and Navistar for its IC Bus line.

Meanwhile, Girardin Minibus is publicly, at least, reaffirming its relationship with GM because the auto manufacturer is staying true to diesel engine technology, at least in theory. As reported in the July issue of STN, Girardin said it is eyeing a GM diesel-hybrid to compete with Collins' gas-hybrid, the latter expected to be unveiled this summer. GM retained it's two-mode diesel hybrid technology originally slated for the Saturn VUE. This same technology could fuel GM's SUV business, which could in turn have strong implications for the school bus industry.

On STNOnline: No PowerStroke for Ford

Today on STNOnline, we report on how the conclusion of the dispute between Ford and Navistar means an end to Navistar's PowerStroke diesel engine in Ford Type-As. Some small bus builders say they're not worried about the announcement because they've already shifted towards gasoline engines or GM competition.