Heavy Duty Trucking

JAN 2014

The Fleet Business Authority

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hotline Q Trucking's Trucking's Most Resp Respected Business Report pe A & – Bill Kozek, president, Navistar North America Truck and Parts Q: After 26 years with Paccar, why move to Navistar, which is struggling to come back following its failed EPA2010 emissions strategy? A: I knew the engine strategy was a problem and there would be some pretty big challenges to overcome, but it was an opportunity for me to be part of a turnaround that would be something I don't think I ever would have had at Paccar. Q: How do you go about rebuilding Navistar's reputation? A: It's every day, you're in front of that customer and you explain the situation to them. We're doing a really good job of taking care of their EGR vehicles, then you move on to what we are doing with our new products. With some customers it's going to take a little more; maybe a demo program is what they need to regain the trust … It takes time, but I think we're doing a lot of the right things. For the full interview, go to www.truckinginfo.com/kozek 16 HDT • JANUARY 2014 Keep up with the latest news each day at www.truckinginfo.com JANUARY 2014 Rush switching from expansion to integration M ega-dealership Rush Enterprises spent 2013 in expansion mode, buying 34 Navistar International dealer locations in six states. It's now preparing to fold the new properties and employees into the company and the company culture, according to Rusty Rush, chairman and CEO. "This year was an acquisition stage," he said. "Next year and after will be integration," and it will be a big job, Rush told reporters last month during the eighth annual Rush Truck Centers Tech Skills Rodeo, which brought 106 technicians to San Antonio for three days of test competition. "If it had been my choice, I would I have bought all these stores more gradually, but the opportunities came up." By the time all the deals are closed early this year, there will be 108 Rush Truck Center locations in 20 states. Rush Enterprises had 35 to 40 locations in southern and western states just before the recession started. Most were Peterbilt stores but also included Hino, Isuzu and Ford medium-truck franchises. Paccar, Peterbilt's parent, won't allow Rush to buy more dealerships, so Rusty and his father, founder Marvin Rush, branched out to another make. The International dealerships expand the company's footprint in the Midwest. Asked if he obtained the properties at good prices because of Navistar's recent engine problems, he replied, "I didn't steal 'em. I got 'em at a fair price." Though its sales are still lagging, Navistar is recovering since it switched away from trying to make its all-EGR approach work, he said. "It's not something that's like you can turn on a light switch. You have to work your way through." – Tom Berg, Senior Editor Economic Indicators 4.1% 29.6% 3.2% 8,400 0.3% GDP (U.S. Commerce Dept.) New housing Industrial New starts production trucking jobs (U.S. Commerce Dept.) (U.S. Federal Reserve) (U.S. Labor Dept.) Consumer spending (U.S. Commerce Dept.) Third-quarter GDP annual rate of 4.1% was the best since the fourth quarter of 2011. New housing starts in November surged to best level in five years, 29.6% higher than a year ago. November industrial production was 3.2% higher than a year ago – respectable, if not rapid, growth. The for-hire trucking segment added 8,400 jobs in November, following six months of little growth. Consumer spending in October increased 0.3% from September, restrained by moderate job creation and still-tepid income growth. www.truckinginfo.com

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