RUDOLF DIESEL : 150 YEARS

No other manufacturer is as closely associated with the history of the diesel engine as MAN. After all, it was at Maschinenfabrik Augsburg – later to become MAN – where Rudolf Diesel developed the world’s first engine to bear his name. Intensive promotion of diesel technology is still part of the company’s visionary orientation. The MAN Nutzfahrzeuge Group continues to build on its diesel competence. Its range of products centers on the most modern diesel engines for commercial vehicles, autobuses, yachts and rail vehicles.

Just 150 years ago, few scientists could have imagined engines that would propel automobiles, trucks and enormous container ships all around the world. The 19th century, the era of the Industrial Revolution, was characterized by the steam engine. Its steady pounding could be heard coming from machine shops, ships and locomotives. But the end of the steam engine and its huge boiler plant was already approaching.

Rudolf Diesel was born on March 18, 1858, the son of German parents, in Paris. The young boy had a scientific leaning and was sent to Augsburg to attend the Royal Bavarian Vocational School, now the Holbein High School. Following that he studied at the Munich Polytechnic under Professor Carl von Linde, for whom, after graduating, he returned to Paris to set up a factory for ice machines. But he was more interested in building a “rational heat engine”, an idea that led to the invention of the diesel engine.

Eventually, on February 28, 1893, he was awarded a patent for an “internal combustion engine” by the Imperial Patents Office in Berlin. He wanted to find alternatives to the steam engine, which needed a lot of maintenance and only worked with efficiency of 10 per cent at the most. To achieve this he needed partners, but those he approached were sceptical. All they saw in him was a young 34-year-old engineer with an invention that aspired to take the place of the omnipresent steam engine.

But Diesel persisted until, finally, he managed to convince the president of Maschinenfabrik Augsburg of his plans. The risk was considerable, but Heinrich von Buz agreed to go ahead with the idea. Maschinenfabrik Augsburg – a forerunner of MAN – and the Friedrich Krupp company made the necessary means available: manpower and equipment, an experimental station and financial resources to get the project going.

In April 1893 already, Rudolf Diesel started setting up an experiment in Augsburg. After a number of initial difficulties a first measurement of power was performed in June 1895. But the efficiency of only 16.6 per cent was disappointing. It was not until February 17, 1897 that Diesel’s invention worked satisfactorily for the first time. The similarity with a steam engine could hardly be overlooked. The massive steel construction was three metres in height; the A-frame with the cylinder mounted on a crosshead and flywheel at the side, powered by kerosene, managed an impressive 18 hp and quite astonishing efficiency of 26.2 per cent.

Diesel’s rational heat engine thus outclassed all other forms of propulsion. It worked without an ignition device, needed no boiler plant, and no coal bunker. Compared to the gasoline powered or spark ignition engine, the diesel engine possessed three decisive advantages: it was more robust because it consisted of fewer parts; it was able to burn heavy oil, which was cheaper than gasoline; and its efficiency was far superior.


Selling success

Very soon the diesel engine embarked on its triumphal course around the world. But things would not have reached that stage without the support of Maschinenfabrik Augsburg. The engineers at the Augsburg works improved details and eliminated many teething troubles. Just after the turn of the century the engine was finally regarded as safe to operate and ripe for the market.

Initially, Rudolf Diesel showed himself to be very adroit in how he marketed his product. Worldwide licences made him a millionaire. By 1903 already, ferry boats with diesel engines were crossing the English Channel. In 1913 there were some 300 diesel-propelled ships on the world’s oceans. By 1912, co-operation with the Borsig works in Berlin had produced the world’s first diesel locomotive, delivered to the Königlich Preussische Staatsbahn.

Rudolf Diesel died on September 29, 1913, under tragic circumstances while travelling to England. He fell overboard during the night from the packet ship Dresden – something that has remained a mystery ever since.


Engines on wheels

Among fast running diesel engines it is MAN Nutzfahrzeuge that sets the pace with ground-breaking developments – direct injection, exhaust turbocharging, the most modern forms of combustion and many pioneering technologies are developed by MAN engineers.

In the early years of the 20th century MAN engineers achieved ground-breaking developments. Doing away with the crosshead, which was adopted from the steam engine, produced a substantial cut in the weight/horsepower ratio.

In 1898, Maschinenfabrik Augsburg and Maschinenbau-Actiengesellschaft Nürnberg agreed to combine their activities – the newly established Vereinigte Maschinenfabrik Augsburg und Maschinenbaugesellschaft Nürnberg AG soon afterwards became Maschinenfabrik Augsburg Nürnberg or M.A.N. In 1915 the Armed Forces Administration was pressuring the production of trucks because of the enormous war requirements. The Nuremberg works was contracted for something that President Anton Rieppel had long wanted: “MAN must be put on wheels”.

On July 12, 1915, MAN concluded a license agreement with the Swiss automobile factory Adolph Saurer and became a truck manufacturer. A diesel engine was still out of the question, because it was too heavy and its fuel compressor injection made it too complicated.

The first truck manufactured in Nuremberg went onto the market under the double name MAN-Saurer. A 37-hp gasoline engine propelled the chain drive and gate-type gear control of the solid rubber tyres on wooden wheels. Its load capacity was four to five tonnes.

After the end of World War I, the engineers at the Augsburg works resumed development of the diesel engine. The focal problem, the injection of the fuel with compressed air and the necessary high-pressure compressor, was solved by MAN technicians through direct injection. Fuel was injected straight into the combustion chamber under high pump pressure. This very much simplified the engines and their maintenance. At the same time, the way was opened for small engines and higher engine speeds.

While other manufacturers stuck to the concept of the precombustion chamber engine, MAN decided to go its own way. At the German Automobile Show in Berlin 1924, MAN presented the first diesel truck, which was soon being manufactured in small series. The four-cylinder, now produced by the Nuremberg works, delivered 45 hp at 1050 crank shaft revolutions, consumed only 200 g/hph, and was barely heavier than a conventional carburettor engine. The first customers trusted in MAN’s good reputation and its new engine design – Bavaria’s postal administration, for instance, which ordered a number of engines for its autobuses ahead of the Berlin Show.

In 1925 the MAN trucks were again among the special attractions of the show in Berlin. The most modern diesel truck was without doubt presented by MAN – engine, clutch and gearbox for the first time in a single block, and the engine power transmitted to the rear axle by a propeller shaft.

In 1927, MAN answered the demand for high engine power with a six-cylinder diesel. Multiple-jet nozzles, an optimized piston head and four valves per cylinder achieved 110 hp. At the same time, specific fuel consumption dropped. In 1930, in the course of its basic research, MAN developed the K principle with an oblique combustion chamber, air accumulator and 400 bar injection pressure. That allowed the use of a piston with a smooth head.

The master stroke

The year 1923 saw the breakthrough – fuel was injected direct under high pump pressure into the combustion chamber. The highly complex compressed-air injection by compressor was no more. Smaller engines and higher engine speeds were now possible. While competitors chose the pre-combustion chamber technique of the engineer Prosper L’Orange for their heavy-oil engines, MAN stuck to the principle of direct injection for its diesel engines.

Typical features of the direct injection diesel were undivided combustion chambers and, compared to pre-combustion chamber or swirl chamber engines, the smaller combustion chamber surface. This was accompanied by lower losses of heat and flow, resulting in less consumption and higher efficiency. Today virtually all diesel engines in commercial vehicles worldwide use direct injection.

MAN developed a series of trucks that, in a two-axled version, was capable of handling payloads of three, four, five, six and a half and – for export – eight tonnes. The year 1926 already saw the first MAN three-axle truck, extending the system of type rating to 10 tonnes. However the long bonnet still concealed a 150 hp six-cylinder gasoline engine, which was not replaced by an equally powerful diesel engine until 1932.

The three-axle heavy-duty S 1 H 6 was the most powerful diesel truck in the world, its six-cylinder engine with 16.6 liters capacity producing 150 hp – ideal for long distances and heavy loads. But the presentation of the world’s most powerful three-axle diesel came at the time of the Great Depression, which was also a difficult time for the commercial vehicle manufacturer MAN. Consequently only few examples of the impressive heavy-duty truck appeared on the roads.

