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Monday, June 17, 2002
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| SIGNIFICANT NEWS |
A Compendium of News for Fleet Managers from
June 10 -- 14, 2002 |
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| 1) |
Truck Fleet Pushes 65-MPH Speed Limit; Governs Trucks At 62-MPH |
11) |
Where Did All Those Lease Returns Go? |
| 2) |
Conscientious Maintenance Programs Give Fleets A Better Return On Investment |
12) |
Bridgestone Quietly Settling Firestone Issues & Moving Forward As Ford Continues To Struggle |
| 3) |
Fed Fleet Report Contains Wealth Of Data & Info On Uncle Sam's Fleet |
13) |
Long Awaited Bluetooth Vehicle Technologies Readied for Introduction, Says Chrysler |
| 4) |
May Auto Sales Down As Fleet Orders Decline, But Numbers Not As Bad As They Look |
14) |
New Tire Rules Under Increasing Pressure from Automakers, Tiremakers |
| 5) |
Insurers Pleased W/ Efforts To Set Fed Driver's License Standards |
15) |
Light Truck Vs. Car Crash Compatibility Raises Concern For NHTSA Chief; Expects More Than "Lip Service" From Industry |
| 6) |
Senate Bill Would Unlock Vehicle Computer Codes To Allow Car Owner & Aftermarket Repairs |
16) |
Insurers Pleased W/ Efforts To Set Fed Driver's License Standards |
| 7) |
Driver Orientation Is Key To Employee Retention & Productivity |
17) |
Shell Oil To Drop MTBE In Calif; W/ Switch To Ethanol By Year's End |
| 8) |
Volvo Trucks Creates Diversity Office; Implements Supplier Diversity Program |
18) |
Clean Air Proponents Upset Over Bush Administration's Comments On Non-Road Diesel Emissions |
| 9) |
FleetMax Will Supply Vehicles At Wholesale Prices To Payless Car Sales Dealers |
19) |
Los Angeles Now Largest Refuse-Truck Fleet Burning LNG W/ 130 Trucks |
| 10) |
Auction Chain Goes Retail |
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| 1) Truck Fleet Pushes 65-MPH Speed Limit; Governs Trucks At 62-MPH |
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Situation
- Fed stats show excessive speed contributing factor in 30 % of truck accidents
- Yellow Corp’s President & CEO William Zollars hopes to gain support from major truckload carriers to limit tractor speeds to 65 mph or less
- Yellow ’s trucks are governed at 62 mph
- Yellow will work to change regulations it believes hamper safety efforts
- ATA challenged top fed & state motor vehicle safety officials to support call for nationwide crackdown on speeding cars & trucks
- William Canary, ATA President & CEO called for increased funding & better targeting of fed safety programs
Significant Points
- Some state inspection requirements may dissuade officers from simply pulling truck over to write speeding ticket
- Yellow will launch advertising campaign to promote seat belt use & combat aggressive driving
- Canary said FMCSA’s Motor Carrier Safety Assistance Program is not putting enough emphasis on traffic safety efforts, particularly strong speed enforcement
Web Source
Sourced from: TruckingInfo.com
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| 2) Conscientious Maintenance Programs Give Fleets A Better Return On Investment
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Situation
- Good maintenance always helps ensure fuel-efficient trucks
- Engine manufacturers acknowledge engine accessories can use up to 18% of fuel
- Changing air filters on basis of restriction-gauge readings, says Technology & Maintenance Council (TMC), is most efficient method
- TMC also recommends periodically removing gauges from air cleaners, & operation checked w/ vacuum pump
- When changing air filters, Freightliner recommends completely inspecting air intake piping from air cleaner to engine
- Another good habit is routinely auditing engine electronic control module parameters
Significant Points
- Kenworth Truck white paper on fuel economy reminds fleets not to use engine, transmission or axle lubes of a higher viscosity than recommended for specific equipment & operating conditions
- Minimum satisfactory specifications for diesel fuel can be found in TMC’s Recommended Practice 304B
- According to tire manufacturers, tires can contribute, thru rolling resistance, up to 35% to level-road fuel consumption
- When wheels are out of alignment, fuel economy suffers by 1-2 %
Web Source
Sourced from: Commercial Carrier Journal
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| 3) Fed Fleet Report Contains Wealth Of Data & Info On Uncle Sam's Fleet |
