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Monday, August 19, 2002
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| SIGNIFICANT NEWS |
A Compendium of News for Fleet Managers from
August 12 -- 16, 2002 |
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| 1) |
Fleet Automatic Vehicle Location (AVL) Systems Go Internet-Based |
11) |
Detroit Diesel Files For EPA Certification On Series 60 Diesel; Says EGR Engine Has Same Warranty |
| 2) |
Re-refined Motor Oil Environmentally Sound At Same Standards And Cost As Virgin Oil |
12) |
Consumer Report Reviews New Design Of Car Seat Required Sept 1 |
| 3) |
Underground Storage Tank Monitoring Company Pleads Guilty Of Lying To Feds, Agrees To Pay $2.29M |
13) |
Feds Revampt TIPS To Focus On Truck Drivers, Dock Workers After Post Office Says "No Thanks" |
| 4) |
US Rep Wants To Block 18-Year-Old Driver CDL Program |
14) |
Trucker Wins Award For "Bullies Behind The Wheel" Book About Road Rage |
| 5) |
BFGoodrich Introduces New Commercial Truck Tire Website |
15) |
On-The-Job Accidents Cost Employer $24,000 Per Employee, Says Red Cross; Driver Fatigue Causes Most Crashes |
| 6) |
NAFA Holds 34th LEG Conference; Special Session Added To Address Ford Crown Vic Police Cruiser Crashworthiness |
16) |
Ford Startles Calif Officials; May Join Suit Over CO2 Law Despite Chairman's "Tone Down" Remarks |
| 7) |
NAFA Launches Major Redesign Of Website |
17) |
Toyota Prius 1st of 3-Hybrids Certified For $2,000 Tax Deduction |
| 8) |
Pep Boys Earnings Increase 32% With Improved Sales, Better Margins |
18) |
Numerous "Boutique Fuels," Lack Of Refining Capacity, Cause Of Price Hikes |
| 9) |
GM Helps Build Bomb Truck For Michigan's Homeland Security |
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| 10) |
Detroit Diesel Waits For Judge's Decision On EPA Oct 1 Engine Deadline |
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| 1) Fleet Automatic Vehicle Location (AVL) Systems Go Internet-Based |
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Situation
- AVL uses on-board vehicle transmitter to send global positioning system (GPS)coordinates to central computer/network
- Password secure Internet sites show vehicle position to dispatchers/managers
- Data can be coupled w/ routing and load management software
- Typical uses include driver route compliance, safety, payroll reconciliation and real-time response
- "Geo-fence" boundaries can alert HQ when vehicle strays outside area
Significant Points
- AVL cost $500+/vehicle
- Return on investment for AVL systems typically 37-120 days
- Savings come from fewer deliver/dispatch assets needed, fuel and insurance cuts and improved customer service
- Many startup companies fail so fleet buyers beware
Web Source
Sourced from: Light & Medium Truck, July 2002
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| 2) Re-refined Motor Oil Environmentally Sound At Same Standards And Cost As Virgin Oil |
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Situation
- Base stocks making up large portion of motor oil do not break down from use
- Motor oil becomes contaminated w/ water, fuel and dirt and additives break down
- Re-refined oil is used oil w/ water removed, distilled, hydrofinished and reblended w/ additives
- It takes 42x more crude oil than used motor oil to produce same quantity of fresh product
- 350M+/gal of engine oil are improperly disposed of yearly; 35x 1989 Exxon Valdez disaster
Significant Points
- Re-refined oil meets same American Petroleum Institute standards as new/"virgin" oil
- Mercedes Benz ships all new cars w/ RR oil for 10-years
- GM, Ford and Chrysler explicitly state that API standard oil use does not void warranties
- Re-refined oil price is comparable w/ virgin base oil
- Its use promotes proper disposal of used oil making it valuable
Web Source
Sourced from: Fleet Maintenance, May/June 2002
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| 3) Underground Storage Tank Monitoring Company Pleads Guilty Of Lying To Feds, Agrees To Pay $2.29M |
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Situation
- Texas-based Tanknology is largest UST testing company in US w/ 4 regional and 6 field offices
- Tanknology pled guilty to 10 counts of presenting false claims and making false statements to federal agencies
- Tanknology made false underground UST tests in 10-different federal districts at postal, military and NASA facilities
- Test employees failed to follow required procedures or to test at all but submitted false reports
