Business

KNOXVILLE, Tenn. — Pilot Company announced Wednesday a $1 billion initiative focused on upgrading the experience and equipping its stores for the future of travel. The three-year project, called New Horizons, marks the company’s largest investment in store modernization to date and will fully remodel more than 400 Pilot and Flying J travel centers, as well as make upgrades at several more locations across the country. Based on guest and team member feedback, New Horizons includes top to bottom store overhauls, remodeling restrooms and showers, expanding kitchen and dining areas, improving driver-focused amenities, expanding digital engagement with guests and installing the latest in fueling and retail technology. “For 63 years, we’ve been proud to fuel millions of journeys and as we have done since our founding, we will continue to evolve the travel center experience to meet the changing needs of our guests and team members,” Shameek Konar, Pilot Company CEO, said. “We are listening to what our guests want most at our locations and how we can improve our offerings to make their travels easier and more enjoyable. New Horizons will incorporate this feedback as we overhaul our entire network to deliver on what our guests value today and prepare our stores for the future.” The New Horizons project will be completed in several phases as the company progresses its store design and incorporates new innovations. The first phase is now underway with more than 50 Pilot and Flying J travel centers planned to be renovated this year. Key enhancements of New Horizons include: Store exteriors and interiors: Top to bottom overhauls from the curb to the counter, including more energy-efficient lighting for well-lit parking lots, improved fueling experience, updated branding, refaced walls and store features with industrial style accents to create a welcoming environment that leaves a lasting impression. Restrooms, showers and laundry: Adding more and remodeling existing facilities with modern, energy efficient fixtures – including touchless where possible – new tile, fresh paint and brighter lighting. Seating and lounges: Expanding spaces for guests to relax with comfortable furnishings and additional dining areas. Retail, food and beverage: Redesigned store layouts will increase variety and bring more of Pilot’s signature fresh deli items, including pizza, homestyle meals, grab-and-go foods, and premium coffee to more locations, all in an easy-to-shop atmosphere. New technology: Installing state-of-the-art retail and fueling technology, including adding self-checkouts, to increase efficiency and enable team members to further personalize the guest experience. Improved team member areas: Upgrading, reconfiguring and expanding breakrooms and workspaces, including installing new kitchen equipment and back-office solutions, to make team members’ jobs easier and able to focus more on providing great service. Future innovations include equipping stores with fueling alternatives, including electric vehicle (EV) charging stations, and developing a strategy to support low emission and zero emission vehicles. As part of New Horizons, Pilot Company is furthering its investment in the communities where its stores are located through its giving back program. This year, Pilot Company will donate more than $500,000 to support local school districts in the areas where its building new locations or remodeling stores. The contributions will go towards providing students with equal access to educational technology, a key focus area of giving back for the company. To learn more about Pilot Company’s giving initiatives, visit pilotcompany.com/about. “Our team members are an integral part of the guest experience, and we want to equip them with the tools to succeed while furthering our commitment to being a great place to work,” Konar said. “With New Horizons, we are investing in the total Pilot experience – from our team members to our guests and to the communities we serve.” For more information about New Horizons, visit pilotflyingj.com/new-horizons and to learn more about Pilot Company, visit www.pilotcompany.com.  

ATLANTA — Cox Automotive on March 3 announced the introduction of Cox Automotive Mobility Fleet Services, previously delivered in conjunction with industry leaders Dickinson Fleet Services and Interstate Truck Center. “By operating under one unified brand, Cox Automotive Mobility Fleet Services will deliver a more holistic offering of industry-leading on-site, emergency mobile and shop services for light, medium and heavy-duty trucks and trailers,” a news release stated. “We recognize the responsibility we have to evolve and transform our business continuously to better serve our customers, team members and industry,” Joe George, president of Cox Automotive Mobility, said. “This brand evolution is a signal of our commitment to continue to lead the transportation and fleet services future.” Customer-focused growth strategy Explosive growth in e-commerce, last-mile delivery, innovation and technology have changed the nature of fleets and will continue to impact the transportation future. Driven to maximize fleet uptime for its partners, Cox Automotive Mobility Fleet Services is anchored by a workforce of more than 1,100 world-class technicians, fleet of nearly 800 mobile trucks and more than 25 shop facilities. While already recognized as an industry leader, growth will remain a core focus area for Cox Automotive Mobility Fleet Services. Introducing New FleeTec® Academy Locations – Focused on creating the next generation of elite technicians, Cox Automotive Mobility Fleet Services has plans to double its FleeTec® Academy locations in 2022. This builds on the success of its flagship training program in Indianapolis, as well as the opening of the group’s Phoenix-based FleeTec® Academy in November 2021. Expanding Local Market Footprint – Cox Automotive Mobility Fleet Services will continue its aggressive expansion efforts with investments focused on strengthening the company’s preventative scheduled maintenance and 24/7 emergency mobile service presence across the U.S. With its two most recent acquisitions – Mobile Fleetcare in the San Francisco Bay Area, and MobiCare in Jacksonville, Florida – Cox Automotive Mobility Fleet Services’ coast-to-coast coverage received a significant boost in the last six months alone. Advancing the Future of Fleets – This brand evolution will accelerate fleet-focused product and technology development, working across Cox Automotive Mobility’s other business solution areas – Fleet Operations, EV Battery Solutions and Emerging Ventures. This includes service and support of commercial fleet electrification, and advanced driver assistance systems (ADAS) to further enhance driver safety and comfort. “This is more than just a name change – our refreshed Fleet Services brand signifies the direction we are headed as a business to deliver maintenance excellence for our customers while providing best-in-class benefits and training for our world-class technicians,” Ted Coltrain, vice president of operations at Cox Automotive Mobility Fleet Services, said. “Day-to-day, our mission as the leader in scheduled and unscheduled fleet services will not change. We will continue our commitment to the safety-first and technician-centric culture we’ve developed and nurtured over the years.”