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Situation
- Fed Fleet Report for FY 2001 issued in March 2002, only available on Web
- Meticulously detailed view of biggest fleet in world
- All fed agencies are required to report vehicle inventory & commercial leasing info
- Large fleets > 2,000 vehicles required to report cost, mileage & fuel use; large fleets rep 99% of fed fleet
- For FY 2000, "FAST" (Federal Automotive Statistical Tool) used for 1st time
- All fed agencies must use FAST to report vehicle inventory & commercial leasing info
Significant Points
- Only 25 % of fed vehicles leased from GSA, 73% owned by agency using vehicle & 2% commercially leased
- GSA buys > 58,000 vehicles w/ goal to provide vehicles & services at lowest possible cost & greatest convenience for end users
- GSA Automotive writes specs & buys vehicles for all fed agencies
- Of 600,000+ vehicles in fed fleet 78.6% are trucks & > 350,000 are light duty
- Acquisition of med & HD trucks are covered under STAN (Standardized Trucks Available Now)
- To get report: go to www.gas.gov/vehiclepolicy, scroll down to "Publications" & click on "Federal Fleet Report"
Web Source
Sourced from: Utility Fleet Management
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| 4) May Auto Sales Down As Fleet Orders Decline, But Numbers Not As Bad As They Look |
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Situation
- May auto sales down to 1.5M
- 1.6M were delivered; difference is fleet vehicles sold in Feb & Mar weren't replaced w/ new orders
- Closer look by CNW analysts report sales not as bad as reported
Significant Points
- Fleets didn't order vehicles for fall & winter delivery as they usually do
- Government agencies pulled back on orders of SUVs, luxury sedans & small delivery vehicles
- Incentives down, so consumers wobbled
- Consumers see higher prices as automakers reduce entry-level models or make optional equipment standard
- May didn't have month-end weekend, so paperwork wasn't finished until 1st week in June
- If June remains on track, numbers will look better
Web Source
Sourced from: CNW
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| 5) Insurers Pleased W/ Efforts To Set Fed Driver's License Standards |
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Situation
- National Assn of Independent Insurers (NAII) say federal driver's license could have profound effects on auto insurance
- NAII agrees federal license will be key element in national security
- Estimates indicate > 240 different types of valid drivers' licenses & ID cards throughout country
- Some states don't require proof of residency
- Motorists hide bad driving records or other underwriting info by obtaining multiple drivers' licenses
- Insurers not likely to discover if policyholder had accident or serious violation in another state
Significant Points
- NAII also warns such a system must be monitored to avoid unintended adverse repercussions for public
- Some privacy groups contend new licensing procedures could evolve into a national ID card
- 8 of 19 terrorists in 9-11 attacks had valid ID cards by exploiting loophole in Virginia law
- More accurate driving records & insurance premiums would more closely reflect real-life situations
- Smart card license could have more info to aid law enforcement
- But insurers are concerned about data in card, how it is maintained & who has access to it
Web Source
Sourced from: Collision Week
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| 6) Senate Bill Would Unlock Vehicle Computer Codes To Allow Car Owner & Aftermarket Repairs |
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Situation
- Sen Paul Wellstone (D-MN) introduced bill to force automakers to share computer diagnostic codes w/ car owners & independent mechanics
- Measure is companion legislation to Motor Vehicle Owners' Right to Repair Act introduced in House last summer
- Vehicles now so advanced that vital systems like brakes, ignition, air bags, steering, climate control & sound systems are controlled by computer
- Clean Air Act of 1990 mandated vehicles be equipped w/ computer to monitor vehicle emissions
Significant Points
- Legislation has been referred to Committee on Commerce, Science & Transportation
- House bill is in House Committee on Energy & Commerce's subcommittee on Commerce, Trade & Consumer Protection
- Automobile Service Assn surveyed 15,000 independent repair shops & found that 10% of cars couldn't be repaired because of lack of codes
Web Source
