Keith Browning

Quote: CAT to exit US on-highway truck engine marketReuters, Thursday June 12 2008 (Recasts throughout.) By James Kelleher CHICAGO, June 12 (Reuters) - Caterpillar Inc said on Thursday that it would stop making diesel engines for the North American commercial vehicle market after 2009, ending a nearly 50-year-long chapter in its history that made the company a part of American trucker lore. The announcement reflected both the growing vertical integration of the global truck-making business as well as Caterpillar's unique problems in keeping up with Cummins Inc , its rival in the on-highway diesel engine space. News of Caterpillar's exit from a market it has served since 1960 came as the Peoria, Illinois-based company said it had signed an agreement with Navistar International Corp that could result in the two U.S. companies jointly building and selling a variety of trucks worldwide. Caterpillar, the world's largest maker of mining and construction equipment, said one product of the Navistar alliance -- a heavy-duty, CAT-branded severe service dump truck for miners and builders -- could be on North American work sites by 2010. But the engine powering those trucks will come from Navistar, not Caterpillar. A full line of trucks for those markets would be on sale by 2012, Doug Oberhelman, the head of Caterpillar's engine unit, said. "We're going after a customer base we know well," he said. Outside North America, where emission rules are generally more lenient, Caterpillar and Navistar will introduce a full line of medium and heavy duty on-highway trucks, the companies said. Early focus would be on the fast-growing vehicle markets in China, Russia, Australia and Brazil. It wasn't clear which company would supply the engines for that overseas market. The partnership will not target India, where Navistar has a joint venture with Mahindra and Mahindra . But in North America, Caterpillar will no longer supply truckmakers like Paccar Inc , Daimler AG's Freightliner and others with engines. Its Mossville, Illinois truck engine plant will stop producing the power plants on December 31, 2009 -- just before even tougher clean-air rules take effect. As a result, Caterpillar's archrival in the diesel engine space, Cummins Inc , now looks poised to capture more of the North American market in coming years, analysts said. Cummins shares ended the day up $6.25, or 9.9 percent, at $69.38. Caterpillar closed up $1.57 at $80.50 and Navistar finished up $2.50 to $74.40. The fate of Caterpillar's on-highway diesel engine business has been uncertain for more than a year, after problems associated with power plants designed to meet 2007 U.S. environmental rules allowed Cummins to gain a big share of the North American market. That threw a big question mark over Caterpillar's engine business at a time when North American truckmakers like Paccar and Freightliner, which traditionally bought engines from independent suppliers like Caterpillar and Cummins, began making them in-house. A linkup of some sort with Navistar was not entirely unexpected. At the Reuters Manufacturing Summit in February, Caterpillar Chief Executive Jim Owens said a partnership with Navistar was "a potentially nice fit." The partnership also comes as the North American big-rig truck market is in a downturn, due in part soaring fuel prices that have prompted sporadic protests by independent truckers. Adding pressure is the slowdown in the U.S. economy. A surge in truck purchases in 2006, as long-haulers rushed to buy ahead of the implementation of the 2007 clean-air rules, now means there are too many trucks chasing too little freight. As a result, the rebound that truckmakers were counting on in 2008 has not materialized. Industry tracker A.C.T. Research estimates manufacturers will receive orders this year for 234,000 Class 8 trucks -- the biggest rigs. That would be up just 10 percent from last year's trough of 212,000 and down significantly from the 378,000 produced in 2006. "Given that the independent on-highway truck engine supply business is in secular decline anyway, this cooperation, in our view, is at least better than nothing," JPMorgan analyst Ann Duignan said in a note to investors. Separately on Thursday, Caterpillar said it would invest $1 billion in five Illinois facilities over the next three years. They make, among other things, tractors, motor graders and other earth-moving equipment.

