roads #1, 2013 (australia)

The Global UD Trucks Customer Magazine #012013

SAUDI ARABIA:

RELIABILITY ABOVE ALLP4 Two years after the tsunami

P14A heritage of fuel efficiency

P20

The traditional gemba spirit

Roads_13_No.01_P01_Cover_0419.indd 1 13/04/26 19:44

UD Solution, the new complete aftersales package from UD Trucks, has you

covered. Rest easy knowing that the combination of our Service Agreement,

Service Planning Options and Fleet Max

Telematics Support will reduce unplanned

stops, increase vehicle uptime and protect

your investment.

To find out more about what the UD

Solution can do for you, visit us at stand 87

at the Brisbane Truck Show on May 16–19.

See you there!

Committed to offering you total service and total peace of mind

Roads_13_No.01_P24_AD_0410.indd 24 13/04/10 14:30

udtrucks.com

#01 | 2013

Cover photograph The Passionates Studio

Roads is published three times per year by UD Trucks Corporationudtrucks.com

PublisherPer Sundströ[email protected]: +81-48-726-7601

Editorial ProductionNext [email protected]: +81-3-6436-4270

Editor-in-Chief Kjell Fornander

Executive Editor Anders Lenart

Art Director Koichi Asano

Production ManagerKazumi Umezawa

Tomohisa IshidaSenior Manager

UD Experience

UD Trucks Brands Strategy & Marketing

Exceeding Expectations

For us here at UD Trucks, every new issue of Roads rekindles the passion we feel for UD Trucks. It is always exciting to read about how our company

is developing in Japan and around the world, and the positive response we get from you, our customers, wherever you may be.

As head of the UD Experience, my work is to bring the UD Trucks’ brand as close to customers as possible. Since the program started in April last year, visitors have continued to come from near and far to UD Trucks’ headquarters in Ageo outside of Tokyo to fi nd out more about our company, tour the factory and get behind the wheel of a Quon or Condor. We don’t just want to tell by words who we are; we want visitors to feel the values that we stand for, make them real.

And what are these values? We are a brand built on traditional Japanese hallmarks—quality, craftsmanship, attention to detail and customer service.

We have a word in Japanese called monozukuri, meaning to make things with exacting precision and quality, and perhaps the part I love most about UD Trucks is that it is a company that passes on this spirit to each new generation of employees—it becomes part of the DNA.

I like to think that those who come to the UD Experience expect monozukuri, and when a visitor comes to us afterwards saying “that was really something,” it’s such a great feeling, a great moment.

With this magazine, I hope to communicate some of that feeling to you too, dear Reader. Please enjoy this issue of Roads.

04 Feature Story

The Long Road to RecoveryTwo years after the March 11 tsunami, customers in Japan’s northeastern Iwate Prefecture are getting back on their feet.

08 News

What’s Happening News from around the world of UD Trucks.

09 Cover Story

Saudi ChallengesSaudi Arabia’s construction sector is thriving, but local conditions demand trucks of outstanding reliability.

12 Feature Story

King of the Road Visitors come from worldwide to take the UD Experience, a full-day tour of UD Trucks culminating in a test drive.

14 History

The Spirit of Effi ciencyFrom the founding days until today, UD Trucks has been a pioneer in fuel effi ciency.

17 At the Wheel

Local Brisbane Club is Kicking New GoalsUD Trucks has helped a Brisbane football club get back on its feet after the 2011 fl oods.

18 At the Wheel

Quality and Dependability—Day after Day, Mile after MileTwo happy customers explain why they feel UD Trucks is the brand that gets the job done.

20 Tradition

Gemba and the Art of Hands-on InvolvementThe Japanese concept of gemba is a key part of UD Trucks’ philosophy.

22 Global Business

Thinking GlobalUD Trucks is moving to support customer needs in diverse markets even better.

Tony McNicolBased in Tokyo, Tony

McNicol is a writer, editor and photographer who has written

widely for publications in Japan and globally.

Mark SchreiberAuthor-translator Mark Schreiber has lived in Japan for over 40 years. He has written extensively about Japanese language and popular culture.

Jim Hand-CukiermanCanadian Jim Hand-Cukierman is a Tokyo-based photographer and writer whose work appears in magazines around the world.

Contributors to this issue:

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Barely a week had passed since the earthquake and tsunami of March 11 when Tomoko Tamayama, a general manager in the UD Trucks Iwate head office in Morioka in

Japan’s northeastern Iwate Prefecture, first reached the devastated city of Kamaishi.

She met a bleak sight. Channeled by the surrounding valley walls, the tsunami had travelled far inland. At the site of the dealership, some 500 meters from the coastline, the waves had reached a height of ten meters. The building had been

completely swept away, along with the residential area around it.

“The tears just welled up in my eyes,” recalls Ms. Tamayama, “I was lost for words.”

Masayuki Murai, a director of sales from the head office who first reached the area on March 16, was stunned. “There was absolutely nothing there,” he says.

The scale of the destruction was almost beyond comprehension. But one thing was very clear: throughout the region, the dealership’s customers had been struck a grievous blow by the tsunami. Offices,

After the tsunami of March 11, 2011 destroyed the city of Kamaishi, things looked hopeless for truck owners and local dealers. Many businesses left, but the local UD Trucks team decided to stay. In a desperate situation, they not only rebuilt, but expanded. It was not about business—it was about doing the right thing, and standing by your customers no matter what.