Sourced from: Associated Press & Collision Week
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| 7) Driver Orientation Is Key To Employee Retention & Productivity |
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Situation
- Few carriers are good at introducing new drivers & contractors to trucking company’s operation
- A good training program’s payback is in driver retention & productivity
- Adults don’t learn well in traditional classroom setting & learn when they are ready
- Adults learn best when subject relates to something they already know,& is step-by-step
- They also learn by doing & through repetition
- In addition, adults are motivated by success & need immediate feedback to learn effectively
Significant Points
- 1st time driver visits key customer, he probably won’t recall directions there or all customer procedures
- Some carriers conduct orientation inside truck 1-on-1 w/ new driver for 1-day or 1-week
- Real goal of orientation is to help driver be successful during his 1st week or month
- Most carriers find using a special dispatcher helps new drivers
Web Source
Sourced from: Commercial Carrier Journal
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| 8) Volvo Trucks Creates Diversity Office; Implements Supplier Diversity Program |
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Situation
- Volvo Trucks N America (VTNA) created Supplier Diversity Office (SDO) to implement corporate-wide supplier diversity program
- Named supplier diversity manager, Steve Humphrey will lead cross-functional purchasing team
- Humphrey will report to Carlos Hungria, VP of purchasing
- Executive steering council, also established to oversee SDO
Significant Points
- SDO will assist minority, women, veteran & service-disabled owned businesses suppliers
- Help them gain insights & develop effective approaches for conducting business w/ Volvo
Web Source
Sourced from: Fleet Owner
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| 9) FleetMax Will Supply Vehicles At Wholesale Prices To Payless Car Sales Dealers |
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Situation
- FleetMax & Auction Broadcasting Co (ABC) have taken significant financial position in Dealer Diversified LLC
- Dealer Diversified is area developer for Payless Car Sales in 49 states
- Payless Car Sales is recently formed subsidiary of Avalon Global Group
- Payless Car Sales is sister company to Payless Car Rental System
Significant Points
- In addition to investment, FleetMax & ABC will provide additional services
- Payless Car Sales has 9-locations open
- 38 locations approved w/ 20 expected to open before July 31
- FleetMax will sell vehicles at wholesale prices to Payless dealers
- FleetMax will repurchase vehicle that don't sell w/i 45 days
Web Source
Sourced from: Auto Remarketing
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| 10) Auction Chain Goes Retail |
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Situation
- ABC Auctions takes investor position in PayLess Car Sales
- Payless Car Sales developed by Dealer Diversified LLC
- Active in 49 states, Payless Car Sales operates as branded outlet
- FleetMax position for vehicle retail sales opportunity
Significant Points
- Puts ABC Auctions at odds w/ dealer who are its customers
- New model for auction, retail channel?
- FleetMax may use retail channel for better returns for its customers
- Payless Car Sales may have a direct, non-auction source for vehicles
Web Source
Sourced from: Press Release
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| 11) Where Did All Those Lease Returns Go? |
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Situation
- By 2003, lease returns will be down to 2M units & 1.2M by 2006
- A greater number of these lease maturities will not see auction due in part to manufactuer/dealer/consumer retention plans
- Auctions see availability in lease lane for dealer consignment
- Dealers expected to see more auction enhancements to entice more consignments
- Dealers should see demand increase from lack of late model cars at auction
- Auctions need to fill these lanes w/ units dealers want to buy: late model & low mileage
Significant Points
- Reduces need for capacity that many auctions recently added
- Effect of change in ownership cycle driven by short term leases, which are GONE
- Short term units now limited to rental returns, could be big improvement for them
- If dealers have short term trades & demand is strong, will any see auction lanes?
