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|
November 10,
2003
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| SIGNIFICANT
NEWS |
A Compendium of News for Fleet Managers
from 10/27/2003 -- 10/31/2003,
2003 | |
| 1) |
Jeep Adding Car-Like Models, More
SUVs |
11) |
ChevronTexaco Stockholders Profit as Consumers
Pay Higher Energy Prices, 2K Employees Await Pink
Slip |
| 2) |
3
Sporty Hybrid Concepts Added to All-Japanese
List |
12) |
OPEC Pricing Policy Leading to Loss of Market
Share as Higher-Cost Fields Develop |
| 3) |
Ford Excursion May Win Reprieve |
13) |
GM
Study Says Daytime Running Lights Reduce
Collisions |
| 4) |
New
Energy Bill Pleases Automakers, Disappoints
Environmentalists |
14) |
"Safety for Everyone" -- Honda Cars to Get
Standard Side-Curtain Air Bags, SUVs Anti-Rollover
|
| 5) |
OPEC Regains Market Control w/ Increased Demand,
Declining Western Reserves |
15) |
Ford Hybrid Escape Production Set for July 2004;
Futura Hybrid Planned |
| 6) |
Detroit Not Competitive w/ Europeans, Japanese
on Emissions Rules, Says World Resources Institute
|
16) |
Seattle Fleet Orders GM Hybrid Buses; Fuel
Economy Gains up to 60% |
| 7) |
Police Pursuits Aided by New Safety
Technology |
17) |
FMCSA Orders Inspections for Some Cargo Tanks
after Catastrophic Failure Incident |
| 8) |
States Lead the Way in Fight Against Global
Warming |
18) |
HOS
Questions Arise Over Hazmat Drivers Placed Out of
Service; Are They Off-Duty? |
| 9) |
Transmissions Take the Spotlight |
19) |
Nissan Launches Brash and Aggressive Advertising
Campaign for Full-sized Titan Pickup |
| 10) |
Costly, Sometimes Illegal Truck Idling Can be
Avoided w/ Cost-Effective Devices, Truckstop Services
|
20) |
NAAA Opens Gathering w/ New "Roadmap to the
Future" | | |
| 1)
Jeep Adding Car-Like Models, More SUVs |
|
Situation
- Jeep decides to widen lineup in both onroad, offroad segments
- Addition of onroaders could give Jeep brand edition of
Stratus/Sebring -- even Neon
- SUV expansion promises Scrambler version of Wrangler pickup in
2004, 4-door Grand Cherokee, entry-level Liberty SUV in 2005 or
2006
Significant Points
- Jeep refocus, recalling Jeep Eagle era, belated effort by DC
to harness Jeep assets starting in 2004
- COO Wolfgang Bernhard wants 99% of Jeeps to be used on-road
- "Trail Rated Badge" ads part of massive new Jeep
advertising/marketing campaign, Bernhard says at Texas press
conference
- Joe Eberhardt, Jeep's new marketing boss, says Jeep is strong
brand that needs "core products, halo products that can go up and
down the Rubicon Trail"
Web
Source
Sourced From: Automotive News / October 27,
2003, Page 1
Return to top |
| 2) 3
Sporty Hybrid Concepts Added to All-Japanese List |
|
Situation
- Tokyo show unveils gas-electric Mazda Ibuki, Subaru B9
Scrambler ragtop roadster, Toyota CS&S 2-seater as Subaru,
Mazda join hybrid-engine list
- Ibuki is smallest hybrid car of small crop on roads or enroute
- Scrambler B9 not so benign, pumping 130 hp (vs Ibuki 160 hp)
and signaling Subaru's future styling
- Toyota's CS&S reveals 2 exotic ideas -- rear seats hidden
by sliding canopy, sliding front seats that cover/lock steering
wheel/storage areas
- All are sporty models, concept cars, but show the trend in
future vehicles coming to market
Significant Points
- "Hybrids definitely have Americans' attention," says Jon
Berry, senior research director at RoperASW
- Nissan CEO calls Ibuki his "favorite non-Nissan vehicle at the
show"
- Hybrids called neat power advance by Patrick Pélata, Nissan
executive VP of planning because 60%-70% of necessary hardware
already exists on powertrain
- Ibuki closer to production than other sportsters shown w/
hybrid technology
- As offspring of Ford/GM, Mazda and Subaru could furnish
parents w/ fruits of their hybrid development for smaller coupes
and sedans
Web
Source
Sourced From: USA Today, October 27, 2003, Page
3B
Return to top |
| 3)
Ford Excursion May Win Reprieve |
|
Situation
- Plan to scuttle Excursion in 2005 under review after sales
slide tapers off
- Sales of 17,887 Excursions Jan-Sept enough to warrant
retention in lineup
- Profits of up to $10K per vehicle spurs change of plans for
19-foot-long SUV
- Super-huge SUV cause also bolstered by success of Hummer H2 --
both vehicles exempt from federal fuel-economy regulations
