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SUPPLIER NEWS
ECONOMIC TRENDS VEHICLE TECHNOLOGY
ASSOCIATION NEWS FACTOID
SUPPLIER NEWS
Meridian Seeks Chapter 11 Aid
Meridian Automotive Systems Inc. filed for Chapter 11 bankruptcy protection this week, citing the high cost of steel and increased pricing pressure from its automaker customers. The Dearborn, Mich.-based auto parts maker said its bankruptcy petition would focus on restructuring the company's balance sheet, due to higher steel and resin prices.
Meridian, which had been mentioned by an industry lawyer, auto economists and other observers as a possible candidate for bankruptcy for several months, said the cancellation of the early payment program instituted by Ford Motor Co., General Motors Corp. and DaimlerChrysler AG, as well as declining auto production and shrinking market share for domestic automakers were reasons for the filing.
Company officials said there are no plans for layoffs or plant closings. But they said that they would evaluate all operations and make case-by-case determinations. The company said it expects to continue employee pay and benefits.
Source: Aftermarketnews.com, April 27, 2005
Haldex and SKF to Jointly Develop Wheel-End System for Heavy-Duty Use
SKF and Haldex Group have announced plans to jointly develop an advanced wheel end system for commercial vehicles, trucks, buses and trailers. The system will be based on Haldex's new generation of disc brakes with a fixed caliper dual disc concept and SKF truck hub, bearing and sealing technology.
According to the two companies, by integrating Haldex's dual disc braking system into SKF's hub unit technology, a much more compact and efficient product can be created � offering great potential to improve safety, performance and optimizing vehicle design. This product concept will also give vehicle builders ability to optimizing installation space requirements in the future.
The two companies said fleet operators can benefit from longer brake service life time and increased uptime, higher performance in combination with reduced vehicle weight and the potential for increasing payload capacity. The system is also designed to offer easier brake maintenance and replacement.
The companies said they will continue to refine the system this year and plan to begin working with interested customers.
Source: Aftermarketnews.com, April 27, 2005
ECONOMIC TRENDS
ATA's Truck Tonnage Index Slips 3.3 Percent in March
Overall trucking freight volumes fell 3.3 percent on a seasonally adjusted basis to 111.6 in March, according to an American Trucking Associations (ATA) index released this week.
The drop in ATA�s Truck Tonnage Index was the second following the largest month-to-month gain in several years in January � revised upward to 5 percent from a previously reported 3.4 percent � which was a record high, the group said.
On a non-seasonal basis, the index rose 12.1 percent from February.
Year-to-date, tonnage increased 3.9 percent, compared with a year earlier. The truck tonnage index rose 5.4 percent in 2004, ATA said.
ATA calculates the tonnage index based on surveys from its membership. The index compares activity to a 1993 base year and is derived by sampling companies in all types of freight-hauling operations.
Source: Transport Topics, April 27, 2005
March Durable Goods Orders Fall, Commerce Says
U.S. orders for durable goods fell by 2.8 percent in March, the Commerce Department reported this week. Trucking is a major beneficiary of durable goods manufacturing, hauling both components and finished goods. Orders of goods made to last at least three years declined to $194 billion, after falling a revised 0.2 percent in February. Excluding transportation orders, bookings fell 1 percent. Analysts had expected a 0.3 percent increase in durables orders, Bloomberg reported.
Orders for non-defense capital goods, excluding aircraft, fell 4.7 percent in March, the biggest drop since November 2003. Machinery orders fell 7.6 percent, the most since June 2002, the monthly report said.
Source: Transport Topics, April 27, 2005
VEHICLE TECHNOLOGY
FedEx Announces Plans to Add up to 75 Clean Air Hybrid Trucks to Fleet
FedEx Express recently announced plans to add up to 75 hybrid, diesel electric trucks to its service fleet in the next 12 months. The announcement coincided with the unveiling of two FedEx hybrid trucks in the nation's capital, which brought the company-wide total of hybrid trucks in use to 18.
The FedEx Express E700 hybrid electric vehicle decreases particulate emissions by 96 percent and travels 57 percent farther on a gallon of fuel than a conventional FedEx truck, reducing fuel costs by more than one third, the company said.
The Washington, D.C. rollout is a joint initiative with Environmental Defense and Eaton Corp. The project began four years ago when Environmental Defense and FedEx Express began working together to create the next generation delivery vehicle. Eaton Corporation produced the hybrid electric powertrain for the vehicle.
