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Monday, January 12, 2004 |
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| SIGNIFICANT
NEWS |
A
Compendium of News for Fleet Managers from
12/22/03
-- 1/2/04, 2003 |
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| 1) |
Proper Specification and Maintenance Key to Long, Trouble-Free Vehicle Life |
11) |
Drivers of Silver Cars Least Likely to Crash, Says New Zealand Study |
| 2) |
Safety Studies Target Reduction in Driver Distraction |
12) |
Congress Ends Session w/ Several Significant Auto Issues Delayed |
| 3) |
Seasonal Tire Changes No Longer Required for Winter Driving |
13) |
"Best Pick" F-150, Freestar Score Top Ratings in IIHS Crash Tests |
| 4) |
Safety, Communications Systems Like OnStar May be Used as Wiretaps |
14) |
New EPA Rules May Spur US Sales of Diesel-Powered Vehicles |
| 5) |
NTSB Tells Truckers Event Data Recorders are Inevitable |
15) |
Midsize SUVs Ready to Bump Midsize Cars as Top-Selling Segment in Next 5-10 Years |
| 6) |
Diesel Emissions Standards Continue to Tighten Adding Expense for Truck Fleets |
16) |
Latest Shell Gas, Heritage Acquisitions Further Consolidate Propane Retailers |
| 7) |
Fleets Find Diesel Truck Retrofit Costly but Helpful to Meet Air Quality Standards |
17) |
E-ZPass Electronic Toll Data Used by Police to Fight Crime, Creates Privacy Concerns |
| 8) |
Maine's 3-Yr Moratorium on Sale of VW Diesel Models Prompts Consumers to Buy in New Hampshire |
18) |
Fuel Mileage Rules May Get Overhaul; Feds Looking at Trucks, SUVs |
| 9) |
Students Find Automotive Technical Training Key to Future Career |
19) |
New GM Police Tahoe to Compete w/ Ford Crown Vic Police Interceptor |
| 10) |
Mercury Monterey Mobility Minivan Caters to Older People, "Walking Disabled" |
20) |
Year-end Review: Summer Heat Helps Warm Up Wholesale Prices After Slow Spring |
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| 1) Proper Specification and Maintenance Key to Long, Trouble-Free Vehicle Life |
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Situation
- Stricter emissions requirements led component suppliers to develop new driveline tech
- Correct specing and maint required no matter how well components designed or built
- Fleets must determine avg and max performance but spec for max
- Overloading is common so estimating max payload on high side safe practice
- Oils comprised of petroleum, synthetics or mixture called semi-synthetic
Significant Points
- Specing premium driveline components offset added initial cost by saving need for 1-repair
- Critical maint aspects are records, detailed procedures and correct lube specs
- When recommended, synthetic oils provide better heat resistance, longer drain interval and component life
- Do not mix oils of different viscosities at top off between fluid changes
- Vibration or excessive driveline noise indicates serious problem drivers should be trained to report immediately
Web Source
Sourced From: Utility & Telecom Fleets, November/December 2003
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| 2) Safety Studies Target Reduction in Driver Distraction |
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Situation
- Collaborative project of Massachusetts Institute of Technology, DCX, Motorola
- Aim is to turn car into virtual driving coach to help reduce driver distraction
- Aggressive driving, road rage blamed for most accidents in the past
- Now distraction has become the bête noire of safety experts
- Cell phones accounted for just 1.5% of accidents
- Biggest diversions fairly low tech according to study for AAA Safety Foundation
Significant Points
- MIT project only 1 of many efforts to improve auto safety by getting rid of distractions
- Distracted driving responsible for about 25% of all accidents
- In almost 90% of cases, just a 1- or 2-second warning could have averted crash
- Not everyone thinks that fighting distraction this way makes sense
- DCX already using some of MIT research to create something it calls Driver Advocate
Web Source
Sourced From: The New York Times, December 26, 2003
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| 3) Seasonal Tire Changes No Longer Required for Winter Driving |
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Situation
- Mounting snow tires at rear of family car was once an annual ritual
- Today most cars soldier thru year w/o moment's thought given to seasonal tire changes
- Number of developments brought about these changes
- Auto industry's transition to radial tires from bias-ply designs during 1970's began shift
- Introduction of tires carrying all-season M+S rating; arrival of new generation of smaller cars
- Rising popularity of 4-wheel-drive light trucks; increasing availability of all-wheel-drive systems
Significant Points
- Four-wheel-drive systems can give drivers false sense of security
