Volvo Builds Loader with Fossil-Free Steel

News: Economics

2021-10-23

Volvo Builds Loader with Fossil-Free Steel

Christopher Bamforth
Christopher Bamforth

Volvo Group and SSAB have unveiled an autonomous loader made of fossil-free steel, claimed to be the world’s first vehicle made from that material. Manufactured at Volvo Construction Equipment’s facility in Braås, Sweden, this is said to be “just the start” as a few more will be produced in 2022 with mass production set to follow.

This machine is a load carrier for use in mining and quarrying and is built using a new fossil-free steel from SSAB. Volvo’s CEO Martin Lundstedt has already said that this new machine is a first step in incorporating this new steel in all of their products and components to help reach their goal of being completely carbon neutral by 2040.

Along with the electrification of its vehicles and machines, Volvo adds that it is determined to reduce the carbon footprint of its entire supply chain and this latest innovation is one step forward on this path.

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Strong Growth Will Continue into 2022-23

Yosyf Sheremeta
Yosyf Sheremeta

The third quarter of 2021 brought steady economic activities and strong economic recovery in North America.  Despite this strong economic recovery, many existing and new challenges developed.  Pandemic-related supply chain disruptions, logistics backlogs, shortages within semiconductor products and new virus re-problems, labor market issues (shortages across service industry as well as skilled labor)- have contributed to slower growth in Q3 2021 than previously expected. 

With the help of government support and targeted fiscal policies, the US economy is showing a strong comeback in 2021.  Furthermore, it is on a positive trajectory to continue to grow in the next few years.  There are many reasons for us to be optimistic about this trend.  Our positive outlook is based on the reviews of key economic indicators, including GDP, unemployment, and inflation.  In our previous forecasts, we discussed recovery trends for the post-pandemic period, and we called for a return of demand for most markets in 2021, especially during H2 2021.  

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2021-09-26

New Russia Electric Transport Plan To Cost US$ 8 Billion

Maxim Sakov
Maxim Sakov

The Russian government has approved a new plan for electric transport development into 2030 that will be implemented in two stages. At the end of the first stage, the plan calls for production of at least 25,000 electric vehicles and the launching of 9,400 charging stations.

By 2030, 10% of all new vehicles should be electrical, and the number of charging stations should increase to 72,000. In Russia, by 2030 it’s planned to launch production of accumulator battery cells, and to build 1,000 hydrogen fuel stations for vehicles.

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Rostselmash Increases Investment Program More Than 40%

Rostselmash, the largest Russian AG machine maker, during the period into 2024 will increase investments for production development from US$ 275 million to US$ 390 million (19.9 billion Rubles to 28.5 billion Rubles, respectively).

Initially, the transmission plant was scheduled to make 90,000 gear units per year, but as soon as the plan of tractor production was corrected, planned output of the transmission plant was increased to 150,000 gear units per year. Also, three new painting lines were added.

In the beginning of September Rostselmash started building a new plant in Rostov-Don. It will make tractors, road construction and communal machines. The new plant will make 5,000 machines per year.

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PSR Analysis: With the increased harvest in Russia, increased prices for grain and the remaining State support program, Rostselmash has increased resources for a larger investment program. However, another reason for increasing investment is the growing inflation, which requires additional spending.    PSR

Maxim Sakov is Market Consultant – Russia Operations for Power Systems Research

2021-08-24

Sales of Agriculture Machines in Russian Increase 50%

The Russian market for AG machines has increased by 1.5 times during the first six months of this year, reaching 93.9 billion rubles (US$ 1.27 billion). Production volume has increased by 45% to 112.7 billion rubles (US$ 1.54 billion).

The largest growth has been in the output of plows, climbing to 1,800 units and AG tractors – by 43% to 2,800 units. Production of sprayers has increased by 37.3% to 953 units. There has been a modest gain in production of grain combines, increasing 10.2% to 3,800 units, and self-propelled mowers, gaining 2.6% to 228 units.

