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Cargo Vans: Prosperity as a Problem

Demand for cargo vans has builders scrambling to increase production.

Sales of the full-size, Euro-style Sprinter, handled by Freightliner and Mercedes-Benz dealers, have grown enough that it will be assembled here instead of being imported as knocked-down kits from Germany and reassembled at a plant near Charleston, S.C., says Volker Mornhinweg, head of M-B Vans. It will invest about $500 million to build a new van plant in the same area to supply the North American market with the next-generation Sprinter.

General Motors plans to speed up assembly lines at its Wixom, Mo., factory, where its Chevrolet Express and GMC Savana traditional full-size vans are produced. Ford Motor’s plant in Kansas City, where the Transit Euro-style full-size van is made, is adding a third shift.

Ford’s Transit represents the fast-developing trend in the U.S. toward unibody vans, which now include compacts such as its Transit Connect, as well as Ram’s ProMaster City and Nissan’s NV 200 (also sold by GM as the Chevrolet City Express). Daimler’s Sprinter arm is adding a third type here, the “mid-size” Metris, which other builders will watch closely. Its announced pricing, in the $29,000 to $32,000 range, is closer to full-size vans and that might limit its appeal, competitors think. But those prices also reflect the premium stance of the full-size Sprinter, the first Eurovan introduced to America in 2001. GM and Nissan, meanwhile, are finding that there’s plenty of life left in the body-on-frame design.

In the sales derby, Ford has bragging rights and isn’t shy about proclaiming them. It recently sent out a press release announcing that Ford vans captured 56% of the commercial van market and are bestsellers in 47 states. Ford Transit became the best-selling full-size van in America just six months after it went on sale in 2014, Ford says, replacing America’s best-selling van for 35 years, E-Series, which was descended from the Econoline of ‘61. For the 2015 model year, Ford produced more than 100,000 Transits at its Kansas City plant.

Ford Transit Connect, the first compact commercial van introduced to America in 2009, has been the segment’s bestseller for the last five years with a 69% market share, the release continued. TC sales are up 43% in the first half of 2015.

Overall, Ford’s van sales increased 28% January through June, while the segment overall grew 11%. The release didn’t mention the F59 chassis, a strong contender as the platform for walk-in vans and Class A motor homes. Ford’s updated Transit Connect succeeds the original-to-America compact van introduced in 2009, and continues to dominate this segment. Ford’s updated Transit Connect succeeds the original-to-America compact van introduced in 2009, and continues to dominate this segment.

The full-size Transit is now available in 58 variations of wheelbase, roof height and body length, plus cab-chassis and cutaway versions. E-series vans and wagons are gone, but chassis-cabs and cutaways remain in production in Ohio and probably will into 2019. A dozen upfitters are located within 30 miles of the Kansas City plant, allowing convenient equipping of trucks for specific duties. And the current strong economy enables fleets and individuals to replace old trucks.

How long will the prosperity continue? “If I had the answer, I’d probably be operating with more stripes on my shoulder than I have,” says Yaro Hetman, brand manager for Ford’s van products. “I can say that everything we hear from our customers is that the trend to more efficient vehicles is likely to continue. That’s why we made our vans even more ways to suit the job at stake. But it’s also about changing customer preference. Some are switching from trucks [with separate bodies] to vans. You couldn’t stand up in the E series, but you can with a Transit. So plumbers and other tradesmen who drive somewhere and have to get inside for tools and materials are switching to vans.”

Ford offers a 5-cylinder diesel in the Transit, but nine out of 10 customers choose gasoline power because low purchasing and fuel prices make it economical. Yet some fleets have switched over to diesel, Hetman says. One major telecom company did and increased fuel economy by 47%. And long-term, as oil prices go up again, diesel and alternative fuels might be the busier path. CNG or propane can be burned in the 3.7-liter V-6, which fleets tend to take, though they usually stay with gasoline; the stronger 3.5 double-turbo EcoBoost is popular among retail buyers. Altogether the 3.7 takes about two-thirds of gasoline-engine sales. ProMaster’s front-wheel drive is unique to full-size Eurovans sold in North America. It’s gaining a hold in the market, Ram executives say. ProMaster’s front-wheel drive is unique to full-size Eurovans sold in North America. It’s gaining a hold in the market, Ram executives say.