Environmental Defense, FedEx and Eaton have worked closely with a number of suppliers to find innovative, effective solutions to allow greater adoption of hybrid electric vehicles by more fleets around the country. Freightliner Custom Chassis was instrumental in supplying the chassis and assembling the 18 vehicles that have been placed into operation over the past year, starting in Sacramento. Utilimaster, Hitachi and Detroit Diesel each provided key components and worked with project partners to customize their components for the hybrid trucks.
FedEx currently has 18 hybrid trucks in service in Sacramento, New York, Tampa and now Washington, D.C. The trucks are meeting environmental goals based on recent lab testing at the Southwest Research Institute, which found a particulate matter reduction of 96 percent, a NOx reduction of 65 percent and increased fuel efficiency of 57 percent, compared to the 1999 baseline vehicle. New trucks are expected to be placed in Texas and New York City.
Source: TheAutoChannel.com, April 22, 2005
ASSOCIATION NEWS
Aftermarket Associations Urge CARB to Drop 15/150 Warranty Regs
Eight aftermarket associations filed a petition today with the California Air Resources Board (CARB) calling on the agency to rescind its regulations requiring that car companies warrant partial zero emission vehicles for 15 years/150,000 miles. The petition asserts that CARB has failed to present any evidence that a 15/150 warranty would reduce emissions, increase durability or improve maintenance of vehicle emissions systems.
While CARB asserted that the extended warranty would have no adverse impact on the independent aftermarket, a study performed by the Penway Group found that the extended warranty could result in the loss of $500 million to independent repair facilities between 2003 and 2008 resulting in the loss of nearly 2,500 jobs and 700 business closures.
The rules enacted by CARB in 2000 permit car companies to meet their zero emission vehicle requirements through the sale of partial zero emission vehicles which are hybrids and super low emitting vehicles that have extremely low emissions standards. In order to obtain credit, the vehicle�s emissions system must be warranted for 15 years/150,000 miles.
The petition further takes issue with CARB�s contention that warranties induce car owners to better maintain their vehicle. �If vehicle owners know that repairs are under warranty, they may be less likely to take early precautionary steps to avoid harm to, or failure of, their vehicles� emissions system; because the increased costs of repairing the system, due to owner�s neglect, will not be borne by the owner.�
�The state has no business being in the business of mandating emissions warranties,� said Rodney Pierini, president and CEO of the California Automotive Wholesalers Association, speaking on behalf of the aftermarket coalition fighting the warranties.
�Warranties are marketing tools that should be left up to the marketplace to determine, not state bureaucrats. Given the choice, car owners have preferred the independent aftermarket based on price, convenience and trust. That choice is being taken away based on unsubstantiated claims by the board that a lifetime emissions warranty will protect the environment and improve vehicle maintenance,� he said.
�The negative impact on the California vehicle repair industry likely will be felt in other states around the country that have already, or are considering adopting, the CARB vehicle emissions standards,� Pierini said. �It is absolutely imperative that CARB accept this petition and immediately begin a rulemaking to eliminate the extended emissions warranties from its regulations.�
CARB now has 30 days to determine whether to undertake a rulemaking. Associations joining the suit include the Automotive Aftermarket Industry Association, Automotive Parts Rebuilders Association, Automotive Repair Coalition, Automotive Trade Organizations of California, California Autobody Association, Automotive Service Councils of California, California Service Station and Repair Association and the California/Nevada Automotive Wholesalers Association.
Asbestos Trust Fund Bill Introduced in Senate
Sen. Arlen Specter, R-Pa., formally introduced his asbestos trust fund legislation (S. 852) on April 19. S. 852 would establish a no-fault trust fund for asbestos victims comprised of contributions from companies and insurers with significant asbestos lawsuit exposure. Cosponsoring the bill with Specter were Senators Max Baucus, D-Mont.; Mike DeWine, R-Ohio; Diane Feinstein, D-Calif.; Chuck Grassley, R-Iowa; Orrin Hatch, R-Utah; Patrick Leahy, D-Vt.; and George Voinovich, R-Ohio.
Despite the bi-partisan list of supporters, several key Republicans on the Senate Judiciary Committee, where this bill will be considered, are still reserving support. Further, reaction from stakeholders in the asbestos debate was mixed.