- FordDiv President Steve Lyons says 2K sales a month, even 1K,
could keep Excursion in lineup
Significant Points
- Much-maligned Ford Excursion Super SUV likely to escape death
penalty
- Excursion had been dubbed "Ford Valdez" (reference to Exxon
Valdez) prior to debut in 1999
- Environmentalists frown on huge vehicles, gas guzzlers -- not
happy w/ federal exempt status
Web
Source
Sourced From: Detroit Free Press, October 28,
2003, Page 1C; New York Times, October 28, 2003, Page
C3
Return to top |
| 4) New
Energy Bill Pleases Automakers, Disappoints Environmentalists
|
|
Situation
- Automakers fiercely opposed aggressive new fuel economy
requirements, forcing downsizing, safety compromise
- UAW lobbied against the higher CAFE standards
- Congress' new energy bill doesn't mandate specific oil savings
goal or require NHTSA to write new fuel economy rules
- No deadline set but creates more admin hurdles for NHTSA to
increase fuel economy standards in future
- Contentious issues to resolve include ethanol subsidy, tax
credit allocation for energy producers and deregulation of
electrical utilities
- Ethanol issue centers on whether $0.052/gal tax break comes
from highway or general revenue
Significant Points
- Automakers say lower standards save jobs, boost safety, meet
consumer demand for big, powerful cars and trucks
- Environmentalists disappointed, arguing higher MPG mandate
would reduce dependence on foreign oil and preserve environment
- NHTSA currently must consider tech feasibility, economic
practicability and energy conservation when determining MPG
requirements
- NHTSA must also consider safety and impact on employment
levels in the US under new energy bill
- Bill close to passage if remaining contentious issues don't
kill it in negotiation between House and Senate versions
Web
Source
Sourced From: Detroit News; The Wall Street
Journal, October 28-29, 2003
Return to top |
| 5)
OPEC Regains Market Control w/ Increased Demand, Declining Western
Reserves |
|
Situation
- Oct 3 is 30th anniversary of the Arab oil embargo and Western
countries more dependent than ever
- Embargo and price hikes result of frustration over Israel '73
war victory
- Earlier misguided US attempts to control price and allocations
by industry/region set up embargo shortages
- Advances in exploration technology yielded more proven
reserves of conventional oil today than 30 yrs ago
- Given scarcity and weak economies,OPEC cartel shocked market
last mo by voting to cut output even further
Significant Points
- OPEC's influence reduced by wiser policies of energy
conservation now making alarming comeback
- Alaska and North Sea development checked OPEC market power but
fields now started decline
- Russia has largest reserves of any country outside Middle East
- Saudi Arabia will continue role of supply buffer due to
reserves and state ownership
- Oil industry needs to invest as much as $2.2 trillion over the
next 30 years in exploration and production
Web
Source
Sourced From: The Economist, October 23,
2003
Return to top |
| 6)
Detroit Not Competitive w/ Europeans, Japanese on Emissions Rules,
Says World Resources Institute |
|
Situation
- Europe, Japan, Australia, Canada, accounting for 43% of auto
sales, enacting rules to cut carbon dioxide emissions as much as
one-fourth of 1995 levels
- GM, Ford will pay higher prices to meet emission rules than
European, Japanese automakers that have raised fuel economy, rely
on alternative energy, says World Resources Institute report
- US has voluntary carbon dioxide reduction programs, CA passed
law to force reductions
- In US, relaxed CAFE rules led to strong demand in 1990's for
SUVs, minivans
- European, Japanese companies compete in big-vehicle US market
and in home markets where fuel efficiency rules in effect
- Report says global auto market increasingly defined by climate
change concerns
Significant Points
- Of 10 largest automakers, Honda best prepared to deal w/
stiffer rules
- Toyota, which has developed alternative fuel technologies,
could see earnings rise by 8%
- GM, Ford risk losing up to 10% of earnings as market share
erodes
- Alliance of Automobile Manufacturers spokesman Eron Shosteck
says, "We make more than 30 different models that get 30 miles per
gallon or better. Very few consumers buy them."