Quote: Cat And Navistar To Focus On Global Truck Business And Cooperate On Engine Technologies PEORIA, Ill., June 12 PEORIA, Ill., June 12 /PRNewswire-FirstCall/ -- Caterpillar Inc. (NYSE: CAT) and Navistar International Corporation (Pink Sheets: NAVZ) have signed a Memorandum of Understanding (MOU) to pursue global on-highway truck business opportunities and cooperate on a variety of engine platforms. The two companies intend to focus on global truck opportunities, including North American severe service construction trucks, as well as technology development for engines worldwide. "We are pleased to be matching the formidable talents and technology leadership of two industry leaders to serve an expanding base of engine, truck and equipment customers worldwide," said Jim Owens, Caterpillar Chairman and Chief Executive Officer. "As the world leader in construction equipment and diesel engines, Caterpillar is now positioning itself for growth in the on-highway truck market. This is an important step for Caterpillar and we look forward to working with Navistar for the continued benefit of our customers." "This relationship is a perfect example of Navistar's strategy of growth through leveraging our own assets and those that others have built," said Daniel C. Ustian, Navistar Chairman, President and CEO. "In partnership with Caterpillar we intend to extend our leading-edge product focus that we have in North America into the rest of the world." Through this alliance, Caterpillar plans to target a 2010 introduction of a North American Cat branded heavy-duty truck for severe service applications, such as road construction, large infrastructure projects and oil and petroleum development. Concurrent with this new strategic direction, Caterpillar has determined independently that it will not supply EPA 2010 compliant engines to truck and other on-highway original equipment manufacturers (OEMs). "Caterpillar and our dealers will continue to provide product support and service beyond 2010 for all Caterpillar on-highway engines regardless of truck brand," said Douglas R. Oberhelman, Caterpillar Group President. "This new truck -- targeted for 2010 -- will incorporate the legendary quality of Caterpillar's construction and mining machines and provide construction customers a one-stop solution. In addition, with nearly 90 percent of our engine business being off-highway, we'll continue to concentrate on our substantial and growing opportunities to supply engines in the petroleum, marine, electric power generation and industrial markets -- as well as produce engines for our own construction and mining equipment." The companies have commissioned teams to focus on the truck and engine opportunities. The initiatives contemplated by the MOU are subject to completion of due diligence, execution of definitive agreements and regulatory approvals. Global Truck Collaboration The companies intend to work together to develop, manufacture and distribute commercial trucks in select regions outside of North America. The product offering would include a full line of medium and heavy-duty trucks in both conventional and cab over designs. "The combination of Navistar's truck design, development and manufacturing expertise and Caterpillar's unparalleled worldwide distribution creates a significant advantage for global customers through the ability to offer the right vehicle for the right application through more than 4,700 points of distribution around the world," said Dee Kapur, President, Navistar Truck Group. "The North American Caterpillar distribution system provides expanded reach for severe service trucks with big bore power, a segment where Navistar has traditionally not been as focused." "This is a natural extension of Caterpillar's more than 40 years serving on-highway customers with proven, award winning technology -- combined with unsurpassed global distribution and product support," said George Taylor, Director of Caterpillar On-Highway Engines. In addition to the United States and Canada, Navistar has a substantial distribution network in Mexico and Latin America. Caterpillar currently sells on-highway truck engines in Australia and New Zealand, Mexico and throughout Latin America, as well as in the United Kingdom, Belgium, Russia, China and South Africa. Engine Technology Under the alliance, Caterpillar and Navistar plan to cooperate on engine development, incorporating "best in class" technologies from both companies. Caterpillar and Navistar intend to work together on development of mid-range engines for diesel applications, such as school buses and utility trucks. This engine development would support each company's stated path not to utilize urea-based Selective Catalytic Reduction (SCR) technology. "There are many opportunities for technology sharing and development that would result in the ability to better meet the worldwide demand for diesel engines in both on and off-highway applications," said Jack Allen, President, Navistar Engine Group. "In the past 15 years, Cat has become significantly less dependent on the sale of on-highway truck engines in the total contribution of our global engine profitability," said Oberhelman. "Our global power systems business has grown significantly -- in fact we supply approximately 400,000 diesel engines annually outside of the on-highway truck market. We intend to remain the world leader in clean diesel engines, and this collaboration is a key enabler." Remanufacturing Growth and Additional Synergies Through the alliance, the companies also intend to expand their existing remanufacturing relationship to include Navistar's recently introduced MaxxForce on-highway engines. The companies expect to pursue additional remanufacturing opportunities as new vehicles and engines are developed. Caterpillar and Navistar plan to explore opportunities to leverage their scale. Combining raw material and other commodity purchases is just one example of how the two companies can work together to reduce costs. About Caterpillar For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.958 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com About Navistar Navistar International Corporation traces its roots to 1831 and the former McCormick and International Harvester companies. Today Navistar is the largest North American producer of mid-range diesel engines and Class 6-8 commercial trucks and buses. Navistar Defense is a leading producer of advanced armored vehicles and trucks for the U.S. Armed Forces and its allies. Navistar produces International® brand commercial trucks, MaxxForce brand diesel engines, IC brand school and commercial buses, and Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Navistar is also a provider of truck and diesel engine parts. A wholly owned subsidiary offers financing services. Additional information is available at: http://www.navistar.com CATERPILLAR SAFE HARBOR Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will", "would", "expect", "anticipate" or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, changes in economic conditions; currency exchange or interest rates; political stability; market acceptance of the company's products and services; significant changes in the competitive environment; epidemic diseases; changes in law, regulations and tax rates; and other general economic, business and financing conditions and factors described in more detail in the company's Form 10-Q filed with the Securities and Exchange Commission on May 2, 2008. This filing is available on our website at http://www.cat.com/secfilings. We do not undertake to update our forward-looking statements." NAVISTAR SAFE HARBOR Information provided and statements contained in this report that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this report and the company assumes no obligation to update the information included in this report. Such forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties and assumptions, including the risk of continued delay in the completion of our financial statements and the consequences thereof, the availability of funds, either through cash on hand or the company's other liquidity sources, to repay any amounts due should any of the company's debt become accelerated, decisions by suppliers and other vendors to restrict or eliminate customary trade and other credit terms for the company's future orders and other services, which would require the company to pay cash and which could have a material adverse effect on the company's liquidity position and financial condition, and the inability of Navistar and Caterpillar to reach agreement on the terms of any collaboration and the success of any such collaboration. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. For a further description of these factors, see Item 1A. Risk Factors of our Form 10-K for the fiscal year ended October 31, 2007, which was filed on May 29, 2008. SOURCE Caterpillar Inc.; Navistar International Corporation