COLUMBUS, Ind. – Preliminary North American (NA) Class 8 net orders in February were 21,000 units, staying flat since January, while NA Classes 5-7 net orders rose to 18,300 units. ACT’s State of the Industry: Classes 5-8 Vehicles report provides a monthly look at the current production, sales and general state of the on-road heavy and medium duty commercial vehicle markets in North America. The Class 8 market is segmented into trucks and tractors, with and without sleeper cabs. The report includes a six-month industry build plan, a backlog timing analysis, historical data from 1996 to the present in spreadsheet format, and a ready-to-use graph package. A first-look at preliminary net orders is also published in conjunction with this report. “Constrained production capabilities and long backlogs continue to impede new order activity,” Kenny Vieth, ACT president and senior analyst, said. “Based on preliminary February inputs, North American Classes 5-8 net orders were essentially flat compared to January. While order weakness is attributable to supply constraints, the ground rules of data collection play a part: The OEMs only report orders that are scheduled to be built within 12 months. With backlogs effectively stretching 12 months, and with limited forward visibility, order volumes have largely been mirroring production activity.” Vieth said that with critical industry demand drivers at, or near, record levels, industry strength should be measured with long backlog lead-times, rather than in tepid new order activity. Complete industry data for February, including final order numbers, will be published by ACT Research in mid-March.

BISMARCK, N.D. — North Dakota’s biggest oil driller said Wednesday it will commit $250 million to help fund a proposed pipeline that would gather carbon dioxide produced by ethanol plants across the Midwest and pump it thousands of feet underground for permanent storage. Continental Resources, headed by billionaire oil tycoon Harold Hamm, discussed the investment into Summit Carbon Solutions’ $4.5 billion pipeline at an ethanol plant in Casselton, in eastern North Dakota. The plant is one of 31 ethanol facilities across Iowa, Minnesota, Nebraska and the Dakotas, where emissions would be captured and piped to western North Dakota and buried deep underground. The pipeline system would extend 2,000 miles (3,219 kilometers) and could move up to 12 million metric tons of carbon dioxide a year, said Wade Boeshans, executive vice president of the Iowa-based pipeline developer. That’s equal to removing the annual carbon emissions of 2.6 million cars, he said. Boeshans said the involvement of Hamm likely will help raise capital and boost the project’s profile. Hamm’s company helped lead a renaissance in the U.S. oil industry through the use of horizontal drilling to free oil trapped in shale rock. Continental is the biggest producer and largest leaseholder in the Bakken shale formation, with more than 1 million acres (404,686 hectares) in North Dakota and Montana. Hamm told The Associated Press that his company is looking at the pipeline project as more than an investment. “We feel it’s the right thing to do at the right time,” Hamm said. “Carbon capture and storage is going to be more and more important every day as we go forward in America.” North Dakota is the nation’s No. 3 oil producer behind Texas and New Mexico. Continental and Summit officials said there are no plans to inject carbon dioxide into old oil wells to boost production, a process that has been largely unsuccessful in North Dakota. “That is not part of our business plan,” Boeshans said. North Dakota’s underground rock formations are ideal for carbon storage, state Geologist Ed Murphy said. Republican North Dakota Gov. Doug Burgum praised the Summit pipeline and other proposed carbon storage projects in North Dakota, which are integral as part of the state’s plan to become carbon neutral by 2030. Boeshans said the company in December began negotiating with landowners along the pipeline’s path for easements, though the company would not rule out the use eminent domain if agreements with landowners can’t be reached voluntarily. “Overall, we’re making progress with voluntary easements,” he said. The company has not filed permit applications in North Dakota for the pipeline, or for the estimated dozen underground wells needed for storage. The project could employ up to 17,000 people during construction, and lead to 500 permanent jobs when it’s expected to come online in mid-2024, Boeshans said.

BETHESDA, Md. – Applications for diesel/heavy-duty scholarships funded by the University of the Aftermarket Foundation and partner organizations are being accepted through March 31. Applicants can apply online at HeavyDutyScholarships.com and must be planning to attend a full-time program at an accredited two-year or four-year college or university, or an ASE/NATEF certified post-secondary vocational program. In addition to technician training, qualified candidates interested in working in the heavy-duty aftermarket may be pursuing one of many career paths, including engineering, IT/cybersecurity, sales and marketing, supply chain, accounting, finance and more. “With the scholarship application deadline quickly approaching, we encourage all interested candidates to log on and apply right away,” Bob Egan, MAAP, chairman of the University of the Aftermarket Foundation, said. “The diesel/heavy-duty industry has many fine career opportunities, so please spread the word about the March 31 application deadline to anyone who wants a future in the heavy-duty aftermarket and seeks scholarship assistance.” In addition to heavy-duty scholarships, the University of the Aftermarket Foundation also offers scholarship opportunities for those studying for careers in the automotive and collision repair industries. To learn about available automotive scholarships, visit AutomotiveScholarships.com. In total, the University of the Aftermarket Foundation will be awarding over 400 scholarships for the 2022-23 school year to deserving students pursuing careers in the motor vehicle aftermarket. For more information about the University of the Aftermarket Foundation, visit UofA-Foundation.org.