Web
Source
Sourced From: Bloomberg News via Detroit News,
October 30, 2003
Return to top |
| 7)
Police Pursuits Aided by New Safety Technology |
|
Situation
- Police pursuing suspect or speeding motorist juggle flashers,
siren, video camera while keeping in radio contact and driving
- Visteon Corp's TACNET helps officers handle those tasks w/o
compromising safety
- University of NH engineers developed similar system called
Project54, named for 60's TV comedy, "Car 54, Where are You?"
Significant Points
- W/ TACNET, officer can choose from 3 different ways to operate
cruiser's controls: voice activation, in-dash touch screen, or
control pod
- MI State Police testing TACNET; demo units also being sent to
CA Highway Patrol, MD State Police
- NH State Police testing Project54 which uses variety of
standard voice-recognition programs or officers can operate by
hand
- W/ voice command, cruiser's lights, siren, flashing
headlights, video camera turns on; message also sent to dispatch
giving cruiser's location
- Project54 allows officers to access FBI databases by voice,
instead of typing on keyboard
- Project54 planned enhancements to include hand-held device
officer can use outside car to send messages or turn on cruiser
equipment
Web
Source
Sourced From: Detroit News, October 26,
2003
Return to top |
| 8)
States Lead the Way in Fight Against Global Warming
|
|
Situation
- Motivated by environmental/economic concerns, states new force
combating global warming
- 1/2 states addressing global warming, thru legislation,
lawsuits, programs started by governors
- In last 3-yrs, state legislatures have passed at least 29
bills, usually w/ bipartisan support
- Cities adopting new energy policies
- Some initiatives in Congress, but even backers acknowledge
that they are doomed
- States acting partly because of predictions global warming
could damage local economies
Significant Points
- Most contentious is California's law to set strict limits for
new cars on emissions
- Efforts will put pressure on Congress and administration to
enact federal legislation
- Energy initiatives easier to move forward on the local level
- Industry presence diluted on state level
Web
Source
Sourced From: The New York Times, October 29,
2003
Return to top |
| 9)
Transmissions Take the Spotlight |
|
Situation
- The transmission is moving into spotlight
- Mercedes-Benz has 7-speed automatic transmission, trumping
arch rivals Audi, BMW, Jaguar
- Other automakers supplanting floor shifter w/ fast levers
mounted on or behind steering wheel
- Boldest move is intro of transmission that straddles divide
between automatics and stick shifts
- Audi's 6-speed Direct Shift Gearbox is standard equipment on
2004 TT 3.2 quattro
- 2004 TT 3.2 quattro has no clutch pedal, shifts gears by
itself
Significant Points
- Carmakers competing to develop more efficient ways of
channeling engine power
- Audi is the first to market Direct Shift Gearbox concept
- Uses 2 clutches to feed power to 2 separate geartrains in
transmission case
- Benefit lies in its ability to shift from one ratio to next
- W/o disconnecting the engine from the drive wheels
Web
Source
Sourced From: The New York Times, October 27,
2003
Return to top |
| 10)
Costly, Sometimes Illegal Truck Idling Can be Avoided w/
Cost-Effective Devices, Truckstop Services |
|
Situation
- Truckers idle engines avg of 8-hrs/day, 300 days annually
- Diesels burn 0.75-1 gal of fuel/hour while idling wasting
2,400 gal ($3.6K) and producing 21-tons of harmful emissions
annually per truck
- Excessive idling costs money, accelerates engine wear and can
result in citation
- Truckers idle to stay warm and prevent fuel gelling in winter,
cool in summer and power creature comforts (TV, microwave) w/o
draining batteries
- Options to idling include using inverter/chargers, fuel-fired
heaters/auxiliary power units (APUs) or plug-in truckstop services
- Small diesels that power auxiliary heaters and APUs typically
consume 80-90% less fuel per hour than truck engine