The Long Road to Recovery

04 #01 | 2013

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01

01. The restored UD Trucks sales office in Kamaishi stands in lonely triumph surrounded by a vast flat space that once was a city. The office officially opened for business on January 23 this year.

02. Knowing that they help customers rebuild their businesses is a source of strength for the staff.

02

The Long Road to RecoveryText: Tony McNicol Photos: Jun Takagi

equipment and vehicles had been damaged or destroyed and supply chains had been severely disrupted.

It was weeks until even the first handful of customers could restart work— mostly transporting essential emergency goods: water, food, fuel and feed for animals. There were many months more before other businesses could get back on their feet, and a significant number are still yet to restart operations.

As information about their customers’ predicament trickled in during the chaotic

Phot

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Forn

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05 #01 | 2013

Feature Story


immediate aftermath of the disasters, the staff at UD Trucks Iwate realized that they had to take action.

They had to help as many customers as possible get back on their feet as quickly as possible. It became their mission, their way of supporting the recovery efforts.

Driven by this purpose, the team would work tirelessly over the coming two years, supporting their customers in every way they could in the most diffi cult circumstances imaginable.

“We knew what we should do,” says President Chitaka Fujisawa. “We are transport industry professionals and we wanted to help people use their vehicles.”

Struggling in chaosThe need for support was, in a word, desperate. Staff from Morioka travelled every day to Kamaishi, a trip that in normal circumstances would have taken two and a half hours but now took up to four hours on roads damaged and crowded with recovery vehicles.

Even just locating customers was a formidable task. It was only through

painstakingly visiting more than 100 refugee centers that in mid-May a partial list of customers could be completed.

“I remember meeting many customers who had lost everything themselves, but who were doing their best to support the recovery,” says Mr. Murai, adding that a few were even using their vehicles again. “Of course we had to help them and be there for them. We had to do our part.”

Many needed urgent repairs to their vehicles—punctures

and broken suspension springs were common from driving through debris-strewn streets. A maintenance truck was regularly dispatched to Kamaishi from the Morioka head offi ce.

But other customers had lost their vehicles in the disaster and Mr. Murai helped source them second-hand cars and trucks. Prices had shot up after the disaster, making that a diffi cult task.

Going forwardYet, it was clear that a new Kamaishi offi ce was needed.

The tsunami had swept away the businesses of a number of local customers, and the UD Trucks staff wanted the sales offi ce to stand ready for them as they rebuilt their operations. There was huge demand for a facility where trucks could be maintained and repaired quickly, close to the customers’ places of work.

By the end of 2011, the decision was made to purchase a temporary building.

In February 2012, it was installed at the site of the original offi ce.

When the new branch manager, Hiroyuki Takahashi, arrived in April, he found only one other building in the vicinity. The offi ce still had no electricity, gas, water or telephone landline.

“Almost the only things we had to do our work with were our mobile phones,” recalls Mr. Takahashi.

There was also the longer-term future of the Kamaishi business to consider.

Most importantly, they had to decide whether to rebuild a permanent sales offi ce on the original site, which was in one of the areas worst hit by the tsunami, or move further inland.

“There were lots of dealers in the area

Tomoko Tamayama: “I was lost for words.”

Masayuki Murai: “There was absolutely nothing there.”

Chitaka Fujisawa: “We are transport industry professionals. We wanted to help people use their vehicles.”

Hiroyuki Takahashi: “Almost the only things we had to work with were our mobile phones.”

01 02 03

Japan

Iwateprefecture

Kamaishi

Morioka

TokyoOsakaOsaka

Tokyo

06 #01 | 2013


before the disasters, but they all left,” says Mr. Murai. The diffi culties of rebuilding in an area that had been completely destroyed, he notes, were great.

“We thought about doing the same, but we’d spoken to our customers,” explains Mr. Murai. “We knew that we could be useful here.”

The old sales offi ce had been in the same place for some 30 years, close to a highway used frequently by customers. “Our customers were familiar with the location,” says Mr. Murai.

To President Fujisawa, the needs of their customers meant the choice was no choice at all. “We had to be near the highway, not up in the mountains,” he stresses.

Once the decision was made to rebuild the sales offi ce in the same location, Ms. Tamayama spent hectic weeks commuting from Morioka to meet offi cials—she had only three months to negotiate with city hall. Among other things, she had to demonstrate that a new building could be reconnected to essential utilities, then arrange for that to happen.

Despite the diffi culties, UD Trucks Iwate in June 2012 received permission to build a permanent sales offi ce. Construction started the following September.

It was decided to expand the new sales offi ce with two maintenance bays, greatly expanding its ability to quickly serve customers’ needs on the spot.

When the sales offi ce offi cially opened on January 23 this year, Ms. Tamayama and her colleagues invited ten customers for a small ceremony. It was a deliberately muted event as participants were all too aware that reconstruction in Kamaishi had as yet barely started.

On its completion, the sales offi ce was one of just three new buildings in the area. Many of the customers themselves were working from temporary offi ces in other

parts of the region, still with no idea when they could build permanent facilities.

