Sales of Natural Gas Trucks and Buses Will Reach Nearly 400,000 by 2022, Forecasts Navigant Research

BOULDER, Colo.--(BUSINESS WIRE)--Driven by the lower cost of natural gas and the lower emissions from natural gas engines, compared to diesel fuel, operators of truck and bus fleets are increasingly shifting to natural gas vehicles. New markets for natural gas vehicles, such as the United States and China, tend to focus on fleet markets, particularly trucks and buses, because they require fewer refueling stations and fuel costs have become the highest or second highest cost for fleets. Click to tweet: According to a new report from Navigant Research, worldwide sales of natural gas trucks and buses will grow from 170,200 annually in 2013 to 398,400 by 2022.

“Demand for natural gas trucks and buses remains uneven on a regional basis,” says Dave Hurst, principal research analyst with Navigant Research. “In North America, where natural gas costs remain low, the number of vehicles is outstripping the development of refueling stations. In Asia Pacific, China and other developing markets are looking to natural gas to help address environmental woes in large cities. As a result, the total number of natural gas trucks and buses on the road by 2022 is anticipated to reach nearly 4 million.”

On average, the price of compressed natural gas (CNG) is about 42 percent that of diesel, according to the report. Liquefied natural gas (LNG) tends to be a bit higher, but sees significantly more variability than CNG. Given the difference, the payback period for heavy duty trucks can be as short as 1.5 years in North America. The incremental costs are largely driven by storage tanks for the CNG or LNG, which account for between 53 percent and 76 percent of the total incremental costs.

The report, “Natural Gas Trucks and Buses”, analyzes the global market for trucks and buses that are in the medium duty (10,000 to 26,000 pounds) and heavy duty (26,000 pounds or more) gross vehicle weight classes. The study provides an analysis of related market issues and drivers, including refueling availability, competing alternative drive technology, total cost of ownership, vehicle availability, and government influence. Global market forecasts for vehicle sales, vehicles on the ground, and fuel used are broken out by segment, fuel type, and region and extend through 2022. The report also examines the key technologies related to natural gas storage on vehicles, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

* The information contained in this press release concerning the report, “Natural Gas Trucks and Buses,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

Auto Sales Reach Four-Year High

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Automakers sold cars and light trucks at the highest pace in more than four years in September, Bloomberg reported.

Industrywide light-vehicle deliveries climbed 13% to 1.19 million in September, according to Autodata Corp.

The annualized rate of 14.94 million — the best since March 2008 — topped the median 14.5 million pace projected by economists surveyed by Bloomberg News.

Toyota Motor Corp.’s sales surged 42% in September. Honda Motor Co.’s sales jumped 31% and Nissan Motor Co.’s dipped 1.1%.

Chrysler Group LLC’s sales rose 12% to 142,041 vehicles. General Motors Co.’s deliveries rose 1.5%, while Ford Motor Co.’s slipped 0.2%.

Volkswagen AG, which is targeting more than 500,000 U.S. vehicle sales this year, saw its Volkswagen and Audi brand sales surge 34% to 36,339 vehicles.

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Polar Tank Trailer, IAM reach agreement on five-year labour contract

ST. CLOUD, Minn. -- Polar Tank Trailer and the International Associations of Machinists and Aerospace Workers (IAM) union have reached an agreement on a new five-year labour contract.

The agreement was ratified Tuesday through a majority vote by IAM members at Polar's manufacturing facility in Opole, Minn.

IAM District 165, Local 623, represents approximately 365 employees at Opole.

The new contract, which includes the addition of a third and fourth shift, replaces the three-year agreement that expired on Nov. 30.

"The committee worked hard to negotiate an agreement that will benefit our employees and our business," said Ted Fick, CEO of Polar Corp. "It's another step forward in our efforts to meet the quality, cost, and delivery expectations of our customers."

Last year, employees at the company's Holdingford, Minn. and Springfield, Mo. facilities each ratified a five-year labour agreement negotiated by Polar and the IAM.

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Commercial trailer orders reach five-month high

COLUMBUS, Ind. -- New and net trailer orders in October rose to their highest levels since April and May at 19,408 units and 17,384 units, respectively, according to a report from ACT Research. Taking seasonality into account, October's backlog rose a modest 1.5% month-over-month, according to ACT.

"With orders and production in line, there is nothing to suggest an upwards move from current production levels, at least not until we know the outcome of peak season orders," said Frank Maly, director of CV transportation analysis and research with ACT. "Component availability appears to have reached a comfortable equilibrium with current production rates."

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Goodyear's 3Q Income, Sales Reach Record

Goodyear Tire & Rubber Co. said its third-quarter net income and sales rose to records.

The No. 1 North American tire maker earned $161 million, or 60 cents per share, turning around a loss of $20 million, or 8 cents, in the same quarter a year ago.

Sales rose 22% to $6.1 billion, its highest ever for any quarter.  Tire unit volumes totaled 47.7 million, unchanged from a year ago.

North American sales increased 18% to $2.6 billion, also a record.

Goodyear said it expects the global tire industry to continue growing in 2011, although at the low end of ranges previously forecasted in all segments except commercial original equipment.

For the full year of 2011 in North America, Goodyear said it expects the commercial original equipment sector to improve by 50% and commercial replacement to gain 13%.

It expects the consumer replacement market to be flat and consumer original equipment to rise 6%.

Goodyear said raw material costs in the fourth quarter of 2011 will jump by more than 30% from a year ago, bringing the total increase for the full year to 30% over 2010.

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