/forums/images/%%GRAEMLIN_URL%%/hahaha.gif /forums/images/%%GRAEMLIN_URL%%/banghead.gif Oil and fuel goes around in strange ways.

There are a lot of people who likely agree with Jayson's statement even though the cost of energy is hurting everyone now. The reason being that we Americans as a society are complacent about our position, globally, environmentally and financially. The last time we had energy problems of this magnitude was in the early 1970's and we did little to change our energy use ans sources other than driving smaller cars and a few bumper stickers. The Carter and Reagan administrations really let us down by not adopting policies and making laws that encouraged the use of nuclear energy, the development of new technologies that would bring forth alternative fuels, lighter cars, electric cars, hydrogen power cells and so on. Enter the liberals. We cant drill for oil anywhere. Corporations are taxed out the ass so we have forced many out of the country. The federal and state governments make a lot of money taxing fuel so why would they want more electric or hybrid or fuel cells on the road? I think (correct me if this is factually inaccurate)I heard that the U.S. uses 8 million barrels of oil a day and we have enough oil in Anwar, off the east cost and shale in the mid west to all bur guarantee oil independence from the middle east for 30 to 35 years but no, the liberals and the environmentalists wont let us touch it. Did you know that the Cinese are going to be drilling off of the shores of Cuba? 40miles from our coast but we cant drill? WTF? /forums/images/%%GRAEMLIN_URL%%/shrug.gif It's not just a supply and demand issue, we need to educate ourselves and start by kicking the extremist and liberal jack-offs out of Washington. Drill for the oil, it should help bring fuel costs down and buy us some time to develop our technologies, build nuclear plants for cheap electricity and finally make a go for energy independence.

