Trend is increasing for truck manufacturers to address eco-friendly solutions

    TORONTO, Nov. 27 /CNW/ - Public awareness around emissions, fuel
consumption, and related changes in consumer behaviour typically are key
market drivers for car manufacturers. However, truck manufacturers
surprisingly have been able to keep out of the public debate and treat this
environmental issue more or less as a regulatory burden with which they must
comply the same way as regulations for road safety, noise reduction, and
others.
    A new study from PricewaterhouseCoopers (PwC) "The truck industry's green
challenge: headwind or competitive edge", released today, aims to examine the
impacts of the increasingly important trend for truck manufacturers to address
eco-friendly solutions. According to the study, for truck manufacturers,
transport efficiency still is the core factor - from a commercial point of
view - that drives customer purchasing decisions. Increasing resource
constraints, fluctuating fuel prices, and stricter emission standards will
certainly have a negative effect on transport costs and thus efficiency, which
will in turn drive truck purchasing decisions accordingly.
    "The three main stakeholders dealing with resource constraints and
climate change in the truck industry, forming a triangular network, are truck
manufacturers, regulators and transport and logistics companies," says Todd
Thornton, leader of the PwC Canada Transportation and Logistics practice.
"This network is characterized by different regulatory requirements between
countries, fluctuating oil prices contributing to total transportation cost,
which is a key criterion affecting commercial vehicles total lifecycle costs,
and political and public pressures on the industry to significantly reduce
emissions, requiring innovative engine technologies that are impacted by
different standards around the globe."
    As a result of the green challenge, the truck manufacturing industry must
intensify its efforts to cope with regulations and stay competitive with other
transport modes. The study results indicate that purchasers of trucks see
truck manufacturers as being responsible for CO2 reduction and are willing to
pay a premium for goods if delivered by a "green" transport mode. Further,
expertise in clean and fuel efficient propulsion technology will generate a
significant competitive edge. And finally, innovative solutions will develop
for powertrains, lightweight construction, improved vehicle aerodynamics in
vehicle design, and in new telematics and innovative transportation concepts
aimed at increasing infrastructure utilization.
    Thornton comments, "While production excellence and ongoing globalization
have long been addressed, managing technological risk and designing the range
of augmented products are now in the spotlight. This implies that
cost-intensive R&D efforts will trigger increasing consolidation pressure,
increased need at OEMs to manage the augmented product and to redefine the
product range to meet market requirements, cost efficient production and
product modularization will gain in significance and the implementation of
globally harmonized standards would be a significant relief for truck makers,
significantly reducing competing R&D efforts."

    For additional information, please visit www.pwc.com/auto.

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For further information: Carolyn Forest, PricewaterhouseCoopers LLP,
(416) 814-5730, carolyn.forest@ca.pwc.com; Nina Godard, PricewaterhouseCoopers
LLP, (416) 941-8383 x 13520, nina.godard@ca.pwc.com