ARI PUSH

Friday, January 21, 2005

  

SIGNIFICANT NEWS

A Compendium of News for Fleet Managers from 1/3/05 -- 1/7/05

1)

Chrysler 300, Ford Escape Hybrid Given 2005 Car and Truck of Year Awards

11)

New Parking Heater Offers Fuel-Saving Approach to Warming

2)

Combined Wheel-Tire Rolls Out at Michelin

12)

Ford Sells First IC Hydrogen-Powered Shuttle Buses to Florida

3)

No Hybrid SUV Near for Honda; Toyota to Build Hybrids in US

13)

'Black Box' Data Backs Up Trucker in Vehicular Homicide Case

4)

VW Chief Touts Diesels Over Hybrids

14)

Delphi Launches Next Generation Forewarn Back-Up Aid

5)

High-Volt Hybrid Batteries Raise Service-Shock Fears

15)

Safety Rule Oversight: Vehicles for the Disabled

6)

Chicago Plant Off to Late Start on 3 New Ford Models

16)

Retail Gasoline, Diesel Prices Drop for 9th Consecutive Week

7)

No Place to Hide: Tracking Mobile Workers Via GPS

17)

Schwarzenegger's Hydrogen Hummer a 'Bold Experiment'

8)

Cell Phone-based Driver Log System Pitched to FMCSA

18)

'Breakthrough Time' for Run-Flat Tires, Says Bridgestone; Tiremaker Eyes New Europe Plant

9)

Cadillac Escalade Tops IIHS 2003 Most Stolen List

19)

Fuel Cell Pickup Conversion to Become Commercially Available Within Year

10)

Some Luxury Cars Sport Smart Headlights

20)

Despite 22% Minivan Market Share, Caravan Trails in Retained Value

1) Chrysler 300, Ford Escape Hybrid Given 2005 Car and Truck of Year Awards

Situation

  • 2005 Car of the Year, Truck of the Year awards given out at Detroit auto show
  • Enviro-friendly Ford Escape Hybrid takes Truck of the Year award
  • Chrysler 300 beats out Ford Mustang, Chevrolet Corvette to take top car honors
  • Ford wins out over host of candidates foreign and domestic; all 3 truck finalists from Ford

Significant Points

  • Rear-drive 300 w/ optional V-8 engine big hit, 112,930 sales since early 2004 launch
  • Ford expected to sell about 3K Escape hybrids last year, 20K this year
  • Hybrids cost an additional $3K premium, but are popular among enviro-minded buyers
  • Chrysler 300 received 313 points out of 480 max, Escape hybrid 232 out of 480 max

Web Source

Sourced From: Automotive News, January 9, 2005

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2) Combined Wheel-Tire Rolls Out at Michelin

Situation

  • Michelin unveils combined wheel-tire that needs no air, never goes flat
  • Michelin's "Tweel" made of 4 pieces bonded together into single unit
  • Shear band replaces air pressure, tread resembles conventional tire
  • "Tweel" to be introduced to world's media during Detroit auto show press days
  • Demo of Audi A4 sedan at Greenville, SC research center, tweels noisy, rough-riding

Significant Points

  • Tweel may require long gestation period in being refined for marketplace
  • Several negatives have to be worked out, but media/automakers do take note
  • Besides noise, harshness, increased friction and absence of weight reduction occur
  • Michelin has high expectations for tweel as long-lasting, non-penetrable
  • Aircraft, military viewed as likely early customers once brought to market

Web Source

Sourced From: New York Times, January 3, 2005

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3) No Hybrid SUV Near for Honda; Toyota to Build Hybrids in US

Situation

  • Honda rules out hybrid SUV, says none planned for next 3 years at least
  • Toyota will debut Lexus RX 400h hybrid SUV in April, Highland hybrid in June
  • Honda president Takeo Fukui says hybrid engines "expensive," SUVs not fuel savers
  • Toyota hybrid building plans for US confirmed by production VP Akihiko Saito
  • Next-generation 2007 Camry, Lexus, GS and LS sedans may get hybrid in future
  • Which hybrids to be built in US not revealed, but Prius is strong candidate

