Commercial Vehicle Megatrends Magazine – Q4 2012

COMMERCIAL VEHICLE

megatrends Issue 1: November 2012

M A G A Z I N E

London’s black cabs turn green with NV IAA 2012 and the changing global CV landscape Behr necessities: a closer look inside the Troy Wind Tunnel Eaton’s alternative powertrain potential

Also in this issue: Vazir Fatehi, P3, talks improving freight efficiency and boosting profits - Wade Long, Volvo Trucks, on combining old values with new progress - Dan Arcy discusses new lubricant categories

commercial vehicle megatrends

Taxi!

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Editor's welcome Contents Editor's welcome

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Conference review We review the trends making an impact at this year’s Commercial Vehicle Megatrends USA event

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Interview: Dan Arcy 4 Global OEM Technical Manager, Shell Dan Arcy talks about how new lubricant developments are driving fuel efficiency Behr necessities: a closer look inside the Troy Wind Tunnel How one supplier has established itself in the North American market

Commercial Vehicle Megatrends magazine ISSN 2047-9859

Publisher: Automotive World Ltd 1-3 Washington Buildings Stanwell Road, Penarth CF64 2AD, UK www.automotiveworld.com T: +44 (0) 2920 709 302 info@automotiveworld.com

Registered number: 04242884 VAT number: GB 815 2201 Chief Executive: Gareth Davies Editor: Martin Kahl

Sub-Editor: Ruth Dawson

Chief Technical Officer: Michael Franklin

Subscriptions and Advertising: Gavin Dobson gavin.dobson@automotiveworld.com

John Cumpston john.cumpston@automotiveworld.com

With thanks to: Shell, Behr NAFTA, Global Policy Group Inc., Nissan, SmartTruck, Frost & Sullivan,Volvo Trucks and P3 North America Copyright Automotive World Ltd 2012

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Driver of change or cause for concern?

12 Ian C. Graig analyses whether government regulation is the only way to manage emissions standards London’s black cabs turn green with NV 14 Nissan unveils a new taxi which has been developed specifically to meet the British capital city’s strict requirements Putting the smart in aerodynamics 18 With a team of Formula One specialists and aerospace engineers on its side, SmartTruck’s mission is to develop the next generation of aerodynamic designs Megatrends and mega opportunities highlighted at the 2012 IAA 22 Tectonic forces are shaping the global commercial vehicle landscape, says Frost & Sullivan’s Sandeep Kar Interview: Wade Long 26 Director, Product Marketing,Volvo Trucks North America Volvo strives to stay ahead of the competition while staying true to its safety values Eaton on the potential for hybridisation and natural gas in CVs 30 Nandu Srinivasan and Craig Jacobs discuss the potential of CV powertrain technology Freight efficiency: Looking for the next big thing to improve margins and cut costs Vazir Fatehi explores how freight efficiency can improve company profits

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The race to supply London with taxis is on.

Black cab manufacturer Manganese Bronze has entered administration, leaving a large gap in an admittedly closed market. However, black Mercedes-Benz Vito taxis have been on London’s roads for around four years now, steadily gaining market share.And this summer, Nissan unveiled a new contender, the NV200 London Taxi, which Londoners can begin hailing from next year.

Cracking London’s black cab market, was, according to Nissan’s Andy Palmer, one of the key targets in the development of the NV200, the light commercial vehicle which has also been selected as New York City’s taxi for the next ten years. Read our feature on page 14 to find out just how important the taxi market is becoming to Nissan.

To tie in with the theme of Automotive World’s Commercial Vehicle Megatrends USA 2012, which was held in Detroit earlier this year, this issue of Commercial Vehicle Megatrends looks at some of the solutions the industry is focusing on to improve freight efficiency.

Behr’s facility in Troy is home to the company’s largest test facility outside Germany, and includes the bigest and “most capable climatic wind tunnel of its kind in North America.The facility can accommodate any vehicle from passenger cars to buses, Class 8 trucks, offhighway and military vehicles.And, for one day earlier this year, it also accommodated CVM.

No stranger to wind tunnels is Mitch Greenberg of SmartTruck, who on page 18 explains to CVM why poor aerodynamics can be such a drag. Improving aerodynamics is one of the many ways of increasing efficiency another is the use of appropriate lubricants.

Shell’s Dan Arcy chairs the PC-11 New Category Development Team, and on page 4 he outlines the challenges involved in creating a new category.

September 2012

Hybridisation and natural gas technology are big talking points - for the truck industry, and for Eaton.At Commercial Vehicle Megatrends USA 2012, we talked to Nandu Srinivasan and Craig Jacobs about the viability of these technologies in the commercial vehicle sector.

A separate conversation with Volvo’s Wade Long, however, revealed that he is less optimistic about the potential for hybrid technology in heavy duty applications, and wants the industry to look at alternative fuels other than just natural gas. He tells us he believes diesel will remain dominant for many years to come, and the industry needs to come up with other solutions to improve efficiency.

Considerable improvements in diesel efficiency have already been made. Returning

to Nissan, the OEM is preparing to go beyond just offering a frugal diesel taxi solution for London, by saying it can deliver a full electric version in April 2014.

With such considerable advances already having been made in the quest for greater freight efficiency, the opportunities available to take the business to the next level are numerous; we are confident that this issue of Commercial Vehicle Megatrends will give you some insight into the directions the industry is taking.

We hope you enjoy this issue of Commercial Vehicle Megatrends and, as always, we welcome your thoughts and suggestions; email us at megatrends@automotiveworld.com Martin Kahl Editor

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commercial vehicle megatrends of how to optimise trucks...small owners rely on dealers’ input, who don’t have technical expertise.”

The Daimler view is one of integration: by better implementing powertrain technologies, vehicle efficiency in terms of fuel, downtime and driver management can be drastically improved.

Dave Berlin, Americas Marketing Director for OEMs and Heavy Duty at Castrol

Using the example of low viscosity lubricants, which are expected to be in wide use by 2016, Berlin said that 80% of Castrol's customers still use 15W-40 - familiarity with the older product is preventing users from seeing the benefit of 2% savings.

Conference review

“As we get better at what we do, we've got to help the fleet see those small incremental gains.”

By Ruth Dawson

A

utomotive World’s Commercial Vehicle Megatrends USA 2012, held earlier this year in Dearborn, Michigan, provided a forum for delegates and speakers to discuss the factors shaping the future of the commercial vehicle industry.

The three-day event, titled ‘Three steps to greater freight efficiency’, brought together representatives from all aspects of the US commercial vehicle industry and beyond.

Nearly 200 delegates from over 70 companies attended the event and used the opportunity to voice new opinions and innovative ideas on key topics at the forefront of many professionals’ minds.

“As an OEM, we would be foolish to try and compete with companies that are well established in telematics or the communications technology industry, who move at a much faster pace than what we’re used to,” said Richard Shearing, Director of Product Planning at Daimler Trucks North America.“We certainly don’t have the expertise in-house or the market space, and to build it up simply doesn’t make sense.”

Tom Flies, Senior Director of Business Development at Qualcomm and Luke Wachtel, Vice President of Mobile Partnerships and OEMs at Telogis, also touched on this move towards collaboration.

Connectivity is key Connectivity was one of the big issues at the event, with many speakers commenting on the industry’s current buzz topic.Advanced telematics systems are no longer just a species of add-in technology, they are being actively incorporated into truck design to allow for more than just the typical route planning and monitoring.

For fleet managers and drivers to optimise use of telematics, however, OEMs and suppliers still need to work more closely together.

Tom Flies, Senior Director of Business Development, Qualcomm

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“Telematics suppliers need to work in concert with OEMs to drive adoption,” Flies advised.

Fast navigational and other electronic technology developments have meant that continually upgraded units have just been taken in to standard truck models. However, OEMs are now looking at the advantages of incorporated technology which benefits from software updates.

“I don’t think there’s a provider of trucks right now who won’t produce connected vehicles,” Wachtel said.

Work together for savings Collaboration isn’t just key for new technological innovations, nor is it only essential between OEMs and suppliers.

Speaking on the topic of diminishing returns, Dave Berlin,Americas Marketing Director for OEMs and Heavy Duty at Castrol, said, “working together will find a better bottom line.”

“Incremental gains are getting harder because we've done all the things that are basic and easy to do,” said Berlin. “Fuel as a percent of operating budget is not going to go down in the future.This is going to become a bigger and bigger problem for our fleets.”

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Castrol's main challenge at the moment is helping fleets find the benefit of this saving, however small it may be.And the way to do this is, according to Berlin, by working with OEMs and co-suppliers to find a beneficial status.

“As a group we need to help our fleets to find a way to a better bottom line.”

Better drivers will make for better efficiency Most if not all of the speakers at Commercial Vehicle Megatrends USA 2012 also touched on the idea of the driver being one of the most significant factors affecting freight efficiency.

No matter how good efficiency technologies are, their potential will not be maximised when an inefficient driver is in charge of the vehicle.

Speaking on how powertrain technology can be developed for effective cost of operation, Timothy Tindall, Director of Component Sales at Daimler’s Detroit Diesel, provided an emphatic stance on how driver education is at the heart of freight efficiency.

Nandu Srinivasan, Director of Engineering at Eaton, also raised the issue of driver education, albeit more specifically in the context of hybrid technology.According to Srinivasan, the optimisation of hybrid technology at least in part relies upon the driver’s use of the vehicle.“The potential for savings is there,” said Srinivasan.“We have demonstrated up to about 30% incremental efficiency - but the payback has not been there.”

According to figures from the North American Council for Freight Efficiency (NACFE), a disproportionate 40-41% of long haul vehicles account for 75% of truck fuel consumption.

Eaton’s challenge for the future, said Srinivasan, is to turn average drivers into great drivers, whose skills will optimise the vehicle’s use.

“For every 1000rpm in speed...you could gain about 3% fuel economy - that’s tremendous and a lot of applications are going towards that.” However, this margin will only fully be realised where better driving practices are implemented.

Design for drivers This strategy of focusing on drivers is not just a one way street, however: OEMs are pledging to make their vehicle design more driverfocused too.

During his presentation, Director of Product Marketing at Volvo Trucks,Wade Long, described the company’s new driver-centric designs to delegates.

Recent fuel efficiency testing has led Volvo to introducing new methods of improving

aerodynamics, such as: altered bug screen position, hood/bonnet-mounted mirrors and under bumper and side skirt extensions, making for improved airflow around tractors.

“What will the truck of the future look like? I like to refer to it as a ‘bullet train’,” said Long.

Long’s comments were similar to those made

by Mitch Greenberg, President of SmartTruck, who commented at the event:“The industry has done an amazing job of carrying lots of goods in a very efficient way.