- Finding enough traction to get moving doesn't repeal laws of physics
- Improvements in drive systems have not eliminated need for specialized winter tires
- Tire makers employ variety of techniques to improve performance of winter tires
Web Source
Sourced From: The New York Times, December 22, 2003
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| 4) Safety, Communications Systems Like OnStar May be Used as Wiretaps |
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Situation
- People w/ safety and communications systems in cars may be getting unwanted feature
- Appeals Court decision: government may be able to convert systems into in-car wiretaps
- Technology involved used by OnStar, ATX, others
- Combines global positioning satellite transmitter w/ cellular telephone
- Device discussed in decision allows drivers to punch 1 of 3 buttons
- In investigation, disable 2 of 3 buttons, for info and roadside help, to allow eavesdropping
Significant Points
- Majority on court had no objection in principle to converting device into a bug
- Privacy advocates said decision raised troubling questions about in-car communications
- Market pressure from consumers would not be enough
- Court's description of system's features consistent w/ one offered by ATX
- ATX provides telematics services for BMW, Ford, Jaguar, M-B, among others
Web Source
Sourced From: The New York Times, December 21, 2003
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| 5) NTSB Tells Truckers Event Data Recorders are Inevitable |
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Situation
- Event data recorders installed in vehicles can provide useful info on cause of severe crashes
- Truckers concerned about cost, privacy, liability
- NTSB predicting commercial vehicles, passenger cars will require recorders
- Last yr NHTSA requested comments on EDR
- GM studying benefits of EDR in 10K passenger vehicles, results may influence NHTSA
Significant Points
- NTSB Dir of Hwy Safety encouraging trucking industry to partner w/ SAE to develop EDR
- Alternative is for fed govt to implement standards or courts to force action via civil, criminal decisions
Web Source
Sourced From: Light & Medium Truck, December 2003/January 2004
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| 6) Diesel Emissions Standards Continue to Tighten Adding Expense for Truck Fleets |
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Situation
- Fleets now fielding 2004 emissions standard diesels limiting NOx (2 grams per bhp), PM (0.1 grams per bhp)
- Fleets were reluctant to acquire these engines due to cost, lower mpg
- Stricter diesel standards cutting NOx, PM another 90% due 2007 - 2010
- 2010 standards require ultra-low sulfur diesel expected to cost >$0.04/gal more
- Many US cities still do not meet ambient air quality standards
Significant Points
- EPA est >$2K cost to meet 2010 standards; others say $13K plus fuel cost, mpg penalties
- Additional emissions standards tightening for diesels possible as early as 2014
- Gas engines may replace diesels forced to be cleaner and get lower mpg in med-duty trucks
- Future emissions standards may be fuel neutral, based solely on vehicle weight
Web Source
Sourced From: Light & Medium Truck, December 2003/January 2004
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| 7) Fleets Find Diesel Truck Retrofit Costly but Helpful to Meet Air Quality Standards |
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Situation
- Diesel emission retrofit dollars available as direct rebates, tax benefits in some areas
- Dirtiest air quality standards "non-attainment" metro areas see highest incentives
- EPA's Voluntary Diesel Retrofit Program (VDRP) helps compile incentive pkgs
- Cleaner diesel engines coming into service w/ more on horizon; current truck fleet is concern
- EPA consent decree w/ 6-diesel engine makers provides retrofit funding
- Sulfur in current standard diesel fuel poisons catalysts in many retrofit kits
Significant Points
- Retrofitting diesel trucks to improve NOx and PM emissions adds costs in lower mpg, more maint, capital expenses
- Retrofitting easiest for common spec trucks, central refueling
- EPA pressuring states to make required improvements to avoid loss of fed hwy funding
- EPA's goal is to retrofit 180K engines
- Unavailability of required ultra-low sulfur diesel fuel stalls many retrofit projects
Web Source
Sourced From: Light & Medium Truck, December 2003/January 2004/Automotive Digest Staff
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| 8) Maine's 3-Yr Moratorium on Sale of VW Diesel Models Prompts Consumers to Buy in New Hampshire |
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Situation
- ME VW dealers not allowed to sell diesel models for next 3-yrs
- Affects turbo direct injection diesel on Golf, Jetta, Passat, Touareg