“Some of the customers thanked us for providing the new maintenance bays,” recalls Ms. Tamayama. “Others thanked us for coming back to Kamaishi.”

A small symbol of reconstructionIn Kamaishi today, grim reminders of both the scale of the disaster and the scale of the reconstruction challenge are all too easy to fi nd. Just behind the sales offi ce is a huge processing facility with towering piles of debris.

In fact, the facility is one of the sales offi ce’s customers, with UD trucks being used to transport debris from all over the city. Although two years have passed, only a fraction of the debris left behind by the tsunami has been disposed of.

Despite the still diffi cult situation, President Fujisawa says he hopes the new sales offi ce can be a “small symbol of reconstruction” for the city and for their customers.

Mechanics are already busy servicing vehicles, with customers including both local goods transport companies and construction companies involved in rebuilding.

“ We all wanted to be there for our customers.” Chitaka Fujisawa, President of UD Trucks Iwate

04 05 06

01-06. The tsunami engulfs the city of Kamaishi. The UD Trucks Iwate sales offi ce is circled in images 01 and 06.

07. A customer truck hard at work clearing debris.

07

The building work is likely to continue for many years to come. Many local people are still living in temporary accommodation, and many businesses only have temporary premises.

Like Kamaishi and the Tohoku region as a whole, the sales offi ce and its customers face an uncertain future. Despite the new facilities, the sales offi ce still has fewer customers than before the disaster.

In the mid-term, the vast rebuilding needed in Tohoku will continue to support the local economy, but once construction stops no one knows what will happen. In any case, for the last two years, few in Tohoku have had the luxury of thinking that far into the future.

For UD Trucks Iwate, the priority over the last two years has been to make sure that customers’ urgent immediate needs are met, and help them make a start on the long road to recovery.

“We wanted to do something that people could see—something to show that reconstruction is starting,” says President Fujisawa.

“And we all wanted to be there for our customers”.

07 #01 | 2013

Feature Story


M arch 6, 2013 was a momentous day for UD Trucks Distributors (NZ) Ltd. In a highly anticipated

moment, the company unveiled the new Quon range at the Waikato Stadium in Hamilton, New Zealand. The truck, designed for fuel economy and easy maintenance, is expected to sharpen UD Trucks’ competitive edge in New Zealand.

An audience of dealers and sales staff heard presentations about the Quon from Taizo Matsuo, Vice President of UD Trucks Product Management, UD Trucks Global Brand; Jon McLean, Vice President of UD Truck Sales; and Mark Hammond, Manager of UD Trucks Product Planning and Engineering.

After John Gerbich, General Manager of UD Truck Distributors (NZ), had wrapped up the presentations, the group moved on to viewing the new Quon model up close.

The launch coincided with the Transport and Heavy Equipment Expo, held every four years at the Mystery Creek Events Centre south of Hamilton. This popular expo draws participants from every field of the transport industry, and attracted over 12,000 visitors in 2013.

The UD Truck Distributors (NZ) expo stand was based around the theme “The Road To Your Success” and had nine vehicles on display, including two of the new Quons. The centrepiece was a display of the new GH11 engine and the Escot V transmission. Visitors to the stand could test-drive a fully rigged Quon GW26-420 tractor unit coupled to a tri-axle semi-trailer carrying a 25-tonne container.

Over the three days, 32 potential purchasers trialled the truck, all of them commenting positively on its great performance and the smooth and quiet ride.

New Zealand

New Quon makes debut in New Zealand

S now, snow and more snow. Perfect weather then for presenting a

powerful snowplow version of the Quon heavy-duty truck at Japan’s Yuki Mirai 2013 (“Snow Future 2013”) exhibition. This annual event, held this year in Akita City in the country’s northern Tohoku region on February 7–8, covers issues and technologies related to snow, an important topic in what is actually one of the world’s snowiest countries.

Japan Sales staff gave a presentation outdoors about

the vehicle for the event’s snow removal machine exhibition and demonstration session. While the freezing temperatures and heavy snowfall—“heavy

snowstorm,” according to the weather report—perhaps made for less than comfortable conditions, the presenters were warmed by the strong interest from customers and visits from local kindergarten children, who marveled at the powerful vehicle.

UD Trucks’ snowplow-equipped Quon with its 410 horsepower GH11TC engine and all-wheel (6x6) drive system

has the best snow removal capabilities among domestic products. It is also extremely fuel-efficient and environment-friendly thanks to a combination of ultra-high-pressure fuel injection and urea-SCR catalyst technology that efficiently removes particulate matter, NOx and CO2 from the vehicle’s exhaust, ensuring that the snow left behind stays the way it should be—pristine white.

Japan

Japan’s heavy winter is no match for the Quon

The new Quon model at the test track (top); the new GH11 engine showcased at the expo.

The snowplow version of the Quon. Kindergarten children marveling at the powerful vehicle.

The presenters from Japan Sales braving the snowstorm.

08 #01 | 2013

UD TRUCKS NEWS

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Hauling heavy cargo to exacting deadlines in temperatures reaching 50˚C is all in a day’s work for Al Rajhi Company, the biggest construction material distributor in the Middle East. But it takes trucks of superior reliability.