Truck production did not really get going again until after 1933. The construction of motorways and various procurement programs created heavy demand. The legislature increased admissible vehicle weights – two-axled trucks may now weigh up to 15 tonnes. In 1934 MAN attracted attention through a triumph of a special kind: the International Automobile Diesel Engine Rally, conducted through large areas of the Soviet Union, was won by a vehicle with a MAN engine in the face of tough competition.

In 1937 the engine designers in Nuremberg came up with a revolutionary innovation in the spherical combustion chamber and the flat-seat jet. MAN spoke of the G principle (G standing for globe) – the eccentric hollow sphere in the piston head reduces the heat losses, the rugged flat-seat jet, offset from center, avoids the elaborate multiple-jet nozzle. More fuel burns in a short time, performance improved from the 100 hp of the forerunner six-cylinder to 120 hp.

World War II

In 1938, by order of the Army Ordnance Office, production of a standard diesel was commenced, designed by MAN, Henschel and Humboldt-Deutz. Behind this was an attempt by the Armed Forces to reduce the diversity of its truck models. MAN was called upon to produce a 4.5- and a 6.5-tonne model. But the focus in armaments was on building battle tanks – the building of trucks and buses was later halted, with the exception of spare parts in Nuremberg.

Quite apart from this production, the company continued the development of high-performance diesel engines. Together with a partner enterprise, MAN presented an air-cooled V16 diesel engine with an exhaust turbocharger that produced unbelievable 900 hp at 2200 rpm, for a sensational weight/horsepower ratio of only 1.7 kg. The 4.5-tonner developed for the forces, named SML, became the prototype of a modern semi-forward-control truck, and the basis for post-war production.

On April 16, 1945, the US Army arrived and confiscated what was left of the MAN works in Nuremberg. War damage here was especially severe. Nevertheless, at the end of 1945 already the first 4.5-tonners of the type ML 4500 rolled out of the patched up factory shops, and in 1946 the output was all of 129 units. Working away under the short bonnets of the two-axle trucks were six-cylinder inline engines, using the G principle to produce 110 and 130 hp, and consuming only 18 litres of diesel to travel 100 km fully loaded.

In 1950, MAN presented its first post-war heavy-duty truck in the F8. The nucleus of the imposing 10-tonner (10 tonnes payload) was Germany’s first water-cooled V8 diesel, generating 180 hp from 11.6 liters cubic capacity and capable of handling the heaviest truck trains. The cab was just as generously scaled as the engine, and a special design feature of the F8 was the headlights integrated in the wings.

In 1951, MAN surprised visitors to the IAA in Frankfurt by presenting the first German truck engine with exhaust turbocharging. This technology, already adopted in marine engines, locomotives and stationary diesel engines, made it possible to achieve higher power with more injected fuel, and to make better use of the energy. The six-cylinder of the two-axle MAN MK 26 was named D 1546 GT, and instead of the usual 130 hp the engineers produced 175 hp from 8.72 litres displacement, a remarkable 35 per cent more. But for the moment the turbocharged six-cylinder was a prototype – its technology showed the way for the future however, and features today in every diesel engine.(To be concluded)

Bosch Ltd.’s impressive growth despite auto market slump


Bosch Ltd., erstwhile Motor Industries Co. Ltd., the flagship of the Bosch Group in India, registered a growth of 13 per cent in 2007. It posted net sales of Rs. 42,796 million in the year growing at 13 per cent over the previous year. While profit before tax stood at Rs. 8,560 million, which is 20 per cent of net sales, profit after tax stood at Rs. 6,092 million.

Bosch’s automotive technology business saw healthy growth during the year and power tools and security systems divisions business gained considerable market share. The packaging technology business, which is also on the growth path, has a big plan to enter the pharma packaging segment.

Announcing the company’s financial results, Mr. V.K. Viswanathan, Managing Director, Bosch Ltd., said: “The year 2007 saw a significant slowdown in certain segments of the automotive market, notably tractors, two and three-wheelers and heavy commercial vehicles. While Bosch Ltd. has grown in sales by 13 per cent in 2007 over 2006, which is more than the market growth, this growth was, however, below our expectations due to this slowdown”.

In spite of mixed development in the automotive market, the company could still achieve good growth overall in the automotive OE business. The diesel business grew by 12 per cent, starter and generator business by 22 per cent and gasoline business by five per cent. New products in these businesses as well as capturing of additional market share contributed to this growth.
The Power Tools Division grew by 26 per cent and saw the introduction of 25 new tools covering all the important segments of the market. The new product ‘Blower’ was entirely designed and developed in India for the world market. After the success of the “Bosch Vahaan” last year in south India, the initiative was expanded to north India. Through this mobile initiative Bosch has been able to enhance the skills and livelihood of self-employed rural artisans in the country.
In 2007, Bosch Ltd. exported goods worth Rs. 6,730 million, which is an increase of seven per cent over 2006. The growing export market is a strong indicator of the customer confidence that the company enjoys in the overseas market.
The growth potential seen in the Indian auto market is attracting most of the global majors to set up operations in the country. India is also poised to become the hub for low-priced vehicles. Bosch sees this as a good opportunity for its business.
To further strengthen its role in India, the Bosch Group has committed an investment of Rs. 26,500 million till 2010. A major portion of this has already been invested in setting up the first indigenous common rail manufacturing facility. Apart from expansion of common rail production, money will also be invested in the manufacturing of gasoline systems components, anti-lock braking system, and electronic control unit.

Mr. Viswanathan observed: “With this huge investment in a variety of technologies and products, Bosch is committed to bring clean, safe and economical technologies to the Indian market”.

Audi goes for BASF refinish paint system

Audi has signed an agreement with BASF approving the eco-friendly waterborne premium refinish paint system “Glasurit” as its authorized refinish for usage by the company’s dealership network. Audi is thus the first car manufacturer in India to work with BASF on this globally acclaimed breakthrough product.

The BASF product – Glasurit 90 Line Innovation – provides outstanding finish while cutting down solvent emission by 90 per cent and also cutting the cost of waste disposal by 95 per cent.

Mr. Benoit Tiers, Managing Director, Audi India, said: “We have been working with BASF worldwide, and I am sure we will take the partnership to new heights by working together in India. Environmental issues are very important in this country, and we are taking a big step in this direction by combining the highest quality in after-sales service with eco-friendly solutions for our luxury cars.”

By the by, BASF’s newly launched Glasurit 90 Line Innovation is the first waterborne refinish system to be introduced in India.

Mr. Prasad Chandran, Chairman, BASF Group in India, and Head (South Asia), observed: “It is BASF’s continuous endeavour to provide hi-tech, innovative products that help our customers to become more successful in the market place. As a partner of choice, our team is looking forward to extending our best-in-class services to Audi in India.”

“We are very proud to be supplying our Glasurit products, particularly the ‘90 Line’ to Audi in India. I believe that the excellent finish and durability delivered by Glasurit will maintain customer satisfaction at a high level. With the official approval of Glasurit, we will be able to provide tangible value supporting the Audi’s after-sales service”, said Dr. D. Ramkumar, Chief Executive, BASF Coatings India.

The Coatings Division of the BASF Group develops, produces and markets a range of industrial and innovative automotive OEM coatings, automotive refinishes as well as decorative paints. BASF has a significant market shore in coatings in Europe, North America, South America and the Asia/Pacific region. In 2007, BASF Coatings achieved global sales of almost 2.6 billion euros.

BASF Coatings is among the most important paint suppliers in the country. Currently the Indian automotive industry is growing at an annual rate of 15 per cent each. Since 1996, BASF Coatings has contributed to this growth as a partner by providing its global know-how in automotive OEM coatings of all kinds. Besides India, Asia-Pacific also hosts BASF Coatings’ operations at production sites in Australia, China, Japan and the Philippines.

