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Sept/Oct 2005


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Good as New (Almost)
Freightliner Starts 'Factory Refurbishing' To Help Sell Huge Inventory of Used Trucks.
By Tom Berg

Freightliner is putting a new shine on its growing stockpiles of traded-in used trucks, refurbishing them on a dedicated line outside Salt Lake City, Utah. "Factory refurbished" trucks look and run like new and are warranted almost like new, according to Freightliner managers, who led reporters on a tour of the line adjacent to the Tooele Army Depot shortly after its startup in July. In a 65,000-square-foot building once used to rebuild battle tanks, workers were turning former C.R. England and Dick Simon FLD 120 road tractors into large-car lookalikes.

They were also converting small SleeperCab tractors into more valuable daycab tractors. A 42-inch low-roof SleeperCab that was useful to a leasing company has little appeal for an owner/operator or small fleet, especially if it has a Caterpillar C-10 or Cummins L10 diesel, according to Jim Hebe, Freightliner's president and CEO. But non-sleeper "work trucks" are in constant demand.

Factory refurbishing adds considerable value to a typical Freightliner "condo" SleeperCab, Hebe says. The vehicles will be sold for $55,000 to $59,000 each by SelecTrucks outlets and by Freightliner dealers. That's $10,000 to $15,000 more than an unrefurbished used truck, but 40% less than a new tractor.

Customers can buy Factory Refurbished trucks off a Freightliner lot or order one or more almost like they would new trucks, Hebe said. This includes certain bright-metal trim, interior appointments and engine power settings.

At the Tooele operation, workers remove bumpers, wheels, steps, battery boxes and exhaust stacks; these are later polished and reinstalled. Most trucks get new grills, and a new grill bezel is optional.

Also optional is side-of-cab mounting for exhaust stacks, where their chrome and stainless steel is in full view — a touch preferred by many potential buyers. A stainless steel-clad aluminum bumper can be substituted for the original plastic-faced bumper.

Paint on some of the trucks is buffed and polished. Others get new Du Pont Imron 5000 paint, applied in a huge paint booth near the end of the line. A variety of colors and Vinyl graphics can be applied.

Workers also strip seats and panels from the interior and install new or cleaned pieces. Dirt, stains and tobacco odors are removed through this process. Of all the things workers run into, "dog hair is the worst," said one foreman, because it gets in the heater-air conditioner blowers.

Mechanically, the trucks get remanufactured alternators and starter motors, new belts, coolant hoses, and rear brake drums and shoes, along with new tires. All fluids are also new. These restore reliability to a truck with three to four years of age and 300,000 to 400,000 miles — the typical unit that comes to Tooele for the refurbishing program.

Engines are dyno tested, and adjusted or repaired so they perform like new. Most get new turbochargers. The England and Simon trucks all had Detroit 12.7-liter Series 60s, which were set to their original ratings. Later, uprating to higher power outputs will be offered, managers said.

The warranty covers major components for three years and 250,000 miles. A 12-month/100,000-mile warranty covers most powertrain components, such as turbo and injectors, fuel and water pump, clutch, U-joints and air conditioning compressor. A completed truck gets a 150-point inspection, gets a DOT sticker, and is road tested with a loaded trailer.

It takes one to two days to refurbish a tractor, managers explained. This is faster, more thorough and less costly than refurbishing done on dealer lots. The SleeperCab-to-daycab conversion can be done at Tooele for less than the cost of removing a separate sleeper box in the field, Hebe said.

For now, used tractors from western states are shipped to Tooele for refurbishing. Hundreds of used tractors were waiting on a section of land near the refurbishing building. If the concept proves successful, another refurbishing operation might be opened in the East.

Only Freightliner tractors are going through the facility, but Hebe said that other makes may be done later. Eventually, Factory Refurbished trucks could account for one-third of the company's used truck business.



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