“How we use these vehicles more aerodynamically is critical, particularly for the long haul trucks.”

According to Greenberg, Class 8 trucks have the worst aerodynamics of all commercial vehicles on the road and SmartTruck is now turning its remit to a systems-based approach to combat this. Put simply,“everything’s evolving”, and while technology and design may be easy to specify, getting commercial vehicle users to find the benefits for their fleets is not. SmartTruck is planning to help fleets make sense of the new vehicle aerodynamic systems and what they will mean in the context of their fleet - although testing is still needed to assess their long-term viability.

In this spirit of ‘evolution’, having historically concentrated more on the load transport aspect of tractors, moving forward,Volvo tractor design will be driver forward, Long said.

“Comfortable drivers are productive drivers.

The design will have to be focused on driving, working and resting.” Interiors will be more functional, simplified and purposeful to improve driver attitude and productivity.

“Ultimately the owner will have better retention, better resale value and also increased compatibility.”

For more details about Automotive World’s events, please visit http://www.automotiveworld.com/events.

According to Tindall, this ‘education’ should start before the vehicle owner makes his purchase. By only opting for technology that is compatible with what the vehicle will be used for, the total cost of operation can be greatly reduced.

“A large fleet owner has a clear understanding November 2012

Wade Long, Director of Product Marketing at Volvo Trucks North America

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sing lubricants is one way of improving engine efficiency. Can you please outline Shell’s offerings for the existing fleet, and what you're doing to improve the efficiency of future engines with lubricants?

Dan Arcy Interview:

Global OEM Technical Manager, Shell

Dan Arcy works with and provides technical support to key OEMs in the on-highway trucking, off-highway equipment and agricultural equipment trade in both North America and select accounts globally.Arcy also represents Shell's heavy duty group in industry trade associations, such as the PC-11 New Category Development Team.

Here,Arcy speaks to Commercial Vehicle Megatrends about the ways in which lubricant developments are driving CV fuel efficiency

By Martin Kahl

For existing fleets and engines, we recommend consulting engine manufacturer specifications. Engine efficiency can be improved, and fuel economy increased, by using lighter viscosity oil. Not all engines and not all model years allow for that lighter viscosity at this time.Those that do can offer some real benefits. Shell has conducted a number of field trials to look at the difference in fuel economy benefits, and we've been able to document - from a 15W-40 over-road engine down to a 10W-30, such as the T5 synthetic blend - a 1.6% improvement in fuel economy. Consider a 1.6% improvement across a fleet of 10,000 trucks; we're at about US$3.70 a gallon right now for diesel fuels, so all of a sudden that number is very significant.

Can you please outline your role in the PC-11 committee?

Proposed Category 11 is the next diesel engine oil category that's currently being developed. I chair the New Category Development Team.

My role is to work with other members under the New Category Development Team, which includes members from engine manufacturers, other oil marketers, the chemical or additive companies, and independent engine test labs. I chair the committee that is working on developing this new specification, which means developing, in this case, three new tests that will be utilised to demonstrate performance of these oils. It also entails budgeting for the category development, recommending consumer language and an education process, so that when we roll the category out, we're able to communicate the changes, requirements, and limitations that could be in place regarding backwards compatibility.

What's the history of PC-11? How did it come about, and who put it together?

In June 2011, the Engine Manufacturers Association (EMA/TMA) came to the American Petroleum Institute (API) and requested a new category for several reasons - one of which was the fact that the EPA and the National Highway Safety Administration (NHTSA) were putting regulations in place for CO2 emissions reductions, improvements in fuel economy and some mandates for renewable fuels.

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“Shell has conducted a number of field trials to look at the difference in fuel economy benefits, and we've been able to document a 1.6% improvement in fuel economy. Consider a 1.6% improvement across a fleet of 10,000 trucks - that number is very significant” With that legislation going into place, engine manufacturers realised that there are benefits to be gained through changing and improving lubricants, so they requested this category. In addition to that, some of the engines that we have to run our oils in to qualify, parts will no longer be available in the 2015/2016 timeframe.The API formed the New Category Evaluation Team (NCET), which consists of engine manufacturers, oil marketers, additive companies and engine test labs.The engine manufacturers had basically outlined a new split category for higher viscosity oils that are similar to what we have currently in the market and lower viscosity oils that have potential for fuel economy benefits.They also requested improvements in oxidation stability, sheer stability, aeration and biodiesel compatibility.

The NCET reviewed the request: we wanted to understand why engine manufacturers were asking for improvements in oxidation control and aeration control, for example.We need documentation to support the development of this category.

The NCET made a decision that what was being asked for was definitely warranted there was a need for it in the marketplace, and the request was to have this new performance standard in place in January 2016.

And backward compatibility is one of the things that you are working towards with PC-11?

Yes. Every time we've come out with a new category, it's been backwards compatible versus previous categories.With the changes that are potentially going to be made for PC11, in order to maximise our fuel economy benefit, PC-11 low viscosity engine oils may not be fully backwards compatible across all engines and all model years.The PC-11 high viscosity, 15-40 type oils are intended to be fully backwards compatible for all model years. But with the higher viscosity oils, there is no fuel economy benefit.We really have to look at PC-11 as a split category of higher viscosity oils and lower viscosity oils.The higher viscosity oils will be backwards compatible.

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commercial vehicle megatrends There are challenges that we face from a timing standpoint because of this ongoing engine development.There's one challenge that we're trying to work through right now and that is the passenger car group, which has also proposed a new category.Those developments are very close to being on top of each other in certain aspects of the process, which, you can understand, is going to provide some challenges on resources because the labs where we do our qualification testing may also be doing passenger car testing. Resources from test availability could be challenging just from a personnel standpoint.

Those things have been identified as potential barriers or bottlenecks in the process, but again I think the open discussion that we have within the different groups and within the API Lubes Group is going to help facilitate a path through here to get everything done.What will end up happening, I can't even speculate at this point, whether one group will go before the other, and which one that would be.

Then the other challenge that we always face is the development of new tests: right now they all appear to be very close to the timelines that they proposed. But again, these windows can be a couple of years long in lining up tests.

The lower viscosity ones may be backwards compatible in some applications and some engines, and may not be backwards compatible in other applications.That's yet to be determined.

The new category is to be in place by early 2016.What are the milestones between now and then?

January 1st of 2016 was what was initially requested.A number of things are in the works right now. One of the new engine tests is being referred to as the Caterpillar C-13 aeration test.

That test is in a development phase.They’re running oils in it right now to make sure that it's going to be able to discriminate between good performing oils and bad performing oils.And that one looks like it's going to be completed and ready to run what we call a matrix test, starting sometime in 2013.

Let's take another new one we're going to have, which is the Mack T13 test.The current test is the T12 test which evaluates the oil on ring and liner wear and bearing corrosion protection - that has been upgraded to the T13 test.That one, based on its timeline, really won't be ready for matrix testing until sometime around 2014. It's a little behind the CAT C-13 test in its development process.

There are many steps involved with all this because it's not just getting the test and making sure of discrimination, for example. It's

also making sure there's testing through all the different laboratories, and these laboratories run oils to make sure that if you run at laboratory A in this test, you're getting the same result as you would at laboratory B. What do the stakeholders provide to the committee? Do OEMs supply trucks, engine manufacturers, engines, and lubricant manufacturers, lubricants?

One of the other work streams in development is assessing how this is all going to be paid for.The PC-10 category was divided into thirds between oil marketers, chemical and additive companies and engine and truck manufacturers paying for a third of the development. Some of that was in kind so it may not have been cash for running some of these tests, but it may have been the equivalent dollar value in engines or parts and stuff like that.That's one of the work streams that, through the NCET, is still being put together.

It's been proposed that we do it the same way.

But there's a process that that has to go through from the NCET to a different committee called the Diesel Engine Oil Advisory Panel, which has to approve it and then send it to the API, engine manufacturers and chemical companies have to do the same thing.They have their own systems in place.

Then an agreement is put in place as to how it's all going to be done and who's going to get all the money and control it.

The companies that are involved in this are doing this for the US market, to meet US emissions and greenhouse gas regulations and so on. Is there any benefit that they can bring from operations they have in other countries or that they can take from PC-11 to other markets?

Are you up against any challenges or headwinds here, or do you find that what you are trying to propose is going through smoothly?

With any category or new specification, there will be challenges.The typical time to develop a category has always been about four years and we're up against that four year window right now.Timing is definitely a challenge, especially when there are new engine tests that need to be developed in the process.

One of the things that has changed over the years is that many of these companies - truck manufacturers, lubricants, and additive companies - are now global.Take, for instance,Volvo’s D13 engine in Sweden. It is very similar to the D13 engine marketed in the US. It’s the same thing on the lubricants side. If you look at API CJ-4, the latest technology here, that same type of performance level was incorporated into ACEA E9 in Europe. Not exactly the same, but it's close.The CAT C-13 test that we run here in the US is not part of ACEA E9, but demands roughly the same kind of performance levels.Twenty years ago, that wasn't the case - US and European specifications were totally different but now they have converged considerably.

Do the various members have conflicting interests, and could that hold back any development on PC-11 targets?

When it comes to the category moving forward, obviously there are different parties with differing opinions. But our meetings are all open, and anybody can attend. Even though I said there were about 13 people on this New Category Development Team, it’s typically about 50.There's a very open consensus.

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So there is potential for slippage one way or another in the test development process.

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Behr necessities: a closer look inside the Troy Wind Tunnel In the 43 years since Behr began operations in North America, the Stuttgart-based supplier has worked hard to establish itself with the domestic OEMs. Despite enjoying steady growth recently, Behr knows that success is about more than just blowing hot air (although that certainly does help)

By Martin Kahl

B

ehr America was established in 1969.

The North American arm of the Stuttgart-based engine cooling and air conditioning specialist company has its HQ in Troy, Michigan, and operations in Dayton (production), Fort Worth (series support), Charleston (production and R&D) and in Mexico at Ramos Arizpe (production).

Renamed following a regional restructure in 2011, Behr NAFTA enjoyed its best sales year in 2011, reporting sales of US$893m across its passenger car, light truck, heavy truck and service divisions. Light vehicle brands using Behr NAFTA products include Chrysler, Dodge, Ford, GM, Mercedes-Benz, Nissan and Volkswagen. In the heavy duty segment, Behr’s customers include Freightliner, Kenworth, Mack, Peterbilt, Navistar and Volvo for onhighway; Caterpillar and John Deere are key off-highway customers.

establish itself with the domestic OEMs, but it is aided now by the global nature of the industry.“Ford and GM in particular have become increasingly globalised over the last five to seven years, and as a result so have we,” says Martin Bauer, Director and Chief Engineer of Behr America’s Engine Mounted Components division.“The challenge is to work globally and more closely together.We need to carefully identify where our customers are based, where to locate our plants and what to produce where, in order to remain competitive.” Global platform strategies play a key role, he adds.“Most OEMs have clear platform strategies.They produce the same car all across the world, so they want to have the same supplier for cooling modules and air conditioning systems.”