Fiat Chrysler’s Ram ProMaster full-size van has “solidified” in the market and sales are up almost 40% year to date, with 16,774 units and an 11% market share, according to Dave Sowers, head of marketing for commercial vehicles. The ProMaster is unique in the segment with front-wheel-drive, “which is a selling feature from a traction standpoint and, more importantly, in [short] turning radius,” he says. And it has a low floor height for easy loading and unloading.

The small ProMaster City, introduced late last year, combined with the now out-of-production Ram CV (a cargo variant on the Dodge Caravan), tallied 4,454 units for 10% of that segment. Compared to other small vans, Sowers says, “the ProMaster City’s got more cargo space and payload capacity, 1,800 pounds plus 2,000 pounds towing, yet best-in-class fuel economy. It’s a more efficient truck compared to the old body-on-frame truck. It’s all new product for us. It built some momentum and familiarized our customers with our products. For a 100-unit fleet, they might try 10 now, then maybe 20 next year. Customers are surprised at how nice the driving experience is.”

The ProMaster City is selling to two categories: people who work out of their vans (plumbers, technicians, telecom) and the people who deliver – couriers and small businesses like food caterers and florists that are delivering their products. For instance, an irrigation contractor in Arizona uses two ProMaster City vans to carry tools and light PVC piping to customer sites for installation. The ProMaster City’s towing ability comes in handy for fall service work for this customer, when the vans can pull a trailer-mounted heavy air compressor to customers’ properties to blow out lines and prepare them for the cold winter.

But are customers overloading their small vans? Some are, according to Mark Namuth, senior sales manager at Nissan Light Commercial Vehicles, which sells the NV 200 and supplies the Chevy City Express to GM.

“Some are bought by people who are overworking them,” he says. “Something overlooked is that that load is not always water-level, where weight dispersion is even. And the heaviest thing gets plopped at the very rear.

“The body-on-frame truck is forgiving of that, but the unibody not so forgiving…. If he’s over 1,500 pounds of payload, and you add to that a driver and fuel, you need to walk that customer to a full-size van. Beefing it up is not too doable with a unibody.” Nissan’s NV series of cargo vans use the body-on-frame design but come in high-roof as well as low-roof models. Nissan’s NV series of cargo vans use the body-on-frame design but come in high-roof as well as low-roof models.

Body-on-frame thrives

Nissan’s three body-on-frame NV models, the 1500, 2500 HD and 3500 HD, make up 6% of the full-size segment, he says. “We’re selling all we can produce right now, and I think we could increase our market share if we had more production capacity,” Namuth says. “The body-on-frame is still good for us, and GM. You’re giving up a touch of fuel economy and weight, but adding durability and better upfitting capability, like cranes for telecom companies, where the boom sits on frame.”

Its full-size vans come with a limited five-year/100,000-mile bumper-to-bumper warranty, the best in the business, Namuth says. The warranty seems a safe bet for Nissan, because its vans are living much longer than promised. One customer that delivers supplies to copper mines in Arizona has an NV 3500 that has run over 550,000 miles, Namuth reports. That van has the strong 5.6-liter V-8, but most customers take the peppy 4-liter V-6.

Will Nissan put the 5-liter diesel, slated for the new Titan XD pickup, in its big vans? “A lot of people are asking will we put that Cummins diesel in the vans, and we’re certainly looking at it,” he says. “But competitors have smaller diesels in their vans, so the Cummins engine is a bit large.” He declines comment on a smaller 4-cylinder Cummins diesel shown late last year in a Nissan Frontier pickup concept. The familiar, rugged body-on-frame design of GMC Savana and Chevrolet Express remains popular with many operators, says GM Fleet & Commercial. The familiar, rugged body-on-frame design of GMC Savana and Chevrolet Express remains popular with many operators, says GM Fleet & Commercial.