Significant Points
- $5K cost for an APU w/ heating and cooling capabilities pays
back in 2-3 yrs from fuel and maintenance savings
- Teleflex, Espar, Onan, PonyPack, Aux Generators, Phillips
Temro and Webasto offer heat, AC and power solutions
- Many devices available as factory-installed options from many
truck OEMs
- Factory-installed invertor/convertors also available from OEM
but truck stops w/ "shore power" hookup hard to find
- SmartWay idle-reduction grant from EPA helping to fund truck
and truck stop installations in some areas
Web
Source
Sourced From: Drivers Magazine, November 1,
2003
Return to top |
| 11)
ChevronTexaco Stockholders Profit as Consumers Pay Higher Energy
Prices, 2K Employees Await Pink Slip |
|
Situation
- ChevronTexaco 10/31/03 reported $1.97B 3rd Q profit based
largely on high petroleum/NG prices
- Largest profit since merger 2-yrs ago
- Lost $904M in the same quarter a year earlier
- Company's oil and natural gas production dropped 4% (103K
brrls/day) to 2.458M brrls/day
- Most of loss was in US as consequence of fields' maturity and
permanently closing some storm damaged wells in Gulf
- Also announced 2K jobs cut for early '05; 50% of cuts in US
Significant Points
- Higher energy prices produced profit (oil avg $26/brrl, NG
$4.65/tcf in US both up $2.75 from year ago)
- Consumers paid avg $1.63/gal for unleaded regular in Aug
compared w/ $1.42 a year earlier
- Job cuts part of plan to reorganize management by business
type, rather than geography
- Also result of effort to sell $6B in oil fields, service
stations and refineries during the next 3-yrs
- Shares of ChevronTexaco rose $2.54 (3.54%) closing at $74.30
10/31/03
Web
Source
Sourced From: San Francisco Chronicle, November
1, 2003, page B-1
Return to top |
| 12)
OPEC Pricing Policy Leading to Loss of Market Share as Higher-Cost
Fields Develop |
|
Situation
- OPEC expects oil prices to stay stable through the rest of the
year, but is concerned that a glut on the market could push prices
too low next year
- OPEC policy is to adjust output if price stays above or below
$22-$28/brrl for an extended period of time
- OPEC expects non-member countries to co-operate to keep the
market balanced
Significant Points
- OPEC implemented 900K brrls/day production cut Nov 1 to
prevent price drop
- Avg price of OPEC basket oil this year is almost $28/brrl
- Losing market share to other producers as high prices permit
competitors to invest and maximize capacity
- Next OPEC meeting scheduled for Dec 4
- Meeting w/ Russian and Mexican oil officials to maintain
cooperation; Norway also non-OPEC producer
- OPEC in trap of own making by fighting for high oil prices to
meet short-term financial needs
Web
Source
Sourced From: Associated Press, October 31,
2003; Voanews.com, October 30, 2003; Gulf News, October 29, 2003;
AutomotiveDigest Staff
Return to top |
| 13) GM
Study Says Daytime Running Lights Reduce Collisions
|
|
Situation
- GM releases study promoting benefits of daytime running lights
(DRL)
- Says GM customers have avoided over 37K collisions since 1995
when DRLs became standard equipment
- GM has sold more than 30M vehicles w/ DRLs
Significant Points
- GM used data from police and collision reports
- Study shows estimated reductions in daytime multiple vehicle
crashes from 2.3 to 12.5%
- Most dramatic reduction came w/ vehicle-to-pedestrian crashes
- Through 2001, estimated that DRLs helped drivers avoid 772
pedestrian collisions
- NHTSA updating 2000 study that credited DRLs w/ reducing
crashes by 7%
- GM has asked NHTSA to require DRLs on all vehicles
Web
Source
Sourced From: Automotive Intelligence; USA
Today, October 28, 2003
Return to top |
| 14)
"Safety for Everyone" -- Honda Cars to Get Standard Side-Curtain Air
Bags, SUVs Anti-Rollover |
|
Situation
- Honda plans to equip virtually all car models w/ side-curtain,
front-side air bags and anti-lock brakes; make standard by end of
2006
- SUVs, minivans will be equipped w/ stability equipment