Just over 10% of the 2,655-strong workforce (2011) is employed at the company’s Troy headquarters, where its North American R&D centre is also based.“Everything we have here is duplicated in Stuttgart,” says John Tepas,Vice President of Engineering.“Portions of what we have here are duplicated in India and to a lesser extent in Brazil, China and France, but this is by far the largest technical centre in the Behr group outside Stuttgart.”

“It forces us as a company to work better together,” adds Tepas.“A customer recently asked us for a new business quotation in three different markets in the world, none of which was North America. But that company’s engineering centre was here in North America, so we had to co-ordinate the three other groups in Behr to respond, even though we didn't have a nickel in it as a North American entity.And so it forces us to learn how to work with our colleagues in Brazil or India or China.”

A German supplier in the US

Industry collaboration

As a German company in the US, Behr America worked hard in its infancy to

Closer collaboration is something that Bauer and Tepas have noticed not only between the

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different regions within their own company, but also between OEMs and suppliers, something they believe is essential to develop the solutions to meet increasingly stringent greenhouse gas (GHG) emissions and fuel economy targets.“Only if OEMs develop technology with their supplier from early on can they be successful,” says Bauer.

Behr’s goal is to help reduce emissions and fuel consumption, and enhance combustion in passenger cars and trucks, and in off-highway and marine applications.Tepas sees these fuel economy and GHG targets as an opportunity, rather than a challenge.“Many of these hybrid and supercharged systems increasingly require heat exchangers,” says Tepas,“and we make heat exchangers, so we're just thrilled with the idea!” Bauer adds that,“since hybrid and electric vehicles do not have an engine, they still need heat exchangers to help cool the battery, and to bring the heat or air conditioning into the vehicle.”

Projecting sales of electric and plug-in hybrid vehicles is a guessing game, but whether the market chooses to stick with ICEs, or to pursue EVs and PHEVs, Behr’s VP of Engineering is confident that Behr will be a supplier.“I would say that some degree of hybridisation or some of the technologies that seem to go into hybridisation, like regenerative braking, really have the possibility of making a difference,” says Tepas.

“But whichever direction OEMs go in to gain that extra efficiency, there's always that thermal problem.That means we're always November 2012

“

Ford and GM in particular have become increasingly globalised over the last five to seven years, and as a result so have we,” says Martin Bauer, Director and Chief Engineer of Behr America’s Engine Mounted Components division. “The challenge is to work globally and more closely together. We need to carefully identify where our customers are based,where to locate our plants and what to produce where, in order to remain competitive.

”

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engaged, no matter which technology is chosen. It’s more important that we make sure we're on top of the technology in whichever way.”

the company’s plant at Charleston, South Carolina, where the company has a test centre alongside its production and development operations.

Heavy truck

The TWT: Behr’s climatic wind tunnel

A key area of Behr America’s truck powertrain portfolio is exhaust gas recirculation (EGR) technology for heavy duty diesel applications.

“We have been doing HD applications for onhighway since 2002, to help OEMs meet the 2007, 2010 and 2014 emissions legislation,” says Bauer. Since 2011, the company has also supplied EGR for off-highway applications.

Most of its truck customers are supplied from

The highlight of Behr’s Troy facilities is the climatic wind tunnel, the largest of its kind in North America. Opened in 2004, the Troy Wind Tunnel (TWT) is large enough to accommodate any vehicle from passenger cars to buses, Class 8 trucks, off-highway and military vehicles. Bauer is visibly proud of the facility, which opened two years after the wind tunnel at Behr’s headquarters in Stuttgart.“For

Troy Wind Tunnel - specifications: Vehicle capabilities: up to Class 8 truck Adjustable nozzle

Temperature: -30C to +50C

Humidity: 0 - 95% relative humidity

Maximum speed: 120 kph (70mph) - 200 kph (120mph); car: 200kph; SUV/vans: 160kph

Roller dynamometer: all-wheel drive, front, rear and tandem; 300kW each roll, 600kW total braking performance Minimum wheelbase for tandem axel trucks: 1.3m Dynamic driving cycles

Security: card read access to all areas

Solar simulation: full spectrum 350 - 1200 W / m2; 0-70 degree tilt; cloud and tunnel simulation

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us it was important to be the leading supplier to all of our customers.We have customers in segments from small cars through to trucks and off-highway, so we felt we needed this. It’s not only the largest, it’s also the one with the most capability.”

This is Behr’s only climatic wind tunnel outside of Stuttgart.“We can do tests like thermo-cycle tests and pressure-cycle tests on a smaller scale in other facilities, in Spain and France, for example,” says Bauer.“We have also duplicated these and super-sized them in our Charleston facility for the truck side, but the largest capabilities outside Germany are here in Troy.After all, the US is our second largest market outside Germany!”

The TWT has facilities for wind, heat, humidity and water testing; and a solarium enables simulation of the sun’s light and heat from all angles.“We can also simulate snow and high humidity.All of this is important for testing the performance of our cooling and air conditioning systems,” says Bauer.“We can even pre-heat and pre-cool our vehicles.This enables us to test the time it takes for systems to start up under extreme conditions.”

Maximum wind speeds generated by the 315kW fan range from 120kph for truck testing to 200kph for passenger cars. Climate simulation is possible from -30 to +50 degrees Celsius in the wind tunnel, and -40 to +50 degrees Celsius in the soak room.The soak room can simulate conditions from -40 to 50 degrees Celsius, including vehicle exhaust facilities and wind shield defrost and defog testing. In the tunnel itself, the roller dynamometer can create up to 800hp (300kW/axle from 35kph) to simulate driving conditions.

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An adjacent building contains the soak room, acoustic lab and preparation cells.“We can fully equip all of our vehicle modules with thermocouples, strain and pressure sensors, or whatever else we need to understand how the modules perform in the wind tunnel,” explains Bauer.The cells are highly secure, with strict authorisation required even for Behr personnel.

For analysis of A/C system acoustic emissions, the TWT offers acoustic lab facilities.“There can be up to 17 or 18 flaps inside an air conditioning unit, to enable directional heating and cooling. If you want to understand how noisy those flaps are, and where the noise is coming from, we can test that here.”

For hire: one wind tunnel As well as carrying out its own testing, Behr hires out the TWT to third parties. “The wind tunnel is for our own R&D,” says Bauer, “but recently we have done testing work for different customers who rent out the facility.

Customers have the opportunity to rent out the facility completely, and some even bring their own staff and computers.” High security is part of the deal, with restricted access even for Behr staff when customers are in position. “Our customers need to November 2012

“

It’s interesting to see the different concepts of the various SuperTruck partners. Aerodynamics is very important, and the aero guys say they can achieve improvements in the area of 25%.

”

know that they can come in here and work securely.”

SuperTruck SuperTruck is a US Department of Energy (DoE) initiative, which aims to develop and demonstrate a fuel efficient Class 8 tractor and trailer, with a goal of demonstrating a 50% improvement in overall freight efficiency. Behr NAFTA is one of the partners on the SuperTruck project, working on the Engine Systems project in partnership with Navistar.

Other participants include FederalMogul, Bosch and ANL with Wisconsin Research Consultants.

“We are involved in three different areas,” explains Bauer.“One is waste heat recovery

system; secondly, battery thermal management, and thirdly, the front cooling module. Cooling is important, as it is required to be able to cool the additional heat produced by the battery, drive motors and electronics as well as the conventional engines.”

“It’s interesting to see the different concepts of the various SuperTruck partners.

Aerodynamics is very important, and the aero guys say they can achieve improvements in the area of 25%.” Bauer is keen to point out that a Behr waste heat recovery system can, depending on the system and refrigerant used, deliver savings in the area of 5-7%.“With the cooling and the front end design, we can gain another couple of percent.This is a huge saving for trucks.”

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commercial vehicle megatrends

commercial vehicle megatrends technologies with application in the heavyduty industry as well.

Recent federal fuel economy and GHG emissions standards for light and heavy vehicles have been written through a generally cooperative process.This was particularly evident in the heavy-duty fuel consumption and GHG emissions rules, which were years in the making and written through a process marked by cooperation between industry and regulators.

Driver of change or cause for concern?

Those rules are based in part on the experience of SmartWay, the long-running Environmental Protection Agency (EPA) programme to certify fuel-efficient trucks and trailers. SmartWay is a voluntary programme that has helped encourage trucking fleets to be more fuel-efficient and, in turn, encourage freight shippers to use those fuel-efficient fleets.As part of the effort to write the new fuel consumption and GHG emissions rules, SmartWay worked with industry and academia to study methods for measuring fuel efficiency in heavy-duty commercial vehicles - a far more difficult task than is the case with passenger vehicles.

The key driver of emissions standards will always be government regulation, but can legislators overcome politics to really push industry progress?

By Ian C. Graig

A

s recent Automotive World conferences in Washington D.C. and Dearborn made clear, policies implemented by regulators and lawmakers are among the many factors fuelling a drive to improve the energy efficiency of Class 7 and Class 8 trucks operating on US highways. Commercial fleets, heavy-duty vehicle and engine producers, and automotive technology suppliers all have a role to play in this effort to cut heavy trucks’ fuel consumption and emissions - as do Washington D.C. policymakers.

The clearest regulatory driver in the effort to make fleets more efficient is the first-ever fuel consumption and greenhouse gas (GHG) emissions standards for heavy-duty trucks and engines, which were finalised last year.The standards, which will affect virtually all Class 2b to Class 8 commercial vehicles with a gross vehicle weight rating above 8,500 lbs, break the vehicles into three categories: heavy-duty pickup trucks and vans, vocational vehicles, and Class 7 - Class 8 combination tractors.

Looking to the rules for combination tractors, emissions standards will take effect in MY 2014 while the fuel consumption standards become mandatory in MY 2017 after two years of voluntary compliance.

SmartWay offers a good example of how the federal government can play a collaborative and not solely a regulatory role in the effort to make fleets more efficient.Another example is the Energy Department’s National Clean Fleets Partnership, a public-private partnership aimed at reducing fuel consumption which involves nearly 20 of the country’s largest fleet operators.

