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1. American Trucking Associations, National Private Truck Council & Motor Freight Carriers Association conducting extensive surveys & analysis to back up assertions HOS costs higher than DOT predicts
2. Some raw data made public in hearings & comments submitted to DOT
3. Donald Schneider, president of Schneider National, testified his company’s costs would increase 20%
4. Costs include $110M additional tractors, $95M additional trailer costs & nearly $10M annually to pay for 100’s of additional drivers

1. DOT estimates HOS rule cost $3.4B to implement
2. Industry groups contend cost could reach $130B

1. Insurance Institute for Highway Safety report says 800+ people die year in US because of drivers running red lights
2. Additional 200,000 people injured
3. Fatal crashes @ traffic signals increased 18% from ‘92 – ‘98 -- more than 3-times rate of increase for all other fatal crashes during that time

1. IIHS endorses use of cameras, which photograph vehicles running red lights & ticket violators by mail
2. Camera programs, used in @ 40 US communities, reduce red-light running by about 40%
3. Privacy advocates, including American Civil Liberties Union, expressed concerns about how cameras used

1. Comment from Bob Kealey, field consultant, Dealer Service Corp. in Boca Raton, FL
2. Soon, franchised new-vehicle dealers may not be able to service vehicles they sell
3. National shortage of technicians = 60,000
4. Competition stiff, even airlines recruiting auto dealer technicians
5. Vehicles more complex as older technicians retire & manufacturer’s certification programs become tougher
6. Technician moves from “laborer” to “knowledge worker”; Peter Drucker calls “technologists”

1. Shops hang on to poor performers just to fill positions
2. High-potential youngsters not becoming auto technicians due to “grease monkey” label
3. Poor-performing students sometimes dumped in “manual trades”
4. Dealers must not rely on manufacturer programs for technicians’ pool
5. Dealers must help develop viable technical school programs & manufacturers provide easy access to training
6. Must compete with benefits, working conditions & entry costs of other fields, like computer technician

1. Saturn’s Trans-Atlantic L-series car emerged late in '99 with ho-hum design after extended infighting
2. New CEO, G. Richard Wagoner's Internet fixation misses internal mistakes that hurt LS sedan, LW wagon
3. Only 48,133 sold 1st half '00, 50% below target (production capacity)
4. Opel Vectra platform's overhaul to accommodate Saturn plastic panels unnecessary, doubled development cost to $900M as misfitting parts arrived at assembly plant
5. Crash-test ratings poor, front-end's redesigns pre-launch left bland look compared to VW Passat, Ford Frais
6. Upshot: Blending Saturn into GM, reversing former CEO, Roger B. Smith's vision as independent running own show

1. GM top brass, including Wagoner as president & COO, blew it, demanding "soft" styling rather than trendy look of competitors
2. Hopes that S-series compact owners from last 9-1/2 years upgrade, regardless of appearance, mostly unsuccessful
3. New aero-like front end rushed for '01-1/2, + small SUV off S-series platform
4. SUV should have emerged 5-years ago but GM heeded Chevy fears would hurt Tracker
5. Could have stayed real "contender," but now future of Saturn blurry as GM 'de-Saturnizes Saturn"

1. US auto sales cooling down from recent all-time highs
2. Sharp split emerges between leaders & laggards
3. Analysts say it is "the best of times for vehicles in high demand, the worst for older models”
4. 3-years ago, average SUV incentive = 2.5% to 3% truck's price
5. Big rebates don't necessarily create big sales

1. Despite some hot new models, plenty of standbys cooling off
2. Disparities may signal tougher times ahead for Detroit, especially if rising rebates continue to crimp profits
3. Carmakers' response to slow-sellers = slap on more rebates
4. Today, SUV incentives = up to 10%
5. GM throws money at market at phenomenal clip & continues to lose market share
6. Rebates & incentives take toll on bottom line

1. Some automakers refuse to sell seat belt extenders for large people
2. Honda, Volkswagen, Subaru, Isuzu, Porsche, Kia & Hyundai do not offer extenders
3. Say they can't vouch for performance of seat belt extender in crash
4. GM, Ford & DC provide seat belt extenders; Says their engineers positive that people better off belted with extender than going without
5. Some large people too embarrassed to request extender from car dealer
6. NHTSA petitioned to review standards of factory-installed or otherwise government-tested extended safety belts

1. Seat belt extenders modify both belt & air bag systems affecting how far person is away from air bag when belt tightens in crash
2. 49 states have mandatory seat belt laws & police increasingly ticketing unbelted drivers
3. Americans heavier & larger than ever, so more people finding belts that meet today's federal standard difficult, if not impossible, to wear
4. NHTSA hasn't tested extenders; Sees no obstacle to offering longer belts, as many automakers do

1. DOT report says many states allow unsafe truckers to continue to drive
2. Audit finds 6-of-9-states failed to suspend drivers’ licenses convicted of major infractions in another state, such as drunken-driving
3. DOT visited 9-states & District of Columbia, & requested data from 41 states
4. Finds 7-of-9-states visited & DC + 15 states responding, allowed commercial drivers avoid disqualification through special permits or probationary licenses
5. Report also shows communications system between states is not properly used

1. In sample, 17% of convictions not transmitted to other states within 90 days
2. Also, some states recorded violations from other states, but did not use them to trigger disqualification
3. Truck driver involved in 3/99 train crash in Bourbonnais, Ill., killed 11 people was operating under probationary license