GM Fleet & Commercial agrees with Nissan about traditional vans.

“It’s a good market for the body-on-frame design,” says Joe Langhauser, product manager for vans at GM, which continues to sell as many Chevy Expresses and GMC Savanas as it can make. “Customers tell us that ‘it really works for us.’ All upfitters know how to deal with it, it’s reliable and durable. And it’s got the best warranty in the General Motors line of products. And they know they can damage the side panels without getting into operations. Our worst fears of the Eurovan definitely did not come true. I believe there is a market for both of these vans.”

The bulk of GM’s market is a short-wheelbase 2500 series van, he reports. Telecoms and electric utilities are buying the short-wheelbase, low roof version. Some go to a longer wheelbase to get more cargo room for carrying long items, like ladders, but most stay with the shorter model to be able to park easily. Heavy haulers go to the 1-ton 3500 model.

“There’s more growth in cutaways due to changes in federal regulations on greenhouse gases, where the sticking point is declared frontal area,” Langhauser says. “Ours is 74 square feet; our cab is 37 square feet, and upfitters must stay within 74 or 85 square feet to meet the regs. Eurovan cutaways are restricted. G-vans give the upfitters more leeway, and that’s reflected in more and more business in cutaways.” He says GM will add speed late this year after rearranging workloads to maintain quality.

“Diesel remains a very small portion of the portfolio — ambulance, school and shuttle, for those who have diesel fuel on site,” he says. He estimates 95% of the vans they sell have gasoline engines, evenly split between the 4.8- and 6-liter V-8 versions. That’s because gasoline prices are low right now, and there’s a big price premium for diesel, about $12,000. “And gasoline engines go longer [than they used to] — routinely they go 600,000, 700,000 miles,” he says, “and some customers say they go over a million.”

GM’s Chevy City Express compact van, obtained from Nissan, “is meeting our expectations,” Langhauser says. “While we can’t get into specifics, we can tell you that sales are trending upwards and we are hearing from our customers that they love driving it.” The City Express is a unibody design, and GM continues to look at bringing unibody products in from Europe, Langhauser says, “but I can tell you that the body-on-frame will be around for a long time.” Reach walk-in van has an impact-resistant Utilimaster composite body on an Isuzu diesel-powered chassis. Reach walk-in van has an impact-resistant Utilimaster composite body on an Isuzu diesel-powered chassis.

Walk-ins running

At Freightliner Custom Chassis Corp., sales continue to be “robust,” and have been all year, reports Mike Stark, product manager. “In addition, we are seeing strong orders and customer demand through Quarter 1 of 2016. Our customers are anticipating 2016 to be a strong year, so we’re seeing that in our orders thus far.” FCCC makes Class 4 through 7 MT-series chassis on which walk-in bodies from Morgan Olson and Utilimaster are mounted. Customers include package delivery fleets, bakeries, and uniform and linen suppliers.

Demand is not so strong for the Isuzu-Utilimaster Reach van. Sales of walk-in vans rise and fall as the big package delivery fleets order batches of trucks, explains Brian Tabel, marketing manager at Isuzu Commercial Truck.

“For our package-delivery partners, we’re told this was an aviation buying year, and next year is supposed to be a truck buying year.” Last year the major delivery fleets and other customers acquired a little more than 3,000 Reaches. That number may be under 1,000 this year. Mercedes-Benz is introducing its Metris mid-size van, which is a new segment within the cargo vans business. If it sells well, competitors might feel compelled to bring in similar vehicles from Europe. Mercedes-Benz is introducing its Metris mid-size van, which is a new segment within the cargo vans business. If it sells well, competitors might feel compelled to bring in similar vehicles from Europe.

Plumbers and other tradesmen, and non-profit groups that pick up donated goods, are among the retail customers for the Reach. The scuff panels front and rear and along both lower sides of its composite body cost more than aluminum and might keep some buyers from considering it, but those who buy it appreciate its value, Tabel says.