Anticipation of the fuel consumption and GHG emissions standards has helped drive developments in such areas as emissions control technology, weight reduction, and aerodynamics. More stringent federal limits on criteria pollutant emissions that fully took effect in MY 2010, along with rules requiring ultra-low-sulfur diesel fuel, have also helped drive such developments.Actions by European regulators are additionally an important driver in an increasingly globalised heavy-vehicle industry.

In August, federal regulators finalised US fuel economy and GHG emissions rules for MY 2017 and later light vehicles - an action which could help stimulate additional development of ‘clean’ vehicle and engine

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The heavy vehicle industry and the federal government also cooperate on developing and testing advanced vehicle technologies through the 21st Century Truck Partnership (21CTP), a research and development effort involving four federal agencies (EPA and the US Departments of Energy,Transportation, and Defense) and more than a dozen heavy-duty OEMs and suppliers.Through its SuperTruck programme and collaborative R&D in such areas as advanced engines, vehicle systems, and tractor and trailer aerodynamics, the 21CTP programmes bring together industry, academic, and government researchers on projects where the cost is shared by government and industry.The heavy vehicle industry can also benefit from collaborative research into light vehicle technologies under the Department of Energy’s US DRIVE programme.

advocates of vehicle electrification, but budget concerns and partisan differences raise doubts about federal support for needed infrastructure investments. Recent developments highlight renewed industry interest in fuel cells, but the administration and Congress have consistently differed on federal support for fuel cells, creating uncertainty about future funding levels. Low natural gas prices and federal GHG emissions rules are fuelling intense interest in the use of natural gas in heavy vehicles, but Congress has failed repeatedly to enact incentives for such vehicles and some regulators are wary of the ‘fracking’ revolution at the heart of increased domestic gas production.Although federal GHG emissions rules have recently been upheld in the courts, they will continue to face legal challenges.

These collaborative programmes have bipartisan support in Congress, but the outlook for future funding levels is unclear as lawmakers take steps to reduce the massive federal budget deficit.This points to a broader point of concern about Washington’s role in the drive for fleet efficiency: uncertainty about the future direction of federal policies with a direct impact on the freight transportation sector. Heavy-vehicle and trucking firms are, like companies in all sectors, worried about looming decisions on taxes and spending, which have potentially significant implications for the entire US economy and thus for freight demand.They also harbour concerns about future trends in vehicle safety and emissions regulations, alternative fuels and federal R&D spending, amongst others.

Future directions in federal policy were somewhat clarified through the November 6 presidential and Congressional elections, which saw President Obama win reelection as the Republicans retained control of the House and the Democrats expanded their majority in the Senate. In light of the election results, one can expect the Obama Administration to continue using the regulatory process to advance federal rules aimed at making the transportation sector more fuel efficient.

Unfortunately, there is also a very good chance that the election results will do little to overcome the harsh partisan divisions that have characterised Washington in recent years, and uncertainty about future trends in US policy may continue well into 2013. Despite that, decisions already made by Washington policymakers, such as the GHG emissions and fuel consumption standards for heavy vehicles, will continue to play a role in the drive to improve fleet efficiency in the US.

For example, federal vehicle technologies programmes will, like all federal ’discretionary’ spending programmes (i.e. programmes for which funds must be appropriated each fiscal year), be under intense budget pressure for the next decade.The Obama administration and many members of Congress are strong

Ian C. Graig is the Chief Executive of Global Policy Group, Inc., a Washington-based research and government relations consultancy.

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issan says it has developed the interior for full accessibility for all, working closely with authorities and passenger groups to ensure maximum access into the vehicle and maximum view out of the vehicle.

London’s black cabs turn green with NV In August 2012, Nissan unveiled the NV200 London Taxi. Based on Nissan's NV200 light commercial vehicle (LCV), the NV200 London Taxi has been developed “from the inside out” to meet the city’s demanding cab requirements

By Martin Kahl

London follows NV200 taxi launches in Tokyo and New York.“Our mission is to bring vision and excitement to the three most pioneering cities in the world,” said Nissan Motor Company's Executive Vice President,Andy Palmer, at the vehicle’s launch.

With taxis being such an emblem of any major capital, why has Nissan decided to take on the taxi operations of three of the world’s biggest cities? “Sometimes taxis are an emblem, but sometimes they're an embarrassment,” Palmer tells Commercial Vehicle Megatrends.

“There are plenty of cities around the world that run second-hand unregulated vehicles, but we're working with three of the most progressive cities that see the cab as part of their brand; and as a car company, we see the cab as part of our brand. It's not something that we hide in the corner and pretend we don't make. Our brand position statement is ‘innovation and excitement for everyone’, and that is the reason that we do light commercial vehicles; it's the reason that we do cabs, Patrol, Pathfinder and mini cars.We look to operate

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commercial vehicle megatrends in at least 92% of the accessible markets worldwide, which is huge.And cab is an important part of that and one of the most important symbols of getting non-customers to experience your cars.”

The NV200 was chosen in May 2011 as the exclusive taxi for New York City, following the city’s Taxi of Tomorrow competition that saw the NV200 shortlisted along with Ford’s Transit Connect and Karsan’s dedicated V1 platform.A majority vote in September 2012 saw New York City's Taxi and Limousine Commission (TLC) officially approve regulations requiring the replacement of retiring taxis with the NV200.All newlyregistered NYC taxis will be NV200.

Palmer explains that the NV200 was developed with three goals in mind.“Originally, it was built as a global light commercial vehicle.To be a global van was already a challenge, given the Kangoo-type vehicles and car derived vans in Europe, the fact that there is almost no market in the United States, and a very specific market in places like Asia.” The vehicle needed to meet all global requirements, including width (1.7 metres wide to meet the Japanese regulations) and height (1.85 metres to comply with regulations in Spain).

“We already had these various constraints, but

at the same time, one thing that was very specific for us was disabled access. It happens that Japan’s UD (universal-design) taxi requires wheelchair access.That was easy for us to meet, and it was part of this original mix of a commercial vehicle that could be a van, a mini bus, or a combination vehicle.”

An electric powertrain was the second goal during development.“From the beginning, we needed to be able to make sure that when we put the battery underneath, we weren't going to disturb the height of the platform,” explains Palmer. Indeed, a question that faced Nissan was whether its first EV launch would be a car or LCV.“Honestly speaking, the NV200 was going to be the first electric vehicle. But if we'd launched a van as the first electric car, it would have defined the EV in everybody's mind and that's not the image we wanted to create of EV.That was why we went with the Leaf first and the NV200 second.”

London’s black cab, says Palmer, was the third target in the vehicle’s development.“I always had in mind this iconic London cab [i.e. the NV200] replacing what is out there today.That was probably the most difficult one of the whole dream, frankly, because a front wheel drive car with a 25 feet turning circle is almost impossible.About four years ago we were contacted by New York when they opened their original bid for the Taxi of Tomorrow.

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commercial vehicle megatrends Immediately, I jumped on that as an opportunity. It was a long, protracted process.There were lots of legal issues, not for us but the city, but it led to the NV200, which eventually won exclusivity on that fleet. So for the next ten years, every newly registered New York taxi will be an NV200.”

Palmer is keen to win black cab business.“You've got the three iconic cities in the world if you can get the black cab.” London’s Hackney Carriage requirements are specific and challenging, and include the famously tight turning circle, which required Nissan to re-engineer the steering and front suspension to achieve a turning circle of 7.6 metres (25ft).

“The London Taxi’s turning circle requirement is very tough,” says Palmer, “and I was told that it really needed a rear-wheel-drive car.We were working with an external engineering company and started with the rear axle.The solution involves pushing the wheels out and putting on new over-fenders, which has the benefit of making it also look a little more like a traditional London cab.

Once we found a way through the turning circle, the other modifications were relatively easy.”

The efforts paid off, and Nissan qualified for the Certificate of Conformity.“We meet all the criteria required of us, subject to the finalisation of the crash test.We’ll do it by whole vehicle type approval.That is a marker in the sand that says you can buy an LTI taxi, you can buy a Mercedes-Benz Vito, and now you can buy a Nissan NV200.We give that option and the customer will choose, and we'll argue on the basis that our cab is cheaper than LTI, with half the fuel consumption.Why wouldn't you want it? It's going to raise the game.”

London's taxi fleet carries 300,000 passengers per day, and covers 230 million miles annually. It is also responsible, says Palmer, for 20% of the city's particulate emissions.The NV200 London Taxi is powered by a “frugal” (53mpg combined) Euro 5-compliant 1.5-litre dCI turbo-diesel with manual and automatic options; this, says Palmer, makes it “50% more fuel efficient than the most economical current London taxi”, offering taxi drivers very attractive fuel savings of “upwards of £1,000 (US$1,600) a year”.The vehicle's price 16 | Commercial Vehicle Megatrends | www.automotiveworld.com

commercial vehicle megatrends has not been confirmed, but Nissan says it will be “significantly lower” than the price of the current TX4 taxi, and “substantially lower than the current rivals”, according to Andy Palmer.

If the city were to switch the entire current black cab fleet overnight to the NV200 London Taxi,“there would be an estimated annual reduction of 20 metric tonnes of particulate pollution, and 38,000 metric tonnes of CO2,” says Palmer.

Nissan believes it can steal a lead on ICE powertrain alone; but it intends to go further, offering an electric version of the vehicle. London has a target to remove older, more polluting taxis from the streets and to work with the industry to develop a zero emission taxi by 2020.“The Mayor of London set the challenge for a zero emission cab by 2020.The city can have an EV in April 2014, without waiting until 2020.”

worth it for the cab driver.To my understanding, most cabbies (taxi drivers) do about 120 miles a day.That means most cabbies should be driving an EV. What can the City do to make it easy to make that EV option? Remove the risks and hurdles, and that comes in the form of incentives, charging infrastructure and public support.”

New York,Tokyo and London are three of the 12 cities that Palmer says will soon be subject to fines if they fail to meet emissions targets.

Does Nissan have similar taxi plans for those

other nine cities? “We're talking with all of those cities. London,Tokyo and New York are iconic from a taxi point of view, and they are the easiest to talk to in terms of big statements and big fleets.We're talking to other cities, such as Hong Kong, where they use Japanese taxis today, and that’s another obvious big fleet.We're also talking to a number of fleet operators in India. India suffers with supply chain issues and power outages. Since you can use your EV car to power your house with when the power is out, there are all sorts of side benefits.And of course, we make the NV200 in India.”

Nissan is also testing EVs in Mexico City and in Sao Paolo.“We’re talking to all of the big cities around the world. But if you were to talk about cities with iconic taxis, most people would say London, New York or Tokyo, so those are the ones that we wanted to get.”