Text: Marriam Mossalli Photos: The Passionates Studio

Saudi Challenges

09 #01 | 2013

Cover Story

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The Kingdom of Saudi Arabia (KSA) is one of the fastest growing markets in the Middle East. An oil-based economy with about 17% of the world’s discovered petroleum reserves, the country has positioned itself as

the largest petroleum exporter in the world. The strong economy, along with the country’s comparatively recent establishment in 1932 and young population, means that construction has become one of its most active and lucrative industries.

Spurred by government initiatives for economic development, such as the establishment of six gigantic “economic cities” across the Kingdom aimed at garnering over $370 billion in infrastructure projects over a four-year period, the local construction industry shows no signs of slowing down despite the global economic slowdown that has adversely affected the growth of the industry across the Middle East. In 2011, construction contract awards reached over $81 billion, and are expected to increase to $87 billion in 2013,

according to the KSA Construction Industry Overview by Ventures Middle East.

Together with a young and rapidly urbanizing population, the real estate development, infrastructure, and utility (ie. oil and gas, power and water) markets are now seeing unprecedented demand growth, and as a result, so are the companies within them. One of them is Al Rajhi Company for Industry and Trade.

Al Rajhi was one of the first companies to pioneer the manufacture and marketing of construction materials in Saudi Arabia. Since its establishment over fifty years ago, the company has dominated over its competitors,

“In our industry, it is all about getting from point A to point B without any delays—especially mechanical.” Saleh Al Ammar, General Manager

10 #01 | 2013


02

01

earning Al Rajhi its present position as the largest distributor of construction materials in the entire Middle East.

“Building on the trust of our customers, we have worked continuously on our portfolio of products and services to ensure the delivery of quality,” says Al Rajhi’s Chairman, Abdullah Abdul Aziz Al-Rajhi. “This means working closely with local producers and cooperating with our offices and agents abroad to ensure that we import only the very best international construction materials.” The company’s internal infrastructure and distribution mechanisms ensure reliable, high quality delivery.

“As the largest distributor of construction materials in the Gulf, we require tough and dependable vehicles that can withstand the Kingdom’s diversified terrain,” explains General Manager Saleh Al Ammar. Currently an owner of a 150-truck fleet that includes some 55 UD Trucks, Al Rajhi has wood transporters and steel tippers transporting materials from 70 branches Kingdom-wide.

From steel pipes and metal sheets to wood beams and wire fences, Al Rajhi’s portfolio requires reliable machinery that can also be used for multiple cargos.

“Most of our UD trucks are 20-ton transporters. What’s particularly great about those is their practicality,” says Al Ammar, adding that the company also has medium-size UD MKB and PKB trucks, which are not restricted by the Heavy Duty Truck Regulations on inner city transport that are in effect in Saudi Arabia.

“One of the things that I believe really sets UD Trucks apart from it competitors here in Saudi is the aftersales and customer service from its local dealership,” says Al Ammar. “I knew that Rolaco Automotive Division had a good reputation in aftersales and customer care, but it was impressive to witness it first-hand through their constant follow-up to ensure the trucks are performing to standard.” This dedication, says Al Ammar, will make him a repeat customer. In fact, during this interview, he revealed a new purchase order to acquire five more UD trucks.

“I like the power of UD over Mitsubishi or Isuzu,” he explains. “More horse power, less gear shifting and better drivability. I also believe UD trucks have better handling, dependability and durability, which is paramount in our industry, when it is all about getting things from point A to point B without any delays—especially mechanical.”

Frequent operations do not seem to affect the reliability experienced with UD Trucks. “We are in constant demand from customers, and we require immediate attention when issues do arise.” Here, Rolaco offers product service and spare parts.

Al Rajhi’s UD MKB trucks also hold up well in the Saudi heat, which can soar to 50 degrees Celsius and cause overheating and other mechanical problems, especially during long-distance legs.

A tour of Al Rajhi’s main branch in Riyadh shows the diversification of the company’s business and the high demands that come with it. “We’re interested in buying the new tractors that UD Trucks are now offering,” hints Al Ammar, as he drives through warehouses filled to the brim with wood, metal and plastics. Perhaps there’s another purchase order already on its way?

01. A UD truck being loaded with construction material at Al Rajhi’s warehouse in Riyadh.

02. General Manager Saleh Al Ammar is impressed with the aftersales and customer care from their local dealership.

11 #01 | 2013

Cover Story


Dreaming of taking a gleaming, perfectly tuned Condor or Quon for a spin? Try the UD Experience, a unique introduction to UD Trucks’ values and technologies that nearly every week draws visitors from near and far to the company’s headquarters in Ageo north of Tokyo.

Text & Photos: Jim Hand-Cukierman

Kingof the Road

A member of the test drive support team guides a customer back to the starting point.

12 #03 | 2012

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01

02

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The UD Experience, launched in April 2012, is not just a test drive. It is, as the name implies, a complete hands-on experience of the values that power the UD

Trucks brand. First, a short presentation takes visitors from the founding in 1935 of Nihon Diesel, UD Trucks’ predecessor, to the global brand existing today. Then it’s off to the factory to check out the world-class production line and meet the people who keep everything humming.