All I have to offer is speculation - we have all seen a this kind of stuff and the cause usually is something typical that is just acting in an untypical manor... like a STC fitting that has simply unlocked from wear due to flexing over the last 78,000 miles. The seal may still be intact but the branch tube is the only thing keeping it together. I think you know as well as any of us that sometimes you have no choice but to put your water wings on, hold your nose, jump in and start swimming.

What exactly do you mean by "slipping?" Is the FEAD belt coming off the pulleys or is the compressor pulley locking up? We seem to have seen a run of concerns related to the A/C compressor over the last few model years affecting the 6.0L and the 4.5L in LCF's. I have noted that many of the ones replaced at my dealer were usually pulley bearing and or burnt up clutch fields that either cause the pulley bearing or the compressor to seize. These trucks come in with one of these two conditions: cranks slow and wont start or the A/C stops working after 10-20 minutes.

No, they declined it because they assumed there was contaminated fuel and I guess they just glanced over the report, or the RO. In any event I have to discuss this with my SM when he returns from vacation and then with our REP if we expect to get paid. They really have balls now don't they? ...and I like the BORG smiley... need to add that one!

Jeeez! That is pretty malicious.

Bump... I believe we may have fallen victim to one of these, does anyone remember if there was any official notice on this oil cooler debris issue like an SSM?

Reminds me of a HPOP problem when I look at the RPM slowly drop and not respond to IPR quickly enough. Kinda like the pump can build pressure when cranking but once volume is required when it starts it just cant keep up. Then again, that describes a leak too so it looks like air test time. Is this concern temperature sensitive?

Yes it works for both, combustion gasses are the same regardless of the source.

I have been reading a lot of the news articles that now appear on the Diesel Mentor web site and have been following the price of fuel not to mention the countless stories of truckers going belly up. This is a world-wide issue that is hitting every country hard. Very hard. I couldn't help but wonder when, we are going seriously begin to feel the effects of the rise in energy costs professionally. Do you suppose we might see a drastic decline in truck sales in vocational trucks above and beyond the decline in personal use trucks? Is service work going to drastically decline? You cant help but wonder what permanent changes are going to take affect and younger guys in the business who intend to stay in the business for some time might want to watch the resulting technology bloom of alternative fuels and automotive technology. Electric? Hybrid? hydrogen? /forums/images/%%GRAEMLIN_URL%%/shrug.gif

Quote: Tech's question: Took fuel sample at the test port. The fuel is dark in color and a fine black sediment forms at the bottom of my sample bottle. I took another sample at the fuel filter housing and the fuel there looks good, light yellow with minimal amount of water in the collection bowl. Both samples smell okay, no evidence of gasoline or other contamination. Am I looking at a HPFP failure here as it seems that there has been some sort of failure in the high pressure system? Please advise with repair instructions. Hotline recommendation: -------------------------------------------------------------------------------- Call Log: Calls to hotline for this vehicle: 5/8/2008 2:22:00 PM - Tech said: The vehicle is in for a crank no start concern with codes p0087, p2269, and p2291. The technician checked the fuel and it is clean, the HFCM was then drained and minimal water was found with clean fuel. A fuel sample was then pulled from the fuel cooler and a black sediment like substance was found. 5/8/2008 2:22:00 PM - Hotline recommended: It is advised at this time that the entire HP fuel system needs to be replaced. That will include the HFCM, HPP, fuel rails, 8 injectors, fuel cooler, secondary fuel filter housing, and all fuel lines to and from the HPP. The fuel return passages will also need to be flushed. Somehow the Warranty Nazi Division at the Big Blue Borg does not understand that the contamination was CAUSED by the HPP failure. This is an $8,000.00 claim they are trying to skate on. I guess we have to really spell things out for these idiots.