- Enhancements are nice, show me the MONEY
- Lease lanes draw big dollars, filled w/ dealer cars, the money will drop
Web Source
Sourced from: Used Car News
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| 12) Bridgestone Quietly Settling Firestone Issues & Moving Forward As Ford Continues To Struggle |
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Situation
- Bridgestone appears to have put Firestone recalls behind it
- Analysts say Firestone brand has not suffered as expected
- Point to recent deal w/ General Motors for $2.5M tires annually
- Consumers also returning to Firestone in replacement market
Significant Points
- Bridgestone shares have > doubled from 2001 low
- Company is expected to hit forecast of $520M net profit for 2002 following 2-yrs of losses in US
- Company appears to have resources to settle lawsuits related to accidents
- Bridgestone tires sales jumped 60% as company was rebuilding Firestone brand
- Big concern is slowdown of tire sales in US & cash needed to build up Bridgestone brand
Web Source
Sourced from: Reuters
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| 13) Long Awaited Bluetooth Vehicle Technologies Readied for Introduction, Says Chrysler |
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Situation
- DaimlerChrysler will be 1st carmaker to introduce Bluetooth for hands-free calling & car entertainment in 2002
- Bluetooth allows for handset to stay in shirt pocket or handbag as it automatically activates audio system when driver enters car
- Bluetooth is little chip w/ integrated radio that automatically detects other products w/ Bluetooth chips w/i 50' radius
- Bluetooth will sell < $5 per chip later this year
- That's cheap enough to make it a mainstream feature in many electronics products
Significant Points
- Bluetooth introduces many new & exciting opportunities features for autos
- These features include hands-free calling, wireless transfer of data including video & smart vehicle entry
- Main limitation of Bluetooth is 10m distance limit, making competing 802.11 technologies a powerful competitor technology
- OEM's awaiting to see how successful Bluetooth will become in a vehicle environment, at least 4-major OEM's have plans to follow Chrysler if successful
- Cellular manufacturers to introduce 3-4 Bluetooth enabled phones by 2003, ready for Bluetooth enabled vehicle
- Bluetooth vehicle systems are expected to cost $200-400
Web Source
Sourced from: Reuters
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| 14) New Tire Rules Under Increasing Pressure from Automakers, Tiremakers |
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Situation
- Automakers & tiremakers stepped-up opposition to strict new standards for tire safety
- About 1/3 of 287M tires sold in US every year might have to be redesigned
- Up to 42% of passenger car tires & 54% of truck tires would fail new tests
- NHTSA's cost estimates don't account for changes automakers would have to make
- Industry wants final rules to be delayed several years to give time to meet tests
Significant Points
- Industry says rules would force changes in ~45% of all tires sold & cost tiremakers at least $1.5B
- NHTSA says rules would cost tire industry only $282M annually, or about $7.2M per life saved
- New rules could save 27 lives & prevent 667 injuries a year from crashes caused by blowouts or failures
Web Source
Sourced from: Reuters
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| 15) Light Truck Vs. Car Crash Compatibility Raises Concern For NHTSA Chief; Expects More Than "Lip Service" From Industry |
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Situation
- NHTSA chief Runge doesn't want to tell the auto industry how to design light trucks
- But he wants to get the issue of vehicle compatibility back under consideration
- Compatibility is how vehicles of different sizes fare against each other in a crash
Significant Points
- Light trucks now account for nearly 1/2 of all light vehicle sales
- The need to look at vehicle compatibility has never been more compelling than now
- Industry says dilemma is to deliver what people want while making vehicle safe
- NHTSA chief wants more than "lip service" from the industry
Web Source
Sourced from: Automotive News via autonews.com
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| 16) Insurers Pleased W/ Efforts To Set Fed Driver's License Standards |