SAN FRANCISCO — Autonomous truck software developer Embark Trucks, Inc. has announced a partnership with Alterra Property Group, a real estate investment company focused on industrial outdoor storage properties, to identify and launch transfer point sites across the U.S. Sunbelt. These new transfer points will increase the reach of the Embark Coverage Map and enable new autonomous trucking lanes as Embark prepares for commercial deployment of its technology in 2024, according to an Embark news release. “Since it began the transfer point model and opened the industry’s first transfer point in 2019, Embark has developed the operational expertise and technical specifications required to launch new transfer point sites,” the news release stated. In September 2021, Embark announced a plan to launch up to 100 transfer points across the U.S., working with Ryder to provide onsite operations, maintenance and fleet management in support of seamless coast-to-coast autonomous truck operations. “Through this partnership with Alterra, Embark will look to access the real estate it needs to activate a nationwide transfer point network and execute against its long-term commercialization goals,” according to the news release. Alterra specializes in industrial outdoor storage properties that can accommodate vehicle and trailer parking, and will identify, purchase and lease sites optimally sized and located for transfer points. The company currently owns a nationwide real estate portfolio with over 100 properties located across 27 states. This portfolio will substantially expand through Alterra’s fully discretionary private equity fund that is currently investing nationally with capacity up to $1.5 billion. Alterra plans to deploy new and existing funding to acquire dozens of AV-ready sites in major markets like Los Angeles, Dallas and Atlanta that could be utilized by Embark and its carrier partners over the next several years. “Industrial outdoor storage as an asset class has yet to be institutionalized, making it difficult for tenants with specific and nationwide real estate needs, like Embark, to systematically access a network of suitable sites,” Leo Addimando, managing partner of Alterra Property Group, said. “As a leader in this asset class on our way to accumulating a multi-billion dollar portfolio, we have the ability to provide Embark a strategic advantage when it comes to identifying, securing, and developing a nationwide network of autonomous-ready sites.” “In the short term, Embark and Alterra intend to identify standardized, turn-key sites that provide Embark the ability to quickly scale up at a particular site with minimal lead time or development costs,” the news release stated. “Over time, Embark and Alterra will investigate more creative physical and economic structures, such as allowing Embark to grow across a site over time or allowing Alterra to participate in the economic upside of onsite activity through per-use price structures.” Sam Abidi, chief commercial officer at Embark, said that Alterra “can provide the real estate portfolio, market expertise and capital required to activate a nationwide real estate network of transfer points, enabling Embark to remain asset-light and focused on our SaaS business model. Working with Alterra should give Embark flexible access to a portfolio of AV-ready properties in Sunbelt markets where we plan to expand and marks another key step in our rollout of the Embark Coverage Map.”  

CHICAGO — Ocean Tomo, LLC, released its Autonomous Vehicle Industry Report examining the components of market value, challenges and changes in the autonomous vehicle marketplace, and the increasingly critical role intellectual property licensing is playing in the industry. “Investment and research in the autonomous vehicles industry are expanding,” Ocean Tomo Autonomous Vehicle Industry Analyst Chris Stearns said. “Traditional automobile manufacturers and tech companies are continuing to pursue strategic relationships to advance their goals of developing and commercializing Autonomous Vehicle technology.” Stearns said that with enhanced product complexity and growing functional integrations, the IP mesh in autonomous vehicles bridges numerous technologies from automotive and non-automotive industries. “Technologies, including cameras, semiconductors, radar and lidar sensors, network infrastructure, and many others, combining in new ways further complicate IP licensing in this industry,” Stearns said. “While traditional automotive OEMs dominate the patent filings in the autonomous vehicle space, automation technology disrupters, including Tesla, Apple, Qualcomm, and others, continue to outperform both the market and traditional OEMs and OEM suppliers,” Ryan Zurek, managing director who leads Ocean Tomo’s advisory services, said. Ocean Tomo Autonomous Vehicle Industry Analyst Tucker Goebeler said the rapid growth in the autonomous vehicle industry requires businesses to consider how to best protect their innovations in the market using intellectual property. He says intellectual property will become a key asset for the players in this industry in the coming years. Ocean Tomo Industry Reports share unique insights related to technology and the intellectual property driving business value. The reports reflect on leading market participants, current industry trends, and important deal activity. The reports provide industry predictions, emerging industry partnerships, and analysis of intellectual property protection considerations. Daniel Principe oversees the creation of Industry Reports for Ocean Tomo and covers Cybersecurity for the firm. “The updated Autonomous Vehicles Industry Report highlights the importance of IP in a high-tech industry demonstrating Ocean Tomo’s unique understanding of the industry through the lens of the intellectual property and other intangible assets that enable market participants,” Principe said. In 2018 Ocean Tomo launched a series of Industry Analyst Reports providing a comprehensive look at current industry trends and deal activity. The report is available to download here.