The NV200 is built in Japan, China, India, Spain, Indonesia and Mexico.The NV200 London Taxi will be built at Nissan’s factory in Barcelona; the battery and motor for the electric version will come from Nissan’s Sunderland, UK plant.

Nissan will begin testing a fully electric cab on London’s roads from 2013, as part of a feasibility study “which could see the e-NV200 London Taxi fully operational in the capital six years ahead of the Mayor's target.We have the technology and the desire to introduce an all-electric taxi which could meet the needs of real cab drivers, and is capable of taking a fast charge to top up its batteries in less than half an hour.”

The challenge of putting an electric version on the road lies not in the vehicle but in the charging system and infrastructure. Nissan has stepped up, says Palmer.“But what do we do about charging the cabs that can realistically use a 200 mile range in a day? How many charging points do you need?

How many of them are fast chargers, slow chargers?” Nonetheless, Palmer sees the launch of the NV200 London Taxi as “a line in the sand indicating the start of sustainable, zero emission mobility in London”.

The acceptance of an electric cab by taxi drivers and fleets depends heavily on the strength of the infrastructure.“I think it's 100% realistic to say we can have electric cabs in London conforming to the turning circle in 2014.The question is the mix.To move from 1% of the mix to 100% depends on infrastructure. Basically, it has to be November 2012

November 2012

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commercial vehicle megatrends

commercial vehicle megatrends Prior to now, there were no real business, government and sustainability drivers in place.

With relatively cheap fuel and the structure of the trucking industry, aerodynamic excellence was not high on the agenda. But in the last few years, high fuel prices, corporate sustainability drivers and government programmes in the United States and other areas have begun pushing heavy commercial vehicle efficiency.

Putting the smart in aerodynamics

Prior to those new drivers pushing the industry, I do not think there was a very strong focus on advanced aerodynamics. Now, much more sophisticated concepts are starting to appear, and there’s no reason why a tractor/trailer couldn't have the same aerodynamic performance as the most aerodynamic cars on the road.

With a team of Formula One specialists and aerospace engineers on its side, SmartTruck’s mission is to develop the next generation of aerodynamic designs. Commercial Vehicle Megatrends spoke to SmartTruck President Mitch Greenberg about making a simple concept the next big thing

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Where do you see the greatest drive to improve freight efficiency: the tractor OEM, the trailer manufacturer, or the fleet?

By Martin Kahl

an you please provide some background to SmartTruck?

SmartTruck is focused on the aerodynamic design of long-haul tractor/trailers. Most of our engineers have aerospace experience, including supersonic business jets and private commercial ventures. Our mechanical engineering team and many of our aerodynamic team were part of racing teams including Formula 1 and IndyCar.

efficient.We recommend our product line for highway miles.You have to have that long-haul or line-haul duty stuff.That's where you get the most benefit.

Basically we have an entry level setup that comes in at about 5.5% highway MPG improvement.That's our UT-1 system. Our UT-6 system steps up with an additional component and we're at about 7% highway

mpg improvement.Then we have a side fairing option we can put on top of that, which goes to over 10%, and we have some additional new commercial products that get us in the 12% range.

Do you feel that OEMs and fleets are doing enough to improve the aerodynamics and efficiency of their products?

Participation is fairly equal, with each party playing different roles.The fleet will demand improved performance.The customer drives the industry, and fleets will now be demanding greater fuel efficiency: they'll be specifying that as they request quotes from different OEMs for trailers and tractors.

The engineering capability and manufacturing has to come from suppliers, who have to react

Our goal, after seeing what was out there, was to design the next generation of aerodynamic products.The first generation, things like side skirts and other devices, are all on the exterior of the trailer footprint.

Our system is more integrated into the overall design.

Being a supplier puts you in a strong position to supply not only future truck products but also to improve the performance of the existing fleet. Can your products go on any trailer?

Do you get involved with tractor and trailer manufacturers at the design stage?

The first generation of aerodynamic concepts for trailers in particular have been relatively superficial.They're all on the exterior of the trailer, meaning they're all in harm's way. Many of the concepts need to be operated by a driver. I see devices that extend four feet behind the trailer.That's not a long term solution. Suspension, tyre and brake systems these are already there.You also have the driver and the maintenance team as another system to consider. If you factor all that in, you have to create a solution that integrates into the trailer’s existing systems and if possible improve systems like the brake and tyre cooling, whilst allowing access to the underside of the trailer for maintenance.As a result of all those variables, we concluded with an under-tray strategy. Our goal was to create a very rugged, durable system that has as good or better performance than anything else that's already out there, that the driver would like, that the maintenance team would like and appreciate, and that the executives in the company would like because it would deliver performance without forcing the fleet to continue to buy spare parts and work on the thing.

We're on a couple of different business models: one is as a direct supplier of parts with our undertray system and the additional systems that we will unveil throughout the year.We currently work more closely with the trailer manufacturers than the tractor manufacturers.That is partly because the trailer manufacturers have not had the aerodynamic stress; tractor OEMs have their own aerodynamic engineers, and have looked at aerodynamics far more intensely.

That will change - there will be more integration between the two parties, but I think SmartTruck is working more closely with trailer manufacturers because that's where our first commercial product line is.

Yes.The obstacle for us is if there's something underneath the trailer. If there's a toolbox, belly box or other equipment that’s already located where we'd like to put our undertray system, then we have to figure out how to navigate that. Otherwise, our systems can fit on any trailer that's out there.

Your product range involves a very simple concept, so why are these products not being fitted on every single trailer worldwide?

What are some of the headline numbers that can illustrate benefits of your products? At what speed does your product range kick in, and what are the potential savings you can offer?

Why isn't our type of system on everything?

This is a classic problem with a relatively new product. Most fleets have at least heard of us, but they were more familiar with a side skirt or another technology that's been out longer.

Until proven, we're just another one in a line of people trying to get into this marketplace with an unproven system in the minds of that fleet.

We're looking for highway speed performance, a long-haul duty cycle. By the very definition, you're looking at 60-95% highway miles and whether you're going 65mph, 70mph or 55mph, these systems are going to work. Obviously the faster you go, the more performance you'll get out of our system, but we would never recommend someone drive at 70mph to get more performance out of our system, as that will use more fuel. Slow and steady is more 18 | Commercial Vehicle Megatrends | www.automotiveworld.com

positively to increased pressure for more performance.You'll start to see more teamwork between different OEMs and that's where SmartTruck comes in: we're not a trailer manufacturer, we're a new perspective.

OEMs, particularly on the trailer side, are working with companies like SmartTruck to improve engineering capabilities by looking at what can we bring from another industry whether it's motorsports or the aerospace industry, or just simply good ideas that we can integrate into what we've already been doing well.

We have to earn the respect of the industry.

That takes time.And there's another factor: how fleets test.We've got 75 or so active customers that are switching their fleet over to our system, that run in-service real evaluations over time, over a season - 10,000 November 2012

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commercial vehicle megatrends

February 26-27, 2013 ITC Grand Chola, Chennai, India

Tickets from $292* Scan the QR Code or visit http://cvmindia2013.automotiveworld.com miles, 30,000 miles and beyond.The performance they're seeing is all consistent with what we project.When fleets, in contrast, do short-term evaluations, they do a Type 4 test on the highway to simulate some of the SAE protocols.What comes back is completely random.We don't understand why we see that, why our short term evaluation can produce anything.And the long term evaluation, in service, with dedicated equipment, produces consistent performance.

Do you sell your products only in North America or do you also have interests in other markets?

Our biggest markets are, of course, the United States and Canada.We do have a couple of requests for Mexico and have just started a programme in Chile.We've looked at China, Europe, and there's growth in Australia.We haven't created tangible programmes there yet. In some cases, there may need to be some subtle adjustments to our commercial product line up so that we can create a long-lasting solution for their trailers which have some

fundamental differences from typical trailers in North America.

The Rio+20 award certainly helped put you on a global stage as supplier of something sustainable for the future.

Has it generated additional interest from outside North America?

Yes, we were very pleased to be recognised like that.We’ve had requests from Europe, Australia and Africa, all looking to understand if our product can be applied to those trailers.

We need to do a pilot project where we can do some field adjustments.We may have to be patient as we move into the other markets, but we definitely have been studying those trailers.

Have the greenhouse gas and fuel efficiency targets that are coming in for model year 2014 and 2017 spurred on your development as a result of the benefits you can offer and the savings that need to be made?

The first wave of those requirements is aimed at tractors and engines.The trailer is not yet

20 | Commercial Vehicle Megatrends | www.automotiveworld.com

included. Our first commercial product line for trailers is not directly caught up in those first requirements. However, the programme will broaden and as OEMs look for emission credits in the form of fuel saving strategies, SmartTruck will broaden. Obviously aerodynamics is just one piece of the puzzle.

But if you can take everything to the next level and integrate aerodynamics with the vehicle’s other key systems, like the engine and the brakes, you start to get into what tomorrow's vehicle might look like.

Regulations currently only target the tractor, not the trailer. Surely by improving the efficiency of the trailer, you can help to improve the efficiency of the tractor?

Yes. It has to be looked at as a single system.

And you also may see some business model changes with the relationship of these different players. If there were some combinations of tractors and trailers that had a better integrated design concept from the beginning, you could see some significant improvements.

November 2012

Speakers confirmed so far include...

Marc Llistosella, CEO & MD, Daimler India Commercial Vehicles Anirudh Bhuwalka, Managing Director & CEO, Asia Motor Works P Kaniappan, Whole-Time Director, WABCO India Nandkumar Khandare, Vice President - Engineering, Mahindra Navistar Alfredo Meyer, General Manager - Business Development, Voith Mervin Dunn, President & CEO, Commercial Vehicle Group Norbert Dressler, Partner, Roland Berger Dr Wilfried Aulbur, Managing Partner India, Roland Berger V. G. Ramakrishnan, Vice President, Frost & Sullivan A Ramasubramanian, President, Asia Motor Works Neelkanth Marathe, Senior Deputy Director, Powertrain Engineering, ARAI Plus speakers from Volvo Truck India and many more still be confirmed.

For more details please see http://cvmindia2013.automotiveworld.com *Price of $292 based on 5 or more delegates buying before 3rd January 2013. Terms & conditions apply

commercial vehicle megatrends

commercial vehicle megatrends

Megatrends and mega opportunities highlighted at the 2012 IAA

Tectonic forces are shaping the global commercial vehicle landscape, says Frost & Sullivan’s Sandeep Kar

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he global commercial vehicle industry has found itself at a juncture where a confluence of threats and opportunities will easily induce a bipolar personality for the market. However, a different kind of bipolarity has emerged from the recent IAA Commercial Vehicles show. Step away from the dazzle of the show, and a closer examination of the industry reveals growth opportunities for commercial vehicle industry participants in the next ten years that are likely to come from two diametrically opposite poles.While sales growth opportunities will come from emerging markets (far beyond BRIC to markets as diverse as Next-11 and African countries), margin growth and growth in developed markets will manifest through focus on advanced powertrain, safety, telematics and chassis technologies.