BASF markets a comprehensive range of automotive refinishing paint systems, focusing on eco-efficient waterborne basecoats and high- solid paints. By using these systems all legal solvent-reduction requirements can be complied with anywhere in the world, and with regard to appearance and resistance, the products meet the same quality standards as solvent-borne paints. In this area, the company offers a wide variety of services to support its customers.
For details, visit www.basf-coatings.com

Maruti Swift DZire comes with exciting new features

Maruti Suzuki recently unveiled the much-awaited Swift DZire. Like the earlier company models, Swift and SX4, the DZire too is set to redefine the market and stir excitement in the entry-level sedan segment.

The DZire, which comes both in diesel and petrol engines, offers luxury features like integrated stereo, steering mounted audio controls, automatic climate control and power windows. Safety features include dual airbags, ABS with EBD, collapsible steering column and an i-CATS anti-theft facility. Many of these features are being offered for the first time in this segment.

The Managing Director of Maruti Suzuki, Mr. S. Nakanishi said: “The DZire is the seventh model Maruti Suzuki has launched in the last three years. It has a special place in our product strategy. Millions of Indians own compact cars. With growing incomes and better lifestyle, many of them want to upgrade to a sedan. But today they are not able to find an entry level sedan that offers style, features and performance. The DZire offers all this, and at an attractive price.”

The DZire offers customers the prestige associated with a sedan, while retaining the famed performance of the Swift hatch back. The Swift had, from the start, been conceived as a car that would be offered both as a hatchback as well as a sedan.

For the 11 Maruti Suzuki engineers who worked on the design of the DZire, the challenge was to integrate the boot into the overall personality of the Swift, while imparting the elegance of a sedan. In providing a high style quotient, they have integrated the boot with just 30 km added to the car’s weight. The suspension and engine have been tuned for the sedan. As a result, the DZire has the highest power-to-weight ratio in its category. This ensures best performance and superior fuel efficiency.

The petrol version of the vehicle model comes with a 1.3 litre, 16 valve, ALTec 32 engine, with a maximum 87 bhp at 6000 rpm. The diesel version comes with the 1.3 litre DDiS engine, offering a torque of 190 Nm at 2000 rpm.

Commonising platforms is emerging as a global best practice. This enables manufacturers to minimise duplication and prevent wastage. They are able to offer more features and superior styling in car models, at an attractive price.

The DZire is the latest example. By commonising platforms, Maruti Suzuki is able to offer more features and superior styling, while keeping the price attractive. The company designers and engineers have worked to control the noise, vibration and harshness levels, thus ensuring the best in class driving pleasure and comfort.
The popularity of Maruti Suzuki cars in the A3 segment also suggests that it has successfully expanded its image from being the leader in small cars to a company offering the full range of cars. With the launch of the DZire in the A3 segment, the company is set to further widen choice for customers and increase its lead over the competitors.

MAN's annual sales of buses and trucks cross one-lakh mark

In 2007, the MAN Nutzfahrzeuge Group sold more than one lakh trucks and buses in 2007 for the first time in the company history. This was the third year in a row that the international provider of vehicles and services for the efficient road transport of goods and people achieved record results. Operating results rose by 341 million euros to 1.039 billion euros, an increase of 49 per cent. The return on sales rose from eight per cent to 10 per cent. The Truck Division alone was up 11.3 per cent.


The turnover rose by 20 per cent to 10.4 billion euros (2006: 8.7 billion euros), the fifth record increase in a row. The Truck Division sold 93,260 vehicles (2006: 79,822), with sales of 9 billion euros (+25%). Because of a drop in sales of finished buses, sales in the Bus Division fell to 1.4 billion euros. Overall, 7,349 finished buses and chassis were delivered (2006: 7,338 units). The Bus Division recorded an operating loss of 13 million euros (+38 million euros in 2006).

In Europe, the largest market for MAN Nutzfahrzeuge, demand for trucks continued to increase significantly. Registrations of trucks of over 6 tonnes climbed 6.8 per cent from 2006 to 424,000 units.

MAN benefited strongly from this and increased its market share in Europe by another 0.2 percentage points to 16.1 per cent. This brings MAN another step closer to its medium-term goal – an 18 per cent market share in Europe.

MAN Nutzfahrzeuge is the truck brand that has seen the most sustained growth in market position in Europe. Since 1975, MAN has seen its market share rise by 9.1 per cent from 7 per cent to its current level of 16.1 per cent, far outpacing its competitors.

MAN Nutzfahrzeuge’s strategy for international growth has received a boost from expansion in Eastern Europe and the CIS region, Russia in particular. The Russian economy is experiencing sustained growth, with the construction sector in particular seeing a boom not least because of the 2014 Olympic Games.
In the Bus Division, significant contracts were signed with major European cities in 2007. From 2008, traditional customer Berlin (BVG) will take delivery of 200 double-deckers and Paris (RATP) will receive 186 articulated buses from MAN. And this year the company begins the delivery of the largest order for city buses in recent years – 500 vehicles to the Arab Emirate of Dubai.

Capacity expansion

To meet the surging demand for trucks in these focus markets, MAN Nutzfahrzeuge has made timely investments in the construction and expansion of production facilities. Last summer, after 12 months of construction, one of the world’s most modern truck assembly plants went on line in Cracow (Poland). MAN Nutzfahrzeuge is investing large amounts of money in both short and medium-term modernisation and expansion with the goals of increasing production capacity for trucks to over 110,000 units this year and 130,000 units by the end of 2009 and of ensuring a flexible and optimally coordinated production network.
In its Munich location, MAN is investing a total of 190 million euros through 2012 in new buildings and machinery, in structural improvements in truck production and logistics as well as in expanding R&D capacity. In Nuremberg (Germany), the MAN competence centre for engines, 170 million euros is being invested in R&D, production and logistics through 2012, and in Steyr (Austria), during the same period, around 100 million euros is being channelled into truck assembly, cab construction and the paintshop. Investments worth 60 million euros are planned through 2012 for Salzgitter (Germany).
A significant component of the international growth strategy of MAN is the concentration on core competencies and optimisation of vertical integration. As part of this strategy, it spun off its components plant in Penzberg (Germany) in a joint venture in 2005. Another logical step was last year’s spin-off of the Gustavsburg (Germany) pressing unit in a joint venture with the Hörmann Group. Both companies are developing very well.

With its joint venture with Force Motors under the name MAN Force Trucks Private Ltd. at Pithampur (India), MAN Nutzfahrzeuge is now represented in another growth market. Last year, 500 heavy trucks in the CLA series were produced for target markets in Asia and Africa. The first vehicle for export (South Africa) was delivered in October 2007. Around 7,000 trucks will be produced there this year, and by 2010 a production capacity of about 24,000 vehicles is planned.

Bus Division restructuring

MAN Nutzfahrzeuge began the necessary restructuring of its Bus Division in order to strengthen its earning power in the medium- and long-term. An important milestone was the agreement reached with employees in January last regarding the development of the Salzgitter facility. The agreement includes the modernisation of the facility with the investment of around 60 million euros up to 2012 as well as contributions to reducing costs on the part of employees in the areas of remuneration and working hours.

In order to quickly take full advantage of synergies with the Truck Division, the complete integration of the Bus Division into the organisational structure of MAN Nutzfahrzeuge took place on February 1 last. This means that the Bus Division, like the other divisions, will be led by the Board of MAN Nutzfahrzeuge with the goal of fully and vigorously implementing the restructuring measures taken.

For long-distance buses and trucks, there are concrete plans in the areas of aerodynamics, lightweight construction, the use of high-efficiency tyres and oils, tyre pressure monitoring, the use of auxiliaries as needed, internal engine optimisation and driver assistance systems.

For city buses and distribution trucks, MAN Nutzfahrzeuge is developing reliable hybrid drives. City buses in particular offer the ideal conditions to win energy from braking power. Driving from stop to stop, they accelerate countless times, only to have to come to a stop again shortly thereafter. MAN Lion’s low-floor city bus has a deployment-optimised diesel engine that does not drive the axles directly, but instead powers a high-output generator that delivers power to the two electric motors.