EL SEGUNDO, Calif.  — WattEV, which is developing a network of solar-powered electric truck stops throughout California, announced this week the appointment of three new members to the company’s board of advisors. The new board members will aid the company’s growth as it expands its public electric truck charging infrastructure and Truck-as-a-Service program. WattEV has a goal of putting 12,000 electric heavy-duty trucks on the road with a supporting infrastructure by 2030. Its first electric truck stop, under development in Bakersfield, California, is scheduled to open in late 2022, while the first of an order of Class 8 electric trucks for the TaaS program is slated to be delivered at the same time. “As WattEV moves towards revenue generation in 2023 and scaling its operation in years beyond,” Salim Youssefzadeh, chief executive officer of WattEV, said. “The addition of these three distinguished professionals will help the company in building a solid foundation as it completes its developmental work.” The new members and their sector expertise include: Transportation Sector: Tom Nightingale has spent his entire career in transportation. He is currently CEO of AFS Logistics, a leader in supply chain consulting and logistics services. Nightingale has a track record of working with high-growth transportation and logistics companies. He previously served as CEO of International Package Shipping, president of GENCO Transportation Logistics (now FedEx Supply Chain), chief marketing officer of Con-way Inc. (now XPO) and vice president of marketing for Schneider National. Nightingale also serves on several supply chain industry for-profit and non-profit boards. Technology: Rustam Kocher is a self-described “EV-angelist” who “drives on sunshine” by using solar panels to charge his two electric cars – the same concept used in WattEV’s 21st Century Truck Stop in Bakersfield, which will be a 40MW solar park for charging heavy-duty electric trucks. Until recently, Kocher was the Transportation Electrification Team manager at Portland General Electric (PGE), Oregon’s largest electric utility, where his team was responsible for operationalizing and scaling PGE’s electric transportation product portfolio. Prior to joining PGE, Kocher was a founding member of the E-Mobility Group at Daimler Trucks North America, building DTNA’s electric truck and charging offerings from the idea stage to reality. Kocher has also led the global Megawatt Charging System (MCS) taskforce at CharIN, where more than 120 companies, government labs and agencies have been working together to standardize the MCS charging connector that will enable charging for 250 miles of range for a fully loaded rig in less than 30 minutes. Project Finance: Before starting his consulting practice, John Schuster served for 15 years at the U.S. Export-Import (EXIM) Bank as vice president and head of the Structured Finance Division, growing its lending capacity to more than $10 billion per year. He led the bank into new sectors such as satellites, renewable energy, mineral mining, nuclear power and semiconductor manufacturing. Schuster is an expert on project finance with more than 30 years in the infrastructure finance industry. He has led and advised deal and project teams on more than 200 separate transactions, involving nearly $50 billion of approved project loans for infrastructure projects. “We’re honored to have our three new board advisors join our company and guide us in our journey,” Youssefzadeh said. “Our voyage involves pioneering work integrating diverse sectors of transportation and technology, with project finance providing a key element. Having access to advice from accomplished leaders in each of these sectors will be invaluable.”  

COLUMBUS, Ind. — January net US trailer orders of 26,595 units increased less than 1% from the previous month and were more than 15% lower compared to January of 2021. Before accounting for cancellations, new orders of 28.0k units were down about 2% versus December, and almost 15% lower than the previous January, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailer Report. ACT Research’s State of the Industry: U.S. Trailers report provides a monthly review of the current US trailer market statistics, as well as trailer OEM build plans and market indicators divided by all major trailer types, including backlogs, build, inventory, new orders, cancellations, net orders, and factory shipments. It is accompanied by a database that gives historical information from 1996 to the present, as well as a ready-to-use graph packet, to allow organizations in the trailer production supply chain, and those following the investment value of trailers, trailer OEMs, and suppliers to better understand the market. “The effort that OEMs have made to prevent untenable backlog growth through controlling order acceptance continues. That effort has been highly driven through dry vans and reefers,” Frank Maly, director of commercial vehicle transportation analysis and research at ACT Research, said. “Expect the conservative order acceptance stance to continue for the near term; until meaningful production increases can be implemented, this will be status quo. Allocation of production between fleets and dealers will continue to be the norm, with dealers, and correspondingly their small to medium fleet customer base, likely more significantly challenged.” Maly said a there was a slight increase in backlog and a slight decrease in production rates. “Those calculate to a slight increase in backlog-to-build at the close of January,” Maly said. “The 8.3-month level for total trailers commits the industry into very early Q4 of 2022 at current build rates, and this is the highest level since last June. We would expect this metric to remain stubbornly high, and it could also be approaching the Christmas timeframe sometime in Q2, projecting an early calendar-year 2022 sell-out.”  