Megatrends influencing the global CV industry Several megatrends are conspiring to influence the trajectory the global commercial vehicle industry will follow in the next five to ten years.The increase in urbanisation and its downstream implications suggest that we will continue seeing polarisation of truck classes.This is exactly why we are finding Daimler,Volvo, Navistar, Ford and other OEMs stepping out of their traditional product stables into newer territories.Volvo’s rising activities in the medium-duty truck market and Ford’s entry in the Chinese heavy-truck market are just two cases in point. Urbanisation leading to urban logistics innovation such as hub22 | Commercial Vehicle Megatrends | www.automotiveworld.com

November 2012

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and-spoke logistics and green freight movement will also drive several changes in vehicle design from powertrain downsizing to the proliferation of ultra-low GVWR trucks, from bus rapid transit (BRT) to hybridisation and powertrain electrification.

As the industry continues to face challenges from driver and technician shortage, innovative concepts such as mega-trucks and prognostics are being actively pursued.The development of new freight routes such as the Trans-Siberian road network and development of inter-modal freight movement networks imply that truck manufacturers looking at global market penetration and organic growth now have to focus on a much more diverse range of commercial vehicles than ever before.

Get connected In the future, companies that engage commercial vehicles for freight movement will demand more visibility into the transport process and more connectivity with the vehicles hauling said freight.This implies that telematics - not just location based tracking but also mobile resource management tools that manifest in the form of vehicle and driver performance monitoring - will become highly important for improving freight and supply chain efficiencies.Telematics will create new and potentially lucrative revenue streams not only for OEMs in TRIAD markets but also for emerging market manufacturers.Tata’s recent offering of telematics services in its commercial vehicles is an indication of how telematics and connectivity value propositions

are increasingly resonating with developed and developing market customers.

The rise of the global low-cost truck The global low-cost truck market is the fastest growing segment within the global commercial vehicle market, benefiting from a compound annual growth rate of 8.6% over the 2010-2017 period.While this market is being driven largely

by OEMs in BRIC markets, it is also being increasingly contested by TRIAD OEMs. However, Daimler’s andVolvo’s foray into the Indian market are not to be misconstrued as local market plays to benefit from a fledging demand for commercial vehicles in India.

However what is at play here is more strategic than just that.The entry into low-cost markets in India and China, for example, create competencies in low-cost truck manufacturing, while enjoying local market growth opportunities. Such expertise will greatly benefit and encourage these OEMs and others such as Navistar and Iveco to launch market-ready winning products as the Next-11 and African markets evolve. It will also enable manufacturers to entrench themselves further in BRIC markets and emerge as stronger participants. Finally, if local economic conditions in Europe and North America remain recessionary for long periods of time, consumers in these markets will start demanding lower cost options. In such a scenario, valuable experience and capabilities gained in the low-cost truck markets can enable TRIAD market OEMs to cater to the rising demand. In turn, this will create hurdles for emerging market OEMs that are eyeing TRIAD markets.

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commercial vehicle megatrends

The search for alternative fuels and powertrains Speedy urbanisation, coupled with greater levels of focus on sustainability and reduction in energy requirements and emission footprint, will herald development of smart cities where smart infrastructure and smart energy will emerge as key focal points for urban planners. It is thus becoming imperative for commercial vehicle industry participants to work closely with policy makers to develop solutions that can catalyse the development of smart passenger and freight mobility to respond to new needs.This is precisely why OEMs and Tier One suppliers have been found showcasing an entire range of hybrid, electric, CNG/LNG and other alternatively fuelled powertrains.An active role in policy formulation at this stage will deliver rewards as global megacities start relying more on mobility solution providers such as truck and bus manufacturers.

they are made available they will only act as bonuses or auxiliary forces, rather than being the prime mover.

wellbeing to emerge as a key focal point for truck manufacturers and suppliers in coming years.

Know your driver, know your freight

Let us also not forget to understand the nature of the freight that trucks are carrying.Trucks nowadays are cubing out more than weighing out.The share of online commerce is on the rise and the form factor of freight is changing rapidly; truck manufacturers must offer solutions that continue to support movement of freight in all its forms.

We tend to easily ignore the fact that the truck is a workplace: it is a place where a driver spends significant periods of time every day.TRIAD markets are experiencing ageing truck driver population and a strengthening regulatory environment, both of which underline the need for health, wellness and

While some of these megatrends are already beginning to show their relevance, a high degree of macro-to-micro analysis is still needed which - if done effectively for markets ranging from developed to developing, in scenarios ranging from conservative to optimistic - will offer the path of least resistance to those companies that made IAA Hanover 2012 such an interesting place to be this September.

Sandeep Kar is Global Director of Commercial Vehicle Research in Frost & Sullivan’s Automotive and Transportation team.

Another noticeable megatrend is the rising strategic relevance of the shale gas revolution in North America. Frost & Sullivan forecasts that North American Class 6-8 CNG/LNG trucks will account for 7% of total production by 2017. Moreover, the price difference between North America and various other markets globally is significant, and, as the US and Canada start shipping natural gas as a fuel to Europe and Asia, the demand for natural gas trucks will increase in lock-step, enabling several types of fleets to achieve fuel cost and emission reduction solutions that will be hard to ignore. MAN and Scania’s natural gas engines showcased at the IAA in Hanover this year show how important the natural gas powertrain is becoming to European OEMs: global energy geopolitics are being reshaped due to fracking technology implemented by the US. It was heartening to see that hybrids are not being jettisoned by OEMs under the current diesel price scenario. Frost & Sullivan analysis indicates that US$4/gallon is the price point where the US industry starts gravitating towards hybrid trucks.The previous run and momentum that hybrids enjoyed over the 2007-2008 period was triggered by a combination of tax credits/incentives and volatile fuel prices - and we saw what happened when one of those forces withered.

The advice to OEMs and suppliers, therefore, is to not rely solely on tax credits/incentives to create hybrid truck-focused growth strategies, since the impetus of this force in singularity will cause anaemic growth. Business models need to be created as if there never will be any incentives and tax-credits, so that if 24 | Commercial Vehicle Megatrends | www.automotiveworld.com

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commercial vehicle megatrends

Wade Long Interview:

Director, Product Marketing,Volvo Trucks North America

With the focus of truck design shifting ever more towards fuel efficiency and driver comfort,Volvo Trucks is striving to stay ahead of the competition whilst also maintaining a lead in the safety technology for which it is renowned. Wade Long talks to Commercial Vehicle Megatrends about the OEM's developing plans for North America

By Martin Kahl

F

rom an OEM standpoint, what do you see as the key long-term issues that will shape truck offerings in the North American heavy truck sector?

We're seeing changes in the way our customers are operating vehicles.The driver shortage in North America is real.

There’s a switch to more day cab hauling, with drivers doing slip seat operations, for example.We see a trend that could lead to day cabs becoming a larger portion of the North American market than sleepers.As the Panama Canal opens up, there are opportunities for more freight to come in via the Gulf Coast, instead of all on the West Coast.This would enable more spoke and hub work, generating more future day cab business.

So not only would the focus on cab design shift from sleeper towards day cabs, but the focus on fuel efficiency would mean that the design of the engine and transmission would also be very different for a day cab and for a sleeper running much longer distances over a longer period of time. Is that correct?

More broadly, is the industry as a whole keeping up with the technology that's required to meet this legislation?

Fuel efficiency is the primary focus of future truck designs, followed by driver productivity.

But we won't compromise fuel efficiency.

Does that affect whether or not you put something as standard on a truck?

In North America, you can spend 11 hours of a 14 hour day in a day cab. So it’s essential to ensure driver productivity, and to make sure the driver feels well rested, relaxed and comfortable even at the end of the day. Driver productivity is as important as driver safety.

That's why people look at Volvo Trucks, because safety is inherent to the product.We offer driver side airbag and Volvo Enhanced Stability Technology (VEST) - our commercial name for ESC - as standard, even on our day cab units.

The Volvo name is synonymous with safety. How does safety legislation affect truck design, particularly when you're taking into account making it fuel efficient and comfortable as well?

In Europe, the commercial vehicle sector is industry-driven, followed by regulation. In North America, the sector is regulation-driven, then the industry catches up.We [Volvo] have made safety a key factor of our business, and we want to focus on making features like the driver side airbag andVEST standard.We madeVEST standard in 2005, and only now is there talk about making this part of legislation from 2014.

OEMs have the technology.The problem in North America is that customers aren't necessarily willing to pay for all these features.

Correct.We try to look at the technologies that are most beneficial to the customer, and make them standard.The ones that can help in certain applications, we leave as optional.

Can you please talk about the impact of the FMSCA’s Compliance, Safety, and Accountability Program (CSA 2010) on your product development? You have talked about the interior of the cab being the driver's workspace. But if you've got high driver turnover, plus regulations like CSA 2010, which make being a driver even more challenging, what can you as an OEM do to help operators?

CSA 2010 is really cracking down on the operating standards of a motor carrier as well as driver behaviour. In turn, it has placed a premium on good drivers, and that's one of the contributing factors of the driver shortage.

And with CSA contributing to the shortage, that's only furthered our needs to develop driver-friendly trucks. Features like the I-Shift transmission are really driver-centric features that fleets often use to incentivise drivers but also to help retain drivers.

Has CSA 2010 contributed to the driver shortage?

To what degree the CSA has contributed to the driver shortage, we don't know. But we do know that it has had an effect on us, so it continues to help us keep those driver amenities and comforts in focus.

Notable Volvo technologies on display at the 2012 IAA in Hanover included IShift, I-See and I-Torque.That indicates a significant shift in the direction of bringing electronic technology into the job of driving the truck, with the driver becoming part of the vehicle, rather than just the driver. Is that something that you see increasing in the future?

Volvo has had the I-shift in North America since 2007 and the best thing about it is that it increases driver productivity, and makes the driver feel more comfortable at the end of the day. Drivers pay more attention to the road.

They can stay focused.And the I-shift comes with many inherent features.You mentioned the I-See programme, which is dedicated right now for the European market, but Volvo in North America uses systems like Eco-Roll, which drops the engine speed down to 600 rpm when rolling downhill, and the system actually engages automatically when it needs engine brake or acceleration. It does this all by itself without any driver interaction.And those little features help improve fuel efficiency.As of late last year,Volvo has introduced the XE packages, which are exceptional efficiency programmes with the I-shift in Volvo engines.

