HDAW 2006 UPDATE             REGULATORY REPORT         

SUPPLIER NEWS                  EQUIPMENT NEWS

FLEET NEWS                  

ASSOCIATION NEWS            FACTOID

HDAW 2006 UPDATE

Deadline for 2006 HDAW Exhibitor Applications is Aug. 1

With nearly 50 top exhibitors already signed and with a growing list of sponsoring organizations, Heavy Duty Aftermarket Week (HDAW) 2006 clearly will attract industry�s leading distributor and supplier executives to the trade-only event�s all-encompassing trade show, educational sessions, one-on-one business meetings and networking opportunities. 

Organized by HDDA and the Heavy Duty Manufacturers Association (HDMA), the event is set for Jan. 23-27, 2006 at the Mirage Hotel in Las Vegas. The exhibitor prospectus was mailed to HDDA manufacturer members this week, and the original July 15 exhibitor application deadline has been extended to Aug. 1, 2005. HDDA members enjoy a $1,000 per booth discount on space rentals.  

For more information on exhibiting, contact Bill Glasgow, Sr. at 708-226-1300, or visit www.hdaw.org. The mailing for HDAW attendees will be made soon, and members with questions may contact Lee Kadrich at 240-333-1050 or e-mail lee.kadrich@aftermarket.org.

REGULATORY REPORT

Senators Propose Truck, Engine Incentives

Three senators introduced legislation last week that would not only give fleets a 5 percent tax credit on the purchase of 2007-model Class 7 and 8 trucks equipped with cleaner-burning diesel engines, but would allow for expensing the full purchase price of those vehicles on a single year�s tax returns.

Sen. Gordon Smith, R-Ore., introduced the incentives bill June 14 to �ensure the widest possible distribution of this clean diesel technology into the U.S. trucking fleet.�

An industry lobbyist said the bill could become a part of the energy bill, which is now before the Senate.

Smith�s bill was co-sponsored by Sens. Blanche Lincoln, D-Ark., and Lamar Alexander, R-Tenn., and offers incentives for trucking companies to purchase new 2007-model trucks with their lower-emission engines in the first year they are to be made.

Source: Transport Topics, June 20, 2005

SUPPLIER NEWS

Yellow Roadway Closes USF Dugan

USF Dugan will cease its pickup operations on July 8 and USF Bestway, USF Holland and USF Reddaway will expand operations to transfer Dugan customers into their operations, parent firm Yellow Roadway Corp. (YRC) has announced.

USF Bestway will expand its operations from Arizona, California, Nevada, New Mexico and Texas into Arkansas, Louisiana, Mississippi, Oklahoma and parts of Kansas. USF Holland will operate from most of the upper Midwest and Southeast regions of the U.S. into Missouri and northeastern Kansas. USF Reddaway will expand into the Denver area previously covered by Dugan.

All of USF Dugan�s service commitments will be fulfilled, YRC said. New Penn Motor Express and USF Glen Moore won�t be directly affected by the realignment.

Source: Fleet Owner, June 21, 2005

EQUIPMENT NEWS

Citgo Debuts Synthetic Transmission Fluid

Citgo Petroleum Corp. has introduced its new Citgo QuatraSyn synthetic transmission fluid, which it said is engineered �to deliver unsurpassed performance� while helping heavy-duty powershift and automatic transmissions �stand up to excessive loads and severe operating conditions.�

According to Citgo, the fluid is a blend of synthetic base stocks and special additives that allow it to remain in the transmissions system longer, enabling fleets to extend drain and filter intervals and reduce the cost of fluid replacement. The fluid�s proprietary formulation can contribute to increased fuel economy when compared to mineral-oil based fluids.