Reach comes in two wheelbases and body lengths, and runs on a 12,000-pound-GVW Isuzu chassis with a 3-liter, 4-cylinder Isuzu diesel and an Aisen 6-speed automatic transmission.

Full article http://www.truckinginfo.com/article/story/2015/10/cargo-vans-prosperity-as-a-problem.aspx
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Why You Should Use A Gps Tracker For Fleet Vehicles



Managing a fleet of vehicles is a demanding job. There is only so much you can do without being able to track your vehicles in real-time, which is why you should look into using GPS trackers for your vehicles. These GPS trackers can be installed in each vehicle in a very discreet manner. They will communicate with your computer and let you see where each vehicle or container is in real-time. The software that comes with these GPS tools collects data on the routes taken and can provide you with information such as the amount of time a vehicle spends on the road, how close it is to needing more gas or calculate the average delivery time.

Being able to track your vehicles in real-time will help you make better decisions. If you need to schedule a pick-up or a delivery at the last minute, all you have to do is check your GPS data to figure out which vehicle is in a nearby area. You can also use this information to provide a client with accurate information regarding when they can expect a delivery.

Tracking your fleet vehicles with GPS devices will also help you make your fleet more efficient. You can for instance use the data collected to figure out which routes are not efficient, for instance due to bad traffic conditions or to recurring construction. Drivers will also feel a lot more accountable and will always take the best route and avoid unnecessary stops if they know you can track where they are.

GPS tracking is a very valuable tool in case of an emergency. You can see exactly where all your drivers are and determine the best course of action for everyone if weather conditions suddenly become dangerous. You can also detect unusual activities, such as unplanned stops which could be a sign that a driver is getting robbed. GPS devices will help you make sure that every driver reaches their destination safely and will provide you with the opportunity to contact law enforcement in a much shorter time-frame if something happens.

Using GPS devices to track your vehicles is something you should look into if you have a fleet to manage. These tools will help you save a lot of time and help you improve the way you manage your fleet and plan your routes besides keeping your drivers safe and making them more accountable.

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What You Need To Know To Choose The Right Limousine Rental Company

Choosing the right limo company can be one of the most important task you do when planning for a special event. Usually the way you arrive to an event can set the tone for the event and if you arrive on time, safely, comfortable, and in a good mood then you can rest assured the event is off to a great start.

On the other hand if you arrive late, uncomfortable (bad ride or no air condition), and in a bad mood because of a rude limo driver then you may have a long day/night ahead of you. So selecting the right company for your event is an important task that cannot be ignored. Below we will discuss several things you need to know when choosing the right limousine rental company.

When talking with the different limo companies check to see how often they do Inspections on their vehicles. This maintenance check tells you how seriously they take safety. You want them to put your safety above all else when you are in their care, so having regular inspections is important. You should also visit the business prior to your event to look at the limousine for yourself to see what you and your party will be riding in.

Most limo companies are a part of transportation associations. Find out what associations they belong to and check their standing within that association and see what others have to say about the company you are planning to rent a limousine from. Many of these associations are public entities that are required to release any information that you ask, so do your due diligence.

Every limo owner is required to carry insurance on their vehicle. This should not be personal vehicular insurance that you or I may have on a vehicle, they are required to have commercial vehicular insurance. The minimum liability insurance they should have per car is $750,000. Check your state for the exact minimum insurance required, and then make sure the limousine company you are planning to rent from has the minimum insurance required.

In addition to the insurance, every limousine rental company is required to have a state license to operate their business. Make sure to check with the limo owner to ensure they have the required licenses for their business. You do not want to assume they have the right protection because if the limo gets stopped during the time you are within the vehicle, if they are not properly licensed and insured there is a chance you may be stranded.

Knowing the information is half the battle. Now that you have a better understanding of the things you should know about choosing the right limo company, make sure you apply this information so you can have the best experience possible.

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