In this week’s news the trucking industry is booming as major truck manufacturers see growth across the board through both deals and strategic shifts at the corporate level. Electric cars remain at the forefront of the industry as yet another big player dives into the market, and the distant idea of the Hyperloop becomes increasingly relevant in today’s market.
Truck Markets Show Economies are Shifting into Higher Gears
The Organization for Economic Cooperation and Development says global economic momentum has picked up, due in part to increased business investment across major economies. Thanks to economic momentum across various geographies, Volvo and Daimler experienced third quarter truck order growth of over 30 percent year-over-year.
Multinational truck manufacturers rarely experience a global marketplace in which growth occurs simultaneously across most major economies but this seems to be the trend thus far into the second half of 2017. In the US, orders with manufacturers have also picked up, with a headline deal of nearly 1700 trucks being ordered by US Xpress from Navistar International.
Mexico Energy Reform Like “Shock Therapy”
Mexico’s energy reform has quickly helped the country move from a state-run monopoly toward open markets. According to Mexico’s deputy secretary of energy for hydrocarbons (oil and natural gas), Aldo Flores Quiroga, “Mexico has transitioned from a system run by one company to having 67 companies involved in exploration and production, 27 companies involved in retail fuel stations and 56 in transportation and storage infrastructure.”
The deputy secretary revealed these figures during the Argus Mexican Refined Products Markets conference in Houston, TX during the past week. Mexico still hopes to attract significant investment to its oil and refined products industry, particularly for additional storage capacity. Presently, Mexico only has storage capacity for about three days. The government’s goal is to have three to five days of supply by 2020 and 13 days of supply by 2025.
In Other News
Shell just wrote a new chapter in its history by diving into the world of electric vehicle (EV) charging networks. Royal Dutch Shell announced Thursday that it has agreed to purchase NewMotion, a Dutch EV charging company that owns one of Europe’s largest charging networks.
Hyperloops are gaining momentum as a transportation solution for passengers and freight in the distant future. Hyperloop One, the first company to complete a full-system test of a hyperloop, has raised $160 million toward its goal of offering an innovative alternative to today’s transportation infrastructure.
US Xpress, a large Chattanooga, Tenn., trucking company, reached a multi-year deal worth more than $200 million to purchase 1,665 tractors from Navistar International Corp. Manufacturers are forecast to win orders for about 140,000 Class 8 semi-tractors this year, according ACT Research. That’s up 64 percent from the 85,400 ordered in 2016 but still down from the 184,500 of 2015, the research firm said.
Daimler AG announced it will separate its Daimler Trucks & Bus and Mercedes-Benz Cars & Vans divisions into two legally independent and more entrepreneurial entities “still under the roof and the lead of Daimler,” according to Daimler AG CEO Dieter Zetsche. Daimler hopes the move will allow both units to move more rapidly in developing technologies for the electrification and autonomy of vehicles.
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