News: PowerTALK

2020-04-25

Q1 2020 Motorcycle Production in Brazil Was Strong But Will Drop in April

Different from the segments with 4 wheels or more, Motorcycles plants worked normally in March. The total production has been of 296 k motorcycles in the first quarter, about 7% above the same period of 2019. However, the stops in this sector started March 30 and will remain until the beginning of May.

Source: AutoData     Read The Article

PSR Analysis:

Although motorcycles are also a way of delivering packages in big Cities, sales of motorcycles in Brazil have a closer relationship with lower income individuals who see motorcycles as an alternative to bad public transportation or even animal transportation in rural locations.

This segment of the society has a high number of informal jobs, mostly related to service, heavily impacted by the social restriction measurements. Therefore, the impact on this business for the remainder of the year should be considerably high, despite of the growth in the first quarter. PSR

Brazil Trailer Production Recovery Forecasted for September

In an interview April 9 with AutoData, the CEOs of 4Truck and Librelato pointed to a heavy recovery for transportation and the trailers business in September. The companies seem optimistic about the recovery from the COVID-19 crisis in Brazil.

Source: AutoData     Read The Article

PSR Analysis:

The trailer segment, as well as the class 7 and class 8 segments, were enjoying a growth trend before the COVID-19 social restrictions were imposed. In the beginning of the quarantine period, the number of heavy vehicles passing through main roads tolls was not reduced, different from the light and medium segments.

The rational is that a reduction of GDP is concentrated in the Services segment, that does not impact heavily on Transportation. At the same time, Agricultural production, a segment that has more impact on Transportation, should remain stable or grow. In our analysis it is too early to define the impact on Transportation, although some Transportation companies already are reporting reduced business. PSR

Marcopolo Resumes Production After COVID-19 Shutdown

Marcopolo started producing again April 13 after a break forced by COVID-19 control measures. The plants of Caxias do Sul and Duque de Caxias are producing again with lowered output. The number of workers is reduced and the space between people is expanded, among other measures for safety purposes. The São Mateus plant has not reopened.

Source: AutoData     Read The Article

PSR Analysis:

The current scenario points to a heavy impact on the Bus market due to reduced customer traffic that puts reduces fleet owner revenue. On the other hand, this segment is often boosted by government programs, like “Caminhos da Escola” in Brazil.

The actions for recovery after the crisis may lower the impact substantially, especially in a scenario where  government spending is no longer limited to the approved budget, there is strong pent up demand for school buses and actions to stimulate industry and jobs are badly needed. PSR

Fabio Ferraresi is Director-Business Development SA

COVID-19 Update: Europe Slowly Resuming Production

April 21, 2020–After four weeks of lockdown, some European countries are slowly lifting restrictions, allowing industrial production and some commercial operations to restart, and restoring some freedoms to their citizens.  

Emiliano Marzoli
Emiliano Marzoli

In Italy, this week represents a key moment as some industries can resume production.  Agricultural and Lawn&Garden OEMs can reopen their factories, although respecting strict regulations that will reduce factory capacity.  The same is happening in Spain starting April 13, with all segments resuming work, but with differences across regions.  Moreover, many OEMs were not able to meet the new working regulations and could not resume production.

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DataPoint: 2020 Production Estimate, NA Skid Steer Loaders

105,900 units is the estimate by Power Systems Research of the number of Skid Steer Loaders to be produced in North America (Canada and the United States) in 2020.

This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.

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2020-04-08

Coronavirus Has Major Impact on Global Production of Off-Highway Equipment and Medium & Heavy-Duty Vehicles

Download Your PDF Copy of the Presentation

ST. PAUL, MN–A team of international analysts from Power Systems Research (PSR) analyzed the impact of COVID-19 on the global production of Off-Highway Equipment and MH-Duty Vehicles in several regions today.

The team examined the impact of the coronavirus in North America, Europe, Asia, India, and South America for the remainder of 2020 and into Q1 2021.  Download your copy of the presentation here.

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2020-03-22

Mercedes-Benz Focuses on Autonomous Driving Trucks

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Daimler has realigned the focus of Mercedes-Benz on autonomous driving. Instead of self-driving cars, trucks are now at the top of its priority list.

Dalibor Sablic
Dalibor Sablic

The German car maker initially planned to concentrate on autonomous cars, explained Daimler CEO Ola Kallenius in a conversation with journalists at the canceled Geneva Motor Show. The group believes that self-driving trucks are initially the more attractive area, says the Daimler boss, according to the news platform news.com.au.

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Global Economic Fundamentals Strong, But Uncertainties Linger

This report is excerpted from the Q3 2019 Update Bulletin prepared for clients of Power Systems Research, Oct. 1, 2019.

SUMMARY. If you were to look at the latest global macro-economic fundamentals, you would see a strong and healthy economy and a rosy picture.  On the other hand, if you follow the latest updates on key industries and their players worldwide, optimism is not that strong. 

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