MAN Nutzfahrzeuge is off to a very good start this year. The excellent order book situation of the last year has continued into 2008. The company expects a positive trend in business with continued sales growth. The consolidating European market will be increasingly complemented by very good sales in Eastern Europe and in the CIS countries, including Russia, as well as in Asia.

Technical innovation and the solid positioning of the MAN product programme ensure continued and sustainable growth. A representative survey of 400 vehicle fleet decision-makers at transport companies, freight companies, industry and trade shows that MAN enjoys the best reputation among all truck manufacturers and is the undisputed No.1 in Germany in terms of recognition and image.

With its effective sales departments both in and outside Europe and the continued expansion of its service network, MAN Nutzfahrzeuge will continue to vigorously pursue its international strategy for growth. Growth in sales will likely be driven by Eastern Europe and Asia, but at the same time the company’s market share of the truck sector in its core market of Europe is expected to rise to 18 per cent from its current level of 16.1 per cent.

Youngman to export 1,000 buses to US

Youngman Automobile Group, a prominent Chinese bus and coach manufacturer, has announced plans to ship 1,000 high quality German technology-based CNG buses to the US within the next 12 months.
Following the announcement, ZAP has been appointed as the exclusive importer and distributor of these buses within North America. Lotus Engineering Inc., the US-based subsidiary of Lotus Engineering of the UK, will be leading the homologation and US certification process, which is expected to take a few months to complete. The company expects to deliver its first shipment by the fourth quarter of 2008 under the ZAP brand.

“For the last 14 years we have been building luxury motor coaches based on German standards of quality in partnership with Neoplan, and we are No.1 in our domestic market,” said Mr. Pang Qingnian, Chairman and President of China Youngman Automobile Group. “Now for the last four years we have managed to penetrate into the international market, selling in countries like Singapore, Hong Kong, Korea, Europe and the Middle East. The US is one of the last and prize trophies for us. With Chinese-based economics and German-based quality, I believe our buses offer the best quality at half the price.”
Youngman Automobile Group and ZAP also plan to open an assembly plant to carry out the final assembly in California, creating green collar jobs for the US.
“Our meeting with ZAP and the Governor of California in October last has convinced me that this partnership goes beyond just selling buses to the US. We can leverage the skilled workforce in the US to deliver the highest quality products. We shall manufacture and produce the components for these products in China and have them assembled in the US, a business model that allows us to enjoy the best economics as well as being part of this green movement in the heart of California,” Mr. Pang added.
Depending on the final vehicle specifications, ZAP expects to price these buses between $175,000 and $230,000, typically half the price of comparable buses in the US market.
“We have spent the last six months organizing and forging a number of strategic partnership deals and really have some strong people supporting us now. In the past, we have failed to gain significant traction, but I believe we have learned and are ready to embrace these new changes. The chance to distribute this quality of buses at a competitive price would bring significant benefits to our customers and shareholders. We have already started discussions to recruit creditable distribution partners within the US, and I envision there to be significant growth potential for these buses”, said ZAP CEO Steve Schneider.
Youngman’s engineers would be working with the engineering team from Lotus Engineering to ensure the products meet the certification requirement for the US market. The team would be working on a 12-metre CNG bus as its product to hit the US market. Since this is a quality product based on German technology and engineering, officials believe the certification and homologation should be a smooth process.
Said Don Graunstadt, CEO of Lotus Engineering Inc., based in the Detroit area: “Youngman Automobile Group is a strategic partner of Lotus Engineering with a number of projects being carried out in the UK, Malaysia and China. I am proud to have a chance to assist the Youngman Group from the US. Through its relationship with Neoplan, Youngman has experience with the US homologation process. So we expect the homologation and certification for this bus will be relatively straightforward.
Youngman recently introduced advanced manufacturing technology in its facilities jointly with Neoplan of Germany. Youngman’s manufacturing is based on the ISO 9001 international standard of quality for its bus production.
The manufacturing facility in Jinhua covers an area of over four million sq. feet. Youngman employs 4,000 persons, including 700 research and development staff. With seven production facilities in process, the company expects to soon have the capacity to produce 200,000 vehicles per year, including a capacity to build 10,000 buses.

Vibracoustic to start air springs plant in China

Vibracoustic Europe will be opening its first production facility in China by the year end. Around 200 employees will then be manufacturing air springs for the Chinese commercial vehicle market in a production area covering 4,300 sq. metres in Yantai, a city with six million inhabitants in East China.
The decisive factors in favour of this location included its good connections to customers and suppliers, availability of skilled employees and its convenient position on the Yellow Sea, opposite the Korean coast. A project team is currently preparing to start up production. The capital investment amounts to around 2 million euros.
Before taking this step, the presence of Vibracoustic in the Chinese market was already established in the form of a sales office in Shanghai. “By setting up our own local production facility, we will be able to orient our activities much closer to this important market,” explained Zhichao Wang, Manager of Sales Office China.
Vibracoustic presented its latest developments in the field of air springs for buses and coaches for the third time at Busworld in Shanghai. Among other things, the company is hoping that its presence at China’s largest trade fair would enable it to establish new contacts with potential customers.
As Zhichao Wang explains, “In our capacity as technological leader in the field of air springs for buses and coaches, this trade fair offers us an excellent opportunity to inform new and existing customers about our company’s most recent developments”.
The general economic setting for this year’s trade fair was decidedly favourable as this segment of the market is characterized by an exceptionally high growth rate.

Scania foray into China’s city bus market

Scania recently delivered 25 articulated buses conforming to the Euro-4 emission requirements to a public transport company in Changzhou in the Jiangsu province of eastern China. Scania won the contract on account of its vehicle emission technology, low operating cost and long service life.
The delivery was made following the agreement between Scania and the Chinese bodybuilder Jiangsu Alfa Bus, signed in the presence of the Swedish Prime Minister and the Chinese President in June 2007.
Scania’s emission technology is based on EGR exhaust gas recirculation, which requires neither after-treatment of exhaust gases nor extra tanks with additive on-board.
Says Mr. Mats Harborn, Managing Director of Scania China: “Our convenient emission control solution appeals to Chinese customers. Getting lower exhaust emissions without the need to store and fill additives makes it easy to take a radical step towards a cleaner transport system. Scania scores high on uptime, fuel economy and service support. Combined with long-lived and durable vehicles, this is fundamental to minimise the overall operating cost – the cost per passenger-kilometre.”
In October, Scania signed a contract and is also in the process of supplying 500 city buses to Singapore, where environmental performance is a deciding factor.
China is extending its bus rapid transit (BRT) system with many projects under execution in major cities all over the country. BRT provides a quick and flexible solution to passenger transport in fast-growing regions.
In 2007, Scania and Jiangsu Alfa Bus signed an agreement to collaborate in production and marketing of buses. This is an agreement in line with Scania’s strategy of entering into partnerships that clearly define the responsibilities and obligations of the parties, according to Mr. Mats Harborn.
Alfa Bus is a privately owned company based in Jiangsu province that manufactures buses for urban traffic as well as tourist and express coaches. With backing from Scania, the company will also be responsible for marketing the Scania buses it produces.
“By partnering with Alfa Bus, we will gain increased opportunities to show the Chinese market what Scania stands for in terms of reliability, passenger comfort and low environmental impact”, adds Mr. Harborn.

Strong growth for ContiTech air springs

ContiTech Air Spring Systems was on hand at the 7th Bus World Asia held in Shanghai during March 11-14 as development and production partner for air suspension systems in the Asian commercial vehicle and bus market. At the ContiTech booth, air springs and air suspension systems for axles were showcased and details provided about the systems for cabs and driver seats.
Olaf Philipp, General Manager of the ContiTech plant in Ninghai, said that at Bus World the company tried to enhance the reputation of its brand in the Chinese market, intensified customer contacts and demonstrated its commitment to state-of-the-art technology.
For ContiTech Air Spring Systems, China is a market loaded with potential. Thanks to the upcoming major events – the Olympic Games this summer in Beijing and the Shanghai Expo in 2010 – and the resulting transportation requirements involving buses, ContiTech is expecting sales to grow in China.
Since 2005, ContiTech is producing air springs for the commercial vehicle industry in Ninghai, some 300 km from Shanghai. There are plans to expand production of air suspension systems at the Ninghai air facility.
ContiTech AG, Hanover, specialises in rubber and plastics technology in the non-tyre rubber sector. The company develops and produces functional parts, components and systems for the automotive and other important industries. It has a workforce of around 22,000. In 2006, it posted sales of more than 2.8 billion euros.
ContiTech is a division of the Continental Corporation, one of the top five automotive suppliers worldwide, with annual sales of more than 25 billion euros. As a supplier of brake systems, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics, tyres and technical elastomers, the corporation contributes towards enhanced driving safety and protection of the global climate.
Continental is also a competent partner in networked automobile communication. Today, the corporation employs approximately 150,000 people at more than 200 locations in 36 countries.