- Vehs don't meet CA emissions standards adopted by ME in 2000
- VW TDI engine passed every emission standard except nitrogen oxide
- Consumers drive to NH to purchase VW diesel; back to ME for registration
- Restriction applies to new cars or those w/ odometers under 7,500 miles
Significant Points
- First time a car will be unavailable for sale because it is not CA-certified
- VW decided to wait until 2007 intro of low-sulfur fuel
- Low-sulfur fuel burns cleaner, making entire issue go away
- VW diesel models for 2004, 2005 and 2006 prohibited in ME
- ME's auto dealers worry their business will motor south
- Fans of diesel cars not happy
Web Source
Sourced From: The Wall Street Journal, January 2, 2004
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| 9) Students Find Automotive Technical Training Key to Future Career |
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Situation
- Technical training attracting students including top performers
- Students who are interested in earlier start to career
- Relatively inexpensive programs offered in technical and high schools, community college
- Offer certification, industry credentials, license or associate's degree
- Automotive Youth Educational Systems pairs students w/ opportunities in auto industry
- Thru AYES students learn about auto-service technology, collision repair, refinishing
Significant Points
- Awareness of career, technical education gaining momentum for yrs
- Interest to programs drawn by sluggish economy of past few yrs
- Offer immediate access to job after learning specific skill
- Big draw is that many of these jobs are very well paid
- Large companies see merits of career, technical education as well
Web Source
Sourced From: The Wall Street Journal, December 30, 2003
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| 10) Mercury Monterey Mobility Minivan Caters to Older People, "Walking Disabled" |
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Situation
- Mercury aims for growing number of American consumers w/ disabilities
- Launching special minivan at LA auto show; equipped w/ motorized lifts
- 2004 Monterey mobility minivan engineered, installed and sold by independent outfitters
- There are 20M Americans with a "walking disability"
- Depending on user's needs, cost of outfitting vehicle for mobility ranges from $1K to $5K
- Ford hopes to sell about 1K 2004; Toyota sold 1,200+ vehicles to mobility customers in 2003
Significant Points
- Designed for those who expected to maintain active lifestyles despite age and infirmity
- Market for specially equipped vehicles that aid mobility could reach nearly 50M
- Automakers moving quickly to capture growing market
- Latest efforts to address needs of disabled motorists are winning praise
- Still failing in 1-area: Dealers don't have specially equipped vehicles for test drives
Web Source
Sourced From: Detroit News, December 29, 2003
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| 11) Drivers of Silver Cars Least Likely to Crash, Says New Zealand Study |
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Situation
- Driving silver-colored car may reduce odds of being hurt or killed in a crash
- This according to New Zealand study in British Medical Journal
- Study of 571 accidents that led to hospitalization or death in/ around Auckland, New Zealand, in 1998-99
- Adjusted for factors: driver’s age, sex, educational level, seatbelt use, vehicle age, alcohol consumption in previous 6-hrs, weather, ambient light
- Traffic injuries killed 1.3M people worldwide in 2000, over 50% between 15-44 yrs old, cost $518B/ yr (World Health Org)
- Road accidents projected to be 3rd- leading cause of death and disability by 2020, ahead of chronic lung disease, tuberculosis, war and HIV/AIDS
Significant Points
- Drivers of brown, black and green vehicles had worst odds
- Silver-car drivers were half as likely to be in serious crash as drivers of white cars, most common vehicle color in study
- Researchers didn’t explain why silver-colored cars were safer than those of other colors in the study
- Earlier research shows white and light-colored cars are less likely to be involved in crashes
- AAA Foundation for Traffic Safety encourages use of lime yellow for fire and rescue vehicles because of its high visibility
Web Source
Sourced From: Bloomberg News via Detroit News, December 20, 2003
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| 12) Congress Ends Session w/ Several Significant Auto Issues Delayed |
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Situation
- US Senate 108th Congress ends 1st session, delaying 7-bill, fiscal 2004, appropriations package until Jan 20th
- Senate delays voting on omnibus spending package and left lots of auto related legislation on table in 2003
- Delayed to 2004: Class action and asbestos reform, reauthorization of highway spending bill, comprehensive energy bill, repeal of Death Tax