- False testing created grave risk of fuel leaks without detection
Significant Points
- Tanknology agreed to pay $1M criminal fine and $1.29M restitution to US
- Will be on 5-yr probation and must implement quality management system to prevent future false and improper testing practices
Web Source
Sourced from: CSP Daily News, July 25, 2002
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| 4) US Rep Wants To Block 18-Year-Old Driver CDL Program |
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Situation
- Rep Frank Wolf (R-VA) asked US Transportation Sec'y to block creation of pilot program that allows drivers under 21 to operate large commercial trucks
- Fed Motor Carrier Safety Admin considering launching pilot program that would lower age requirement for getting CDL from 21 to 18
- Proposal backed by Truckload Carriers Assn as way to address shortage of qualified commercial drivers
- Feds asked for comments 18 mos ago on pilot program proposal
- Under current regulations, interstate commercial drivers must be at least 21 years old
Significant Points
- Wolf says statistics show drivers in 18-20-yr-old age group are 3 x as likely to be involved in a fatal crash as drivers over 21
- Citing from University of Michigan Transportation Research Institute report
- Wolf compared 5,200 large truck fatalities in 2000 equal to major plane crash every 2-weeks
Web Source
Sourced from: TruckingInfo.com, August 12, 2002
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| 5) BFGoodrich Introduces New Commercial Truck Tire Website |
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Situation
- BFGoodrich Commercial Truck Tires introduced comprehensive new Website at www.bfgoodrichtrucktires.com
- Site contains links to navigate to sections on Tire Info, Dealers, History, News, Products and Tire Sizes
- Tire Info link takes users to page containing links to sections on Load Index, Tire Construction, Tire Recommendations, Tire Dimensions, Tire Markings and Dual Fitments
- Also contains link which accesses entire 24-page BFGoodrich Commercial Truck Tires Data Book, w/ complete info on all BFGoodrich brand truck tires
- Customers can access map of N America showing US, Canada and Mexico, click on country to search for closest dealer
- Can select all dealers in chosen state, dealer by name or dealer within given number of miles
Significant Points
- Can find out best BFGoodrich tire for truck via Tire Applications section
- One of 6 links will access selection of tires designed for application
Web Source
Sourced from: TruckingInfo.com, August 14, 2002
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| 6) NAFA Holds 34th LEG Conference; Special Session Added To Address Ford Crown Vic Police Cruiser Crashworthiness |
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Situation
- Safety testing was top subject at NAFA's 34th annual Law Enforcement Group (LEG) conference in Orlando, FL
- Special session added to agenda for Ford to address crashworthiness of Crown Victoria Police Interceptor (CVPI) in high speed, rear-end collisions
- Doug Lampe from Ford’s general counsel’s office reviewed accident circumstances that led to investigation by AZ attorney general
- He also reviewed Ford’s CVPI Police Officer Safety Action Plan, which includes formation of blue ribbon panel and engineering task force
- Another blue ribbon panel plans to study how things like lighting and markings factor into safety involving any make or model police vehicle
- Trade show again set records for number of vendors in attendance and significant number of 1st-time fleet manager attendees
Significant Points
- Ford says it stands behind safety record of CVPI, but technical task force is researching engineering options that might enhance it
- Copy of document distributed at this session is available at www.fleet.ford.com under Crown Victoria link
- Fleets responsible for law enforcement vehicles encouraged to sign up for LEG list serve e-mail discussion group
- Used by NAFA members to collect info about vehicles and policies unique to specialized fleets
Web Source
Sourced from: Fleet Focus, August 14, 2002
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| 7) NAFA Launches Major Redesign Of Website |
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Situation
- National Assn of Fleet Administrators unveiled redesigned Website
Significant Points
- New: powerful search engine; printer friendly format for all pages; send a page to a friend option
- New: access to membership profile that user can update online; ability to change username and password
