April Newsletter

Thoughts from the Nest

PLANNING FOR YOUR FLEET

We all wish we could have predicted the economic turmoil over the past several years. Maybe you were one of the astute people that saw it coming and were able to capitalize. But, if you were like most, you probably have enough on your plate focusing on running your own business. What's true in any sense is the more information you have, the better your chances of capitalizing on future opportunities and avoiding the pitfalls sure to head your way.

One of the larger changes at our doorstep is the new US Emissions Regulations. Some of the information is pretty complex, but with the help of our friends at Isuzu, hopefully, we can provide some additional information to stay ahead of the curve and help you plan for future fleet decisions.

From 1988 to 2010 government initiated environmental restrictions have led to a diesel engine emission reductions of 97%. Environmentally fantastic, but at a steep price to the end user. The financial result has been a dramatic increase in prices for diesel chassis, as we have migrated from the Tier II standard to the current Tier IV standard. The current Tier IV chassis, (not available until early 4th quarter 2010) requires an additional NOx after-treatment device. Isuzu and most major OEM's have chosen to use Selective Catalytic Reduction (SCR) with a Diesel Exhaust Fluid (DEF) injection to reduce the NOx. In other words, they will be adding a diluted mixture of 33% automotive grade urea and 67% de-ionized water. This is a certified (by the American Petroleum institute) fluid that should be widely available.

This is not technology to be afraid of as over 700,000 are currently operating in other countries, but definitely something to be aware of as you evaluate your fleet. Additional cost for this system will come in the form of purchase price and maintenance. It is uncertain at this point what those costs will be, but definitely plan on spending more. Estimates on the chassis increases could be as much as $4,500. Early indication for DEF filter replacement intervals are every 1 to 2 years but there is still no definite word.

For those of you in cold climates, DEF systems will be warmed through the engines and may require extra start-up time.Space requirements for the DEF units will require sweeper manufacturers to engineer around the changes. On a positive note, we have been told that the DEF equipped trucks will be more fuel efficient than current models. After this change, it appears like there are no other changes scheduled for the foreseeable future. All 2011 model year trucks will have DEF level indicators on the dashboard and manual site glasses to view the urea mix levels. Warning lamps will let the driver know somewhere between 400-500 miles before the DEF tank is empty.The amount of DEF used will depend, just like fuel consumption, on how the truck is used but plan on 2% or less of fuel consumption.

Hopefully this was helpful information. There is a lot to digest, so please don't hesitate to give us a call with any questions or comments. Or visit our website or www.factsaboutscr.com or www.isuzucv.com.

Tracy Day, President

Maintenance Minute - Isuzu
The recommended maintenance schedule for Tier III emission Isuzu NPR chassis have been increased for the following items: Lube, oil, and filter - 6,500 to 10,000 Engine Coolant - 26,000 to 30,000 Brake Fluid - 26,000 to 30,000 Transmission Fluid - 26,000 to 30,000 Differential Gear Oil - 26,000 to 30,000 Power Steering Fluid - 26,000 to 30,000 Wheel Bearings Grease - 26,000 to 30,000