“When you look at the gentlemen here, and the quality checks, it shows you these guys are not just mass-producing vehicles,” says Ahmed Khalil Ebrahim Isa, a visitor from Bahrain. “At every step, there’s a quality check.”

Mr. Isa, who started out as a fi refi ghter,

now serves as fi re, health and safety manager at Bahrain Petroleum Company. He knows his trucks and has seen assembly lines around the globe. “This,” he says, “is very clean, very effi cient.”

After the factory tour, visitors are shuttled to the proving ground, where they get to take a Quon or Condor for a spin. “This is a very big truck,” Mr. Isa marvels, “but it feels like a small one.”

The UD Experience attracts participants from both inside and outside Japan; the ratio is about 50:50. Besides representatives from Bahraini enterprises, visitors have also come in recent weeks from Myanmar and Pakistan. Interest is clearly spreading and the list of happy participants grows steadily longer. With visitors coming nearly every

week, there are now plans

to build a full-fl edged customer center to improve the visits.

Each UD Experience requires plenty of preparation, especially for overseas clients. “Accommodation, transportation and sightseeing are included,” explains Tomohisa Ishida, head of UD Experience, UD Trucks Brand Strategy & Marketing. “Many clients are in Japan for the fi rst time, so we offer some opportunities to connect with the culture.”

Of course, Mr. Ishida notes, the main goal is to show visitors fi rst hand what UD Trucks’ commitment to go the extra mile really means.

Three words from Mr. Isa suggest the message is getting through loud and clear: “Seeing is believing.”

01. Ahmed Khalil Ebrahim Isa from Bahrain checks out a UD cab.

02. Kurniawan Ali, CEO of Win Strategic Group of Myanmar, in the driver’s seat.

03. The factory tour gives UD Experience visitors a chance to see for themselves the assembly of trucks and engines in very modern, very clean facilities.

13 #01 | 2013

Feature Story

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01

From the founding days until today, fuel effi ciency innovation has always been central to UD Trucks’ competitiveness.

Text: Anders Lenart

In Japan after World War II, transportation—a key to rebuilding—was scarce and expensive. In this environment, word began to spread of a truck powered by an engine claimed to be so high-

performing that “it could fl y an airplane.” Yes, it cost nearly four times as much as the 15,000 yen you’d need to pay for a standard gasoline truck, but it had twice the range at half the fuel consumption.

The company behind the truck was a small truck manufacturer with roots in a very different industry—aircraft. Today, this company is known as UD Trucks. The focus on delivering fuel effi ciency remains a competitive hallmark.

In a chronicle of the company’s history, a former director of sales recalls the time immediately after the war: “A customer came to our headquarters in Kabuto-cho [in Tokyo] with his backpack stuffed with 100-yen bills and asked us to sell him a truck. People came with cash in their hands all the way from Kyushu and Hokkaido to buy our vehicles based on reputation by word of mouth.”

In the 1920s, former air force pilot Kenzo Adachi had resolved to use his experience to help develop Japan’s domestic aviation

industry. Impressed by the diesel-powered aircraft manufactured by German company Junkers, he decided to introduce these to Japan, where diesel technology was rare.

In Germany, Mercedes-Benz had developed the fi rst diesel engine vehicle in 1924, and Krupp had bought the Junkers engine patent and in 1926 for the fi rst time put a direct injection diesel engine in a truck. A trip to Germany in 1933 deeply impressed Mr. Adachi. Not only were diesel vehicles everywhere, the Krupp-Junkers brand outperformed other European diesel engines—putting its performance and fuel

effi ciency far ahead of the gasoline engines common in Japan.

Mr. Adachi decided to manufacture high-performing diesel engines in Japan. In 1935, he bought the Krupp-Junkers engine patent and founded Nihon Diesel Industries Ltd, six employees strong.

The turbulent times caused many delays, but in late 1938 came the company’s fi rst Japan-made engine: the 60 horsepower ND1. It performed as well as the Krupp-Junkers engine—a milestone in Japanese automotive history. This engine was at the heart of the company’s fi rst truck, the

01. Kenzo Adachi, the founder of UD Trucks, in front of the very fi rst truck, the legendary and very high-performing LD1.

02. The ND1 diesel engine, a milestone in Japanese automotive history.

From the founding days until today,

The Spirit of EfficiencyThe Spirit of The Spirit of EfficiencyEfficiencyThe Spirit of Efficiency

14 #03 | 2012

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3.5-ton payload LD1, which was released in November 1939.

The test drive has entered UD Trucks lore. Over 13 days, President Adachi and his team drove the LD1 over 3,000 km of some of Japan’s toughest roads. The feat proved beyond doubt the vehicle’s—and the engine’s—durability, reliability and effi ciency.

These keywords, which today are central

to the UD Trucks DNA, drove the company’s post-war success. Although buyers were initially skeptical since few had experience of diesel engines, the Industrial Bank of Japan soon lent support and large-fl eet owners took notice. In 1947, the Tokyo Metropolitan Government put its prototype diesel bus into service.

In January 1955 came the iconic product:

02

The Spirit of Efficiency

“A customer came to our headquarters in Kabuto-cho with his backpack stuffed with 100-yen bills and asked us to sell him a truck. People came with cash in their hands all the way from Kyushu and Hokkaido to buy our vehicles based on reputation by word of mouth.”

