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Monday,
November 19, 2001, #193
News
digested November 12 16, 2001
|
Significant
fleet management news & developments of particular importance to
fleet management executives.
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Sourced
from: Transport Topics, 11/13/01
1) Provisions
Of Patriot Act Unclear, DOT Says Continue Old CDL Standards
Situation
- USA Patriot
Act requires certification that all truck drivers who haul hazardous
materials are not security risks
- Requirement
could drastically slow process of granting CDLs
Significant
Points
- DOT is working
with state motor vehicle administrations to clarify processes &
result expected in @ 1-mo
- National Industrial
Transportation League (NIT) members suggests side effects of Act could
harm shippers & carriers
- Until clarification,
states instructed to continue issuing CDLs under old standards until
updated guidelines received from DOT
Web Source
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Sourced
from: JJ Keller & Assoc, 11/15/01
2) 2000
Work Zone Fatalities Up 26% Vs 1999 Record High
Situation
- American Traffic
Safety Services Assoc (ATSSA) published 2000 work zone fatality statistics
- All-time high
2000 work zone fatalities are up 26% over 868 in 1999
- Actual fatality
numbers believed to be higher but not reported as "work zone"
incidents
Significant
Points
- ATSSA says law
enforcement officers help calm traffic in work zone areas
- Adequately trained
workers also identified as helpful during emergencies in work zones
- Positive separation,
crash cushions & impact attenuators recommended by ATSSA to protect
workers & motorists
Work Zone Fatalities
- Drivers = 652
- Passengers =
264
- Pedestrians
= 157
- Pedacyclist
= 11
- Other non-motorist
= 9
Web Source
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Sourced
from: The Wall Street Journal, 11/7/01
3) Armored
SUV Sales Explode; Bulletproof/Bomb-Resistant Vehicles In Demand After
Terrorist Attacks
Situation
- B4 Sept 11,
tough year for custom stretch limousine makers, many also specialize
in armored vehicles
- 1-company sales
down 25%, or by 100 cars for year & had laid-off workers
- After Sept 11
terrorist attacks, business abruptly turned around, mainly for armored
SUV market
- Latest armored
SUVs are bulletproof, bomb-resistant, & equipped with features
of rolling office
- Computers, wireless
Internet access, TVs & DVDs allow execs, movie stars & other
VIPs to get work done safely
- Customized Ford
Excursion runs $95K (without bulletproofing) & $175K (with bulletproofing)
Significant
Points
- Big Toys Coach
Works had 50 orders for office-on-wheels, with 10 armored, most for
East Coast clients
- Companies sensitive
about execs riding around in armored vehicle; numerous refused to
discuss what leaders are driving
- Limo services
buying bulletproof/bomb-resistant vehicles to diversify business
- Making up for
lower demand for airport runs by leasing SUVs to execs for road trips
to Philly, Boston, or across Manhattan
- Becker Automotive
Design in S Calif features SUVs that can withstand fire from AK-47s,
shotguns & .44-caliber Magnums
- Texas Armoring
of San Antonio offers James Bond-like features to customers overseas,
like electrified door handles, tear-gas dispensers & gadgets that
drop tacks & oil slicks on roads
Web Source
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Sourced
from: URL Wire, 11/6/01
4) AJ
Prindle Delivers Products & Solutions To Meet Drivers' Needs
Situation
- AJ Prindle dedicated
to helping drivers adapt vehicles to way they work, live & play
- Provides auto
lifestyle solutions based on drivers' diverse needs
- Offers innovative,
useful & "gee-whiz" products
- 1st Prindle
catalog mailed to 300K target customers in March; 2nd catalog mailed
in August
Significant
Points
- Transforms family's
car, truck or van into efficient mobile office
- Feature reputable
brands such as Coleman, Swiss Army & 3M
Web Source
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Sourced
from: Financial Times 11-15-01 Page A17 & The Wall Street Journal
11-15-01 Page 6A
5) Nasser
Lands Golden Parachute; Agrees Not To Join Rival
Situation
- "Non-compete"
agreement included in cushy golden parachute deal arranged for ousted
CEO Jacques A Nasser
- Ford Nasser
gets stock awards for current year based on 100% performance level
- Other post-Ford