- New: ability to search for NAFA members and affiliates, by name, company or state
- New: e-mail a NAFA member or affiliate while keeping their e-mail address confidential
- New: search Member Expertise database online; search Affiliate Product/Service database online
- New: individual pages for every NAFA chapter, which each chapter will be able to update independently
Web Source
Sourced from: Fleet Focus, August 14, 2002
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| 8) Pep Boys Earnings Increase 32% With Improved Sales, Better Margins |
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Situation
- Auto parts retailer The Pep Boys, Manny, Moe and Jack reported quarterly earnings rose 32%
- Helped by improved sales at stores open at least a year
- Better margins on merchandise and focus on controlling expenses boosted profit
- Revenue in quarter increased 2.2% to $585.8M from $573.1M a year ago
Significant Points
- Seventh consecutive quarter in which Pep Boys reported earnings growth over 30%
- Sales at stores open at least 1-year were up 2%
- Retail merchandise, installed merchandise and commercial delivery categories all rose
- But service labor revenue decreased 1.6%
Web Source
Sourced from: Collision Repair Industry INSIGHT, August 15, 2002
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| 9) GM Helps Build Bomb Truck For Michigan's Homeland Security |
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Situation
- General Motors team assembles state-of-the-art bomb truck for Michigan State Police
- Truck was commissioned in effort to strengthen homeland security
- Includes bomb-containment trailer
- Designed to respond to all non-military explosive devices in Detroit area
Significant Points
- Truck based on 2003 GMC TopKick medium duty w/ 6.6L Duramax diesel and Allison transmission
- Project took ~5000 man hours to build
- Suppliers include Braun Lift, Clarion, ROM Doors and Unicell
- Truck will be featured in TopKick launch campaign that will cover 5 cities
Web Source
Sourced from: General Motors, August 13, 2002
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| 10) Detroit Diesel Waits For Judge's Decision On EPA Oct 1 Engine Deadline |
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Situation
- Detroit Diesel Corp waits for judge ruling on Mon, Aug 19th
- Fed judge to decide if engine maker continues producing and selling traditional truck engines or must switch over to new, lower-emission engine required by EPA
- Switch is expected to cause drop in demand because customers aren't willing to buy those engines yet
- If no ruling by Aug 19 or motion is denied, company will lay off between 500-700 workers temporarily and begin retooling plants
- Engine producers who continue selling older engines after Oct 1 will be fined up to $12,000 per engine
- Detroit Diesel didn't get new engines into customers' hands for testing until early this summer; only recently asked EPA to approve Series 60 diesel engines
Significant Points
- Entire trucking industry is bracing for severe drop in new truck purchases, incl companies that make everything from engine hoses to tires
- Customers skittish about performance of engines, possible $5,000 jump in price; have increased purchases of old engines
- Chicago-based USFreightways, for example, spent $38.5M to buy over 600 trucks before Oct deadline
- Navistar International Corp may lay off as many as 400 workers at an Ontario factory in Nov
- Illinois legislator says Caterpillar Inc might be forced to cut 3,000 workers
- Engine buyers want new products to undergo 100,000-mile test drives before they buy
Web Source
Sourced from: Detroit Free Press, August 16, 2002
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| 11) Detroit Diesel Files For EPA Certification On Series 60 Diesel; Says EGR Engine Has Same Warranty
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Situation
- Detroit Diesel Corp filed applications w/ EPA for emissions certification of Series 60 diesel engines beyond Oct 1
- Initial applications cover 20 current Series 60 engine ratings; all will comply fully w/ Oct 2002 emissions requirements
- Additional ratings will be submitted for certification in coming months
- Exhaust gas recirculation (EGR) technology is new to Series 60, but has been used on Series 50 since 2000
- DDC is "within a couple percentage points" of target on fuel economy
- Engine maker "will continue to fine-tune the engine and improve the combustion process"
Significant Points