- Also, rollover-sensing side-curtain air-bag systems designed
to prevent passengers from being ejected through windows
- Honda playing catch-up w/ Volvo, already offering
stability-control systems, side-curtain air bags standard on many
models, but move would get a jump on mass-market rivals
- Honda calls strategy "Safety for Everyone"
Significant Points
- Honda's rivals more cautious about making high-tech safety
systems standard, particularly on low-priced, big rebate models
- GM considering stepping-up pace of equipping all models w/
side-curtain air bags
- Ford offers side-curtain air bags on several models as an
option, $560 on Explorer
- Chrysler Pacifica, new Dodge Durango also offer side-curtain
air bags as option
- Stability-control systems standard on all Toyota, Lexus SUVs
- Insurance Institute for Highway Safety released study in Aug
reporting head-protecting air bags could reduce driver fatalities
in side collisions by as much as 45%
Web
Source
Sourced From: The Wall Street Journal, October
30, 2003
Return to top |
| 15)
Ford Hybrid Escape Production Set for July 2004; Futura Hybrid
Planned |
|
Situation
- Ford Motor Co will start production of hybrid
gasoline-electric versions of its Escape SUV in July 2004
- Target of selling 10,000 to 20,000 a year
- No price yet, but Ford says hybrid Escape would be profitable
- Yet full cost of developing hybrid system would not be paid by
Escape buyers, says Ford
- Hybrid Escape will be built on same assembly line in Claycomo,
Missouri, that builds regular Escapes
- General Motors and Chrysler GP both plan to launch hybrid
pickups next year
Significant Points
- Escape may get up to 40 MPG city, 31 highway vs 19 and 25 MPG
for V-6 Escape
- 2004 Toyota Prius sedan gets 60 MPG in city driving
- Toyota promises hybrid version of Lexus RX330 next year
- Ford says a hybrid Futura is planned, but no details on other
hybrids
Web
Source
Sourced From: Reuters via Automotive News,
October 31, 2003
Return to top |
| 16)
Seattle Fleet Orders GM Hybrid Buses; Fuel Economy Gains up to 60%
|
|
Situation
- General Motors' 1st hybrid powertrain will take to the road
next summer in Seattle's fleet of city buses
- Powertrain production will start in MarCH
- 1st buses to hit the streets in June
- GM's hybrid bus powertrain is a parallel system
- Diesel engine is 8.8-liter turbocharged inline-6 connected to
a continuously variable transmission
- Twin electric motors power bus at low speeds, and engine takes
over at about 5 MPH
Significant Points
- GM says diesel-electric powertrain produces exhaust emissions
that are 90% cleaner than a standard diesel engine used in a
regular city bus
- GM powertrain delivers fuel economy gains of as much as 60%
- Powertrain accelerates faster than a traditional
diesel-powered bus
- Seattle's King County Transit Authority is projected to save
750,000 gal of diesel fuel a year once its 213 diesel-electric
buses are in service
- Hybrid bus should get about 5.5 MPG on flat city streets, says
GM
Web
Source
Sourced From: Automotive News, October 27,
2003
Return to top |
| 17)
FMCSA Orders Inspections for Some Cargo Tanks after Catastrophic
Failure Incident |
|
Situation
- FMCSA is ordering all DOT specification MC-307/312 cargo tanks
to be inspected no later than Dec 31, 2003
- Follows Jan 5, 2002 catastrophic failure when this cargo tank
trailer broke in 2 pieces
- Failure occurred in void area between 1st and 2nd tank
- Tanks are joined to form a single trailer using stainless
steel tie bands that overlap adjoining ends
- Federal Register notice will be issued after Dec 31, 2003,
addressing those tanks that have not yet been inspected
Significant Points
- All tanks still in service should be inspected no later than
Dec 31, 2003, in accordance w/ Truck Trailer Manufacturer
Association Technical Bulletin TB-121-03
- FMCSA suggests the following steps be taken prior to required
inspection:
- Identify MC 307/312 cargo tanks manufactured prior to Jan 1983