Volvo launches BRT bus in China

Volvo Buses has launched its BRT Volvo 7800 bus in China. Currently, there is a strong environmental focus in China prior to the Olympic Games and later the World Expo in Shanghai. In addition, Volvo’s Chinese company Sunwin has received an order for 395 city buses for use in the Olympic city of Qingdao.

Volvo Buses launched the Volvo 7800 articulated bus at the recent Busworld in Shanghai. It is an 18-metre-long low-floor bus with a nine-litre engine mounted on the side at the front of the bus. The chassis Volvo B9SLA, with a different body, is being used with great success in the BRT system Transantiago in Chile, where Volvo has delivered more than 1,500 such buses.

Bus Rapid Transit (BRT) is a solution for traffic problems in many of the world’s cities. It involves creating bus-based transport systems using buses with high passenger capacity, bus models and stations that facilitate rapid on and off-loading and a traffic solution in which buses have priority.

Increasingly more BRT systems are being built in China, and Volvo’s new bus is suited for such traffic. It can carry 160 passengers, has four wide entries and a low floor through the entire bus to facilitate on and off loading.

Most of the chassis is delivered as assembly kits from Volvo’s central chassis plant in Borås, Sweden. Local components are added and the chassis is assembled in Sunwin’s plant in Shanghai, where the body is also produced. The body is basically the same as used in Volvo’s Chinese 12-metre buses, but the front and rear are new and the interior is fitted to suit articulated buses.

The city bus company, Sunwin Bus, is equally and jointly owned by Volvo and the Chinese partner SAIC. The company builds city buses on Volvo chassis that are sold under the Volvo brand as well as on local chassis whereby the buses are sold under the Sunwin name.

The company has now received an order for 395 Sunwin buses for delivery to Qingdao City where the Olympic sailing competitions will be decided in the autumn. The buses, which are 10.5 and 12 metres in length, will be built at the Sunwin plants in Qingdao and Shanghai and delivered in the spring.

Allison transmissions maintains leadership in China

Allison Transmission, the world’s leading supplier of commercial duty fully automatic transmissions for buses and trucks, has once again announced record transmission sales into the global city bus market. With more than 14,000 units sold into this fast-growing sector worldwide, Allison is poised to further strengthen its position as a global provider of standard and hybrid transmissions within the bus sector.


The No.1 provider of automatic transmissions in China, Allison is now the transmission of choice for Japan’s Isuzu and Hino large city transit buses and is fast becoming a dominant force in the hybrid market in Europe. Other markets are following too with significant orders in markets traditionally dominated by manual transmissions, such as Eastern Europe and Asia.



With over 10,000 Allison-equipped buses now operating in Beijing alone, the company has maintained its strong position on the Chinese market, making the most of the country’s burgeoning economy and the need for better public transport links. “China is a busy marketplace for Allison. Still No.1 in the commercial duty automatic transmission industry, our success reflects China’s overall speed of growth as well as our continued efforts towards building good relationships with end users and OEMs. We remain the primary automatic brand in China, renowned for outstanding quality, reliability and durability,” says Paula Chen, Sales Manager at Allison in China.



In the wider Asia region, Allison is bringing the benefits of automatic transmission to a largely untouched market, still almost entirely populated by manual transmission equipped buses.



“We view the Asia market as a great opportunity for Allison. With manual transmission still very much the norm, we are in an ideal position to showcase and demonstrate the benefits of our automatic solutions to a very receptive audience. Governments in this region are investing heavily on more efficient and modern transport infrastructures. Allison is well-paced to make the most of this opportunity for market growth,” explains Ashwin Gopalaswamy, Allison Marketing Manager for Asia.



Already it is the de facto choice of transmission in Japan’s Isuzu and Hino large city transit buses. Additionally, it is able to reach into territories such as South-East Asia and Australia due to its relationship with OEMs in China, Japan and Korea who export to these countries.



Allison is also experiencing particular success in India, recently acquiring an order for 500 state-of-the-art low-floor, CNG-propelled buses supplied to the Delhi Transport Corporation (DTC) marking Allison’s largest bus order in India to date.



Responding to environmental concerns and government legislation across the region, Europe is embracing the need for hybrid transmissions to create a cleaner, more efficient public transport system. Launched in October 2006, Allison’s hybrids are already gaining popularity following the success in several cities in Germany and Switzerland as city after city introduces the technology to its public transport infrastructure.



In addition, Allison is maintaining an active presence across Europe with its successful range of Torqmatic bus transmission products, including important sales in Bratislava, Slovakia and Warsaw, Poland. “The hybrid market continues to grow as the demand for more environmentally friendly public transport spreads throughout Europe. Our latest success brings hybrid technology to Bochum, the third city in Germany to opt for hybrid buses, and to Istanbul – an important region that opens up the gateway to North Africa and the Middle East markets. With our continued growth in Russia, this promises to be another good year for Allison Transmission in Europe”, says Manlio Alvaro, Allison Marketing Manager for Europe.



In North America, Allison’s hybrid technology has enjoyed a record-setting year. So far, the Seattle King County Metro Transit Authority has made the biggest commitment to the system, ordering 500 of the hybrid buses. In 2007, more than 400 GM-Allison hybrid-powered buses were produced, with 360 units delivered to 36 cities – the highest annual totals since deliveries began in 2003.



South America has already embraced the benefits of fully automatic transmissions, and 2007 continued the upward growth in the bus sector. “Buenos Aires has 100 per cent fitment of automatic transmissions in their city bus fleet. Productivity is key for the fleets, together with low cost of maintenance, passenger safety and availability of buses”, says Allison’s South American Marketing Manager, Cesar Farinelli.



Allison enjoys strong relationships with local OEMs such as Encava, Daimler Argentina, Agrale, Tatsa and Materfer. The relationship is equally strong with the operators. DOTA has the largest fleet in Argentina of over 2000 buses using Allison transmissions. This proves that the benefits are equally applicable to the OEM and the operator alike.



The two-mode hybrid technology in the GM-Allison Hybrid EP-System has served as the starting point for General Motors’ co-development with DaimlerChrysler and BMW Group of the two-mode hybrid system for passenger vehicles.



Allison Transmission is the premier global provider of commercial duty automatic transmissions and hybrid propulsion systems. Its products are specified by over 250 of the world’s leading vehicle manufacturers and are used in many market sectors, including bus, refuse, fire, construction, distribution, military and specialty applications. Founded in 1915, the Allison business, headquartered in Indianapolis, and employs 3,600 people. Regional headquarters with dedicated support staff are located in China, the Netherlands, Brazil and Japan. With a global presence in 80 countries, Allison has over 1,500 distributor and dealer locations. It generates annual revenues in excess of $2 billion.

BRT with low-floor buses proves faster, more flexible

Metropolises like Beijing are growing fast. Traffic jams and smog are the order of the day. For two years now, traffic planners in Beijing have therefore been using Bus Rapid Transit (BRT) based on low-floor buses equipped with ZF technology.



The benefits of the traffic concept are shorter implementation time, less space requirement at bus stops and greater flexibility. And often, this goes hand in hand with lower total costs compared to systems with platform bus stops. The benefits have been well recognised by many other cities worldwide like Istanbul, Teheran, Seoul, Santiago, Barquisimeto and Sao Paulo.Beijing was the first city to put a BRT bus line into service in 2006. Since then, approximately 10 more cities like Hangzhou have joined in.



