SUPPLIER NEWS                    

ECONOMIC TRENDS                  PEOPLE IN THE NEWS

ASSOCIATION NEWS            FACTOID

SUPPLIER NEWS

Eaton Wins Multi-Year Patent Dispute With ArvinMeritor, ZF

A United States International Trade Commission (ITC) judge has ruled in favor of Cleveland, Ohio-based Eaton Corp. in the unfair import proceeding it brought against ZF Friedrichshafen AG (ZF), ArvinMeritor, Inc. and ZFMeritor LLC (ZFM) in 2003.

The judge determined automated truck transmissions manufactured and marketed by ZF, ArvinMeritor and ZFM infringe an Eaton transmission patent and are therefore being unlawfully imported into the U.S. As a result, the judge has recommended the ITC issue both an order prohibiting future importation of ZF FreedomLine transmission systems and components into the U.S. and a cease-and-desist order halting the sale of these products in the U.S.

Source: Aftermarketnews.com, Jan. 10, 2005.

Transportation Services Index Hits New High

The Department of Transportation (DOT) recently said its transportation services index (TSI) jumped 1.3 percent in October to a new record, and the freight TSI also grew higher. The increase to 126.7 was the second straight and left the index 6.6 percent higher than a year earlier, DOT said in a statement. DOT said the TSI for freight rose 1.1 percent to 127.6 in October, the second straight rise. It was 5.9 percent higher than a year earlier. The TSI for passengers rose 1.9 percent to 125.2 in October.

The index includes data dating back to 1990, with changes measured against the base year of 1996. DOT said TSI is still under development and is considered experimental.

Source: Transport Topics, Jan. 6, 2005.

Trucking Index Rises 1.6 Percent in November

A measure of overall trucking freight volume increased by a seasonally adjusted 1.6 percent in November, American Trucking Associations (ATA) said. It had declined in three of the previous five months.

Bob Costello, ATA chief economist, said November�s gain was the largest month-over-month increase since April, and put the index at its highest level since June. Costello also said freight tonnage had risen 6.5 percent through 11 months of 2004 because economic growth spurred consumer spending and manufacturing demand. The ATA index compares trucking activity to the base year of 1993 and is derived by sampling carriers in all types of freight-hauling operations.

Source: Transport Topics, Jan. 10, 2005.

Industry Executives Say Trucking Capacity to Grow in 2005

Despite efforts by many public truckload carriers to avoid expanding in 2005, overall trucking capacity was poised to grow modestly this year, fleet suppliers, analysts and trucking executives said. While only a few large fleets said they would add capacity in coming months, small truckload and less-than-truckload carriers continued to buy equipment to accommodate business grabbed from their larger TL counterparts, leading large fleets themselves to expand eventually, industry officials said. At the same time, some private carriers would build their fleets because of difficulty getting enough trucks from their for-hire partners.

Source: Transport Topics, Jan. 13, 2005.

Trucking�s Fuel Tab Soars

The trucking industry paid at least $14 billion more for its fuel in 2004 than it did a year earlier, as sky-high petroleum costs took a large bite out of fleets� and shippers� pockets. In all, trucking paid at least $90 billion for the diesel and gasoline necessary to deliver the nation�s freight during 2004, compared with $76 billion in 2003. And the nation�s airlines and freight railroads also spent billions more last year for their fuel. A report from the American Trucking Associations on Jan. 12 said that trucking paid at least $62 billion just for diesel fuel in 2004, more than $10 billion above the 2003 total.

Source: Transport Topics, Jan. 17 & 19, 2005.

PEOPLE IN THE NEWS

Delphi Names New President and COO

Delphi Corp. recently named Rodney O'Neal president and chief operating officer (COO). O'Neal takes over the position of president for founding chairman J.T. Battenberg, III, who will remain chief executive officer responsible for all of Delphi's global business units. O'Neal will be responsible for Delphi's three operating segments, its three regional operations, global supply management and sales and marketing. He also was named to the Delphi board of directors.

Source: Detroit News, Jan. 8, 2005.

Dana Appoints Loyola Manager of Strategic Marketing, Trailer Products

Dana Corp.�s Commercial Vehicle Systems group has appointed Javier Loyola to manager of strategic marketing, trailer products. Loyola will be responsible for researching, developing and executing strategic initiatives that include North America Free Trade Agreement (NAFTA) and global trailer product share growth strategies, product and systems development and analysis of its current and future manufacturing operations. Loyola has progressed through numerous positions with increasing levels of responsibility prior to joining Dana. He was operations manager for Hendrickson International in Monterrey, Mexico.

Source: Truckinginfo.com, Jan. 12, 2005.

