JCB to build diesels: four-cylinder diesels 72 to 120 hp to debut in 2005; first uses are JCB machines; "we tend to do things ourselves"

Diesel Progress North American Edition,  Oct, 2003  by Mike Osenga

The rumors have finally come true. After at least 25 years of speculation, rumors and assertions to the contrary, England's JCB will become a manufacturer of diesel engines in 2005. And with that, the son has made his father's dream a reality.

The late Joseph C. Bamford, founder of the privately-held company that bears his initials, had a strong interest in diesels and continually looked for ways to incorporate a JCB engine into his machines, spawning the many rumors. Yet it is his son, Sir Anthony Bamford, chairman and managing director, who will finally put a JCB-built diesel into a production JCB machine.

"We've toyed around with engines for a long time," Bamford said. "Engines were something very much in my father's blood, but he was practical and responsible about it. He didn't want to make engines just to say he was making engines. That's how I feel as well. That's why we haven't, until now, made diesel engines. This is an essential product."

The announcement is something unique in today's diesel engine industry. This is a clean sheet of paper effort from design to manufacturing to the philosophy behind the hardware. No partners, no shared equity--brand new engines built in a newly tooled facility--all owned by JCB.

The Rocester, U.K., manufacturer of construction and agricultural equipment will launch a line of four-cylinder (and eventually six-cylinder) diesels with initial outputs flora 72 to 120 hp. The new diesels will be produced at an existing JCB facility in Cheadle, England, that is being retooled for assembly of engines. JCB will continue to source engines from Perkins in outputs smaller than its own models and from Isuzu and Cummins for larger machines.

"It is no secret that JCB has been looking at developing engines for 25 years at least," said John Patterson, JCB group chief executive. "There have been various generations of engines, as well as prototypes developed over the years. But in the final analysis, on previous occasions, the company just never had the volume to support an engine production program.

"If you look at the development of JCB over the last 10 years in terms of its product range expansion, its market expansions, its presence in markets and its global market share growth, the economics of an engine program make much more sense now against the growth factors we enjoy and project for the future"

"We just feel that it is important to have our own engines, given the larger volumes of machines we manufacture," said Bamford. "If you look at our competitors, they also haw their own engines. We also make many of our own axles and gearboxes, so we know how to make components and are confident we can make engines competitively--engines designed for the particular characteristics of off-highway machinery."

The current engine program has been underway for about five years with the final decision to proceed made in March. Both Bamford and Patterson stressed that the engines are designed primarily for use in JCB machines. Sales of JCB diesels to other manufacturers is a part, but not a major driver, in the development of the engines.

"Our first priority is to get into production for our own product needs," Patterson said. "After that we can look to other user sales."

Patterson added that International Transmissions Limited, JCB's gearbox and axle manufacturing subsidiary, had about 20 percent of its sales to third parties. "I would be disappointed, in due course, if we didn't enjoy the same sort of ratio with engines," he said.

JCB-first was also a driving factor in the design of the new engines. "The thing that makes these engines unique is that they have been developed primarily for our own use in off-highway equipment," said Dr. Tim Leverton, group engineering director. "Because it is not part of our business plan to have to sell the engines on-highway to make the plan work, we have been able to not have any compromises in our focus on the use of these engines in off-highway machines."

The first three engine models to be manufactured by JCB will all be in line, four-cylinder, four valve-percylinder, direct injection diesels. The smallest output model will be a naturally aspirated engine developing 72 hp at 2200 rpm. There will also be a turbocharged model with an output of up to 99 hp at 2200 rpm, while the largest initial model will be a turbocharged, charge-air cooled configuration rated 120 hp at 2200 rpm.

This first JCB engine has been designed with 67 cu.in, per cylinder (1.1 L/cyl). The swept volume is 268 cu.in. (4.4 L). Peak torque of the three models is 228, 313 and 387 lb.ft. respectively, all at 1300 rpm.

All of the new models are conservatively rated, almost extremely conservatively, leaving room for future expansion. A line of six-cylinder diesels will also be manufactured, but likely not until around Tier 3 ha 2007 to 2008.

The three initial engine models will debut with a Delphi DP210 rotary mechanical fuel injection pump. Common rail systems are currently being tested for possible inclusion on Tier 3 engines. Selected prototypes will be in machines by the end of this year, with production due to begin in 2005.

Patterson would not specify which JCB machines and when specific models would switch to the new diesels, saying only that all machines in the 80 to 120 hp range would be changed over by early 2006. Based on JCB's current machine production, this would likely include the company's line of rough terrain forklifts, some tracked excavator models, some wheeled loaders, the Loadall product line and the entire backhoe loader line, JCB's core machines.

The impact of the announcement of this new entrant into the diesel engine world cannot be understated. It was a surprise to most, despite the many previous rumors and created an industry wide buzz immediately after the initial announcement.

Despite the speculation around JCB engine activities over the years, conventional industry wisdom said such a launch was now unlikely, maybe even foolhardy, given the realities of the world diesel industry today.

Conventional industry wisdom said there is too much global capacity to justify another diesel manufacturer. That same wisdom would suggest that JCB, with current machine production levels of around 30,000 units, does not have the internal volumes to support an investment in diesel technology. And given the increasingly tighter emissions regulations coming in the future, the costs of development and staying current would be a major barrier to entry.

Even beyond those factors, the prevailing winds today favor spreading development costs and risks out by partnering, joint venturing or forming third party manufacturers. Almost anything except going it alone, as JCB has now done.

As expected, JCB, which has always marched to its own drummer, is well aware of current industry drinking and sees things in a different light.