15 #01 | 2013

History


the two-stroke UD engine. The race for horsepower had begun. In Japan and overseas, trucks were travelling farther and bus passengers wanted to go faster. Engines capable of 150–200 horsepower were in huge demand.

The UD engine was the first produced by a Japanese company to reach this level. Known as a Uniflow scavenging Diesel engine—the origin of the UD name—its one-way airflow enabled higher performance than the cross-flow or loop-scavenging models of the time, with “scavenging” meaning pushing out exhaust gases while pulling in new fuel and air. Of the first two models, the 150 horsepower version was the first of its kind in the industry. The UD6 engine that followed in May 1955 went even further by delivering 230 horsepower at a weight 40 percent lower than conventional models. In fact, it was one of the world’s lightest per horsepower. For truck owners, this meant lower vehicle weight and therefore less fuel used for a given distance and payload.

At this time, engine power rather than fuel efficiency guided innovation, resulting in the turbocharged intercooler engine in 1971, a first for Japan, and two world-firsts: the continuously controlled variable nozzle turbocharger engine in 1990 and ceramic tappets for use with a 4-valve medium-duty engine in 1993.

However, environmental regulations grew ever stricter, and in the latter half of the 1990s the company made fuel efficiency its key sales point.

Kenzo Adachi’s spirit continued to lead the way. Innovation became focused on combining efficient engines with multi-

gear transmissions, so as to deliver the best possible torque at all times.

In 1995 came Escot AT, Japan’s first electronically controlled semi-automatic multi-speed transmission for heavy-duty trucks. This was followed in 1998 by the GE13 engine, which was the first in the world to include a ball-bearing turbocharger—meaning better mechanical efficiency with less friction, stronger throttle response and less oil needed for lubrication. Together, the Escot AT and the GE13 delivered superb mileage and solidified the company’s reputation for excellent fuel efficiency.

In 2004, the Quon set a global

benchmark for fuel efficiency and environmental performance. The

heavy-duty truck was built from the ground up for lower fuel consumption,

featuring aerodynamic cab and body parts, a lightweight chassis, a new type of ultra-high-pressure fuel injection that drastically improved fuel combustion, and a world-first urea-SCR technology for breaking down NOx and CO2 in the exhaust. The Quon complied with Japan’s 2005 emissions regulations—the world’s strictest at the time—one year early, and later models have continued to raise the bar.

Add extensive driver training to hone fuel-saving driving techniques, and research into wireless technology for precisely coordinating the movements of vehicles in convoys, and fuel efficiency emerges as one of UD Trucks’ defining features.

The company’s pioneering heritage is today fused with the leading-edge technologies of the Volvo Group. The result: extremely fuel-efficient drive-line solutions that live up to the name of UD—Ultimate Dependability.

01. The 230 horsepower UD6 engine, the world’s lightest per horsepower at the time of its launch in 1955.

01

16 #01 | 2013

History


Local Brisbane Club is Kicking New Goals The Centenary Stormers Football Club in the Brisbane suburb of Darra is back on its feet after the fl oods of 2011, with sponsorship support from UD Trucks.

The sponsorship has allowed the club to purchase uniforms and equipment, such as cones and balls, for a new children’s soccer program that began at

the end of March. Jon McLean, Vice President of UD

Trucks Australia, says the company is always looking for ways to support local communities across the country.

“Our head offi ce is in Wacol and a lot of our staff live in the area so it made sense for us to give the Stormers a helping hand,” he says.

“Club sport teaches children good values and promotes team spirit, which are very important characteristics at UD Trucks.”

Alan Wilkins, president of Centenary Stormers Football Club, says UD Trucks’ sponsorship ensured the program could go ahead after the club was wiped out by the 2011 fl oods.

“After the fl ood waters receded, we were left with a huge damage bill which meant that we didn’t have the necessary funds for the program,” he says.

“We’re a small community club run by volunteers so it means a lot to us to have the support of such a big company. It makes you realise that someone really does care. Without the sponsorship from UD Trucks, we wouldn’t have been able to launch this fantastic program for local kids.”

In its fi rst year, the program is aimed at children aged 3 to 11, as this is the most crucial time for kids to learn the necessary skills to play and excel in sport.

“With about 80 percent of our 500 members falling into this age group, it was important for us to get the program up and running,” he says.

“It’s the fi rst of its kind in Australia and

the kids will learn different sets of soccer skills at different stages depending on their age and ability.”

UD Trucks Australia is part of Volvo Group Australia Pty Ltd (VGA), which is a member of the Volvo Group. UD Trucks fi rst arrived in Australia 40 years ago and has since

grown to become one of the largest truck manufacturers in Australia.

Text: Kathryn AdamsPhotos: Mark Strambi

01. The parents join their young football heroes in front of the camera.

02. The kids from the Centenary Stormers Football Club cheering and holding up presents from UD Trucks at the sponsorship ceremony.

01

02

17 #01 | 2013

At the Wheel


Quality and Dependability—Day after Day, Mile af ter Mile

Today, having just purchased the latest model of the Condor, Mr. Eastwood now has 25 UD trucks in his fleet. His reason for loving the brand is simple: these

trucks offer the dependability his company needs to get the job done smoothly and efficiently.