Significant Points

  • Toyota's commitment to hybrids colored by grandiose growth agenda
  • Toyota closes in on GM as #1 automaker worldwide, presses to sell more hybrids
  • Toyota confirms 2005 goal of 8.03M vehicle sales, US share will rise 5% to 2.15M
  • Honda outlook filled w/ negatives: no hybrid SUV; no Acura SUV, no new Insight
  • New subcompact or mini-compact below Civic is on 2006 Honda agenda for N America

Web Source

Sourced From: Automotive News, January 3, 2005

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4) VW Chief Touts Diesels Over Hybrids

Situation

  • VW CEO Bernd Pischetsrieder says diesel vehicles better than hybrids to minimize fuel use, pollution
  • VW developing advanced diesel engines that offer better fuel economy and emit less CO2 than hybrids, says Pischetsrieder
  • Pischetsrieder says hybrids only offer true fuel savings in stop-and-go driving situations
  • Diesel vehicle sales currently banned in New England, California because of strict emissions rules
  • Diesel vehicles account for around 10% of VW's US sales; company expects that figure to grow

Significant Points

  • VW is world's biggest producer of diesel cars and light trucks
  • California and other states forcing automakers to create less polluting vehicles
  • Hybrid sales could rise to 3% of US market by 2011, says JD Power; hybrids account for less than 1% of market now
  • Diesel vehicles could represent 15% of US market in 10 years, says JD Power; they account for 3% now

Web Source

Sourced From: Detroit News, January 7, 2005; Detroit Free Press, January 6, 2005

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5) High-Volt Hybrid Batteries Raise Service-Shock Fears

Situation

  • Lookalike hybrid models arouse concern for technicians working on high-volt batteries
  • Safety labels recommended to alert road-aid techs that vehicles are hybrids
  • Hybrids do have shutoff mechanism to keep power confined to battery
  • 1st hybrids, Honda Insight/Toyota Prius were easy to recognize as hybrid models
  • Newer models about to debut on market are more difficult to distinguish as hybrid

Significant Points

  • Emergency responders fear unaware technicians could suffer shock, or worse
  • Sun visor warning label is recommended to warn emergency responders to danger
  • Hybrid engines are noiseless, responder may not know engine is still on
  • Toyota/Honda hybrids equipped w/ shutoff switch, insulated/ color-coordinated cables

Web Source

Sourced From: USA Today, January 5, 2005

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6) Chicago Plant Off to Late Start on 3 New Ford Models

Situation

  • Quality concerns hold back deliveries on Five Hundred, Freestyle, Mercury Montego
  • Job #1s kicked off in mid-July, but still haven't reached dealers
  • Ford, Mercury dealers went under-supplied by up to 90% of promised shipments
  • Problems identified include weak engine welds, heating and cooling shortfalls
  • Production is complicated by variety of new models all coming at the same time

Significant Points

  • Dealers fear delay could cost customers as Chicago workers race to fix defects
  • Ford says delay is minor, being extra cautious to ensure quality
  • Customers wait months for Five Hundred, Ford's new flagship vehicle
  • Dealers do have vehicles in stock, but not nearly as many as promised
  • Most dealers say they would rather have vehicles built right than rushed to lots

Web Source

Sourced From: Detroit Free Press, January 6, 2005

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7) No Place to Hide: Tracking Mobile Workers Via GPS

Situation

  • Employers increasingly adopting satellite technology to monitor fleet/employees
  • Includes GPS receivers usually fitted in vehicles or in cell phones and other devices workers carry on the job
  • Systems provide precise locations and vehicle operating information
  • Many workers having long enjoyed freedom of road rankling over boss' new power to watch their every move
  • Some long-haul trucking companies have used GPS to manage their fleets for several years

