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UBS Investment Research:SCR vs EGR for 2010.

Some rather troubling news for those OEMs looking to foist SCR onto the US market at 2010 can be found in the UBS 13th Quarterly Truck Survey.

From an admittedly rather small sample - 103 trucking companies - 81 per cent expressed an opinion suggesting that they would not consider buying a SCR engine that required periodic refilling of the AdBlue / DEF tank. Given that all of the engine suppliers - excepting Cummins and International - on the basis that the MaxxForce engine does actually get to EPA 10 - are going to offer SCR as the route to EPA 10 compliance, this is a problem. Can the system be configured to ensure that SCR refilling becomes a service item? We shall see, but the news certainly puts more pressure on the SCR-based OEMs. We're pretty confident that the only way SCR will develop a sufficiently large footprint within North America is through some deep discounting on the part of the interested parties.

We've noted in the past that PACCAR has two problems here; a new technology and a new brand. Interestingly, of the 103 respondents, only 41 per cent said that they would consider buying either a PACCAR branded engine. 59 per cent are not interested.  

So it looks like most of the OEMs are going to have a fight on their hands, and PACCAR is faced with a horribly difficult challenge. As for Cummins - strong brand, existing technology - seems like a very good mixture.

 



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Comments (1)

Tom Fair:

SCR uses urea correct? From what I understand urea is used to make meth? Don't farmers have to keep this stuff locked up becuase kids are stealing it to make drugs? If this is true, and SCR indeed uses urea, all vehicles with a urea tank are in jeapordy. Why would the government allow these companies to make this chemical readily availalbe to the mass public if they are aware of the drug implications? Very strange.

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