“We deliver windows to domestic building sites up and down the Queensland and Victorian coastlines so we need trucks that are reliable and safe,” he explains. “I’ve got 70 staff and all our drivers love our UD trucks. They’re comfortable to drive, affordable and we don’t have any problems with them on the road.”

Mr. Eastwood is also impressed by the stellar customer service offered by the staff at the Dandenong dealership in the outskirts of Melbourne.

“You’re not just a number to them,” he says. “The team at UD Trucks are passionate about their trucks and look after you every step of the way. They don’t just forget about you once you’ve bought the truck. The aftersales service is fantastic.”

On a recent trip to the UD Trucks factory in Japan, Mr. Eastwood saw for himself that this commitment to dependability goes all the way back to the drawing board and the factory floor.

“It was a great experience to be able to see every part of the production process. As an owner, it was very reassuring,” he says.

“UD Trucks understand the needs of the Australian transportation business and are always improving their trucks to reflect that. They just keep getting better.”

For Tony Eastwood, owner of Melbourne-based EAL&AW Transport Group, UD Trucks has been the truck brand of choice for over twenty years.

“ It was a great experience to be able to see every part of the production process. As an owner, it was very reassuring.”

01. Mr. Eastwood has been a happy UD Trucks customer for over twenty years.

01

18 #01 | 2013


Quality and Dependability—Day after Day, Mile af ter Mile

Two Australian customers share their thoughts on why they feel UD Trucks is the brand that gets the job done.

Text: Kathryn Adams

As a Hertz franchisee owner, Mr. Gould needs to be able to swiftly meet a wide range of challenging demands from customers. Quality, reliability

and cost-efficiency are essential—which is why he today has no less than 39 UD trucks in his rental fleet. UD Trucks, he says, is a brand that consistently lives up to customers’ expectations.

“Many of our clients have long-term leases so we need to provide them with trucks we know will last the distance without any major problems,” he explains. “The high level of reliability also lowers the maintenance costs over the life time of our trucks, which means we can lessen the financial impact to our end consumers, the customers.”

UD Trucks is without question his top choice when recommending trucks to customers.

“UD Trucks offers a fantastic overall package, from a competitive price right through to their high-quality servicing program. I love the way they drive and the in-dash products are first-

class. UD was also one of the first companies to offer automatic trucks, which suited our business perfectly.”

Should anything go wrong, Mr Gould knows that UD Trucks will be quick to help—not that he’s had any problems with his vehicles yet.

“We have a good relationship with UD Trucks and they are always contactable and quick to react to any issues that may arise,” he said.

After switching to UD Trucks four years ago, Peter Gould, CEO of Richmond-based Australian Truck and 4WD Rentals, hasn’t looked back.

“ UD was also one of the first companies to offer automatic trucks, which suited our business perfectly.”

0101. UD trucks ready for another day of fulfilling customers’ expectations.

19 #01 | 2013

At the Wheel


Gemba is written with the

Sino-Japanese characters

“gen” (現), which means

“to appear” or “at present”

and is used in such words

as genzai (“appearance” plus “presence,”

i.e. “right now”) and gendai (“current” plus

“generation,” i.e. “modern times”), and “ba” (場), which means a place. When combined

to read gemba, the expression literally means

the place where someone or something

appears.

In everyday usage, however, gemba means

being on the scene, or where the human

element comes in. A reporter covering a big

news event, for example, might telephone

his editor and say, “Ima gemba desu” (I’m at

the scene right now).

In a business context, the word captures a

sense of immediacy and involvement and can

be understood to refer to the places where

value is created in all phases of a product’s

life cycle.

According to Roger Schreffler, a Tokyo-

based trade journalist for Ward’s Automotive,

the word first became popularized in the

context of motor vehicles back in the 1930s.

In those days, roads were still primitive and

repair facilities few and far between. When

a serious problem occurred, the company

manager would personally drop whatever

he was doing and go to the site of the

breakdown—the gemba—to observe the

When Japanese people hear the word gemba, they pay extra attention. Text: Mark Schreiber

Gemba and the Art of Hands-on Involvement

problem first-hand.

When related to R&D or manufacturing,

gemba is translated as “on the factory

floor” or “on-site.” On the design and

production side, engineers and assembly

workers engage in gemba kaizen, literally

“on the spot improvements,” through

innovative ways to reduce waste and boost

efficiency as well as develop and implement

enhancements to vehicle safety.

In the case of sales and aftermarket

service, it refers to satisfying customers’

needs through speedy response and

conscientious follow-up to feedback.

A frequently heard expression among

managers in Japanese companies is gemba

shugi, which can be described as a policy

of hands-on management, or management

involvement at the grass-roots level,

something widely seen as a key strength of

Japanese manufacturing.

In this sense, gemba can be considered

the diametric opposite of the term

“ivory tower.” Trusting people on-site to

provide decision makers with on-the-spot

evaluations means fewer worries about

complexities such as internal politics, and

more time spent focusing on actually

solving problems.

This translates directly into greater

quality and reliability—attributes that

are known worldwide today as central

Japanese production values.

“ Gemba captures a sense of immediacy and involvement and refers to the places where value is created.”