There are not a lot of people who claim to enjoy completing tax returns. There are even fewer who enjoy it so much that they decide to do it for a living. Trucking industry financial expert Vanessa Gant is one of those few. “I went to (a tax service) and let them do my taxes. And then I wanted to see if I could do it myself,” she explained. “I came home, and I did it myself, and I came up with the same numbers that they did. It kind of sparked in me.” In her own “bootstraps” story, Gant earned a bachelor’s degree in accounting at Strayer University and then a master’s degree in business administration at Webster University. She accomplished all of this while working, first at a freight forwarder and then a drayage firm — and all the while raising two boys as a single parent. Her first child was born while she was still in her teens, she noted. “I got into that accounting job and realized that if I wanted to make more money, I needed more education,” Gant explained. “At that time, I had some education but not a lot of experience. And in our field, education coupled with experience is what is going to take you to the next income threshold. That’s kind of how it started.” Gant’s hard work paid off when she became the chief financial officer (CFO) at National Transportation Services. Later, she gave up that job to focus on her family, and she started her own business, proVision Accounting Solutions. “When I finished my MBA, I wanted to be in more control of my time. My middle child was growing up being quite the athlete and I really needed to be where he was,” she explained. “I’m going out on my own so that I can be present for my kids without having extra permission.” Gant is happy to talk about the services she provides to truckers through proVision, of course, but more importantly, a great deal of her time is spent in charity and volunteer work. She often speaks at seminars and training sessions, helping others build their businesses successfully. One recent event was “My Money Matters, Jr. Edition,” in which Gant teamed up with Legacy Builders to teach financial literacy to girls ages 10 to 18. “I absolutely love serving,” she said. “I love being able to give back to my community, in any way that I can but definitely from a financial foundational point of view.” Gant is also one of the founders of Leading Ladies of Logistix, a group that seeks to empower women in the transportation and logistics industries. The group provides connections and mentorship for women seeking to build their business skills. Gant believes that properly managing money can make a huge difference in everyone’s life. “Money isn’t everything,” she stressed, “but it can help us get a lot in life if we truly understand it and how to manage it. And I’m a firm believer (that) if my client or anyone that I’m talking to understands how to manage their personal funds, it makes it easier to manage their business funds.” She often appears on a local television station, offering financial and tax advice as “The Money Architect.” Her Facebook page contains numerous posts offering free advice to all, such as “know the difference between bookkeeping and accounting.” Her answer to that question? “Bookkeeping is organizing your financials, tracking your income, your expenses and (ensuring) that everything is right where it needs to be,” she said. “Accounting is the fun part, right? This is where we start talking about strategies, looking at profit margins, looking at what’s making you money and what’s not making you money.” And what about that “Money Architect” moniker? “I design and create,” Gant explained. “I help everyone design and create a plan to create a healthy financial foundation for their business — or just for themselves individually.” As a person who loves numbers, an accounting career made sense for Gant. Specializing in trucking, however, took motivation from a different source. “That was what I had done for 17 years, on the corporate side,” she said. “I simply put what I did in the corporate world, tweaked my audience a little bit and did it on the other side, and it doesn’t feel like work.” When asked what advice she would give owner-operators and small fleet owners, or for those just starting out in the trucking industry, she said, “You cannot grow or scale your business if you don’t know your numbers.” Gant went on to explain that most of her clients say they want to add trucks or trailers to their businesses, but many don’t know their numbers well enough to make sound financial decisions. It’s important to find a trustworthy advisor to help. In addition to helping her clients, Gant has written an e-book titled “10 Financial Mistakes that Put Truck Fleet Owners and Owner-Operators Out of Business.” The book is available, free of charge, at vanessagantmba.com. The publication is also available as an audiobook that drivers can listen to while on the road. When she’s not crunching numbers and helping clients, Gant can usually be found spending quality time with her family. “I absolutely love hanging out with my family. I love hanging out with my friends,” she said. Living near the coast, she also loves time at the beach. Thanks to her husband, she said, she also has a deep interest in sports. He’s kind of walked me over to the ‘dark side,’” she said with a laugh. “We like to travel to cities that have sports arenas and sports teams so that we can attend games.” Gant’s younger son, now 18, was the quarterback of his high school football team and earned a track scholarship to college, so she especially enjoys track and field events. “I’m watching track all the time,” she said. “Anytime there’s any type of track going on, I’m watching.” After starting adulthood as a teenage single mom and working her way up to being CEO of her own firm and a popular mentor to others, Gant says she’s determined to help others achieve their own success. “I wake up every day to do what I love, serving the people that I love to serve,” she stressed. “For me, choosing this work was a no-brainer.”

LANSING, Mich. — Quality Towing Services has expanded and is now able to provide towing and roadside assistance services throughout the greater Lansing area. Located adjacent to Pilot and Flying J Travel Center in Grand Ledge, Quality Towing Services is providing full roadside assistance and towing services for the heavy truck industry. It’s located between Interstates I-96 at Exit 90 and I-69 at Exit 81. Towing and Roadside Assistance Services Towing Jumpstarts Flat Tire Changes Lockout Assistance Fuel Delivery Collision Assistance Mobile Mechanics Electrical System Failure Braking System Malfunction