Significant Points

  • Employers bent on improving productivity and customer service, keeping tabs on labor costs
  • Tracking technology on rise particularly among companies dispatching large numbers of service technicians
  • Prevalent in building trades and others whose workers span wide territory
  • Systems can be set to alert company if employee spends too much time at location, speeds, strays into off-limits area
  • Open monitoring both tracks workers and influences their behavior

Web Source

Sourced From: Associated Press via Washington Post, January 1, 2005

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8) Cell Phone-based Driver Log System Pitched to FMCSA

Situation

  • Nextel and Xora seeking entry into ongoing hours-of-service issue w/ wireless solution
  • Petitioned FMCSA separately to allow companies to supply a system where driver logs accessed via cell phones
  • Proposal in response to FMCSA's recent call for comments on mandatory electronic on-board recorders
  • Xora asked for exemption similar to that granted to truckload carrier Werner Enterprises
  • Werner developed own automated log system in form not quite meeting Section 395.15 rule but otherwise acceptable

Significant Points

  • Nextel-Xora system called "Xora DOT Logs" would require a GPS-equipped handset
  • Handset has enough computing power to run application resembling Werner's system
  • Xora DOT Logs would send some information back to a Xora server
  • Processes and retains much critical data in the handset itself
  • Allows application to function even when out of transmission range, alerting the driver to potential violations

Web Source

Sourced From: Today's Trucking, January 5, 2005

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9) Cadillac Escalade Tops IIHS 2003 Most Stolen List

Situation

  • IIHS report shows 2002-03 Cadillac Escalade EXT was most stolen car in 2003
  • Contradicts report issued by CCC Information Services listing 1995 Saturn SL as most stolen in 2003
  • CCC list reflects phenomenon of "clustering," where cars are stolen for value of parts
  • After Escalade EXT, IIHS listed 2002-03 Nissan Maxima, Escalade 2002-03, Dodge Stratus/Chrysler Sebring, and Dodge Intrepid
  • After Saturn, CCC list includes: 1998 Acura Integra, 1994 Saturn SL, 1999 Integra, 1995 Integra, 1997 Integra, 1994 Integra, 2002 Mitsubishi Montero and 2000 Honda Civic

Significant Points

  • Difference in lists is how different organizations process data
  • CCC compares loss claims from insurers against vehicle registration volume information
  • IIHS examines theft claims per 1,000 vehicles on road
  • Car dealers can use information to upsell customers on vehicle security; advise how to avoid theft

Web Source

Sourced From: Used Car News, January 3, 2005

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10) Some Luxury Cars Sport Smart Headlights

Situation

  • Several luxury car makers now offer adaptive headlights that direct illumination as driver turns
  • Some systems, like in Mercedes, read how much weight in trunk and turn lights down to compensate
  • On hills, leveling systems help insure headlights point directly ahead vs. up toward sky

Significant Points

  • Come standard on BMW 7 and 6 series, Lexus LS 430 and Acura RL; Audi, Porsche, Mercedes also offer
  • More expensive to replace than regular lights; most use annoying and intensely bright xenon bulbs
  • Cost $1,200 as part of Mercedes optional lighting package, BMW charges $800 when not standard
  • Are difficult to install on existing vehicles, but likely to be offered on most new cars in next 5-10 years

Web Source

The Wall Street Journal, January 6, 2005

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11) New Parking Heater Offers Fuel-Saving Approach to Warming

Situation

  • Remote vehicle starters now so popular, GM offering on variety of vehicles; others expected to do same
  • Cars consume fuel while idling, so Webasto has come up w/ parking heater to conserve nations fuel
  • Uses small furnace-like device to pump engine coolant, warm it up and pump back through engine
  • Also activates heater and defroster fans to warm interior and clear windows; uses timer or remote to start

Significant Points

  • Device doesnt work w/ ignition system to start engine, but draws about 1 ounce of fuel to start
  • Costs about $1,800 which can be financed into new vehicle purchase for about $20-$30 per month
  • But might only use 2 or 3 months a year; at todays gas prices, $1,800 buys about 1,000 gallons of gas