Although the United Auto Workers are supporting S. 852, the AFL-CIO announced on April 22 that it would oppose the trust fund legislation in its present form and �will oppose any effort to take away the rights of asbestos victims to go to court, without establishing a workable system to ensure just and timely compensation.�
Industry reaction has also been mixed. The Property Casualty Insurers Association of America and the American Insurance Association both issued statements last week opposing the bill. The Asbestos Alliance, comprised of many trade associations and companies impacted by the asbestos litigation crisis, including the National Association of Manufacturers, welcomed introduction of S. 852, which contains �several improvements over earlier versions of the bill.� However, both the alliance and insurance companies have raised concerns about new sections in the bill, including a provision that was added at the behest of Senator Feinstein to address asbestos compensation issues for extremely sick individuals during start-up of the fund.
Senator Specter has announced that he is continuing discussions with Judiciary Committee Republicans in hopes of reaching an agreement. He further has scheduled a hearing on April 26 and committee consideration on April 28, with hope of having the bill ready for floor debate in May.
AAIA Elects New Officers and Board of Directors
AAIA announced the election results of the 2005-2006 officers and board of directors on April 16 at its Spring Volunteer Leadership Days in Huntington Beach, Calif.
�The backbone of AAIA as well as any successful trade association is its volunteer leaders,� said Kathleen Schmatz, AAIA president and CEO. �The outstanding individuals who serve on the AAIA board of directors are among the very best visionaries and thought leaders in the aftermarket industry.�
AAIA�s elected officers of the board of directors are:
- Chairman, David Caracci, Robert Bosch Corporation
- Vice Chairman, Richard Morgan, Aftermarket Auto Parts Alliance, Inc.
- Vice President, Marc Graham, Synergy Global Business Solutions
- Vice President, Jerry O�Pry, Georgia Pacific Corporation
- Vice President, Gary Perman, RPS Marketing
- Secretary, David Bell, Erie DriveTrain, Inc.
- Treasurer, Tim Lee, LC Enterprises, LLC
- Past Chairman, Michael Moshontz, Blue Magic, Inc.
Seven other individuals were elected to the 31-person AAIA board of directors, including:
- Russ Bailey, Russ Bailey Consulting
- Larry Easterlin, Technical Chemical Company
- Richard Jago, Old World Industries, Inc.
- Michael Klein, Klein Investments
- Harold Krivan, J.D. Power and Associates
- Jon Owens, Babcox Publications
- John Washbish, Affinia Under Vehicle Group
Continuing board members are:
- William Baker, New York State Automotive Aftermarket Association
- Joseph Felicelli, Federal-Mogul Corporation
- John Flad, Bendix Commercial Vehicle Systems
- Joseph Grobarek, Great Lakes Representatives
- Gary Kremer, Uni-Select USA
- David Machamer, Innovative Solutions
- Joseph Register, Prescient Technologies
- Ira Davis, Forecast Products
- Julie Diehl, The Business Consulting Group/Alvarez & Marsal
- Sean Stanic, Siemens VDO Automotive Corporation
- Tom Swoboda, Ducker, Findlay, Swoboda & Associates
- Ken Walker, Meineke Car Care Centers
- Dennis Welvaert, Mark IV Automotive/Dayco Products
- Skip West, MAXSA Innovations
Record Attendance at AAIA Leadership Days
A record 380 people attended Spring Leadership Days hosted by AAIA in Huntington Beach, Calif. last week. Volunteer board and committee members, VIP guests and professional staff participated in 28 group meetings and eight social events during the three-day program.
Formerly called the AAIA Board & Committee meetings, the new AAIA Leadership Days are held in April and September. This year�s program included a Volunteer Recognition Luncheon that recognized outgoing board members and current committee chairs. New to the program and all future Spring Leadership Days is a �State of the Association Address� delivered by Kathleen Schmatz, AAIA president and CEO.
�AAIA is a volunteer driven trade association and twice a year we gather some of the very best minds in the aftermarket industry � our volunteer leaders � to address the issues that impact our members,� Schmatz said. �There are 450 volunteer leaders that provide the vision and direction for our association. They represent every element of the aftermarket distribution channel as well as the businesses and services that support and serve the channel.�
AAIA Leadership Days committee meetings are open to all AAIA members. The Fall Leadership Days will be held in Reston, Va., Sept. 14-16. For more information on the meeting or becoming a member of AAIA, call 301-654-6664 or visit www.aftermarket.org.
FACTOID
After falling a week earlier, the average price of U.S. retail diesel fuel bounced back up, rising 3 cents to $2.289 a gallon, the third-highest price on record, the Department of Energy reported this week.
Source: Transport Topics, April 26, 2005 |