- 1st 3-issues in Jan: omnibus spending bill, welfare reform, and highway reauthorization bill
- Energy bill stalled over MTBE ground water contamination and budget cost of $18B vs final conference agreement of $30B
- Legislation also pending to repeal foreign sales corporation / extraterritorial income (FSC/ETI) exclusion benefit that WTO deemed illegal
Significant Points
- Many think highway reauthorization bill will be short $100B in funding
- Ideas floated to raise funds: increase gas tax, toll roads, federal bonds
- Reauthorization expires Feb 29th so House and Senate only have 4 weeks to approve a bill
- Permanent repeal of Death Tax will depend heavily on state of economy and size of budget deficit next spring
- Opponents of repeal say size of federal deficit too big to justify doing away w/ revenue generator
Web Source
Sourced From: American International Automobile Dealers This Week in Washington, December 12, 2003
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| 13) "Best Pick" F-150, Freestar Score Top Ratings in IIHS Crash Tests |
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Situation
- Insurance Institute for Highway Safety conducted high-speed crash tests on new F-150, Freestar Minivan
- Both vehicles earned "good" ratings in 40 mph frontal crashes into barriers
- Barriers designed to strike only driver's side
- Ford requested tests, reimbursed IIHS for cost of vehicles
Significant Points
- IIHS says good rating means belted driver should be able to walk away from similar crash w/ minor injuries
- Vehicles also given "Best Pick" designations among their competitors
- Previous F-150 was rated "poor" by IIHS, predecessor minivan Windstar "acceptable"
- IIHS tests closely-watched measure of crashworthiness
Web Source
Sourced From: Reuters via Automotive News, December 19, 2003
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| 14) New EPA Rules May Spur US Sales of Diesel-Powered Vehicles |
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Situation
- New EPA standards for diesel engines take effect w/ 2004 model year
- Rules demand sharp reductions in emissions, then get even tougher in 2007
- As diesels clean up, chances are more consumers will be drawn to them
- Diesels have yet to crack 1% in passenger car market; VW is only automaker pushing diesel car in US
- American perception of diesels is smelly, smokey and sooty
- Coming soon will be Jeep Liberty and Mercedes-Benz E-class sedan w/ diesel options
Significant Points
- Diesel sales skyrocketing in Europe where diesels get up to 30% better fuel economy than similar gas models
- Europe has higher motor fuel taxes and other policies to reduce fuel consumption and emissions
Web Source
Sourced From: Detroit News, December 14, 2003
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| 15) Midsize SUVs Ready to Bump Midsize Cars as Top-Selling Segment in Next 5-10 Years |
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Situation
- Midsize cars continue as top-selling segment in US auto market
- But family sedans losing market share every year to SUVs
- Midsize SUVs expected to outsell midsize cars in next 5-10 years
- Premium midsize car segment has 16.6% of market, down from 17.9% in 2000 (JD Power)
- SUVs increased market share to 10.l5% this year from 10.1% IN 2000
Significant Points
- Fewer choices likely for car lovers, but more SUV choices and competitive pricing for SUVs
- 12.6% premium midsize buyers would trade up to SUV, up from 8.8% in 2000
- Every category of SUVs except full-size is expected to grow over next decade
- Most automakers are in SUV market, but few are ignoring midsize car market
- GM says midsize cars will begin to mimic SUVs
- Ford says it will take a decade for midsize SUVs to overtake midsize cars
Web Source
Sourced From: USA Today, December 15, 2003
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| 16) Latest Shell Gas, Heritage Acquisitions Further Consolidate Propane Retailers |
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Situation
- Small- and mid-sized propane retailers shrink as larger companies complete acquisitions
- Shell Gas Bulk LLC announced major step toward its objective of building retail propane business in US
- Will acquire Michigan-based Great Lakes Energy Gas Services LLC and Cherryland Propane
- Heritage Propane Partners LP announced another purchase of propane retailer —Metro Lift Propane
Significant Points
- Heritage has nearly 300 customer service locations in 29 states; didn’t reveal purchase price of Metro Lift
- AmeriGas is nation’s largest propane company, serving 1.3M+ customers in nearly 50 states
- Suburban Propane Partners LP in New Jersey serves about 740,000 customers in 40+ states
- Inergy LP serves nearly 240,000 customers from 133 retail outlets in eastern half of US