w/ designs similar to tank involved in incident Jan 5, 2002
- Locate these tanks and determine status of each tank (ie still
in service, removed from service, has been sold, scrapped, etc)
- For those tanks no longer in service, gather documentation
from owner of the tank supporting reasons why tank is no longer in
service
- Inspect those tanks still in service in accordance w/ TTMA's
Technical Bulletin TB-121-03
Web
Source
Sourced From: Landline Magazine, October 30,
2003
Return to top |
| 18)
HOS Questions Arise Over Hazmat Drivers Placed Out of Service; Are
They Off-Duty? |
|
Situation
- Instructional Technologies Inc (ITI) says it uncovered an
important hours-of-service (HOS) issue while finishing
developmental work on new training modules
- Question concerns hazmat drivers placed out of service:
- If driver is placed out of service at a roadside location for
a logbook violation and has exceeded 14-hr on-duty limit, is
driver still moved to off-duty status if load is placarded [for
hazardous material]?
- Driver is required by HOS regulations to go off-duty, but at
same time is required to remain w/ haz-mat vehicle
- So, can he or she be made to remain w/ the load even though
technically off-duty?
Significant Points
- After extensive research, ITI received this official
interpretation from Mary Moehring, division chief for FMCSA:
- "In the situation you describe, the driver could not record
his or her duty status as off-duty after being placed out of
service if he/she is required by 49 CFR 397.5 to stay with the
vehicle"
- "Section 397.5 (d) specifically provides that attendance on a
vehicle means a driver is ‘awake, not in the sleeper berth or is
within 100 feet of the vehicle and has it within his/her
unobstructed field of view’
- "Therefore, the driver must remain on-duty indefinitely while
the motor carrier dispatches someone to relieve the driver"
- But could the driver in this circumstance still be found in
violation of HOS provisions if he or she exceeds the 14-hour
on-duty limit as required by 397.5 (d)?
- "Being on-duty is not a violation, although it will, of
course, impact the number of hours available under the 60/70 hour
rule. The driver would be in violation, however, if he or she
starts to drive in this situation"
Web
Source
Sourced From: Drivers Magazine, November 1,
2003
Return to top |
| 19)
Nissan Launches Brash and Aggressive Advertising Campaign for
Full-sized Titan Pickup |
|
Situation
- Ten years after Toyota ventured into big pickup market, Nissan
trying different approach
- Titan campaign looks nothing like Toyota's initial T100
campaign
- It is brash, aggressive and all about being full-sized
- Teaser ads debuted Oct 20; 30-second spots roll out in the
next month
- Research showed customers questioned whether import brand
could offer full-sized truck
- Buyers in 5 categories: contractors, farmers, fleet sales, RV
enthusiasts, appearance buyers
Significant Points
- Advertising campaign for full-sized pickup brash and
aggressive
- Nissan will try to distinguish Titan as a big, bold and
powerful truck
- Toyota "tiptoed" into market when it introduced the T100 in
1993
- Competition not mentioned by name; ads aimed at Big 3
loyalists
- Finding buyers may be a challenge
Web
Source
Sourced From: Automotive News, October 27,
2003
Return to top |
| 20)
NAAA Opens Gathering w/ New "Roadmap to the Future"
|
|
Situation
- Start of new era seen for National Auto Auction Assn (NAAA) at
recent convention
- Members set out on new course w/ guidance based on study by
Boston Consulting Group
- 500-page report called NAAA's "Roadmap to the Future"
Significant Points
- NAAA wants members to have louder voice on regulatory issues
and bigger presence online
- Incoming president Tony Long asked members to be patient w/
changes
- Changes are expected to generate controversy within membership
Web
Source
Sourced From: Used Car News, October 20,
2003
Return to top |
|
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