perks include office, financial planning services, ability to choose
educational institution as grant recipient
- Premier Auto
GP chief Wolfgang Reitzle gets $5M if he stays with automaker 'till
end 2005
- All of Reitzle's
stock options vest 1-1-06
- Like all other
ex-Ford chairman/CEOs, Nasser also keeps company chauffeur for biz
trips
Significant
Points
- Nasser shouldn't
have been too surprised by Oct 29 ouster --
- Golden parachute
OK'd by Ford board at Sept meeting Nasser attended
- Ex-Treasury
Sec'y Robert Rubin facilitated Nasser force out as Ford director
- Rubin challenged
Nasser's performance last July, complained of lack of candor in discussing
problems with board
- New CEO William
Clay Ford Jr says company was "paralyzed" & Nasser had
to go
- All new hands
untested in top jobs, but Bill Ford so far seems to have made right
choices
Web Source
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Sourced
from: Automotive News, 11/15/2001
6) Lexus
Tops JD Power Most Dependable Survey For 7th Straight Year With Only
1.73 Problems Vs 3.82 For Typical Vehicle
Situation
- JD Power &
Assoc announces results 2000 Vehicle Dependability Study of 40,000+
owners
- 7th straight
year, Toyota Motor's Lexus luxury division tops list
- LS 400 premium
luxury sedan & LX 450 full-size SUV top respective vehicle segments
- Lexus SC Coupe
& ES 300 sedan also placed within top 3-in their segments
- Toyota Tacoma
compact pickup, T100 full-size pickup, 4Runner SUV & Supra sports
car top categories
- Following Lexus
in rankings: Nissan's Infiniti, Ford's Jaguar & Lincoln, &
Honda's Acura brands
Significant
Points
- Average 1997
Lexus had 1.73 problems per vehicle, compared to 3.82 problems for
average 1997 model
- Durability of
4-& 5-year old Lexus cars & trucks had < 50% problems of
average vehicle
- Toyota's US
sales rose 7.3% through Oct, mostly at expense of US automakers
- Lexus also topped
JD Power May 2001 study on initial quality --
- Annual survey
of customer-reported problems within 1st 90 days of ownership
Most Dependable
Automakers
- 1st = Toyota
- 2nd = Honda
- 3rd = Ford
- 4th = Nissan
- 5th = GM
Web Source
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Sourced
from: Reuters, 11/07/01
7) GM
Hopeful OnStar Becomes Profitable In 2003; Automaker Has 80% Telematics
Market With 1.8M+ Subscribers
Situation
- GM hopes OnStar
telematics unit begins generating profits at some point in 2003
- Years of losses
from investments in in-vehicle communications service
- OnStar has @
80% share of "telematics" market, 1.8M+ subscribers
- Available on
36+ GM vehicles & on few selected competitors' models
- OnStar expected
to become cash-flow positive sometime next year
Significant
Points
- GM is far ahead
of main competitors in offering telematics services
- OnStar is part
of GM's drive to try to derive more fee & service revenues from
customers
- Analysts question
whether OnStar & similar services will generate considerable profits
longer term
- May become another
feature consumers expect as part of overall package in new cars &
trucks
Web Source
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Sourced
from: AAMVA, 10/29/01
8) Task
Force On Driver Licensing Identification Security Created By AAMVA
Situation
- American Assoc
of Motor Vehicle Administrators (AAMVA) established special task force
on identification security
- Task Force to
build relationships with Congress & federal agencies to improve
coordination & credentialing security
- Task Force will
develop strategy to increase issuance of secure ID credentials for
driver licensing & photo ID purposes
- AAMVA membership
comprised of motor vehicle & law enforcement administrators
Significant
Points
- Task Force's
recommendation report due to AAMVA Board of Directors Jan 2002
- Betty Serian,
deputy secretary, PA Dept of Transportation appointed chair of Task
Force
- Also appointed:
representatives of NJ DMV, TX Vehicle Titles & Registration Division,
Canadian council of Motor Transport Administrators, NY DMV, &
TX Dept of Public Safety
Web Source
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Sourced
from: AAMVA, 11/9/01
9) State
DMVs Unclear With HAZMAT License Provisions In US Patriot Act
Situation
- American Assoc
of Motor Vehicle Administrators (AAMVA) made recommendations to Congress
& Depts of Justice & Transportation
- Says to allow
states to continue licensing commercial drivers to transport HAZMAT