We're down-speeding the engine by utilising the transmission to run at 1,150 rpm at 65mph. For every 100 rpm you drop over a standard transmission, you improve your fuel

Will that shift the focus of design from long-haul sleeper cabs to ones more suited to day cab business?

Yes.You'll see efficiencies in day cabs. But driver comfort and driver amenities for those day cabs are still extremely important.

Day cabs account for 40% of the US market today, and may get up to, say, 60%, but there will still be nationwide operators, and a big demand for sleeper cabs.The four or five night trips will still be there, so fuel efficiency and aerodynamics will continue to be designed into the product from a day cab all the way through to a sleeper.The industry will continue to focus on day cabs and sleepers, but day cabs will become a larger portion of the business.

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efficiency by about 1.5%. So down-speeding 100 rpms over a traditional or overdrive manual transmission, you can save up to 3% fuel efficiency, running at 1,150 rpms at 65mph.

In North America we're integrating the engine and transmission, because this is the only situation where the transmission controls the engine. It tells the engine when to speed up, when to slow down, when to brake and when to accelerate.That integration, with the transmission taking over the engine, really optimises the vehicle.

An increasing number of column inches are being dedicated to the verticalisation taking place in the North American truck industry. In the long term, what role do you think engine and transmission suppliers will play in the development and design of a tractor?

In Europe, the industry is essentially integrated.You don't have a choice of engines and transmissions. In North America, we have great partnerships with our suppliers and there's a marketplace for different engine and transmission suppliers. However, we're going to focus on integration to help drive efficiency.

The penetration for Volvo engines in the vehicles we're building for the North American market is around 80% or higher.The Volvo I-shift is only available with Volvo engines, and at this point nearly one of every two trucks we build with a Volvo engine also has a Volvo I-shift transmission.That's strong growth for a product that's only been on the market for about five years in North America.

In terms of aerodynamics, you can create a highly efficient cab, but if it is then used to haul an awkwardly-shaped trailer, the effect of the design will be lessened.Will the GHG and fuel economy targets increase the need for OEMs to become more involved in the trailer design?

That's why today we have so many sleeper sizes: we have flat roofs, mid roofs and high roofs in our sleepers already today, and those sleepers are also available with or without roof variance.The first legislation here in 2014, greenhouse gas regulations, look at the

commercial vehicle megatrends

tractor and engine independently. In 2017, they will just make those rules a little stronger for the tractor side.We believe there will be requirements for both the tractor and trailer in the 2020 greenhouse gas regulation that will drive us to work more closely with trailer manufacturers. However, this legislation isn't written today.

different legislations globally. Ideally it would be great. It would be easier for manufacturers if we didn't have legislation globally driving different product types.

At the 2012 IAA,Volvo launched the FH, which will be available in Europe, Latin America and some other regions, but not in North America. Do you see any possibilities that in the future there might be a ‘global truck’?

Volvo produces only Class 8 heavy duty trucks in North America.As part of our Blue Power strategy, we're partnering with Cummins to produce natural gas engines.

We have a 9-litre engine available; next year we'll have a 13-litre natural gas engine available. In the near future, the 2014 timeframe, we are going to introduce a 13litre direct diesel injection engine to the marketplace, and this is a hybrid with a diesel and LNG (liquefied natural gas).

Then in the long term we're continuing to look at other alternative fuels.

One of our big promises is DME [dimethyl ether].We would like to see the industry look at alternative fuels other than just natural gas.We believe today natural gas is put on trucks because it's easily packaged, readily available and in great demand here in North America. It's a simple solution that's available right now. I think if you look at our Blue Power strategy,

Today, I would say no.The European model is based on bumper-to-bumper legislation, so the cabovers work in Europe because there are requirements for overall length laws. In North America, no state can outlaw less than a 48 foot trailer. So you can have 53 foot trailers and then there are no overall length laws.All the way up to the 1990s, all OEMs had some type of cabover; however, the marketplace chose which product they wanted by buying conventional [i.e. bonneted] trucks.The drivers choose conventional trucks because they feel safer in a vehicle with a hood or a bonnet in front of them. Until legislation drives us into bumper-to-bumper and we're going to focus on cutting through the air with these coastdown models, I find it hard to think that we'll be bringing cabovers back into North America any time in the near future.

We already do have global platforms, particularly for the powertrain.We have to have multiple technologies to meet

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What prospects do you see for alternative powertrains and fuels in North American heavy truck?

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that's how we see Volvo moving forward in North America.

What level of penetration of nonconventional powertrains are you expecting by 2020 or 2025? How deeply are people going to be interested in natural gas, hybridisation, or other alternative technologies?

Even looking at 2020, some of the industry studies are only forecasting 15% to 18% penetration. Long term, hauling heavy products will involve diesel fuel. Diesel has the best power density, it's readily available and we expect it to continue to be a major player in this industry.

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commercial vehicle megatrends

Eaton on the potential for hybridisation and natural gas in CVs Nandu Srinivasan, Director of Engineering, and Craig Jacobs, Global Chief Engineer of Systems Engineering - Hybrid Power, talk to Commercial Vehicle Megatrends about the market potential for alternative powertrain technologies in commercial vehicles

By Martin Kahl

A

t Commercial Vehicle Megatrends USA 2012, Eaton’s Director of Engineering, Nandu Srinivasan, and Craig Jacobs, Global Chief Engineer of Systems Engineering - Hybrid Power, outlined how the company can help commercial vehicle OEMs and fleet operators reduce emissions, increase fuel economy and improve powertrain efficiency.

Srinivasan’s presentation touched on several key areas, including hybridisation, powertrain efficiency and automation.A key theme of his speech was that it is no longer sufficient to just ensure the technical and commercial viability of new technologies, affordable upfront cost and short payback time; it is also necessary to ensure that suppliers and OEMs target the right technologies for their current and developing needs.

Powertrain optimisation is one of the key issues to be addressed to improve fuel efficiency, says Srinivasan.“Whatever we can do to optimise it as a system, as opposed to individual sub-systems is probably the key to improving efficiency.”

AMTs offer big improvements in fuel efficiency Transmission technology also offers significant opportunities for fuel efficiency improvements, and in terms of commercial vehicle

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Nandu Srinivasan, Director of Engineering, Eaton, speaking at Commercial Vehicle Megatrends USA 2012

transmissions,“we are one of the biggest players,” he says. Eaton’s latest offering in automated manual transmissions (AMTs), UltraShift Plus, can deliver “big improvements in fuel efficiency, and we continue to invest in that area.” In addition to AMTs, Srinivasan says the company has recently made significant investments in dual clutch technology,“which will shortly go into production.”

The use of AMTs is increasing in the North American heavy truck sector, and Srinivasan

sees considerable potential for the technology, which he believes has the potential “to turn every driver into a great driver”.

“There is so much emphasis going into driver habits, and their ability to affect efficiency,” he says.“AMTs are one way of minimising a driver’s influence on that cycle in terms of acceleration and deceleration.We only see this going up.”

Making hybrids make business sense

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“

So far, we've seen the greatest interest in hybrid technology where there is a requirement for frequent stop and start and low speed operation of the vehicle, over many hours a day of operation

”

- Craig Jacobs, Eaton

Eaton’s latest offering in automated manual transmissions (AMTs), UltraShift Plus, can deliver “big improvements in fuel efficiency, and we continue to invest in that area,” says Nandu Srinivasan, Director of Engineering, Eaton

Hybridisation is another technology on which OEMs are focusing considerable effort and attention. Craig Jacobs sees hybrids becoming an increasingly viable option in the North American commercial vehicle market.“I think that hybrids have a lot of opportunities with the continuously more stringent emissions policies in various countries around the world,” he explains,“especially in NAFTA, where commercial engines are required to go to higher, and higher levels of after-treatment and exhaust gas recirculation (EGR), which tends to reduce the fuel efficiency of the engine. Hybrids can be used to gain that back and more.And as fuel prices may increase in the future, hybrids make more and more business sense.”

The price per gallon of diesel fuel can be used to gauge - albeit very basically - the economic viability of hybridisation in commercial vehicles. Based on this, hybridisation is “already making economic sense for certain applications,” says Jacobs.“One of the rules of thumb we've been telling people recently is that every 50 cent increase in the price of diesel fuel pulls the payback period down by

one year. So a US$1 increase would be a two year decrease in return on your investment.”

As with many alternative powertrain technologies, hybrid technology is more suited to some applications than to others.

“So far, we've seen the greatest interest in hybrid technology where there is a requirement for frequent stop and start and low speed operation of the vehicle, over many hours a day of operation,” Jacobs says.

“That's what gives the best payback because you get a high percentage gain plus a lot of miles. Long-haul, you get a very low percentage gain, so it's hard to get the payback.With normal city delivery, if the vehicle is only being used a few hours a day, it takes a long time to get the payback, even if the percentage increase is very large.”

Hybrids vs NG and fossil fuel With rising fuel costs a strong factor in favour of hybridisation, any slowing or decline in the price of oil, or an improvement in the commercial viability of natural gas, could impact the take-up of hybrid technology.

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However, Jacobs is less concerned about the price of oil than he is about the increasing viability of natural gas.

“The price of oil remaining flat isn't a threat so much as a delay for us,” he explains.“I don’t think it will remain flat forever, but even if it does we are on a trajectory to get to economic feasibility in a wide variety of applications.”

More realistic competition - at least in the short to mid-term - comes from NG, he says. “Natural gas is definitely a major competitor to the hybrid value story. It's significantly cheaper than diesel fuel.

However, it's at a century low relative to diesel fuel and we don't see how that trend can maintain itself for long periods of time.

We think as the demand for it goes up, so will the price, and then its value story will weaken over time.”

Competitive it may (potentially) be, but there is still some way to go before NG becomes a genuine challenger to hybridisation. Srinivasan agrees that in terms of current engine November 2012

technology, NG could be a viable solution, but he says further powertrain development is required.“Powertrain system optimisation may be a little bit more of a challenge for natural gas engines,” he says,“especially stoichiometric spark-ignited systems.We think if there is a weak point, it is in the infrastructure. On the supply side, there are incentives in the system to make that move.

And if the supply side gets freed, then there’s probably a lot of potential for engine technology in this area.”

Although gauging the return on investment is necessarily application-specific, Jacobs cites impressive fuel economy savings.“Again, this varies by application, and by weight and class of the vehicle, and by what the baseline is. But we've seen anywhere in the world from 15% to 35% increases in fuel efficiency, and that gives a lot of value payback there.”