Web Source

Sourced From: Detroit Free Press, January 6, 2005

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12) Ford Sells First IC Hydrogen-Powered Shuttle Buses to Florida

Situation

  • Ford will produce new hydrogen-powered, 12-passenger shuttle buses in 2006
  • V-10, E-450 buses will be worlds 1st commercially available hydrogen vehicles
  • Propelled by internal combustion engine, supercharged and inter-cooled for maximum efficiency
  • Vehicle equipped w/ 26-gallon equivalent, 5,000 pounds-per-square-inch hydrogen fuel tank
  • Expected range of about 150 miles w/ near-zero emissions, including carbon dioxide
  • Engine is up to 25% more fuel-efficient than a typical gasoline engine

Significant Points

  • Florida will be 1st customer, having ordered 8 for heart of central "hydrogen highway"
  • Governor Bush launched "H2 Florida" statewide initiative 18-months ago
  • Purpose to accelerate commercialization of hydrogen technologies, spur investment/economic opportunity and safeguard nations natural resources
  • Ford shuttle buses marry proven IC engine technology w/ future fuel
  • Will be used by park rangers at Wekiwa Springs State Park and customer service representatives at Progress Energy Florida

Web Source

Sourced From: Florida Energy Press Release, January 7, 2005

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13) 'Black Box' Data Backs Up Trucker in Vehicular Homicide Case

Situation

  • Truck driver in Arkansas arrested for hitting and killing police officer helping stranded motorist
  • Driver charged w/ vehicular homicide and aggravated assault
  • Police say driver was speeding, has poor driving record, made no attempt to stop
  • Girlfriend of driver who was in truck said trucker wasnt speeding, was attempting to avoid other car, hit brakes

Significant Points

  • Information was retrieved from data recorder of truck; it conflicts w/ police version of events
  • Information confirms girlfriend's story
  • Driver remains in jail

Web Source

Sourced From: TruckingInfo.com, January 3, 2005

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14) Delphi Launches Next Generation Forewarn Back-Up Aid

Situation

  • Delphi introduced next generation Forewarn back-up aid system
  • Features radar technology, extended sensing range and resistance to weather conditions
  • Improvements over 1st generation include integrated dual radar receiver and visual range indicator
  • Available at retail price of $349

Significant Points

  • Has sensing range of 16 feet and broadens critical coverage areas immediately behind corners of vehicle
  • Is 3-times more responsive than conventional offerings
  • Easily mounts to 2-inch trailer hitch, can be self installed, requires no modification on bumper/chassis

Web Source

Sourced From: Delphi Press Release, January 6, 2005

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15) Safety Rule Oversight: Vehicles for the Disabled

Situation

  • Quadriplegic's van accident, death, points up safety-standard oversight
  • Federal rules deficient in covering vehicles fitted for disabled drivers
  • When Joe Brown's Dodge Caravan ran off road, his wheelchair harness broke
  • Trapped, though spared serious injury, Brown died of hypothermia after 2 days in cold
  • Brown's mother, Rebecca Froebel, started campaign to safetyize 2.3M such vehicles
  • Only rule in effect at time of accident applied to lift device for boarding vehicle

Significant Points

  • Ironically, little pressure for broader regulations comes from handicapped community
  • State police said throttle in Brown's van stuck, caused him to run off road
  • Rebecca Froebel: modified vehicles should have an easily accessible kill-switch
  • Manufacturer of throttle device recalled cable after similar mishap
  • Even after Brown's crusading mother hung herself, NHTSA hasn't proposed new rules

Web Source

Sourced From: Wall Street Journal, January 7, 2005

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16) Retail Gasoline, Diesel Prices Drop for 9th Consecutive Week