"I think if you look, the economics am driven by the historical knowledge that to be in the engine manufacturing business, yon have to have large transfer lines and dedicated machining centers to support the high volumes," Patterson said. "I think modern day technology, in terms of assembly systems and so forth, doesn't require that type of investment. You can manufacture much lower volumes with less investment."

"One of the reasons for doing this," Patterson added, "is it gives us cost control of a strategic component. It just seems to me, moving forward, the cost premiums you may have to bear in the future when buying engines will be extremely expensive.

"We have been designing engines for a long time. One of the benefit of that is that we can talk, with some intelligence, to potential suppliers in great detail. As a result, this present design of engines is of remarkable value."

What is remarkable is that Patterson said JCB's total investment in its diesel engine program, including retooling the production facility, was $75 to $80 million.

"We are starting with a clean sheet of paper which allows you to take a look at things differently and as a result we are not burdened by history" Bamford said. "If you look at other diesel manufacturers, how much do they actually manufacture inhouse today?

"Manufacturing is not quite what it was. If you look at the automotive business, as opposed to off-highway, a lot of runs are very short. There are lots of specialist engines that are manufactured in short runs."

Patterson said that the engine design is suitable for Tier 2 and Tier 3 and any changes associated with Tier 3 will be relatively minor. "The introduction of Tier 2 and Tier 3 was an influencing factor on our timing as well. We wouldn't want to be coming in mid-stream between two legislative changes" he said. "That was definitely a factor in the timing of it."

"Designing engines for our machines was the major reason we did this, but the timing in terms of emissions legislation was certainly important" Bamford said. "You don't want to do it three times over. And now, the design of the machines is not going to change radically."

"If you track the history of JCB, you'll see we've always continued to invest heavily, even in downturns. So when the cycle turns up, the company comes out of it very strong," Patterson said. "You could put this into the same category that it will strengthen us as we go forward. It's a natural evolution of our business."

Commenting on the possibilities of a joint development program, Bamford noted that, "there have been opportunities to partner."

"There are certain companies with which we've had deep discussions," Bamford said. "However, we tend to do things ourselves. Our time scale is different. We want to get on with making this engine for our own requirements to satisfy our own needs, now, in our timeframe."

In looking at the design of the new JCB diesels, more complete details of which will follow in a future issue of Diesel Progress, Leverton said there is a strong focus on a robust, simple design tailored to the operating hours and life expectancy of off highway equipment.

JCB made extensive use of outside consultants in the design of the engines. The company worked closely with Ricardo Consulting Engineers from "day one" Patterson said. AVL List GmbH did significant work on emissions and the combustion system, while Cosworth Technology advised on how to optimize designs for machining on the basis that they will continue to be a supplier.

The first things that jump off the specification sheet are the noise levels. JCB said the maximum noise level for the three models is 89 dB(A) with an idle noise level of 78 dB(A).

"The engines have a bedplate construction, so the bottom end of the engine is very stiff," Leverton said. "This, combined with the stuctural strength of the crankcase itself, is the main reason we have been able to achieve our noise targets."

A second noticeable design factor is low end torque. "We have really concentrated on optimizing low engine speed torque so that we feel we have a significant advantage in terms of low engine speed torque performance, which is exactly what is needed to improve the operating performance of the machines," Leverton said.

He added that in the torque curves, "peak torque is at a similar engine speed, the difference is the higher torque at 1000 rpm so you have a much flatter torque characteristic right from step off. That's really what the operator feels when he's using the machine."

Obviously, emissions overrides all diesel designs these days and thus the four valves-per-cylinder design, though Patterson said, with less machining content than many two valve/cylinder designs. The new engines have the ability to handle cylinder pressures in the 2500 psi region, an obvious future emissions consideration.

Other notable design features include a rear geartrain, another noise reduction consideration, with an SAE No. 3 flange, centrally positioned in jectors, a sound deadened steel oil pan, an 80 hp rear power takeoff; with a second, 10 hp pto.

The front of the engine has an autotensioned poly-vee belt drive. There is also a direct-mounted alternator, integrated water pump and the crankcase will have a closed ventilation system, the latter an increasingly important requirement, especially in North America.

The Tier 3 engines will probably include a common rail fuel system with a high pressure fuel pump and an electronic control module. While a common rail Tier 3 model was on test during our visit to Rocester, the final decisions on the fuel system for Tier 3 has not been made and there is the possibility that at least some models will continue with a mechanical fuel pump.

Lean manufacturing principles have been used throughout and extensive FMEA analysis on the complete assembly process was conducted. Minimal automation will be used at first.

There will also be a strong emphasis on cleanliness in the positive air pressure production area with 10 micron air filtration. Plans call for all engine production to be hot tested in two cells.

Current engine development testing is being done at Rocester, where about 50,000 hours of testing has been done on the engines through September 2003, divided between test cells and machines.

Once the engines are in production, JCB's global dealer network will service the new diesels with support from Delphi's network for the fuel injection system.

By 2005, JCB will manufacture its own engines, transmissions and axles, the three largest cost components in its machines. Are engines yet another step towards even more vertical integration?

"We don't want to grow by vertically integrating" Bamford said. "We want to grow by having end products. We would much prefer to buy components from very good suppliers. We're not ambitious to be vertically integrated."

Finally, the launch of the first-ever JCB diesels is set against a backdrop of a recent series of somewhat quiet, but sweeping changes in the overall structure of JCB. Since 1998, JCB has:

Ended its joint venture with Sumitomo for production of hydraulic excavators, and continued on its own.

* Opened JCB Earthmovers.

* Opened the JCB World Parts Centre in Uttoxeter.

* Established its first two non-U.K. manufacturing sites in Savannah, Ga., and more recently in Brazil.

* Earlier this year took 100 percent control of its Indian business.

All of which are signs of a company continuing to change with the times, and invest in its future, even in the face of conventional industry wisdom.