- Says some provisions
in US Patriot Act are unclear & require clarification from Congress
- Without clarification,
commercial drivers may not be able to receive or renew HAZMAT endorsement
- AAMVA calls
for 6-month moratorium on issuing HAZMAT endorsements to non-US citizens,
except for documented resident aliens
- AAMVA wants
to work with Justice Dept to develop workable system, procedures,
& penalties for issuing HAZMAT endorsements
Significant
Points
- Policy interpretation
letter issued by Federal Motor Carrier Safety Admin (FMCSA)
- Instructs state
motor vehicle agencies (MVAs) to continue issuing HAZMAT endorsements
to CDL holders
- Until ambiguous
language is clarified, MVAs have to interpret ruling on HAZMAT provisions
- AAMVA concerned
DOT rulemaking may take up to 1-year before being issued
- AAMVA recommends
legislation include new HAZMAT definition applying to all drivers
with HAZMAT endorsements, not just aliens
Web Source
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Sourced
from: Auto Body Repair News, October 2001
10)
Washington Auto Repairer Sues Farmers Insurance, Says Insurer Keeping
Business Away
Situation
- Stroud's Auto
Rebuild Inc in Washington suing Farmers Insurance for "blackballing"
facility
- Stroud's dropped
out of Farmers Circle of Dependability (COD) direct repair program
(DRP) in 1994
- Stroud's left
program because Farmers would not pay for certain work & encouraged
them to cut corners
- Afterwards,
Stroud's says Farmers told customers not to use facility for several
reasons, including they charged too much
- Farmers denies
allegations
Significant
Points
- Plaintiff seeking
damages under the Consumer Protection Act in Washington
- Trial delayed
until June 2002
- Lawsuit alleges
repair facility suffered "huge revenue losses" because of
Farmers actions
Web Source
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Sourced
from: Collision Week, 11/8/01
11)
NHTSA Asks Consumers For Best Ways To Inform Public On Child Restraint
Performance
Situation
- Nat'l Highway
Safety Admin (NHTSA) asked public for input on best ways to inform
them on child restraint performance
- Transportation
Recall Enhancement, Accountability, & Documentation (TREAD) Act,
requires understandable system for child restraint safety rating
- NHTSA concluded
effective consumer info must be easy to use
Significant
Points
- NHTSA proposes
testing includes child restraint at higher speeds or putting child
restraints in back seat of test vehicles
- NHTSA hopes
new child restraint info program could motivate manufacturers to create
safer, easier to use child restraints
- Ratings must
be available by Nov 2002
- Submit written
comments to: Dept of Transportation's Docket Management Section, Room
PL-401, 400 Seventh Street SW, Washington, DC 20590
- Comments can
also be submitted via Website: dms.dot.gov
Web Source
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Sourced
from: Reuters, 11/7/01
12)
US Supreme Court To Rule If Toyota Carpal Tunnel Syndrome Case Falls
Under ADA
Situation
- US appeals court
ruled carpal tunnel syndrome falls under American with Disabilities
Act (ADA)
- Lawyers for
Justice Department & Toyota Motor argue carpal tunnel syndrome
not covered by ADA
- Lawyers for
defendant, assembly line worker for Toyota, says law meant to cover
carpal tunnel syndrome
Significant
Points
- Ruling could
have significant impact on many different businesses & affect
millions of workers
- Supreme Court
decision expected early next year
Web Source
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Sourced
from: NTSB Press Release, 11/5/01
13)
Does Over-The-Counter Medication Effect Vehicle Operators? -- Asks NTSB
& FDA
Situation
- Nat'l Transportation
Safety Board (NTSB) & Food & Drug Admin (FDA) looking at effect
of prescription & OTC medication on vehicle operators
- Some prescriptions
& OTC medications cause drowsiness
- Labeling guidelines
not always helpful on whether medicine could impair driving skills
- Safety Board
investigations of accidents revealed operators impaired by prescription
or OTC medication
Significant
Points
- Safety Board
asked FDA to require clear warning labeling for all medications
- Participants
to discuss severity of problem medication impacts vehicle operators
- Other issues:
criteria to determine person's impairment level; current regs for
addt'l regs & possible warning labels