COLUMBUS, Ind. — Cummins Inc. and Meritor, Inc. announced on Wednesday that they have entered into a definitive agreement to acquire Meritor, a global leader of drivetrain, mobility, braking aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. Under the terms of the agreement, Cummins will pay $36.50 in cash per Meritor share, for a total transaction value of approximately $3.7 billion, including assumed debt and net of acquired cash. “The acquisition of Meritor is an important milestone for Cummins. Meritor is an industry leader, and the addition of their complementary strengths will help us address one of the most critical technology challenges of our age: developing economically viable zero carbon solutions for commercial and industrial applications,” said Tom Linebarger, chairman and CEO of Cummins. “Climate change is the existential crisis of our time, and this acquisition accelerates our ability to address it. Our customers need economically viable decarbonized solutions.” “In addition, our communities and our planet depend on companies like Cummins to invest in and develop these solutions,” Linebarger added. “This acquisition adds products to our components business that are independent of powertrain technology, and by leveraging our global footprint we expect to accelerate the growth in Meritor’s core axle and brake businesses. There is also a compelling financial case for this acquisition, with significant synergies expected in SG&A, supply chain operations and facilities optimization.” Chris Villavarayan, CEO and President of Meritor, said the agreement with Cummins “builds on Meritor’s track-record of outstanding performance and service to our customers. Our offerings will continue to play an important, strategic role as commercial vehicles transform to become electric and autonomous.” “At closing, Meritor shareholders will receive immediate value at a compelling 48% premium to the Meritor trading price as of Feb. 18, 2022, and customers will benefit from enhanced capabilities in technology and the ability to accelerate investment in axle and brake development and EV adoption,” Villavarayan added. “Our global team members and their commitment to excellence helped make this transaction possible and will fuel our innovations as we embark on this next chapter in our longstanding legacy.” The acquisition of Meritor is expected to be immediately accretive to Cummins’ adjusted EPS and is expected to generate annual pre-tax run-rate synergies of approximately $130 million by year three after closing. Cummins intends to finance the transaction using a combination of cash on the company’s balance sheet and debt and remains committed to maintaining its strong credit ratings. The Board of Directors of Meritor has unanimously approved the agreement with Cummins and recommends that Meritor shareholders vote in favor of the transaction at the Special Meeting of Shareholders to be called in connection with the transaction. The transaction, which is subject to customary closing conditions and receipt of applicable regulatory approvals and Meritor shareholder approval, is expected to close by the end of the calendar year.    

BOISE, Idaho — Robust contract rates spur freight broker optimism going into 2022, according to the latest Bloomberg and Truckstop.com survey, which polled brokerage and truckload companies. “Optimism is driven by contract rates that appear to be catching up with the spike in spot truckload rates, which began to moderate in 3Q,” Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence, said. “Volume growth and rate increases for contractual business are setting up a good year for freight brokers’ gross margins and earnings.” The Bloomberg | Truckstop.com Truckload 2H-21 survey shows accelerating volume growth drives optimism: About 60% of survey respondents saying volume rose in 2H from a year earlier, and 76% expecting greater demand due to positive vaccine developments, peak-season preparation and rising consumer confidence. Increased infrastructure spending could provide an added boost to trucking demand. Brokers remain bullish about their ability to raise their contract rates with shippers over the next six months with about 56% of brokers polled expecting to raise contract rates. About 44% of freight broker respondents had a higher gross margin in 2H than a year earlier, with 59% optimistic about gross-margin expansion over the next six months. Rates for brokers are catching up with spot surge with about three-quarters of respondents expecting growth to continue from restocking and increased economic activity, as well as the backlog created by supply-chain dislocations. The biggest constraints on growth will likely be the availability of drivers and the ability to hire more brokers. “Brokers are in a great position to capitalize on wider margins heading into 2022 due to a host of things including increased volume spurred by greater demand and peak season preparation,” Paris Cole, chief executive officer of Truckstop.com, said. “It’s paramount that we continue to enable brokers to more efficiently streamline their operations by providing the features and functionality they need to take advantage of the industry’s accelerated growth.” The Bloomberg | Truckstop.com survey of survey of freight brokers provides timely channel checks into the market’s health. The most recent sample size was 161, consisting of freight forwarders, third-party logistics providers and broker agents, as well as asset and non-asset-based brokers. Most respondents (83%) have 1-50 employees. The majority of those surveyed (51%) were non-asset-based brokers. The complete survey is available to Bloomberg Terminal subscribers via BI.  