Citgo warrants at no charge that if QuatraSyn fails to meet all stated standards and specifications it will �cover all reasonable costs of repairs for all damages that are directly caused by the failure.�

Source: Fleet Owner, June 20, 2005

FLEET NEWS

Driver Turnover Takes One Small Step Back From Historic High

The American Trucking Associations (ATA) reported this week that driver turnover fell from its record high for large truckload carriers during the first quarter as pay increases improved driver retention.

For the three-month period ended March 31, annualized driver turnover at large truckload carriers decreased to 120 percent from 136 percent in the 2004 fourth quarter. Meanwhile, driver turnover at small truckload carriers � those earning less than $30 million in annual revenue � remained at a record high of 102 percent.

ATA chief economist Bob Costello said driver turnover remained higher than the historical average for fleets of all sizes.

Overall, small TL fleets ended the quarter with 0.3 percent fewer drivers than they started with. Large fleets ended the quarter with 2.7 percent more line-haul drivers.

In fighting some of the highest driver turnover levels on record, various truckload carriers have said they would continue pushing up pay rates to curb what has become a continuous struggle to find and keep qualified drivers.

Some large publicly-traded truckload carriers said at a recent investors� forum that they expected to continue increasing driver pay this year in efforts to boost driver retention. Analysts said several large truckload carriers increased driver pay between 8 percent and 10 percent in 2004.

Source: Truckinginfo.com, June 22, 2005

ASSOCIATION NEWS

U.S. Medium and Heavy Duty Aftermarket Grows to $66.5 Billion

�Wall Street should take notice that in 2004, our market expansion exceeded forecasts by nearly 2 percent,� said Kathleen Schmatz, AAIA president and CEO. �Continued growth in the number of registered vehicles, licensed drivers and miles traveled are factors driving another strong year in 2005.�

The automotive light vehicle segment increased 4.8 percent to $190.5 billion.

The 2005/2006 Aftermarket Factbook includes statistical tables, charts, analysis and trends in the U.S. and key international markets covering:

• Overall size of the automotive (i.e., light duty) aftermarket.
• Overall size of the heavy duty aftermarket.
• Key aftermarket segments (paint & body equipment, tools and equipment, etc.)
• DIY and DIFM consumer trends.
• Vehicle registrations.
• Vehicle sales.
• Vehicle usage statistics and operating costs.
• Miles driven.
• Purchases of aftermarket accessories.
• Sales of automotive chemicals and fluids.
• State summary statistics.
• U.S. trade data of motor vehicle parts and accessories.
• Information on the Chinese and Canadian aftermarkets.
• Key economic and financial indicators.
• Guide to aftermarket data resources.

The four-color Factbook is available for $125 for AAIA members and $225 for non-members. To order by phone, call 301-654-6664, or order online at www.aftermarket.org. Discounts are available for multiple copies.

Regular Vehicle Maintenance Ranks High With Consumers

While regular vehicle maintenance ranks first in importance with motorists, they are not as diligent when it comes to actually scheduling service, according to a recent study on the attitudes, perceptions and behavior of the DIY and DIFM consumer by AAIA.

The Aftermarket Consumer: DIY or DIFM reveals that DIFMers and DIYers ranked 4.66 and 4.52 respectively, out of a possible 5.00 on the belief that preventative maintenance is important for minimizing future repairs, and insuring long vehicle life. Despite agreement about the importance of maintenance, both groups admitted to being slow to schedule service, even when there was a problem with their vehicle.

�The findings of this market research study reinforces what we learned from research in stage one of the �Be Car Care Aware� campaign � that consumers rationally understand the benefits of vehicle maintenance, but often lack the motivation to act,� said Kathleen Schmatz, AAIA president and CEO. �That is precisely why consumer education is so important for our industry.�

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.

FACTOID

Combined sales of medium and heavy duty trucks grew considerably in 2004, increasing to 437,987 units. This growth was spurred by sales in both truck classes, as medium duty truck sales rose 27.2 percent for the year and heavy duty truck sales grew 33.4 percent. 

Source: 2005/2006 Aftermarket Factbook