20 #01 | 2013

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Gemba and the Art of Hands-on Involvement

[Gen] [Ba]

21 #01 | 2013

Tradition

Roads_13_No.01_P20-21_Gemba_0325.indd 21 13/04/26 19:51

For most of its history, UD Trucks focused on producing trucks in Japan for the Japanese market, and in exporting from Japan to Asia and the rest of the world.

While this worked well for many years, today the company finds itself in very different markets, in Asia and elsewhere.

Along with aggressive European and Japanese rivals, new low-cost competitors from China and India have entered the picture. Customers have a whole new range of choices as they try to find the right balance of price, performance and total cost of ownership.

Loic Mellinand, Senior Vice President, UD Trucks Global Brand, is the man

in charge of trying to navigate these challenging waters. Based at UD Trucks’ headquarters in Ageo, outside of Tokyo, his responsibilities include building and implementing the global UD Trucks brand, as well as laying out the product strategy for the UD Trucks of the future.

His focus is not exclusively on Japan, but on the global market—or, more accurately, a number of local markets worldwide. The new strategy is a global approach, aimed at developing dedicated products for different markets, and customers with different needs.

“We have an aggressive growth strategy for Asia and other fast-growing regions and believe that UD Trucks will be vital for the Volvo Group’s ambitions since it already has a good reputation as a dependable truck brand and have been

successful in a number of these markets for a long time”, says Mr. Mellinand.

The dilemma, as Mr. Mellinand points it out, is the variety of customer needs from a global perspective. It is clear that customers in mature markets with complex legislation, like Australia, Japan and South Korea, have different needs from customers in growth markets like South Africa, China and Indonesia.

“We have taken on this challenge within the UD Trucks brand and started to develop a new truck range several years ago, with the right specifications for customers in growth markets. We are nearly ready for launch.”

While Mr. Mellinand is reluctant to

reveal details about the coming truck, he is certain of its competitiveness. The team has focused on excelling in fuel efficiency, reliability and uptime—features that are essential to customers’ profitability. “The great advantage of being part of a global company becomes fully expressed in an industrial project like this. We can use the local knowledge about our customers to understand their needs, the strength of global production and technology and UD Trucks—a brand with very strong Japanese heritage. We say that our new truck is the best of three worlds.”

He emphasizes UD Trucks’ strong history—because, he says, you need a clear vision of the past to be able to set out on the road to the future.

The UD Trucks brand was first launched in 2010, although “UD” has been part of

the brand for more than 60 years. “Many of the things we are dealing with today go back far before the Volvo Group became involved in UD Trucks,” Mr. Mellinand says. “I see myself and my team today as part of the entire history of the brand.”

A key to being able to take part of community development in fast-growing economies is, of course, offering transport and construction companies vehicles and services that are affordable. Accordingly, the new approach also involves a major operational shift from Japan to Asia. Production for Asian markets will be placed in Asia.

“The shift of production is a prerequisite for being able to offer our customers outside Japan and in other mature markets trucks and services designed exactly for their needs,” says Mr. Mellinand. He stresses at the same time that this doesn’t mean that UD Trucks is ignoring Japan, or moving all of its production out of its home—and largest single—market.

“We do want to have a product that is designed for Japan, so I’m not talking about taking a product that was designed for Asia and bringing it into Japan. Instead, we want to provide a product that meets the expectations of Japanese customers.”

Tomorrow will be exciting, Mr. Mellinand promises, for customers as well as for the people who design, build and sell UD trucks. “I can promise that these products will be something that we can be proud of offering to our customers.”

Faced with a rapidly changing global market, the product development team at UD Trucks is working hard—and rapidly—on ways to dramatically change how the company will serve a wide variety of customers in many different markets around the globe.

Text: William Ross

Thinking Global

“ The shift of production is a prerequisite for being able to offer our customers outside Japan and in other mature markets trucks and services designed exactly for their needs.” Loic Mellinand, Senior Vice President, UD Trucks Global Brand

Loic Mellinand

22 #01 | 2013

Roads_13_No.01_P22-23_Product_0426.indd 22 13/04/26 19:52

“ I can promise that these products will be something that we can be proud of offering to our customers.” Loic Mellinand, Senior Vice President, UD Trucks Global Brand

23 #01 | 2013

Global Business

Roads_13_No.01_P22-23_Product_0426.indd 23 13/04/26 19:52

Finance to approved business customers of UD Trucks Financial Services^ with a minimum deposit of 10%. Offer valid from 1 May 2013 to 31 July 2013 from participating UD Trucks dealerships. Offer applies to new UD Trucks Quon 11 Litre models @ 1.95% for 36, 2.95% for 48 or 3.95% for 60 month terms with a nil final balloon payment. This offer is not available in conjunction with any other offer. Terms, conditions, fees and charges apply and are subject to change without notice. ^ UD Trucks Financial Services is a registered trading name of Volvo Finance Australia Pty Ltd. Offer not available for the Quon GW 26 470.

UD Trucks offer the perfect balance between rock solid dependability and industry leading business solutions. From the best technology around, to this amazing finance package.

It’s for a limited time only so talk to your UD Trucks dealer today.

Make sure you check us out on Stand 87 at the Brisbane Truck Show!

www.udtrucks.com.au

Available on all new Models1.95%Finance Packages from

*

roads #1, 2013 (australia)

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