Purosil-Mission Rubber Names Koziel Director of Commercial Vehicle Sales

Greg Koziel has been appointed director of commercial vehicle sales for Purosil-Mission Rubber Co. Koziel has held various senior sales and marketing positions serving the medium- and heavy-duty truck market. In his new position, he will help guide Purosil�s operations and sales in the commercial transportation market. Koziel has a master�s degree in business administration from Indiana University, is an active member of the ATA Technology and Maintenance Council and he is a former member of the Heavy Duty Business Forum.

Source: Truckinginfo.com, Jan. 12, 2005.

MacKay Joins LINC Board of Directors

Stuart S. MacKay has been appointed to the board of directors of LINC Preferred Group. MacKay is president of MacKay & Co., a specialized market research and consulting firm in the truck, heavy equipment, agricultural equipment, engine and parts and service distribution businesses. MacKay has worked for Cummins Engine Co. in a variety of sales and marketing positions and for Red Star Express Lines, the large Eastern LTL carrier. According to the LINC press release, MacKay will assist LINC in positioning its product line to progressively serve its target industry.

Source: Truckinginfo.com, Jan. 13, 2005.

ASSOCIATION NEWS

First-Ever Aftermarket Financial Symposium Planned by AAIA

AAIA announced it will host the first-ever Aftermarket Financial Symposium, Sept. 7-8, 2005 in Chicago, Ill. The symposium, modeled after the highly successful Aftermarket eForum^TM, will be geared toward CFOs, financial service providers, investment analysts, CPA firms and others with interests in the automotive aftermarket.

The Aftermarket Financial Symposium: Leveraging for Growth will provide top speakers and presenters who will address key financial issues and trends in mergers and acquisitions, accounting, fringe benefits, technology, risk management, investments, strategic planning, research and bank financing.

�AAIA is excited about this unique new initiative that will bring together the very best minds in the financial community from within and outside of our industry for an ambitious day and a half agenda,� said Kathleen Schmatz, AAIA president and CEO. �Fresh perspectives and best practices presented at the symposium will be valuable take-aways for attendees� bottom line.�

The symposium will be held at the Hyatt Regency O�Hare in Chicago on Wednesday, Sept. 7 and Thursday, Sept. 8. For more information, contact Susan Medick at 301-654-6664 or e-mail susan.medick@aftermarket.org.

AAIA Study Confirms Strong Do-it-Yourself Market

Contrary to some industry and Wall Street naysayers, the Do-it-Yourself (DIY) segment of the automotive aftermarket is not dying, in fact, 70 percent of U.S. households have someone who has personally performed vehicle maintenance or repair in the last year, according to a new market research study released by AAIA.

The Aftermarket Consumer: DIY or DIFM report reveals that 62 percent of DIYers are doing the same amount of work or more work than five years ago. The primary reason DIYers gave for doing maintenance and repair themselves was to save money. About 38 percent of DIYers indicated they did less work now than five years ago because repairs are more complicated, they own newer vehicles, they�re too old or have less time.

The majority of consumers surveyed (88.5 percent) indicated that they had some type of professional service done on their vehicles in the past 12 months. Quality of service and trust were the top criteria for selecting a service provider, with the cost factor ranking seventh.

�This comprehensive study provides new detailed insight into the behavior, attitudes and perceptions of DIYers and DIFMers,� said Kathleen Schmatz, AAIA president and CEO. �Our in-depth analysis of U.S. motorists will help aftermarket businesses better understand their ever-changing marketplace.�

The report analyzes consumer responses to numerous topics covered in the survey, including:

• Consumer maintenance and repair behavior
• Light, medium and heavy DIY/DIFM work
• Frequency and type of DIY/DIFM work
• Where DIYers purchase products and why
• Factors in selecting service provider for DIFMers
• DIY and DIFM demographics
• Tool and accessory purchasing

The Aftermarket Consumer: DIY or DIFM is available to AAIA members for $295 and to non-members for $795. For more information or to order a copy, contact AAIA at 301-654-6664, or visit www.aftermarket.org.

Educational Needs Analysis Survey

In order to better serve the industry, the University of the Aftermarket is conducting an Educational Needs Analysis survey. It only takes a few minutes to complete, and the results will assist the University in determining the types of courses and seminars most needed by aftermarket professionals. To take the survey online, visit https://www.northwood.edu/forms/uofa/.

If you have any questions, contact Susan Woodcock at 800-551-2882 or reg@univaftmkt.org.

FACTOID

Prices paid by consumers declined 0.1 percent in December, although for all of 2004, prices rose the most in four years, the Labor Department recently reported.

Source: Transport Topics, Jan. 19, 2005.