Web Source
Sourced From: The Oilspot News, December 15, 2003
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| 17) E-ZPass Electronic Toll Data Used by Police to Fight Crime, Creates Privacy Concerns |
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Situation
- Millions of commercial truck drivers and others use electronic toll systems to pay for tolls
- Investigators increasingly using electronic record they create as crime fighting tool
- E-ZPass system operates from MA to WV; expanding to ME and NH
- Operates using distinct radio signal emitted by each card
- Similar regional systems in use around the country
Significant Points
- Systems can be used to provide surveillance for all kinds of purposes
- Assurances of privacy and confidentiality that may come up front not based on actual practice
- These promises won't be kept in the long run
- Government and others always find ways to tap into available info
- Anyone w/ technical savvy could track radio signals from the cards
Web Source
Sourced From: Landline, December 15, 2003
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| 18) Fuel Mileage Rules May Get Overhaul; Feds Looking at Trucks, SUVs |
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Situation
- Federal regulators will propose changes to fuel-economy standards
- Changes likely to pressure automakers to improve mileage, especially w/ trucks and SUVs
- NHTSA expected to close loopholes that allow vehicles like car-based PT Cruiser to be classified as light truck
- Would also target massive vehicles like Hummer H2 that escapes regulatory limits
- NHTSA considering weight-based system where lighter vehicles must get better mileage
- In other news, gas prices stabilized at end of volatile year that saw record high prices in the summer
Significant Points
- Changes would be biggest in 25-year history of CAFE fuel economy program
- Current rules call for cars to average 27.5mpg, trucks 21mpg
- A vehicle can be classified as truck if a seat can be removed for additional cargo space
- Automakers often use those vehicles to help bigger trucks, SUVs meet CAFE
- Fuel economy expected to be big issue in 2004 presidential election
- Democrats favor more fuel-efficient vehicles but automakers heavily supported Bush in last election
Web Source
Sourced From: The Wall Street Journal, December 22, 2003; USA Today, December 21, 2003
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| 19) New GM Police Tahoe to Compete w/ Ford Crown Vic Police Interceptor |
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Situation
- New 295-hp 2005 Chevrolet Police Package Tahoe tested by law enforcement officials
- Rivals performance of top pursuit vehicle, 250-hp Ford Crown Victoria Police Interceptor
- GM calls police Tahoe multipurpose vehicle; burgeoning equipment needs of law enforcement
- New Tahoe designed to chase bad guys or move swiftly to crime scene for tactical work
- Vehicle can be turned into a roadside “command post”
- Michigan State Police among 15 law enforcement agencies; worked w/ GM over past few yrs
Significant Points
- Help law enforcement agencies, governments respond to new demands, duties
- More police agencies consider SUVs in place of traditional rear-wheel drive sedan
- Ford long-time leader in police vehicle segment, holding 85% of market
- Law enforcement agencies had discussions w/ Ford 2-yrs ago; rejected idea
- GM hopes to sell between 6,500 and 7,000 police Tahoes annually
- New Tahoe likely to cost as much as $4K more than Ford’s Interceptor
Web Source
Sourced From: Detroit News, December 21, 2003
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| 20) Year-end Review: Summer Heat Helps Warm Up Wholesale Prices After Slow Spring |
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Situation
- Year-end review of wholesale market shows slow start, then upward movement in May
- Prices continued to lag behind estimates and previous year, prompting analysts to predict sluggish year
- Incentives and economy continued to affect wholesale prices; dealer attendance was down at auctions
- Wholesale levels and Manheim Used Vehicle Index were at lowest levels since Aug 1995
- Traditional spring market surge never appeared
Significant Points
- Summer months showed rebound; analysts said market finally stabilized
- Manheim index jumped from 104.3 in June to 107 in Oct
- Prices continued to climb at modest rate in Oct, when prices traditionally fall
- Despite slump, experts predict record number of used vehicles will be sold on retail level in 2003
- Independent dealers should sell 14M, franchised dealers 16.5M
Web Source
Sourced From: Auto Remarketing, December 31, 2003
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Call us at 856-787-6545 or E-mail at communications@arifleet.com
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