- DDC says by Oct 1 it will have accumulated about 8M test miles on test vehicles equipped w/ Oct 2002 prototype engines
- By that date, 27 fleets will have engines in operation
- Warranty on Series 60 engine remains the same, as do recommended oil change intervals and other required maintenance
- No change in recommended oil drain interval, because soot concerns have not materialized
- DDC confirmed that ring face wear is 78% lower on EGR engines when compared to current engines
- EGR engine is 25 pounds less than current Series 60 and several hundred pounds less than other big-bore engines
Web Source
Sourced from: eTrucker.com; TruckingInfo.com, August 14, 2002
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| 12) Consumer Report Reviews New Design Of Car Seat Required Sept 1 |
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Situation
- Beginning Sept 1, child car seats must conform to so-called LATCH design
- Rear-facing seats for infants up to 1 yr and 20 pounds have connectors that snap on to metal anchors in car
- Front-facing seats for toddlers weighing 20-40 pounds have LATCH connectors plus a top tether
- They can also be used w/ a car's safety belts
- LATCH seats are result of efforts by safety advocates, government, and industry to make child seats easier to install properly
- NEW BREED Britax Expressway is 1-of 1st safety seats to use new LATCH system
Significant Points
- CR tests of 2-new seats indicate that LATCH doesn't always mean proper installation is a snap
- Safety 1st Comfort Ride 22-400 requires attaching a top tether to car seat and adjusting its length
- Safety 1st tether is very difficult to fit and adjust
- Britax Expressway Isofix has a factory-installed top tether that's easy to adjust
- But installation instructions aren't as clear as they could be, which could mean that the LATCH connectors aren't routed to lower anchors correctly
Web Source
Sourced from: Consumer Reports, August 14, 2002
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| 13) Feds Revampt TIPS To Focus On Truck Drivers, Dock Workers After Post Office Says "No Thanks" |
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Situation
- Bush admin proposal for network of anti-terrorism tipsters overhauled, due to complaints it encouraged Americans to spy on 1-another
- Justice Dept plan modified to exclude people from industries and gov agencies that often have access to people's homes
- Terrorism Information and Prevention System (TIPS) will focus instead on workers who operate on highways like truckdrivers and at ports of entry
- Program was to have been launched this month
- Original idea was to offer hot line people could call if during course of workday they noticed something suspicious
- US Postal Service said "no thanks" and other industries also expressed reservations, saying they didn't want workers looked at by customers as potential spies
Significant Points
- TIPS will not be put into effect until Congress returns in Sept to allow time for consultation w/ lawmakers
- Justice Dept no longer seeks participation of Postal Service or utility companies
- No decision about who will operate hot line, but likely choice is National White Collar Crime Center
- Organization is nonprofit corporation of law enforcement agencies and state and local prosecution offices
Web Source
Sourced from: Landline Magazine, August 13, 2002
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| 14) Trucker Wins Award For "Bullies Behind The Wheel" Book About Road Rage |
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Situation
- Joel Shorey received award for his book, "Bullies Behind The Wheel: How Your Reactions to Aggressive Drivers Can Cause Road Rage or Prevent It"
- Shorey is driver for Smithway Motor Xpress, Fort Dodge, Iowa
- Book takes humorous look at problems created by Cut-Off Kings, Merging Maniacs and Executroids
- Learn what Young Studs and other Aggressive Drivers do before they involve you
- Author says sense of humor is critical in dealing w/ aggressive drivers
- Shorey has logged more than 2M miles of accident and ticket-free driving over 13 years
Significant Points
- Shorey's goal is to change attitudes about aggressive driving by using humor to present this very serious subject matter
- Each chapter begins w/ short story that illustrates type of driver being discussed, and concludes w/ simple suggestion to potentially avoid road bully or accident
- "Bullies Behind The Wheel" may be ordered by calling (866) DRIVE35 or at www.bulliesbehindthewheel.com
