March
2010
"STORIES"

By Steve Pollock

The trucking industry has been faced with a multitude of challenges as of late.  Regulatory changes on engine emissions are in the process of being implemented and new safety regs are waiting in the wings.   The economy and freight rates are flat, while operating costs continue to rise.  The driver shortage has turned into a work shortage and many companies are simply trying to survive.  To borrow a phrase from Thomas Paine, "These are the times that try men's souls."  With all of these challenges, most companies have had to adjust their business model.  Additionally, many have made changes designed to address the evolving needs of their customers.  These changes are designed not only to help customers survive the recession, but also to help them adjust to new regulatory changes.

One company that has risen to the occasion is Penn Commercial Vehicle Solutions.  In a recent interview, Rick Roger, President of Penn Commercial Vehicle Solutions explained some of the initiatives that the company has implemented to address the challenges currently faced by the trucking industry.

Q. Why has Penn's On Highway Division recently changed their name to Penn Commercial Vehicle Solutions?

A.  Penn is in the process of changing its name because Penn Detroit Diesel Allison no longer appropriately defines the company's offerings. Although we are still a proud distributor for Detroit Diesel and Allison products and services, we have expanded our offerings to be able to include truck and trailer refrigeration, drivetrain products, liftgate expertise and a full line of commercial vehicle parts

Q. What are some of the initiatives Penn has implemented to help customers keep their trucks on the road?

A.  Penn is a member of the WheelTime Network and as such our goal is to meet the WheelTime Promise. This means, we will diagnose your truck within 2 hours of its arrival, call you with an estimated repair time and price, meet those estimates and contact you within 30 minutes of your truck being finished.

In 2009, we started doing a visual vehicle inspection on a customer's vehicle while it was in our service bay. If we notice something needed beyond the original complaint, we call the Fleet Manager to offer a solution while the vehicle is already out of service. About 50% of the time our customers choose to have us fix it, but almost all the time, they appreciate the "heads up" on a potential problem.

Q. Is the company ready to offer product support for the new 2010 emission compliant engines?

A.  We are. Fortunately for us, Detroit Diesel's DD Series engines that rolled out in 2008, were designed with 2010 EPA compliance in mind. We have stocked new parts, invested in new tooling, and trained our technicians in all nine of our full service locations in preparation to support the DD15, DD13 and the soon to be rolled out DD16 engines.

Detroit Diesel engines use Selective Catalytic Reduction to meet the 2010 emission standards. Consequently we have geared up by stocking DEF (diesel exhaust fluid) and establishing a convenient process for filter exchange.

Q. How is Penn addressing the trucking industry's green initiatives?

A.  Penn Commercial Vehicle Solutions provides a full line of products and services to reduce our customers' carbon footprints and improve their fuel economy. In addition to engine tune –ups, overhauls and replacement engines, Penn offers:

•Carrier ComfortPro™and RigMaster APU's and Webasto heaters and coolers.

•Exhaust aftertreatment Retrofits by both Donaldson and Cleaire. We will datalog fleet and match the right product to their specific needs and application.

• Carrier Transicold's Vector Hybrid refrigeration units

for both single and multi-temp applications. Carrier Transciold's all-electric architecture offer customers potentially significant emissions reductions and operational savings. Utilizing the Vector's electric standby feature, the unit's carbon footprint could be lowered by an average of 20% and while enjoying a reduced operating costs of 40% to 70%.

•Service and parts support for Allison's Hybrid Transit bus offering

•Tier-2 and Tier-4i replacement engines for refrigerated customers who run into California

•Trailer fairings that are logging up to a 5% mpg improvement on OTR applications

Q. In addition to Detroit Diesel engines and Allison transmissions, what other products are offered by Penn Commercial Vehicle Solutions?

A. Currently Penn CVS offers refrigeration and bus air expertise supported by Carrier, a full line of drivetrain components remanufactured by Weller Truck Parts, MTU engine expertise for cranes, drill rigs and mobile off highway vehicles, liftgate parts and service support for both Maxon and Waltco, Verified Level 1 – 3 exhaust aftertreatment devices from both Donaldson and Cleaireas well as a full line of fleet maintenance or All Makes parts.

Q.  Does Penn offer service for vehicles equipped with engines and transmissions other than Detroit and Allison?

A.We can provide warranty and out of warranty support for Detroit Diesel, MBE and MTU engines, both current production and the legacy 2 cycle product. Additionally, we regularly repair and overhaul Cat andCummins engines that are in a non- warranty status.

Q.  Beyond on-highway trucks, what other industries does Penn serve?

A.  Our Commercial Vehicles Solutions division also serves the mobile off highway market for MTU, Detroit Diesel and Allison. This would include vertical markets such as oil & gas, mining, construction and industrial and marine.

Our sister division Penn Energy Solutions provides generator set sales, rentals and service support through MTU On Site energy. They also provide gas-fired generators for landfills, data centers, hospitals and universities through the Jennbacher organization

Q.  What kind of service network does Penn maintain for its customers?

A.  At the end of the day this is what differentiates Penn. If you run Pennsylvania or Upstate NY, we have nine full service locations with fully stocked parts warehouses to support our customers. Most of our locations are also equipped with engine, transmission or chassis dynos. All run two shifts and many are open on Saturdays. All have trained technicians, diagnostic capabilities and the tooling necessary to get our customers’ issues identified and repaired quickly.

As a member of the WheelTime Network, the consistent service experience our fleet customers enjoy and our recent expansion of offerings allows them to call one company and be confident that the correct solution will be provided timely and professionally

Q. Are there changes that Penn plans to implement in the near future?

A.  With our recent expansion to a complete vehicle service provider, our challenge is to expand the scope of the Penn brand without losing our identity as the engine, transmission, and refrigeration experts.

This demands a change in the way we go to market. With so many products and solutions to offer to both our On and mobile Off Highway customers, we are transitioning from a product-focused company to one focused on truly identifying our customers' needs. Our breadth of product and service offerings allows us to package a tailored solution that is right for them.

Q. What are some of the challenges of the future that the trucking industry might face?

A. Our customers' most immediate challenge is how do they control their maintenance costs and maintain vehicle up time on an aging fleet due to Cap Ex constraints.

We recommend realistic fleet planning and securing engine overhauls or repowers that come with a warranty package that eliminates their biggest cost exposure – the engine. A transferable warranty also gives some support on the unit’s residual value and allows more fleet planning flexibility moving forward.

Our customers are looking for partners to help them not only improve fleet productivity and reduce costs, but help them take assets out of their business. By partnering with a true service network provider, customers can access the network's shop and not invest in brick and mortar. It also gives them the capability of picking up a new piece of business quickly if they are confident that their service provider's network will back them up.

Our thanks to Rick Roger for giving us some valuable insight about changes in the industry and how Penn Commercial Vehicle Solutions is addressing them.

Penn Commercial Vehicle Solutions has 9 convenient full service locations in Pennsylvania and Upstate New York and one Carrier Transicold facility in central New Jersey. Penn branches are located in or near Philadelphia, Reading/Allentown, Wilkes-Barre/Scranton, Harrisburg/York, Bedford/Altoona, Pittsburgh, Syracuse, Rochester and Buffalo.  For location addresses and phone numbers, see Penn's ad in this edition of Movin’ Out.  You can learn more about Penn Commercial Vehicle Solutions by visiting their website at www.penndda.com.