Monday, December 21, 2009

Truck News - Hyundai And Navistar Invest In The Future

New Market Sectors for Truck Manufacturers in China and Denmark
Shipping News Feature

US – SOUTH KOREA - CHINA – DENMARK – Hyundai are to move into the Chinese domestic heavy truck market with the announcement they are to invest alongside Baotou Bei Ben, who already have experience co-producing heavy trucks with Mercedes Benz and Deutz power trains in a deal which will see the two groups put up $400 million in a 50/50 split to manufacture up to 100,000 heavy trucks per annum.

Initially the models will be based on the Chinese company’s current range but by 2012 the vehicles will be completely new designs with Hyundai equipment and technology. The Baotou Bei Ben facilities are currently capable of producing 40,000 trucks per year and the increased targets have been set for 2014. Hyundai is South Korea’s largest heavy vehicle producer, and together with Kia, its car making subsidiary, the fifth largest automobile maker on the planet, the company knows it must make inroads into the Chinese market which is developing faster than others. The company also wishes to develop the market in the US and Europe where free trade agreements exist in various stages of completion but knows there will be more resistance to products seen as emanating from a country which already has substantial trade surpluses to both regions.

Meanwhile Navistar, the US based commercial vehicle producer announced today that it was investing in Amminex, a Danish technology company which produces a system for reducing Nitrous Oxide emissions, a sworn goal of Navistar who wish to achieve tailpipe levels of 0.2 NOx as quickly as is practical. The Amminex model utilises metal ammine technology as opposed to the often used liquid urea system which would require the development of a technical infrastructure by companies like Navistar who wished to employ it.

“While other commercial truck manufacturers have limited their investment in emissions technology, declaring liquid urea-based SCR to be the solution for NOx reduction, Navistar continues to invest in new technologies that support our philosophy that emission control is the responsibility of the manufacturer, and that trucks should operate cleanly under all operating conditions,” said Eric Tech, president, Navistar Engine Group.

Experts state that the Amminexx system may prove to have other uses as it was originally developed for use in fuel cells. With the development of new types of battery power sources the acquisition of an interest in the Danish group looks to be a sensible move by Navistar.