- It is available at Amazon, Barnes & Noble and other bookstores for $14.95
- An audio version is available for $19.95
Web Source
Sourced from: TruckingInfo.com, August 12, 2002
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| 15) On-The-Job Accidents Cost Employer $24,000 Per Employee, Says Red Cross; Driver Fatigue Causes Most Crashes
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Situation
- On-the-job vehicle accidents cost US employers $50B annually says Michelle Morgan
- Morgan is coordinator of Safe Communities program of American Red Cross in Peoria, IL
- On-the-job accident costs employer $24,000 per employee
- Many studies find cell phone use by drivers as a hazardous activity
Significant Points
- Some firms found advising employees to stop car before using cell phone was unrealistic
- Instead, vehicle should be equipped w/ equipment that allows individual's hands to remain on steering wheel
- Encourage employees to pull over if phone conversation requires note taking
- Cell phone use isn't only distraction facing drivers, according to Red Cross
- Driver fatigue is most frequent cause of traffic crashes
Web Source
Sourced from: Journal Star, August 13, 2002
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| 16) Ford Startles Calif Officials; May Join Suit Over CO2 Law Despite Chairman's "Tone Down" Remarks |
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Situation
- Ford Motor Co said it still may participate in auto industry lawsuit over Calif's new clean-air law
- Startles Calif officials who believed Ford's chairman was willing to cooperate w/ the state
- William Clay Ford Jr said he wanted to "tone down" battle over new law and work w/ regulators toward reasonable solution
- Mr Ford's initial conciliatory comments drew quick praise from Calif Gov Gray Davis
- Davis signed greenhouse-gas measure into law despite opposition from auto industry
- Alliance of Automobile Manufacturers expects to file suit against Calif regulators to try to block new law
Significant Points
- After Gov Davis issued his praise, Mr Ford's subordinates scrambled to clarify that company still objects to law and still may join suit
- Ford spokeswoman says automaker shares trade group's position regulating carbon-dioxide emissions is akin to regulating fuel economy
- That power reserved for federal gov under US law
- Ford believes Calif should leave matter in hands of NHTSA
- Law makes Calif 1st state to limit auto emissions of so-called greenhouse gases, including carbon dioxide
Web Source
Sourced from: The Wall Street Journal, August 10, 2002
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| 17) Toyota Prius 1st of 3-Hybrids Certified For $2,000 Tax Deduction |
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Situation
- Hybrid Toyota Prius and Honda Insight and Civic are sold in US
- All cost about $20K--more than comparable gas only sedans
- IRS offers $2K tax deduction to owners after automaker proves added cost is for hybrid tech
- Deductions reduce taxable income unlike credits that result in refund of the amount
- US automakers intend to produce hybrid SUVs and pickups next year
Significant Points
- Toyota certified Prius w/ IRS and qualifies for deduction
- Owners can file amended returns for year vehicle put in service
- Honda certification is pending w/ IRS
Web Source
Sourced from: The Wall Street Journal, August 12, 2002
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| 18) Numerous "Boutique Fuels," Lack Of Refining Capacity, Cause Of Price Hikes |
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Situation
- Gasoline prices spiked in Midwestern states during spring 2000
- Sparked congressional investigation into potential collusion, lack of incentives in market
- Report of Federal Trade Commission comprised views of lawyers and economists
- Economist recently published paper from Stanford Business School to dispel inaccuracies in commission report
- Refiners are operating at near capacity so no surplus available to smooth supply disruption
- Regional gasoline regulations create numerous "boutique fuels" hindering supply sharing
Significant Points
- Lack of refining capacity and boutique fuels ensure future price spikes will occur
- Fuel formula takes 2-7 weeks to refine and ship making faster supply adjustments impossible
- American Petroleum Institute and American Lung Association jointly proposed creating one national clean fuel
- Proposal defeated by ethanol lobby
Web Source
Sourced from: CSP Net, August 13, 2002
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