I now have two apprentice level techs, young and unsuspecting. I was thinking about this topic and started giggling... /forums/images/%%GRAEMLIN_URL%%/smirk.gif ...this is going to be a fun summer.

Thursday, June 5, 2008 - 4:57 PM EDT DMAX to cut 290 jobs at Moraine plant Dayton Business Journal DMAX Ltd., a diesel engine producer, is cutting 290 hourly workers at its Moraine plant, the company announced Thursday. DMAX Ltd. is a joint venture between General Motors Corp. (NYSE: GM) and Isuzu Motors Ltd. and was established as a diesel engine company in 1998. It produces the 6.6L Duramax diesel engine, which is an option in heavy-duty pickup trucks and vans. Based on current and forecasted market demand of the trucks and vans, production volumes at DMAX will be reduced by 28 percent, effective July 14, according to the announcement. These volume related actions were taken to bring production capacity in line with market demand for heavy-duty full-size pickups. DMAX production volume adjustments are a result of reduced requirements from the assembly plants it supplies in Pontiac and Flint, Mich., and are as a result of the shift reductions announced by GM, the company said. The news comes just days after GM announced that the Moraine SUV and truck plant will close by 2010 or sooner, resulting in more than 2,400 lost jobs in the Dayton region. There are about 996 hourly and 170 salary employees at the local DMAX plant. Hourly workers at the plant are represented by International Union of Electronic and Communication Workers of America Local 797. A plant spokesperson said the job cuts will not impact the $69 million GM is investing in the plant to produce the new Duramax 6.6-liter V-8 turbo diesel engine to be produced at the plant by 2010.

I got it off alright! I couldn't get a puller on the lever so I resorted to a punch which quite effectively snapped the lever off of the turbo. /forums/images/%%GRAEMLIN_URL%%/blush.gif Since I already had the punch in my hand and the actuator was unbolted I finished it off on my vise.Pressing it into the new turbo was not as easy as it looks either. Use a c-clamp and a socket. Simple enough but my borrowed c-clamp did not fit squarely due to clearance believe it or not.

So I am replaced a high pressure turbo, my first, and before I got to the point of assembly I decided to read the book. Has anyone done this yet? I had a problem getting the actuator rod out of the lever because the unison ring was jammed... anyway, back to the book. You are supposed to measure the gap between the turbos for reassembly. When you get to reassembly by installing new seal and gasket and setting up the tool the book tells you to assemble it to the gap measured on disassembly. "The turbochargers do not go flush together. Remove the tool when the gap equals the measurement taken during the disassembly." then THE VERY NEXT SENTENCE: "Using the special tool, assemble the turbocharger assembly. Tighten to 17 Nm (150 lb-in)." I did not measure the gap beforehand, but I did recall the gasket being squeezed in there. Torquing the install tool achieved that. It seems you would want the gasket crushed a little, no? Anyway, It went together without issues so I don't see how this gap setting is crucial or even needed.

I do the same on 2007 and older trucks but I have gotten spongy pedals from this and discoverd that since the air is close to the master that compressing the calipers forces the air back up into the master along with a lot of fluid. You just need to pump the brakes before starting the truck.

Interesting. I have a high pressure turbo that failed and now I feel the need to check and see if they are on some funky RTDA list I don't know about. This EGR valve thing must be very recent because I have done two valves in the past with no bouncy bounce on the claim.