SAN FRANCISCO — Nirvana Insurance, a technology-driven platform that modernizes commercial fleet insurance using vast amounts of data from sensors on trucks, announced Wednesday the public launch of its services to make our roads safer and aid the imperiled truck industry. Led by key former employees from IPO blockbuster Samsara, Rubrik and Root Insurance, Nirvana recently closed a $22 million Series A funding round, bringing the total raised to more than $25 million The round was led by Lightspeed Venture Partners with additional participation from General Catalyst, Elad Gil, Fidji Simo (CEO, Instacart), Spike Lipkin (CEO, Newfront), Sam Hodges (CEO, Vouch) and more. Nirvana will use the funding to scale its operations, grow its team, and invest in R&D efforts to expand products and services. The company uses telematics data to help fleets mitigate risk, improve driver performance, drop costs and make the insurance process easier. Nirvana gives up to a 20% discount upfront to the safest fleets and turns an insurance process that often takes months into mere minutes. “The analog approach to issuing insurance to commercial fleets is fundamentally broken,” Rushil Goel, CEO and co-founder of Nirvana, said. “The process is confusing, slow, and comes at a high productivity and financial cost.” The Nirvana platform connects billions of data points from these telematics and AI-powered dash cams, as well as public sources like the DMV and the department of transportation, to provide instantaneous quotes. Location, speed, video, erratic driving, weather, and traffic are all factors that are assessed by Nirvana’s bespoke machine-learning algorithms. Nirvana also gives regular recommendations to its clients, including specific coaching for drivers, as well as routes to avoid. “In my time working with more than 20,000 fleets at Samsara, I saw over and over again how these small businesses were completely frustrated with insurance and struggling to survive, Goel said. “Truckers who were doing all the right things and investing in safety, still saw their rates go up every year to the point where it forced them out of business,” said Goel. The policies are also usage based: Customers only pay for how much they drive, supporting the focus on reducing costs and tailoring coverage to a fleet’s actual exposure and usage. “Rapidly rising premiums in commercial fleet insurance are causing trucking businesses to shut down,” Raviraj Jain, partner at Lightspeed Partners, said. “Nirvana is bringing next-generation, data-driven insurance to the commercial fleet world by helping them operate not only more safely as business owners but leverage that safety to positively impact customers and beyond. Nirvana’s mission and leadership team have impressed us from the very beginning, and we’re excited to collaborate with the team to help unlock its full potential.” “Today, commercial fleet insurance is creating high costs and inefficiencies for trucking companies. Nirvana Insurance is poised to transform the trucking insurance industry and bring it into the 21st century,” Joel Cutler, partner at General Catalyst, said. “Led by Rushil Goel, on the heels of his success as a product leader at Samsara, Nirvana is delivering an amazing product for customers and agents alike.” Goel said that fleet insurance is only the beginning for Nirvana. “One day soon this use of smart data to mitigate risk will spread to factories and warehouses, for a safer and more efficient nationwide supply chain,” Goel said.  

January sales of new Class 8 trucks on the U.S. market dropped by 39.4% from December sales, according to data received from ACT Research. The difference, however, isn’t as stark it might appear. According to Kenny Vieth, president and senior analyst at ACT, it’s all about “seasonal adjustment” of the numbers. “In December, we typically sell 26% more trucks than in the average month. And in January, we typically sell 21% fewer trucks than in the average a month,” he said. “So when we seasonally adjust, we see that the decline was right about what we expected.” According to ACT’s latest report, 15,208 new, Class 8 trucks were sold on the U.S. market in January, down 9,908 from the 25,116 sold in December. Compared with January 2021, when 17,163 trucks were sold, deliveries declined by 11.4%. The reason for the drop, according to Vieth, is the same as it has been for months — supply constraints due to shortages of semiconductors and other build components and materials. A Feb. 10 “explainer” story released by the Associated Press explored the semiconductor shortage and its causes, noting that trouble was brewing even before the pandemic caused shutdowns and restrictions. In other stories the pandemic is certainly mentioned, along with the unexpected rise in sales of personal computers as companies equipped employees to work from home. The increase in the building of electric cars, however, coupled with the implementation of 5G cellular networks, called for a new type of chip, one that factories needed retooling to produce. The irony is that we can complain on our new 5G phone about delays and higher prices for vehicles that manufacturers can’t get enough semiconductors to build. Relief is coming, but it takes time to bring new factories online. There’s a potential problem, too. Because the majority of chips used by auto and truck manufactures are made in Taiwan, there’s a threat that China could act on its promise to claim the island, further reducing worldwide supplies. Still, investment in new manufacturing facilities is planned for the U.S. by several manufacturers. Of the trucks sold in January, 11,599 were Class 8, fifth-wheel-equipped tractors, while 3,609 were vocational trucks equipped with dump, trash, concrete or other specialized bodies. “I think a lot of that has to do with inventories,” Vieth said, adding that vocational inventories were down 17% year over year in January. With reduced build rates, OEMs can’t build fast enough to replenish inventories at dealers. The backlog of Class 8 trucks ordered for the North American market stood at 258,900 at the end of January. That’s an improvement from the October peak of 284,400, but still comes in at just under 10 months to build them all — and that’s without any further orders. “Builders are telling us that in February and March build rates are going to drop,” Vieth said. “That will push the backlog back up to about 11 months.” The used truck market isn’t likely to help, as inventories are also depleted in that market. Preliminary numbers provided by ACT showed that same-dealer sales fell 8% in January over December. More telling is the 32% decline in sales compared to January of 2021. When used trucks are available, prices are high. According to the ACT publication, “State of the Industry: U.S. Classes 3-8 Used Trucks,” average unit prices this January were a whopping 82% higher than in January 2021 — and that price was for trucks averaging 6% older and with 6% more miles than the previous year. “The used truck market is operating with less inventory than it has at almost any time in recent memory and perhaps ever,” said Steve Tam, vice president of ACT. “The combination of through-the-roof demand and severely limited inventory has driven prices to never-before-seen levels.” As far as forecasting sales for the rest of 2022, it looks like more of the same, at least for a while. “Whether you’re looking at freight rates or profitability, or at least the revenue side, it’s all good,” Tam said. “The bad news is that everything’s costing you more. Barring an unforeseen event, the economy should grow slowly through the year. Results were mixed for individual OEMs, but all of them saw sales declines from December, according to data received from Ward’s Intelligence. That’s the usual case for January, which tends to be a weak month for sales. Freightliner sold 1,801 fewer trucks in January than in December for a decline of 21.7% from December’s 8,315. Compared to January 2021, sales declined by 771 (10.6%). Freightliner sold 37.7% of the new Class 8 trucks sold on the U.S. market in 2021. Volvo and Volvo-owned Mack saw the largest sales declines by percentage. Volvo’s 1,404 sold in January was down 61.6% from December’s 3,657 and 19.6% down from January 2020. Mack sold 683 trucks in January, down 76.7% from 2,926 in December and down 36.9% from January 2020, when 1,082 were sold. In 2021, Volvo owned 10.0% of the new Class 8 U.S. market, while Mack took 8.4% International sold 1,950 in January, down 8.5% from December sales of 2,131 but 15.3% better than January 2021 sales of 1,082 units. International ended 2021 with 11.9% of U.S. new Class 8 sales. Kenworth sales of 2,218 in January represented a 39.7% drop from December’s 3,680 but were 18.7% better than January 2021 sales of 1,868. Peterbilt didn’t fare quite as well, with January sales of 1,623 falling 52.3% from December’s 3,405 and 41% from January 2021, when 2,753 Petes were sold. Overall, during 2021, Peterbilt edged out Kenworth for market share with 14.8% of new Class 8 sales versus 14.6% for Kenworth. Western Star sales of 565 in January was a decline of 6.1% from 602 sold in December but was 35.2% better than the 418 sold in January 2021. The company took a 2.7% share of the market in 2021. Just like most of last year, both new and used trucks will be harder to find and more expensive to buy. Those that find them, however, should find plenty of freight to haul and at very good rates.