The BRT concept with low-floor buses is implemented consistently everywhere: extra bus lanes, high frequencies and short dwell times at bus stops. Almost 90 state-of-the-art low-floor articulate buses are running on the roughly 16 km long north-south line in Beijing. They transport up to 160,000 passengers to their destination every day.



The use of low-floor buses enables level access for getting on and off the bus, also known as one-level boarding. The passengers can move through the bus quickly via the central corridor which is also free from platforms and steps. Thus, in Beijing, it is possible to achieve dwell times at bus stops of only about 16 seconds. In combination with extra bus lanes on the roads, the BRT line can serve the 17 bus stops in a three-minute cycle during the rush hour even in a 50-second interval.




Only 25 months’ planning, including all construction measures, and an investment cost of only $4.6 million per km were required for line operation in China’s capital. The time, effort and expenses were rather much less, mainly because it was not necessary to plan and build space-intensive platform bus stops.
ZF provides bus manufacturers worldwide with the technology for these low-floor buses. Mercedes-Benz, Setra, MAN, Neoplan, Scania, Volvo and many others are banking on ZF’s low-floor axle systems just like King Long, Dongfeng, Huanghai and Yutong.




In addition to the RL 85 A front axle, the AV 132 and AVN 132 portal axles as well as the RL 75 EC low-floor independent wheel suspension are made by ZF.
These products not only allow for low-floor technology but also ensure better manoeuvrability and handling, more driving and ride comfort, as well as increased safety. When combined with the automatic 6-speed transmission Ecomat 4, fuel consumption and emissions can be considerably reduced.




Beijing’s traffic planners are convinced of the BRT concept with low-floor buses. This year, and in time for the Olympic Games, two additional BRT lines will be put into service, also with low-floor buses. This shows that the low-floor concept is heading in the right direction.

Busworld Asia 2008: Showcases China's technological might in bus manufacturing


- By K. Gopalakrishnan
It is no exaggeration to say that China could well emerge the bus manufacturing hub of the world. It was my second visit to Busworld Asia held in Shanghai during March 11-14, and I could see vast improvement in the quality and design of buses manufactured in China. An annual event held in Shanghai, Busworld Asia is organised by BAAV, which arranges the world’s biggest exposition for buses. The parent event is held in Kortrijk (Belgium) once every two years.

Although held every two years, the organisers of Busworld Shanghai decided to make Busworld Asia an annual event in view of the size of the Chinese market and its growth. This year’s event attracted participation of 300 companies. Coinciding with the Busworld Asia, the Asian Coach of the Week was also held. As many as 25 major bus manufacturers from China competed for this prestigious award. A team of professional journalists and technical experts judged the buses on various parameters and gave the final award for different categories. Higer, a prominent Chinese bus manufacturer, won the coveted award for the Coach Manufacturer of the Year.

China’s bus industry has been growing fast in the last few years. However, it is very difficult to get the exact production, sales and export figures. One has to rely on the information provided by the vehicle manufacturers. Based on the current production and sales of China’s 70 bus manufacturers, growth in this segment is expected to be far better than last year. Expansion of both rural and urban public bus transport as well as encouraging exports are the major growth drivers. China is in fact exporting to all major markets like the US, Russia, Australia, the Middle East, Africa and even to mature markets like Europe.

Further, China’s urbanisation rate is projected to increase from 30.4 per cent in 2000 to 45 per cent by 2010. Based on the estimated one bus per 10,000 people in cities, the total city bus population will reach at least 630,000 by 2010, registering an annual increase of 30,000-40,000 buses. If replacement is also taken into account, the number of buses will increase annually by 55,000.

Taking the Beijing public transport as an example, the number of public buses increased from 17,000 vehicles in 2005 to about 23,000 now. Beijing has invested RMB3 billion for public transportation for the forthcoming Olympic Games, involving more than 4,000 public buses. The proposed World Expo in Shanghai will undoubtedly encourage development of public buses in Shanghai.

Currently, most of the vehicles plying on Chinese roads comply with the Euro-III emission norms. All public vehicles will be required to conform to the Euro-IV standards by 2010. This would stimulate upgrade and renewal of a large number of buses in urban areas. With a steady inflow of both domestic and international capital, key bus factories will continue expanding, all the while creating a stiff competitive city bus market.

Bus Rapid Transit

Beijing has successfully adopted Bus Rapid Transit (BRT), a traffic concept based on low-floor buses. The benefits: shorter implementation times, less space requirements at bus stops and more flexibility. And often, this goes hand in hand with lower total costs, compared to systems with platform bus stops.

Beijing has already had China’s biggest bus fleet – over 20,000 units. To these will be added some 1,300 low-floor articulated buses to operate on a growing BRT map. Indeed, Beijing has moved quickly since making the decision to go the BRT route back in 2005. In 2006, Beijing was the first city to put a BRT bus line into service. Since then, approximately 10 more cities have joined in.

The BRT concept with low-floor buses is implemented consistently everywhere: extra bus lanes, high frequencies and short dwell times at the bus stops. Almost 90 state-of-the-art low-floor articulate buses are running on the roughly 16 km North-South line in Beijing. They transport up to 160,000 passengers to their destination everyday. The use of low-floor buses enables – as the name already suggests – level access for getting on and off the bus, also known as one-level boarding. The passengers can move through the bus quickly via the central corridor which is also free from platforms and steps. Thus, in Beijing, it is possible to achieve dwell times at bus stops of about 16 seconds. In combination with extra bus lanes on the roads, the BRT line can serve the 17 bus stops in a 3-minute cycle, during the rush hour even in a 50-second interval.

Only 25 months’ planning, involving an investment on construction of only $4.6 million per kilometre, was required for line operation in China’s capital. The time, effort and expenses made were rather low, mainly because it was not necessary to plan and build space-intensive platform bus stops.

Bus market competition hots up

The Chinese Government has decided to invest RMB100 billion for the construction of rural transportation network to help villages have access to highways in the next five years. Based on this, economy and medium-sized buses which are suitable for urban and rural transportation and buses which are 6-8 metres long and suitable for rural areas are in demand. With the rapid economic development in China and the forthcoming Beijing Olympic Games, Chinese bus manufacturers are preparing themselves for stiffer competition. Some like Higer, Yutong and King Long have upgraded their parts and accessories, as well as production lines. They are also keen on developing the bus export market. The other bus makers are busy adding to the variety of their products.

Xiamen King Long United Automotive Industry Co. Ltd. expects its exports to double to 10,000 buses this year. King Long sold nearly 30,000 in 2007 compared to 24,000 units in 2006.

Competitive pricing has helped China’s models sell well in overseas markets, especially in Russia and the Middle East countries. China’s major bus makers like the Yutong Group and Zhongtong Bus Holding Co. Ltd. enjoy growing overseas demand, with their offer of 30-50 per cent lower cost as compared to models from global rivals such as Volvo AB and DaimerChrysler AG’s Mercedes-Benz. In the process, domestic competition among almost 100 manufacturers is getting intensified. China’s bus makers sold a combined 225,000 units last year compared to 191,000 units in 2006.

With Mercedes, Volvo and MAN having set high standards in product design, technology and service, Chinese bus manufacturers have constantly raised their product quality to such an extent as to prompt companies like Scania to sign contracts with many of them.

Interestingly, India could well be the next stop for Chinese bus manufacturers. Next to China, India has the largest potential for bus market expansion, given its huge population. The only Chinese company which has an Indian connection is King Long which has a tie-up with JCBL. If media reports are any indication, more tie-ups are in the offing. For instance, Ashok Leyland is reportedly working with Foton, a major bus manufacturer in China for city buses. Truck major Asia Motorworks (AMW) has been working with FAW of China for truck cabins and components. The company has already announced plans to enter the bus market and may join hands with a Chinese manufacturer for the bus project. A few more Chinese bus manufacturers are also aggressively scouting for partners.