- Public invited
to participate in meetings
- Contact FDA
to participate
Web Source
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Sourced
from: Automotive News 11-12-01 Page 1
14)
DC Still Stumbling 3-Years After Merger, Says Automotive News
Situation
- Front-page Automotive
News DC "overview" finds little to praise
- 6-negative areas
cited (see below)
- Chairman &
CEO Juergen E Schrempp's crystal ball murky from Day-1 on Chrysler
GP's "vulnerability" to slide in US truck market
- Parts sharing
synergies stalled by Mercedes/Chrysler schism
- Culture gap
drove out all 12 members of Chrysler "dream team," followed
by many talented jr execs
- Unable to sell
Chrysler products without incentives, defy marketing along tight-margin
lower-MSRP template
Significant
Points
- Author of "analysis"
piece, Diane T Kurylko, concludes "no fix in sight"
- But disregards
AN's own report on how Chrysler GP CEO Dieter Zetsche wowed NY bank
parley Oct 30 with talk on future plans
- Analyst Peter
Schmidt advises shareholder fallout over plunge in merged company
value warrants Mercedes divestiture of Chrysler GP
- Feeling Chrysler
millstone on Mercedes' neck now prevalent in view of minimal sales
spike with 0% loans (unlike GM & Ford)
- DC #1 shareholder
Deutsche Bank will determine whether spin-off will happen
- Only likely
bidders inside auto industry remain Honda or Ford
Negative Areas
Cited By Automotive News:
- Incompatible
product programs e
- Ongoing key
exec brain drain
- Depressed stock
price
- Higher industry
US sales/market share slid
- Lowest-ranked
manufacturing productivity
- 2001 loss up
to $2.5B
Web Source
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Sourced
from: Detroit News 11-11-01 Page 1B & Automotive News 11-12-01 Page
1A
15)
Only 45-Day Supply Of New Units Available After Oct Sales Blitz, Lowest
Since 1992
Situation
- Oct 31 stockpile
of new cars slides to 45-day supply, lowest since Mar 1992
- Breakout: 49-day
supply of trucks/vans/SUVs, 41-day supply of cars
- All-time Oct
sales high slashes stockpile 7.6% from Sept 30 level, when supply
more normal 58-day
- Automakers reluctant
to ratchet up production, thinning dealer stocks to shortage levels
in many hot models
- Last month's
1.7M sales would have chopped inventory of 2.9M to 1.2M by Nov 30
if no output this month
- Unaccustomed
shortages hit Ford Focus/Escape/Mustang, Cadillac Escalade, Chevy
Corvette/Trailblazer/Impala
Significant
Points
- Scarce stocks
could give Big-3 excuse to end 0% incentives
- Factories prod
dealers to order max supplies so plants can be run all-out to Xmas
break & after New Year's
- Prices, unrevised
basically for 2002MY, unlikely to change up or down as topsy-turvy
market rolls on
- On other side
of coin, used car sales taking big hit from 0% offers on new units
- Lower prices
for UCs, down nearly 5% on average from Oct 2000 to Oct 2001 wholesale,
causing glut situation for auctions & dealers
Web Source
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Sourced
from: Detroit Free Press 11-14-01 Page 1A & The New York Times 11-14-01
Page C1 & The Wall Street Journal 11-14-01 Page B1
16)
Lutz Heads GM N America, Ending "Non-Car Guy" Zarrella's Reign
Situation
- GM installs
vice-chair Robert A Lutz as N America chief
- Controversial
Ronald L Zarrella, "father" of brand marketing, resigns
suddenly after 7-years
- Charismatic
Lutz chairs N America, promotes manufacturing & human resources
chief Gary L Cowger to N America president
- Dealer-distrusted
Zarrella quit GM because he had no chance to become CEO
- Lutz couldn't
share power with "non-car guy" Zarrella
- Zarrella lost
favor with dealers over brand marketing push that let product upgrades
languish & cost GM market share
Significant
Points
- Autocratic &
blunt Lutz now has free rein to turn product side around while making
marketing decisions
- Cowger, 54,
highly respected for shaping up GM's manufacturing efficiency &
quality
- Also for restoring
GM peace with UAW after stormy period of strikes in late 1990s
- Zarrella disdained
for aborted dealership buyout initiative & avoiding dealer contacts
as much as possible
- In 15-day span,
sr execs Zarrella & ex-Ford CEO Jacques A Nasser lost jobs after
making moves opposed by "best customers" (dealers)
- No more clueless
vehicle brand managers be recruited outside auto industry, as was
affable Zarrella
Web Source