Srinivasan concurs.“The biggest challenge in hybridisation is the initial cost, so we are working on the affordability portion of hybrid systems.We expect that if we can get that down to about a three-year payback, the takeup will expand exponentially.”

Shortly after CVM spoke to Srinivasan and Jacobs, Eaton announced (in August) plans to develop predictive battery management technology intended to optimise the operation of hybrid electric passenger cars and commercial vehicles.The US$2.8m project is being jointly funded by Eaton and a grant from the US Department of Energy's Advanced Research Projects Agency - Energy (ARPA-E), and aims to halve the size of the

battery and improve the total performance of the system and its charge rate.Weeks earlier, Eaton had also announced a project partfunded by a US$3.4m ARPA-E grant to develop an affordable home refuelling station for natural gas vehicles, developing a production prototype for refuelling stations that will retail at US$500 around one tenth of the cost of currently available systems.

While there may still be significant gains to be made in conventional fuel and powertrain technology, Eaton’s pursuit of complementary and alternative remedies illustrates the wide and varied options open to OEMs and fleet buyers seeking to improve fleet efficiency.

Justifying the upfront investment This leads conveniently to the all-important question of whether these savings are sufficient to justify the higher upfront investment in hybrid technology compared to other available technologies. Jacobs indicates that while hybridisation already offers benefits, he expects these to increase as the technology evolves.“The key here is that the high upfront cost does have to be justified with a quick payback period, so the higher it is, the better the benefit needs to be. Eaton is working on ways to bring that down as we speak, and we expect that over the course of the next several years the high upfront cost will eventually reduce.”

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FedEx first started using Eaton's hybrid powertrain technology in 2003

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Freight efficiency: looking for the next big thing to improve margins and cut costs Improving freight efficiency can help fleets not only meet emissions and fuel economy targets, but also improve their profits. Vazir Fatehi of P3 Group North America explores some of the ways this can be done

R

ising fuel costs, fuel economy and greenhouse gas emissions targets, the rapid development of in-vehicle telematics and significant advances in powertrain technology have made improvements in freight efficiency possible and necessary. However, while continuing to focus on powertrain technology, aerodynamics and fleet management, OEMs and fleet operators have a whole host of other issues which also demand their attention.

Long-haul or short-haul?

While the general perception of the truckfreight industry is of huge tractor-trailers and semis hauling goods on expressways, the reality is quite different. Smaller trucks dominate the market and most trucking operations are, more or less, short-haul (100300 miles). Local and regional road transportation generate most of the revenue for the trucking industry and the sector remains the most versatile last mile distribution platform when compared to rail or air.

The relationship between railroads and truck lines is the most complex between any two modes of transportation - because trucks have the ability to both generate freight for the railroads and take it away from them.Trucks provide the short-haul connections between the shipper of freight and the railroad, and between the railroad and the end customer. In

The T680 is Kenworth's most aerodynamic truck ever and has received US Environmental Protection Agency (EPA) SmartWay Designation

Government regulation

addition to generating freight for railroads, trucks also compete with them for intermodal transport, as they are the carrier of choice for most small businesses.

Low-cost America Rail-freight rates, 2006-08 average, US-100

Among the consequences of a trend toward greater short-haul operations would be a switch to smaller engines with even greater reliability (to combat the added stress of short-haul), possible electrification and emphasis on technologies such as start-stop.

For long-haul, aerodynamics and rolling resistance become the major factors.

However, with government mandated reduced driving hours, and a lack of drivers wanting to take up long-haul trucking, labour rates have risen while miles driven per day have dropped.

Fatigue thus becomes a greater factor with increased length of haul - a fact confirmed by a Federal Highway Administration study that showed drivers rated light vehicle drivers as their number one safety related concern, while fatigue only made it to fifth place.

Manufacturers of trucks will have to design vehicles not just to enhance driver comfort (a long distance requirement), but also reduce driver stress (short distance priority). For example, because of their inertial momentum, trucks require greater distances between the vehicles in front of them. In moderate to heavy traffic conditions, light vehicles regularly pull in front of them using the space to ‘get ahead’.This, and other such manoeuvres, cause

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At market exchange rates 0

trucks to repeatedly brake and accelerate back up to speed, increasing road-rage and stress for everyone involved.While this may be less of an issue over long-haul routes, huge freight efficiencies would be achieved through advanced technologies like adaptive cruise control or GPS-enabled rerouting to avoid congested roads over point-to-point short haul routes.

There is always an unseen advantage in capturing such trends. If manufacturers see these trends and cater to the requirements that enhance fleet efficiency, there will be fewer standards and less regulation brought in by government.

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100

200

Italy France Germany Japan Spain Canada US India Russia China Source: Association of American Railroads *Purchasing-power parity

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At PPP* 300

400

The federal law contained in the Staggers Rail Act of 1980 saved railroads in the US from going bust. Essentially a de-regulation initiative, it lowered freight costs and improved productivity by allowing railroads to run their business as they saw fit. Not only did energy efficiency increase but, today,American railroads have the industrial world’s lowest ton-miles per dollar (see chart).This has, however, also had the effect of increasing competition for the commercial vehicle freight transport industry.

Deregulation in the US trucking industry by the Motor Carrier Act of 1980 partly freed the trucking market in a similar way to allow manufacturers to reduce inventories, move their freight faster, and be more responsive to customers. Ultimately, consumers benefit indirectly from the more efficient, lower-cost transport of goods. But in the past decade, as interstate highways became clogged in places and started to show the effects of a lack of investment, rail has become the preferred long-haul choice.Another reason for this is the huge shortage of drivers in the trucking industry. Short-haul operations allow drivers to return home at the end of a workday and hence are easier staffed. Since one freight train can carry as much as 280 trucks can, railways can help to limit the rise in road congestion by putting trailers on flat wagons for long-haul and using roads only for local pickup and

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commercial vehicle megatrends times can be ordered from distributors and shipped to a repair facility on a truck’s route or to the fleet’s home service station and replaced before the truck’s next trip. GPS-enabled realtime truck tracking enable fleet managers to ensure drivers are not taking time off during normal operating hours, or straying from regular routes.

Since most operating efficiencies have come about due to a reduction in carried inventories and just-in-time delivery, the information technology revolution has greatly improved the accuracy of shipping data and the speed with which this information can be shared. Simple innovations such as ordering freight online and thereafter schedule delivery has led to huge improvements in freight efficiency. Satellite and mobile communications technology has permitted trucks to cater to customer demand, which requires travel to diverse sites (and not necessarily fixed route systems). Load scheduling systems have allowed fleets to access thousands of freight orders per second and to assign the loads to trucks that are at different locations each day.

Innovations in the US, such as PrePass for state weight and safety compliance, and FAST for cargo release by US Customs, have reduced the time-in-transit spent by the freight.Trends such as these will only continue as fleets seek to improve efficiencies still further and reduce LTL (less than truckload) shipments.

delivery - reducing the need for long-haul drivers.

Meanwhile, regulations on longer combination vehicles vary widely from state to state within the US, reducing interstate operability.As of today there is no world standard in the trucking industry for trailer sizes.Weights and lengths of trailer sizes vary greatly between the US (80,000 lbs and 53 ft), Europe (up to 132,000 lbs and 83.5 ft in Scandinavia) and the UK (97,000 lbs and 45 ft).This complicates efforts to introduce international trade standards for last-mile distribution. Even intermodal containers vary in length, from 8ft (2.438m) to 56ft (17.07m), and height, from 8ft (2.438m) to 9ft 6in (2.9m).Again, these are different from air cargo containers specified by unit-load device, reducing interoperability.

This, of course, must, also take into account the fact that many of these trucks have vastly different purposes.A refrigerated truck transporting farm produce to supermarkets will be different from oil-tankers supplying gas stations; even the exchange of their freight between truck and loading dock will differ.

Noise regulations are also part of government-mandated targets for truck manufacturers.While primarily intended to reduce drive-by disturbance to persons outside the truck, there are also documented studies that have proven induced hearing loss in drivers that undoubtedly reduce fleet efficiencies, albeit indirectly.Trends toward smaller engines or electrification are also a step toward quieter trucks.

While most governmental regulatory effort is expended on emissions reduction, the Energy Information Administration’s 2011 Annual Energy Outlook stated that US heavy vehicle fuel consumption will increase by 25% between 2010 and 2020.With fuel prices tracing an upward trajectory, following increased worldwide demand and energy markets constantly subject to disruptions and speculation, the focus of truck and engine manufacturers should be on lowering energy costs, which ultimately translates into lower running costs for fleet operators. But efficiency is dependent on much more than just fuel-sipping powertrains. Drivers have to be trained to extract the best mileage from

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In conclusion, there is a vast amount of improvement that can be brought to the trucking industry creating huge potential in the area of freight efficiency.With moves toward short-haul, fleet operators will slipseat their drivers for optimum utilisation. For some, this can be frustrating, as they frequently have to adjust to a new truck; here, the key to freight efficiency leadership involves a combination of driver training, interface commonisation across product families and other improvements in ergonomics.

collaborative effort: OEMs bring to the table improved tractor aerodynamics, better transmissions and lubricants, and engine idle reduction, among other technologies; the aftermarket and ancillary firms offer reduced rolling resistance (wide-base tyres instead of duals, or self-inflating tyres), trailer skirts and boat-tails, reduced weight trailers and so on; input from fleet operators will come in the form of investment in IT to streamline processes, and in newer trucks to reduce average fleet age and improve operational efficiency.

Improving freight efficiency requires a

Vazir Fatehi is a consultant at P3 North America.

their trucks, using intelligent programming to help trucks ‘see’ the road in front, allowing them to increase speed, shift gears or commence braking and thereby optimise engine power utilisation.

Information technology The role of IT in improving freight efficiency is one of huge potential that has yet to be fully tapped. Freight efficiency is not just about carrying loads on aerodynamic trucks, but also about intelligent logistics to reduce the number of trucks on the road and improve cargocapacity utilisation rates and multi-use operational capability. From computerised truck idling programmes to paperless driver log systems, fleets today are deploying IT to reduce overheads for freight delivery.Trends point to remote monitoring of engine conditions: onboard diagnostics are already a generation old in the road-freight industry. Sensors and dataloggers that transmit thousands of parameters to fleet management servers enable maintenance staff to spot developing faults before they cause breakdowns, thereby reducing truck downtime. Parts with long lead November 2012

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DĂŶĂŐĞŵĞŶƚ ŽŶƐƵůƟŶŐ ĂŶĚ ŶŐŝŶĞĞƌŝŶŐ ^ŽůƵƟŽŶƐ ͙ ͙ ƚŽ ŵĂŬĞ ĞĂĐŚ ƉŝĞĐĞ Įƚ

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