An Amazing Sale: Part 3 of 3Posted: Monday, October 19, 2009 Categories: General I was amazed by this, but scared to death of what this was going to cost, and expressed my fear to my sales representative. He smiled and stated that he figured that would be the case. The total charges for all the special movements, overtime and modifications would result in only around $1000 more for both units. That brought a smile to my face. He said he even had more good news that would guarantee my regular maintenance for the contract period. Although the contract with the state had some allowance for consumer price increases, it was very little. I was also concerned about the financing, since I did not have a great deal of cash and did not want to draw down on my line of credit. Once again my sales representative, who seemed to have all the answers, had already taken the first step. He presented a TRAC Lease for 48 months, a 30% residual, no money down, no security deposit and just the first month’s payment at delivery. I was astounded by this arrangement, and then was even more amazed when he presented an optional Priority Service Maintenance Program that would guarantee my cost of preventive maintenance for the term. In addition to the normal preventive maintenance, he had included two sets of tires, two complete sets of brakes and invaluable roadside assistance, all with a cost of under $10.00 per working day, based on the average of 22 working days per month. He even presented me an estimate of the fuel costs based on a conservative number, and savings based on up time using the Priority Service Maintenance Program. He even made arrangements to have the vehicles dropped off once a month on Friday evenings to give the vehicles a check over and cleaning, ready to be picked up on Monday morning. I realized I was not just dealing with an individual that wanted to sell a truck, but a Transportation expert who wanted to provide me with a complete transportation solution. I called my accountant and put him on the speaker phone, verified the tax benefits of the TRAC lease with preventive maintenance, and then I PRESSED HARD THREE COPIES. An Amazing Sale: Part 2 of 3Posted: Monday, October 12, 2009 Categories: General I dug in my drawer and called my local Isuzu dealer that I had been working with for years, explained the situation and told him that I needed a miracle: two trucks in ten days, outfitted and ready to roll. One would need to be a 24’ Van with logistic straps and one crew cab with a 14’ body. Our techs could help outfit the interior. The main requirement would be immediate delivery. My sales representative told me that he would drop everything and be over in 30 minutes to meet and see what could be done. The meeting was short, to the point, no nonsense. With specifications in hand, he headed back to his office. Three hours later, and to my relief, he called and said, “it looks like we can make this happen. I will be there in 20 minutes.” We got together as planned, and he frankly told me that if we all worked together, we could make this happen, but it would be tight.
An Amazing Sale: Part 1 of 3Posted: Monday, October 05, 2009 Categories: General Although business was challenging, I arrived at my office with my normal positive attitude. The office interior business was way off. However I was holding my own and had not needed to lay off employees, although I had curtailed some expenses. I logged on and checked my email and came out of my chair with excitement. Eight months earlier, I had lost a bid to the State of California for refurbishing, moving and supplying office interiors. The e-mail was from the purchasing department, asking for an immediate verification that my company could pick up the existing contract. It seems the winning bidder had shut down their operation on Friday. What an opportunity! In addition to this, due to exceptional cash management, I had been able to pick up some very nice discontinued units that would fit the government perfectly. I went to the file and pulled out my copy of the bid package to review all the details. I remembered a good deal, but wanted to bring myself and my warehouse / transportation manager up to date. After reviewing, I was excited, but also in a little panic. The e-mail indicated that they needed the new vendor to be able to start business by the beginning of July, just 10 days away. I called together my total team and told them that the contract was very lucrative, and we would all need to pitch in, work overtime and be ready to move. I do not run a company based on popular vote by employees, but I wanted to challenge them and see if they wanted to share in the extra work and profits. The vote was overwhelmingly in favor of “making it happen”! The first and most costly challenge was trucks! Although I had six 14’ van body trucks, I would need to dispatch at least three daily, since one vehicle needed to be outfitted with hardware, work station, benches and cutting tools. In addition, it would require a generator to power the tools. Each day would require a supervisor, five assembly workers and two technicians. I suddenly realized it may not be possible to make the deadline. Isuzu's Advanced Engine Technology: Part 2 of 2Posted: Monday, September 21, 2009 Categories: General A History of Emission Compliance and Isuzu’s Advanced Engine Technology Although the 4HE1 represented an engineering high point for Isuzu at the time it was introduced, the EPA continued to further tighten heavy-duty engine emissions