Currently, Indian companies like Tata Motors and Ashok Leyland do export buses, but they are more Vanilla products for use in public transportation in the Middle East and African countries.

Effective fleet management in transport industry



- By Sameer Malhotra, Country Manager, Ritchie Bros. Auctioneers



Transportation companies are no different from companies in any other sector: most of them are focused on improving their profit margins by reducing costs and maximizing revenues. Transportation companies have little control over business costs, including labour and fuel costs, but have significant control over the cost of maintaining their truck and equipment fleet. Around the world, trucking companies are recognizing the importance of effective fleet management. Buying and selling the right trucks at the right time – and through the right channels – can have significant impact on the bottomline.

The most efficient fleet is one that is operating at maximum productivity with minimum cost. So the most important decision is what kind of truck to buy: new, late model or older? Buyers pay a premium for brand new trucks direct from the manufacturer or dealer, but truck values depreciate fastest in their first few years and thus lose their resale value.

A 2007 model truck is relatively new in the middle of 2008, but as soon as the 2009 model trucks are released, the 2007 model is effectively two years old. All of a sudden, buyers aren’t willing to pay as much for that truck as they might have been just a few months earlier.

A good, well-maintained truck is a viable alternative to a new truck, offering similar benefits in terms of reliability and cost of operation, but without the initial depreciation. The key point is to look at the condition of the truck rather than its year model since it gives a better indication of its true value.

When to sell

The next most important decision to make is when to sell. An increasing number of companies recognize that an idle truck that generates no income is actually costing them money. Keeping an idle truck in your fleet does not make economic sense. You want to have enough trucks in your fleet to get the job done, but not so many that you have equipment lying idle.

At the same time, keeping trucks and other transportation equipment beyond their useful life makes just as little sense. The longer you keep a truck in your fleet, the greater the cost of maintenance added up. Ongoing maintenance to keep a truck in running condition, wear and tear, storage, insurance, licensing and interest on outstanding loans are all costs that can be minimized if you sell your old trucks at the right time. If you wait too long, your truck will have little or no resale value at all.

Transportation companies that are committed to maintaining an efficient fleet look carefully at the cost of maintenance of their trucks. They take into consideration the purchase price, the cost of maintenance and the potential resale value after one, two or more years, and then decide on the ideal time to sell. Many companies have discovered that the key to successful fleet management is planning ahead, rather than waiting until a truck has passed its useful life and can no longer be sold.

Another major consideration for many transportation companies is environmental regulations. Laws intended to reduce the impact of emissions from trucks and cars are in force. As a result, transportation companies are turning over their fleets more frequently than in the past, in order to keep their fleet compliant to emission standards. That means more used, late model trucks on the market, and a significant opportunity for buyers in regions with less stringent regulations in place.

Efficient channels

Timing is an important consideration in effective fleet management. But how to buy and sell trucks is probably the most crucial decision that a transportation company can make. Whether you are selling trucks as part of a fleet upgrade, or in an effort to reduce the size of fleet, you want to make the best deal possible, regardless of whether you’re selling one truck or a few hundreds.

Trucking companies have several options when it comes to selling their trucks: they can sell them privately, sell them to a used truck dealer, use the services of a truck broker or send them for auctioning.

Selling privately is one of the most popular methods. Many people assume that this is a cost-effective means of selling, but the opposite is often true: the seller is responsible for cleaning and preparing the truck for sale, making any necessary repairs, advertising, meeting with any prospective buyers and then taking care of the financial transaction. The entire process can take weeks, even months, with no guarantee of a sale at the end. You are limited to the local region for potential buyers and any time spent on selling equipment is time spent away from your core business.

Used truck dealers advertise and show your truck to potential buyers; they can usually do repairs and arrange financing and some type of warranty for the buyer. Dealers will either charge a commission or buy the truck outright and keep all proceeds over and above what they paid you.

Brokers act as a go-between for sellers and buyers, and can facilitate a relatively quick sale. They take a commission for matching you up with a buyer, but won’t assist with things like title transfer for financing.

Used truck dealers and brokers take a lot of responsibility for the sale away from the seller, but both charge a premium for their services.

Unreserved auctions
An increasing number of people are discovering that auctions – specifically unreserved auctions – offer one of the most efficient means of buying and selling trucks. At an auction, a wide variety of used and unused trucks and other equipment from a number of different owners is gathered and sold in one location, providing a convenient “one-stop shop” for transportation companies intending to buy equipment.

There are generally two types of auctions: unreserved auctions, in which there are no minimum bids or reserve prices, and auctions with reserves, in which the seller sets the minimum selling price. Unreserved, or absolute auctions are one of the fastest and most efficient channels for buying and selling trucks and other industrial equipment.

When they choose to sell by unreserved auction, owners know that their trucks and equipment will be sold on a certain day. This enables them to plan ahead and manage their fleet more effectively by maintaining the optimal number of trucks at all times. They can also focus on their core business and let the auction company advertise, market and sell their surplus assets.Buyers come to an unreserved auction knowing that every item would be sold to the highest bidder on auction day, regardless of price. They know that if they are the highest bidder, they will have a new truck or piece of equipment they can put straight to work as soon as they have paid for it. Best of all, they know that they are paying fair market value for the item – not the price set by the owner or his agents. That is why unreserved auctions typically attract a number of potential buyers.

Ritchie Bros. auctions

An increasing number of transportation companies are using unreserved auctions to facilitate effective fleet management – and thousands of them are turning to Ritchie Bros. Auctioneers, the world’s largest auctioneer of trucks and industrial equipment. It has 50 years of experience in the auction business, a global network of offices and auction sites, an annual calendar of more than 350 unreserved auctions, and a proven record of conducting fair, transparent auctions, with no reserve prices and no buy-backs.

A Ritchie Bros. auction is unlike any other auction in the world. At each industrial auction, an average 1,400 lots for the transportation, construction and other industries are sold. The large selection of equipment and the knowledge the bidding process is fair and transparent attracts hundreds, even thousands of registered bidders on the auction day. Bidders are willing to travel a long way to attend an auction, and the auctions have become known for the large numbers of international bidders they attract. This helps sellers achieve global fair market value when they are selling their valuable assets.

If you’re looking to manage your fleet more effectively, contact Ritchie Bros. to find out more about the benefits of buying and selling trucks and other transportation equipment at an unreserved auction. Check out the large selection of transportation equipment items available in upcoming Ritchie Bros. auctions around the world at
www.rbauction.com/transportation. Ritchie Bros. Auctioneers is the world’s largest auctioneer of transportation and industrial equipment, having sold more than $3.18 billion worth of equipment at more than 350 unreserved auctions around the world in 2007. The company sold more than 17,000 used and unused transportation units during the year, including truck tractors, trailers and related equipment.

Ritchie Bros. has more than 110 locations in over 25 countries, including India. The company conducts auctions at its 38 full-service auction sites, including sites in Singapore, the United Arab Emirates and Australia, as well as many offsite auctions. It intends to conduct its first unreserved industrial auction in India before the end of 2008.

For details, contact: Sameer Malhotra, Ritchie Bros. Country Manager, email:
smalhotra@rbauction.com

Punj Lloyd buys used trucks at Ritchie Bros. auctions
Headquartered in New Delhi, Punj Lloyd Ltd. is India’s second largest engineering construction firm, with operations in Asia, the Middle East, Eastern Europe and Africa. As Punj Lloyd’s President of Plant and Equipment, Mr. Sandeep Garg is responsible for ensuring that the company has the right equipment to support its global operations, which entails purchasing equipment worth millions of dollars each year. For most of Sandeep’s 17 years with Punj Lloyd, the company relied on two sources for its equipment needs: manufacturers and dealers.

“India’s used equipment market is not mature,” explains Mr. Sandeep. “The construction and infrastructure industry is booming, so people aren’t selling their equipment – they’re using it. That makes it very difficult to find good quality, used equipment in India.”

Mr. Sandeep was accustomed to sourcing used equipment from outside India, but did not attend his first unreserved Ritchie Bros. industrial equipment auction until 2003.