Situation

  • Small market swings in crude oil over holiday weeks based on old information
  • Reacted favorably to warmer than expected weather
  • Reacted negatively to Saudi cut in production announced last month
  • Daily changes generally based on minor news, major trends on longer term factors
  • Global oil demand growth is likely to be key factor for oil markets in 2005

Significant Points

  • US average retail gasoline decreased this week by $0.013/gal to $1.78; $0.268 higher than this time last year
  • 9th consecutive weekly drop, 10th in 11 weeks
  • Gasoline prices have not been this low since March 29, 2004
  • US average retail diesel decreased this week by $0.03/gal to $195.70
  • 9th time in 10 weeks that diesel prices have fallen or stayed flat

Web Source

Sourced From: EIA, January 5, 2005

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17) Schwarzenegger's Hydrogen Hummer a 'Bold Experiment'

Situation

  • Hummer has conducted a "bold experiment" by creating a hydrogen-powered H2H that Governor Arnold Schwarzenegger uses
  • One-of-a-kind experiment turns vehicle w/ average fuel economy of 10 mpg into alternatively-fueled vehicle
  • Hydrogen H2H created by team of GM engineers from US, Germany, Canada working w/ Quantum Technologies

Significant Points

  • Hummer won't reveal development cost of prototype
  • California currently has 12 to 15 hydrogen fueling stations, most in southern part of state
  • Hydrogen costs between $4 and $10 per kilogram
  • GM says hydrogen will need to be $2 to $2.25 per kg for commercial viability

Web Source

Sourced From: Forbes, January 3, 2005

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18) 'Breakthrough Time' for Run-Flat Tires, Says Bridgestone; Tiremaker Eyes New Europe Plant

Situation

  • Bridgestone is reviewing European operations w/ expectation of it leading to increased production
  • Central/eastern Europe would be location for any new manufacturing capacity
  • Bridgestone to complete new proving ground, training and research center in Rome by spring 2006
  • Experiencing double-digit sales increases in eastern Europe, much of growth from replacement tires

Significant Points

  • Europe accounts for 12.5% of its global sales, expected to be worth $17B+ last year
  • Eastern Europes low labor costs/fast-growing car markets prompted more than double production in Poland
  • Thinks now is "breakthrough time" for run-flat tires which cost more and have better profit margins

Web Source

Sourced From: Financial Times, January 3, 2005

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19) Fuel Cell Pickup Conversion to Become Commercially Available Within Year

Situation

  • ZAP unveiled hydrogen fuel cell powered pickup as well as new lithium battery technology
  • Displayed at Consumer Electronics Show in Las Vegas
  • ZAP and Anuvu Inc announced availability this year of 1st hydrogen fuel cell consumer vehicle
  • Anuvu converted Nissan Frontier 4-door pick-up truck on display at CES
  • ZAP forming new division to focus on advanced energy technologies

Significant Points

  • Innovative hybrid fuel cell system powers the vehicle on hydrogen and electricity
  • Seats 4, 44-cubic ft cargo bed, power windows, power locks, AC
  • Truck also works like generator providing 120-volt AC for powering external machinery from power tools to a whole campsite

Web Source

Sourced From: PR Newswire, January 6, 2005

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20) Despite 22% Minivan Market Share, Caravan Trails in Retained Value

Situation

  • Despite strong market share, Dodge Caravan has less retained value than Toyota Sienna, Honda Odyssey after 3 years says Power Information Network (PIN)
  • PIN says lower price, financing terms are at foundation of Caravan's success
  • Differences in retained value between Caravan and Odyssey and Sienna are bigger than original differences in price
  • Caravan one of 5 models most commonly traded for both Odyssey and Sienna

Significant Points

  • Caravan has 22% of US minivan market, according to PIN
  • Caravan, Sienna, Odyssey all redesigned in last year; all in similar places on product lifecycle
  • Neither Sienna or Odyssey are among top 25 vehicles most frequently traded for Caravan

Web Source

Sourced From: Auto Remarketing, January 4, 2005

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