standards. For 2004, NOx emissions were reduced to yield an additional 38% reduction, and a new steady-state emissions test was added to the previous transient-only test cycle. Additionally, the new regulation included not-to-exceed (NTE) requirements at high altitudes and under extremeuse conditions. Isuzu responded by introducing the 4HK1-TC engine, with cooled EGR, common rail fuel injection, a diesel oxidation catalyst, fully electronic engine control, and an amazing output of 190 hp and 387 lbs-ft of torque. This best in class power output allowed Isuzu to introduce a new NRR model with a 19,500 lb GVWR. The 2005 model year NRR allowed Isuzu to replace the 6-cylinder FRR with a lighter, more fuel-efficient 4-cylinder N-Series truck, cutting owner-operating costs while achieving a 75% reduction in NOx emissions over the KS22 introduced 20-years earlier. For 2007 engine model year (2008 vehicle model year), the EPA further reduced NOx from 2.5 g/bhp-hr to 1.2 g/bhp-hr (a 52% reduction), and reduced PM emissions limits from 0.10 g/bhp-hr to 0.01 g/bhp-hr (a 90% reduction). Isuzu responded by increasing EGR rates, adding a variable geometry turbocharger, improving the common rail fuel injection system, and, most importantly, adding a Diesel Particulate Filter (DPF) to the 4HK1-TC engine. Amazingly, engine output was increased yet again, this time to 205hp and 441 lbs-ft of torque, oil change intervals were extended to 10,000 miles, and engine B10 life remained unchanged at 310,000 miles (all best in class numbers). Drivers reported a significant improvement in performance, with no measurable reduction in fuel economy. Owners reported what Isuzu has known for decades: the N-Series remains the lowest cost of ownership truck in its class, period. In 2009, Isuzu finds itself once again on the verge of another major leap forward in engine emissions technology. For 2010 engine model year (2011 vehicle model year), EPA is requiring NOx emissions to be reduced from 1.2 g/bhp-hr to 0.2 g/bhp-hr. This represents an 83% reduction in NOx from current levels, and a staggering 98% reduction from the levels of the first KS22 that Isuzu sold 25 years ago. If history is any guide, Isuzu will once again show that less is more. Less fuel consumption equals more payload. Less operating cost equals more resale value. Sound contradictory? Not to Isuzu. For 25 years, Isuzu has helped its customers save money and run their businesses more efficiently, while also contributing to a cleaner planet. There’s no reason to stop now. Isuzu's Advanced Engine Technology: Part 1 of 2Posted: Monday, September 07, 2009 Categories: General A History of Engine Compliance and Isuzu's Advanced Engine Technology In 1984, Isuzu entered the American commercial vehicle market with a truck called the KS22. This vehicle had an 11,000 lb gross vehicle weight rating, and was powered by a naturally aspirated 4BD-1 engine that produced 87 hp. At that time, U.S. EPA emissions standards limited heavy duty diesel engines to Oxide of Nitrogen (NOx) emissions of 10.7 g/bhp-hr. Also, there was no brake specific Particulate Matter (PM, or smoke) limit. Instead, engine smoke emissions were measured using an opacity meter. This was a method to visually measure how “black” an engine’s black smoke was. Opacity was limited to a maximum of 20% during acceleration, 15% under engine lug conditions, and 50% under any operating conditions. How Engine Emissions are Created Engines emit Oxides of Nitrogen (NOx) that form ozone in the atmosphere. These oxides are produced in the cylinder of an engine during the high temperatures of combustion. The resulting ozone is responsible for the smog seen in many major cities, and creates negative health impacts. Diesel engines also emit particulate matter (PM), emissions commonly referred to as soot, further contributing to harmful health issues. Because of these severe health impacts, EPA started a long process to radically reduce heavy duty engine emissions, starting with the 1988 model year. This year also marked the first year of brake specific PM emissions measurements, instead of the old smoke opacity measurements. In 1988, a new limitation was placed on heavy-duty diesel emissions. As a result of this requirement, NOx emission levels were reduced 62% and PM emissions were reduced 83% from 1988 to 1998. Isuzu Meets the Emissions Challenge with Increased Performance and Economy During this time, Isuzu responded to these emissions challenges by incorporating a series of design upgrades to the basic 4BD engine. By 1988, turbocharging had not only allowed engine output to increase to 126hp and 242 lbs-ft of torque, but had also helped reduce particulate matter emissions and improve fuel economy. In 1992, a new indirect injection fuel system and charge air-cooling allowed power output to be further improved to 135hp and 255 lbs-ft of torque, while again reducing particulate matter and NOx emissions and improving fuel economy. This extra power also allowed an increase in maximum GVWR to 14,250 lbs. To meet 1998 emissions levels (4.0 g/bhp-hr NOx and 0.10 g/hbp-hr PM); Isuzu introduced a new 4HE1-TC engine. Featuring 175hp and 347 lbs-ft of torque, the 4HE1 was the most powerful and the cleanest diesel engine Isuzu had ever installed in N-Series trucks, and allowed maximum gross vehicle weight rating to be increased to 16,500 lbs. This new engine also featured a B10 life rating of 310,000 miles, meaning that after 310,000 miles, 90% of the engines sold are still running fine. |