Quote: From The IndyStar.com June 3, 2008 Cummins will cut 125 jobs Drop in sales of diesel pickups hurts Walesboro plant, as it has Navistar By Ted Evanoff ted.evanoff@indystar.com Falling sales of diesel pickup trucks have claimed more jobs at the Cummins diesel plant in Walesboro. Columbus-based Cummins will cut 125 positions in the plant next week, a decision that follows Navistar's temporary shutdown last month of its Indianapolis diesel line, idling 500 workers through the week of July 14. Cummins Walesboro is the sole source of diesels for the Dodge Ram pickup truck, while Navistar's International Truck & Engine plant in Indianapolis supplies all diesels for Ford's F-series pickups. The Walesboro plant employed about 1,000 workers a year ago. Since then, about 100 temporary workers were let go. Sales of diesel pickups have sagged as the building industry hit hard times and diesel prices at the pump soared. In Indiana, both diesel makers have described the layoffs of the permanent work force as temporary. Navistar expects diesel orders will rise once overstocked Ford dealers sell off unsold trucks. Beginning in August, Chrysler will make the restyled 2009 Dodge Ram, and diesel orders are expected to rise at that time, Cummins spokesman Mark Land said. Cummins is trying to find positions in its other plants, including the fuel systems plant in Columbus, for workers displaced from Walesboro, Land said. It is also asking for volunteers in the Walesboro plant willing to take time off. It is not clear when the temps will be recalled. Cummins layoffs, which would begin next week, come as pickup truck sales ebb from the huge volumes of recent years. Dodge, for example, has sold about 93,000 diesel and gas Rams this year through May, down 24.2 percent from the same period a year earlier. F-series sales have slipped 15.5 percent, while Chevrolet Silverado sales have declined 20.8 percent. Diesel trucks, which account for about a third of the pickup market, have been particularly hard hit as fuel prices rise. In the Indianapolis area, diesel averaged $4.84 a gallon Monday, AAA reports, 89 cents more than the average price of unleaded regular gasoline. Diesel costs more in large measure because oil refineries in the United States and abroad are near full production capacity and can't keep up with diesel demand, and the new grade of low-sulfur diesel fuel introduced last year in the United States costs more to make. --------------------------------------------------------------------------------

But at least you can diagnose most things on your own and covering your bases is something quite different than needing a crutch more than 50% of the time. I expect more from a master diesel technician that has passed all of the tests and has more than a decade of experience. I suppose some guys need that and I guess its better than wingin' it. I just think that there are a lot of guys who can do what they do because they learned the trick (i.e. throw these parts on to fix this) and repeat as necessary. "Ineffective diag" - yep, you hit the nail on the head and that is exactly why we are faced with this situation. As for Ford not seeing a problem with their product I had to replace another rusted tank... a 2007 F550 with 17 on the clock. We were told we have to call our rep on ALL fuel tank concerns and get approval. We did. He told us to call the HotLine. We did. They mentioned bio-diesel, we made our case and explained that there is a clear difference between chemically induced lining delamination and a poorly applied lining. The phone went silent and the call ended abruptly;y with a "replace the tank." Then we had to call the rep back for the go ahead. Yeah, they know those tanks are a big problem, they just wont admit it because its gonna cost them a lot of coin. This is the other reason we are in this situation.

Quote: I've seen way to many ineffective repairs being made in the stall one over, and you're right about all of us paying the price for the "parts hangers" in this trade. Got one working with me that I am not too sure about. I am guessing the "A-word" may be heard at some point. Do constant calls to the Hot-Line count for anything? I think they are diagnosing many of the jobs I am dispatching... or at least the Hot-Line assistance status page seems to indicate so. Is over-repairing similar to ineffective repairs?

For our CAT Gurus, will a 2007 C-7 de-rate for a low coolant concern with the check engine and stop engine lights flashing? This had the following logged event codes 111-1 and 111-17. Other than the usual low coolant I found nothing wrong and corrected the concern with adding coolant to the MAX line... we have a SSM on this. Just curious.

Here is a link to the event information http://www.mcguireairexpo.info

Went to my first military air show today at McGuire Air Force Base here in NJ... HOLY SHIT! The show ended with the Thunderbirds in F-16s but the F-15s impressed the hell out of me. LOUD! It was so awesome I wanted to cry and despite the sunburn I am still giddy from the experience. It was cool going through all of the aircraft on the ground and our daughters had fun walking through the cargo planes which are HUGE!!! Snapped off about 100 pics too. If you haven't gone to one of these shows I highly recommend it. It is fascinating and exciting. Don't forget the sunblock like we did. /forums/images/%%GRAEMLIN_URL%%/mad.gif