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Situation
- National Assn of Independent Insurers (NAII) say federal driver's license could have profound effects on auto insurance
- NAII agrees federal license will be key element in national security
- Estimates indicate > 240 different types of valid drivers' licenses & ID cards throughout country
- Some states don't require proof of residency
- Motorists hide bad driving records or other underwriting info by obtaining multiple drivers' licenses
- Insurers not likely to discover if policyholder had accident or serious violation in another state
Significant Points
- NAII also warns such a system must be monitored to avoid unintended adverse repercussions for public
- Some privacy groups contend new licensing procedures could evolve into a national ID card
- 8 of 19 terrorists in 9-11 attacks had valid ID cards by exploiting loophole in Virginia law
- More accurate driving records & insurance premiums would more closely reflect real-life situations
- Smart card license could have more info to aid law enforcement
- But insurers are concerned about data in card, how it is maintained & who has access to it
Web Source
Sourced from: Collision Week
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| 17) Shell Oil To Drop MTBE In Calif; W/ Switch To Ethanol By Year's End |
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Situation
- Shell Oil says it will switch to ethanol from MTBE in California by year's end
- Phillips Oil has already reduced MTBE by 80% w/ ethanol
- Shell uses 15,000 barrels of MTBE per day at 3-refineries in Calif
Significant Points
- Switch to ethanol raises concern of higher gasoline prices
- Ethanol opponents in Calif claim there is isn't enough infrastructure to support switch by all oil companies
- Oil companies were required to phase out MTBE in Calif by end of 2002
- But Gov Davis has postponed date to Dec 31 2003
Web Source
Sourced from: Reuters
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| 18) Clean Air Proponents Upset Over Bush Administration's Comments On Non-Road Diesel Emissions |
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Situation
- Bush Admin comments on study linking non-road diesel engine emissions to 8,500 premature deaths a year
- Says curbing such pollution should be top environmental priority & suggested voluntary reductions
- Statement came from "unusual collaboration" between Environmental Protection Agency & White House Office of Management & Budget
- Comments come before study was to be officially released
- Study conducted by State & Territorial Air Pollution Program Administrators (STAPPA) & Assn of Local Air Pollution Control Officials (LAPCO)
- Study methods was similar to EPA research on 18-wheelers, trucks & busses w/ diesel engines that led to tougher tailpipe rules & low-sulfer fuel
Significant Points
- Study concludes off-road diesel engines should be regulated because of role in premature deaths & high health-care costs
- Study's backers disturbed at admin's statement regarding voluntary measures to reduce pollution
- Rep Henry Waxman of Calif wrote EPA chief & complained of "inappropriate OMB involvement" in EPA affairs
- Waxman claims admin considering weakening Clinton-era regs to cut diesel pollution from on-road engines
- Clean Air Trust says admin statement represents "really massive overreaching by OMB & poses a grave threat to diesel truck rule"
- Admin says its proposal will address new emission control devices & sulfur levels
Web Source
Sourced from: Associated Press
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| 19) Los Angeles Now Largest Refuse-Truck Fleet Burning LNG W/ 130 Trucks |
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Situation
- Los Angeles orders 120 refuse trucks that run on liquefied natural gas (LNG)
- City's total now up to 130 LNG-powered trucks
- Fleet is largest LNG-powered municipal fleet in US
- Fleet currently relies on mobile fueling
- Plans underway for permanent LNG station in San Fernando Valley
Significant Points
- Trucks use Caterpillar C10 diesel engines that have been converted by Clean Air Partners (CAP)
- CAP's Dual-Fuel conversion burn 85% natural gas for power & 15% diesel fuel for spark
- Engines are rated at 315 horsepower with 1050 lb-ft of torque
- Exhaust has 50% reduction in emissions
Web Source
Sourced from: The Auto Channel
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