1. Lexus & Saturn dealers get best marks from consumers for servicing vehicles, according to JD Power satisfaction survey
2. Overall industry's average consumer satisfaction rating rose slightly last year, from 683 to 692 out of 1,000 possible points
3. 16-automakers ranked below industry average, including Ford, Toyota, Nissan, Volkswagen & Jeep
4. JD Power did not release scores of these 16 companies or explain why they ranked below industry's average
5. 22 vehicle brands performed above industry average

1. Lexus takes top honors in study for 9 out of past 10 years
2. Saturn = most-improved automaker, rising 6-places in rankings
3. Saturn tends to have few service problems, so excels at getting customers in & out quickly
4. Korean automaker Daewoo ranked 4th, behind BMW & ahead of Volvo, in 1st year eligible for study
5. Daewoo's free maintenance program that covers such items as oil changes for 1st 3-years helped its rankings
6. Dealers improving repair services to compete with independent companies, oil change shops

Read Background Info & Quotes
http://www.automotivedigest.com/member/news/view_curr_list.asp?mod=dealer
Websites
http://www.detnews.com
Sourced from: Associated Press via NewsEdge Corp., 7/13/00 & Detroit News,

1. Best Practices, LLC hosts Summer Meeting of Global Benchmarking Council (GBC), August 9-11 @ 4-Seasons Hotel in Palm Beach, FL
2. Attendees participate in interactive presentations from companies including Intel, Boeing, Ford, Motorola & JD Edwards
3. Guests also share collective experience of member organizations including Cisco Systems, GM, QUALCOMM, Dell, AT&T, Lucent, Nokia, DuPont, Bell Atlantic, GTE & Pfizer Pharmaceuticals Growth expert to discuss Ford’s Best Practice Replication process

1. Ford's Best Practice Replication process was one of 1st-knowledge management applications patented & licensed as Intellectual Property
2. For 3+ years, Ford successfully employs Best Practice Replication process to collect & share proven practices internally
3. Ford identifies nearly $1B of value resulting from implementing replication process across 20 global communities

1. Airline industry Website, code named “T2” delayed due to technical & legal complications
2. Site now called “Orbitz”
3. Launch probably in fall instead of original slate for early summer
4. Organizational challenge to build technical infrastructure to handle most-ambitious-yet travel Website, millions of air, hotel, car, & cruise rates
5. Orbitz comes under Senate Commerce Committee scrutiny in late July
6. Justice Dept. may also conduct formal investigation before allowing Orbitz to move forward

1. High stakes for travel agents, who vehemently oppose Orbitz, & airlines
2. Airlines want lower distribution costs; travel agents fear being cut out of even more booking revenue
3. Other major sites (Travelocity & Expedia) worried; initiates critical debate on controversial venture
4. Justice delays unveiling of Big-3 e-commerce site & looking at Orbitz through similar lens
5. Feds worried Orbitz gives major airlines inside look at how competitors manage pricing, inventory & other critical information
6. Could throw off competition

1. DC considers ways to cut costs at twin headquarters in Stuttgart & Auburn Hills
2. Wants to reduce administration costs but no decisions or concrete plans yet

1. DC expects to cut administrative costs in Stuttgart by 25% or 2.2B euros over 2-years
2. Expects to save similar sum at group's US headquarters in Auburn Hills, Michigan
3. Fears among employees of possible job cuts

1. Toyota announces best May ever for Certified Used Vehicle program
2. 27th consecutive monthly sales record; 15th month sales have exceeded 10K vehicles
3. May sales = 13,866; up 20.8% compared to May ‘99
4. January to May sales = 65,280, up 39.3% over same period ‘99

1. Certified programs among upscale vehicles remain popular
2. Fueled by manufacturer vehicle repurchase programs & off lease volumes

1. House & Senate votes stopped funding for proposed ergonomics standards starting 10/1/00
2. Lawmakers do not want proposal; White House has drawn line in sand
3. President Clinton expected to veto bill

1. Standards affect hundreds of thousands of workers in trucking, from assembly lines to docks to cabs

1. About 1/3 Internet savvy frequent travelers book all travel on Web
2. Travel industry survey shows @ 71% of this group’s most recent trips = leisure purposes
3. Business travel = 58% of most recent trips; for travelers who book on Web & traditional travel agencies
4. Web-only travel bookers tend to be younger than average frequent travelers

1. Frequent business travelers still prefer to let corporate agency or travel department handle their arrangements
2. Probably busier than frequent Web travel bookers & don't want to invest time to book own travel
3. Major concern to large & small travel agencies, trying to develop effective e-commerce strategies
4. As younger travelers age & do more business travel, industry must respond with Web booking tools & adapt travel agent/counseling services to this audience

1. Major airports move toward building consolidated car rental companies, reeking havoc with customers
2. Car rental customers having trouble finding new facilities when returning cars, or getting caught in congestion from facilities construction
3. Travelers barely making flights & feeling grumpy because of new difficulties
4. Dallas & San Francisco recently unveil consolidated car rental facilities, like other major airports
5. About 22 other major airports have consolidated facility plans on drawing board

1. Consolidated facilities = where all RACs are merged & squeezed into parking lot or similar facilities & trend with major US airports
2. Disrupts seamless travel experience, especially for frequent business travelers, who are used to quick & efficient rental car pick-ups
3. Major companies like Hertz & Avis have more trouble distinguishing high service levels from competitors with consolidated facilities
4. Some have common shuttle buses, monorails, or people movers, taking away shuttle bus customer service opportunity
5. This frustration just adds to list for frequent business travelers
6. All comes from increasing traveler traffic pushing limits of airports