He says: “I had never considered buying equipment at an auction before. I attended a few Ritchie Bros. auctions as an observer. I wanted to understand the bidding process and to ensure that the operations were transparent, with no insider bids. I wanted to make sure that it was a real market scenario, with the price being set by legitimate bidders. Only then did I register to bid.”

Mr. Sandeep placed his first bid in 2003 at a Ritchie Bros. auction in Dubai, and has since purchased millions of dollars of equipment at unreserved Ritchie Bros. auctions around the world. He now attends three or four auctions per year, most often in the Middle East and Europe. What keeps him coming back? The fairness of the bidding and buying process, and the knowledge that he can find the equipment he is looking for – and put it straight to work.

He observes: “Ritchie Bros. auctions are amazing. The selection of equipment is incredible, the pace of the auction is fast, and the whole process is very fair and efficient. I know what equipment will be sold, I can inspect it before the auction and, if I am the successful bidder, the equipment is available right away. That is of critical importance to a construction company like Punj Lloyd. If Ritchie Bros. has the specific equipment we need, I would certainly buy through them rather than from a dealer or another auction company.”

Although he is willing to travel a long way to participate in an unreserved Ritchie Bros. auction, he is pleased that Ritchie Bros. has opened its first sales office in India, with the aim of conducting its first auction in India sometime in the country soon.

“India’s construction industry is growing at a fast rate, and there is a great need for good quality used equipment”, Mr. Sandeep adds.

Lohr to launch car and truck chassis carriers in India

With its workforce of more than 2,500 people and its main plant in Strasbourg and manufacturing presence in the US, Turkey, Mexico, Russia and China, LOHR is a world leader in the design and production of equipment for vehicle transportation, from cars to heavy trucks. It keeps developing solutions for vehicle transportation and logistics dedicated for all south Asia, especially for India.


With its latest venture, LOHR India Auto Transport, the group is introducing two new transport equipments to meet the Indian road and logistics industry requirement with the latest design and technical features. The robust SRTC India model will help the market in discovering solutions for transportation of new heavy vehicles like trucks, bus chassis, tractors, earth-moving and excavation equipment and all types of commercials.

The company’s semi-trailer is designed to maximise transport of heavy duty vehicles like tractors, truck chassis, bus chassis, and all other types of heavy commercials. Alternatively, the equipment can also carry light commercials, SUVs, 4x4s, cars and lifting platforms operated by hydraulic cylinders with special locking devices.
The model chosen for the Indian market is SRTC 3-T. This trailer is designed to maximise transport of all types of cars, SUVs, 4x4s and light commercials. It is fully covered with sliding armed tarpaulin to ensure safety and protection to the loaded products as well as personalised branding.
The trailer has tracks of perforated non-slip metal plating enabling wheel-chocks and wheel straps anchoring every 50 mm. It has frame with external beams and bolted sides. The upper platform which is the main deck is adjustable by screw lifting systems driven by hydraulic motors.
In the lower position, the lifting platform is articulated at the front of the running gear and is adjustable by two hydraulic cylinders with manual locking. With driving tracks on the bottom of the chassis. It has loading ramps with driving tracks and dedicated storage in the back chassis. It has also a special set of ramps for bus chassis loads and vehicles sensible to loading angles.

Foundation laid for Apollo’s OTR tyre plant

The foundation for an exclusive off-the-road (OTR) tyre production facility was recently unveiled by Mr. Onkar S. Kanwar, Chairman and Managing Director, Apollo Tyres Ltd., at the company’s flagship manufacturing unit in Limda. This marks the beginning of Apollo Tyres’ entry into the OTR segment, with an initial capacity of 10 tonnes a day in the first phase of the project, to be scaled to 60 tonnes a day over the next three years.


Mr. Kanwar said on the occasion: “Buoyancy in the mining and construction industries globally has led to a demand-supply gap in OTR tyres, including in India. We will begin production with the conventional cross-ply tyres which are used in India. Over the next two-odd years, we will manufacture radial OTR tyres which are currently not produced in India. Various earthmover equipment manufacturers have shown eagerness to get into agreements with us that allow them exclusive access to our OTR production.”
The first set of tyres is expected to roll out in the next 15 months. The sizes produced here will begin from 25 inches (diameter) and go up to as much as 57 inches. The first phase will entail an investment of Rs. 1 billion, primarily for production of cross-ply OTR tyres. Additional investments will be made for radial production.
Radial OTR tyres are currently imported in India primarily in the size range of 50 inches and higher for vehicles used in the mining sector.
Apollo Tyres will also launch the Endurace premium radial tyres for heavy commercial vehicles later in the year to complement the company’s existing radial range in the category of Duramile for light commercial vehicles and the Regal Transport for medium heavy commercial vehicles.
Endurace is currently undergoing extensive road tests in India, South Africa and the UK to ensure product suitability for the export market. While it will cater to the newer generation of commercial vehicles in India, the use of tubeless radials in the country is still very low.
A predominantly cross-ply usage market, India is currently witnessing what is being called the “second radial revolution” – this time in commercial vehicles as opposed to the earlier passenger segment. On a small base, the replacement market in commercial radials is currently growing at 45-50 per cent every year. In the replacement market radial tyres constitute about nine per cent, compared to around two per cent in 2005. However, OE fitment of these tyres continues to be at a low of less than one per cent.
To cater to the special needs of commercial radial tyre users, Apollo Tyres has a trained team of consultants called Forza, who work with large transporters to ensure best usage, maintenance and to enable users to maximise the advantages of radial tyres.
However, a huge threat in this category is the cheaper Chinese imports into India which have made it difficult for Indian manufacturers to utilise their complete production or plan further capacity expansion. This is a crying need, given the growth rates and the requirement of Indian transporters and OEs in the coming years of quality tyres meant for the improved national highway infrastructure coming up across the country.

Piaggio launches two new variants of apé 3-wheeler

Piaggio, the international pioneer in three-wheeler motor vehicles, has introduced in India two new variants of its apé model – the apé Xtra and the apé Xtra LD. These two are likely to set a whole new standard in three-wheeler performance, having been meticulously engineered to deliver higher outputs on all critical parameters.


The standard version of the apé Xtra has an extra-strong cold-rolled loading platform with additional reinforcement to enhance strength and give longer durability to the tray. A new gearbox will ensure extra performance and reliability. Likewise, the new clutch that withstands higher torque ensures extra clutch life and performance. The new apé Life engine oil that offers longer drain period of 10,000 km reduces periodical maintenance cost by 50 per cent.
The apé Xtra LD variant has all the above features plus an extra long deck that is increased to 1660 mm (180 mm longer), making it the longest load body vehicle in its category. The increase in loading area of 2.5 sq. ft. offers 12 per cent more loading area.
This means extra space, extra volume and, of course, extra earnings and profits per trip. To guarantee extra stability for the longer deck, the apé Xtra LD has the longest wheelbase in its category, measuring all of 2100 mm. And all this comes with an extended 20-month warranty that’s unique to Piaggio.
Mr. Ashutosh Khosla, Director - Sales & Marketing of Piaggio Vehicles, enthusiastically said: “Piaggio always believes in selling a business proposition and not a product. That means the focus is increasing the earning capacity of the customers. This is the age of competition. There is no room for complacency. The time is right for a pioneer brand like apé to make a positive difference. It’s time to do something Xtra for the customer.”
Mr. Khosla summed up the proposition of Xtra by saying that all the enhanced features are aimed at giving Xtra life, Xtra reliability, Xtra savings and hence Xtra profit to the customers.Commenting on the new range from Piaggio, Mr. Ravi Chopra, Chairman and Managing Director, Piaggio India, says: “We were the first to see the potential in the light transportation business way back in 1999. We were the first to set up a dedicated dealer network across the country with world class service standards. And we were the first to expand the boundaries of the market, driving our products into the rural heart of India to open up fresh sources of livelihood. Our strategy has also been to go where none have gone before, and empower our customers with value-for-money solutions that help them stay ahead in their endeavour.”
The apé Xtra and apé Xtra-LD are being rolled out all over India, providing customers a wider choice from the Piaggio stable, of course with the assured company customer care.