INDIANAPOLIS and SALT LAKE CITY — Direct Connect Logistix, a third-party transportation and logistics services company, announced Monday that it has acquired Draper, Utah-based Performance Logistics, LLC in a transaction that positions the combined company to grow nationally. By joining together, the two third-party logistics companies expect to be able to better serve existing customers by leveraging industry-leading technology and working with a broader range of carriers. The combined company will also benefit from an increase in scale and purchasing power. Terms of the transaction were not disclosed. Performance Logistics is a third-party logistics company founded in 2015 by Eric Riddle, Cameron George and AJ Baadsgaard. It specializes in temperature-controlled food and beverage transportation services. “From the start of our discussions with Performance Logistics, we have been impressed by the company’s dedication to its customers, its growth capabilities, and its roster of blue-chip food and beverage customers,” Richard Piontek, CEO of DCL, caid. “This acquisition provides us with a presence in the Mountain West for the first time and strengthens our refrigerated and frozen food capabilities. We also expect it will help us expand our customer base and increase market share with existing customers.” Performance Logistics’ existing management team will join the combined company to help lead an expansion plan for DCL’s regional operations. George will join DCL’s management team and serve as Performance Logistics regional vice president. While DCL’s headquarters will remain in Indianapolis, the combined company views its presence in Utah as a strategic location and intends to expand its workforce there. “We are very excited to combine our efforts with Direct Connect Logisticx. I believe this combination will significantly expand our ability to serve customers across North America,” George said. “The combined scale of the two companies will enable us to deploy additional resources and technologies that will extend our reach, improve our service to our customers, carriers and result in new opportunities for people in both organizations.” Detroit-based private equity firm, Huron Capital acquired DCL in 2018 to build the company into a premier third-party logistics company. With this acquisition, DCL is poised for continued expansion in a growing and dynamic industry. “The combination of DCL and Performance Logistics will provide employees from both companies with more opportunities to grow and succeed in their careers,” Piontek said. “As part of this partnership, we are also putting a greater emphasis on hiring top talent in the areas we service to continue on this path of expansion.” For more information about DCL, please visit: www.dclogistix.com.    

ALBUQUERQUE, N.M. — Pilot Company is continuing to expand its industry-leading network of travel centers with the grand opening of its newest location in Albuquerque, New Mexico, this month. Located at Exit 215 on I-25, the newly built Pilot Travel Center brings 70 new truck parking spots, driver-focused amenities, and a wide selection of premium offerings to the South Valley area. “We’ve been serving drivers across New Mexico for 35 years and are proud to open our 15th location in the state,” said Jason Nordin, chief operator of Pilot Company. “With our new Pilot Travel Center, we look forward to providing fast and friendly service, comfortable facilities, and additional truck parking for professional truck drivers traveling through the south end of Albuquerque.” Located at 9220 Broadway Boulevard, the Pilot Travel Center is over 14,300 square feet and offers several amenities, including: 12 gasoline fueling positions and 7 diesel lanes with biofuel, DEF, and high-speed pumps for quicker refueling Fresh-made pizza, homestyle meals, and grab-and-go food offerings prepared on site daily, including salads, sandwiches, burgers, fruit cups, and an array of hot and cold snacks. Pilot’s ‘Best on the Interstate’ premium coffees, including bean-to-cup selections and cold brew McDonald’s with drive thru Wide selection of name brand products, electronics, gifts, and gear 70 truck parking spots 5 showers CAT scale Public laundry Full-service and self-checkouts for faster shopping “While you’re fueling up, stop in and try some of our awesome signature coffee and food – we’re serving everything from hot breakfast, pizza, and jumbo chicken wings that are made fresh daily,” Nordin said. To celebrate its grand opening, the new Pilot Travel Center will offer an exclusive deal from Feb. 21 – March 13 for 25% off food and beverages by entering the promo code “Pilot1106” in the myRewards PlusTM app.