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2021-07-27

Strong Post-pandemic Growth Expected into 2022-23 for North America

Yosyf Sheremeta
Yosyf Sheremeta

SUMMARY.  After the GDP declined 3.5% last year, the worst performance in almost 75 years, the US economy is set for a strong comeback.  There are many reasons to be optimistic about the economy for the next few years, including strong readings of macro-economic factors combined with the economic cycle reset backed by government initiatives and policies.

Our positive outlook is based on the reviews of key economic indicators, including GDP, unemployment, and inflation. 

During H1 2021, we witnessed a strong level of activities and a rebound for many industries.  As local governments eased lockdown restrictions, service-oriented industries gained traction and that translated to an overall increase of economic activities across many industries. 

We expect this level of rebound to continue and we now expect even stronger overall growth for 2021.  The US economy is on track to reach or even surpass the growth level of 1984 – the highest one since 1950s.  In the near term, consumer spending will help drive demand and support the strong growth trend.

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2021-06-27

Second Wave COVID Will Have Limited Impact on India Ag Sector

Aditya Kondejkar

“COVID-19 cases started spreading in the rural areas with the beginning of the month of May, and agriculture activity in the month of May is bare minimal, particularly land-based activities,” says Niti Aayog Member (Agriculture) Ramesh Chand.

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PSR Analysis: The second wave of COVID-19 started spreading in the rural areas in May 2021, but agriculture activities in May are minimal, and are mainly land-based activities. Agri activities peak in March or the middle of April, after which it drops significantly and again peaks with the arrival of monsoon.

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Protests Affect Columbia Vehicles Market

Sales of vehicles in Colombia were affected by protests and roadblocks in May. Because of the protest, dealers were closed and vehicles are blocked at the ports of Cartagena and Barranquilla. Even with the reduction from April to May, when 14,700 units were sold, below the 18,000 in April, the YTD result in 2021 is 50.2% better than 2020.

Source: AutoData     Read The Article

PSR Analysis: The recovery of the Colombia economy, seen in light of the vehicle market, is faster than expected, even with the continued health crisis due to the pandemic and the social and politic problems. For the full year, there is a significant amount of uncertainty with a bias for increase in the forecasts.    PSR

Fabio Ferraresi is Director-Business Development, South America, for Power Systems Research

Goods Transported in Brazil Increases in 2021

From January to April, the amount of total of goods transported in Brazil was R$ 2.9 trillion, while in the same period of 2020 it was R$ 2.1 trillion, an increase of 39%. This metric is used as a baromometer for the Brazilian economy.

Source: M&T     Read The Article

PSR Analysis: This result is aligned with what we see in the sales of new trucks and trailers and confirms our increase in FY 2021 sales and production. Part of the increase is due to inflation in local currency, but part is due to good results in Agribusiness and Mining. Other segments of the economy have had a lower increase because of COVID19 if compared with 2020, when the uncertainty in March and April had a higher impact than in 2021. PSR

Fabio Ferraresi is Director-Business Development, South America, for Power Systems Research

2021-05-24

GAZ Increased LCV Production by 19% in Q1 2021

Maxim Sakov
Maxim Sakov

The GAZ plant in Nizhny Novgorod has made 11,300 LCVs in Q1 2021, according to the Trade Ministry of Russia. That’s 18.7% higher than the same period of last year. HD truck production by the GAZ Group increased by 29% in Q1 2021, from 1,700 to 2,200 units.

In total, according to the Russian Statistic bureau “Rosstat”, production growth of Russian on-highway vehicles increased by 13.7%. OEMs have made 402,800 units. LCV output has grown by 37.7%, trucks by 27.1%, and passenger cars by 12.1%.

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PSR Analysis: Statistics show that now we are seeing the realization of pent-up demand, which is especially active for commercial vehicles. For passenger cars, this process is also visible (four times sales growth during April), but already it is coming to an end, and after few months we can expect to see negative figures in this segment.    PSR

Maxim Sakov is Market Consultant-Russia Operations for Power Systems Research