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Sourced
from: Automotive News, 11/05/2001
17)
Ford & BMW Offer Goodyear's BioTred "Corn" Tire on 2-Models;
Tires Pollute Less & Get 5% Better Fuel Economy
Situation
- Automakers to
equip new cars with environmentally-friendly tires with compound derived
from corn
- BMW to offer
tires on economy 3-series, following Ford's earlier decision to supply
on economy Fiesta
- Tires sold as
replacements in European markets for past 2-years
- Goodyear expects
US sales to boom for tires containing corn-derived compound
- BioTred uses
polymer derived from ordinary cornstarch, or corn flour; material
used to thicken sauces & commercial food products
Significant
Points
- GT3 BioTred
less polluting to produce, quieter on road, boosts fuel economy 5%
& stops faster on wet roads
- Polymer mixed
with synthetic rubber, largely replacing soot-like carbon black used
in century-old tire-making process
- Environmental
image helped Goodyear market to consumers, capturing 30% of all Goodyear
replacement business
- With Ford &
BMW deals, these 1st OEM offerings are major step towards broader
acceptance
Web Source
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Sourced
from: News Day, 11/06/01
18)
NY Delays Electric Vehicle Mandate Until 2007MY, Compromising With Automakers
Situation
- NY Gov Pataki
quietly negotiated deal w/ automakers to delay electric car sale mandates
- Tentative decision
would delay mandate 3-yrs till 2007MY
- NY, Vermont
& Mass only states to follow CA in electric car sales mandates
- CA recently
delayed implementation again
- EV mandates
repeatedly stymied by automaker lawsuits & consumer resistance
Significant
Points
- Electric cars
cost $21K ea more to produce than comparable gasoline vehicles
- EV 10% sale
mandates without purchase mandates dictate automakers pass loss on
to other customers
- New deals allow
automakers to earn credits in lieu of EV sales
- Credits earned
for hydrogen-powered demo or selling many very clean gasoline vehicles
Web Source
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Sourced
from: Reuters, 11/09/2001
19)
Recall Hits GM With 86K+ Chevy Trailblazer & GMC Envoy SUVs; Transmission
May Shift Out Of Park
Situation
- General Motors
again recalled new Chevrolet TrailBlazer & GMC Envoy mid-size
SUVs
- 3rd recall to
affect TrailBlazer & 4th to affect Envoy
- Latest recall
follows reports of fears 86,312 of SUVs could shift out of park &
roll
- Included are
78,004 SUVs sold in US; 52,338 Trailblazers & 25,666 Envoys
- Other 8,308
Tailblazers & Envoys sold in Canada, Mexico & elsewhere
Significant
Points
- New SUV models
key contributor to GM's profitability & stable US market share
this year
- GM says problem
originates with supplier's component on GM-made transmission
- Owners can take
SUV to GM dealership to be inspected for problem transmission
- Automaker not
received any consumer reports of problem & nobody had been injured
Web Source
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Sourced
from: Collision Week, 10/23/2001
20)
EPA Says Smog & Fine Particles Still Challenging; Southern &
North-Central Regions See Increases In Smog
Situation
- US Air quality
steadily improved through 2000 according to EPA's annual summary of
air quality trends
- Since EPA formed
in 1970, GDP increased 158%, miles traveled by cars & trucks increased
143% & energy consumption increased 45%
- Private companies
& others working to reduce emissions through voluntary partnerships
& programs like EPA's Energy Star consumer product initiative
- Nat'l long-term
trends toward cleaner air continued, but not air quality status of
individual cities
- Despite continuous
improvements, certain types of pollution continue to present challenge
for some areas of country
- Overall smog
levels decreased, but southern & north-central regions see increases
in smog
Significant
Points
- National Governors
Assoc called upon Congress to establish flexible, market-based program
- Proposal would
reduce & cap emissions of sulfur dioxide, nitrogen oxides, &
mercury
- Also provides
market-based incentives like emissions trading credits to help achieve
required reductions
- Report titled,
"Latest Findings on National Air Quality: 2000 Status & Trends"
& addt’l info at http://www.epa.gov/airtrends/
- EPA also proposed
rule to improve nat'l parks by controlling emissions from older power
plants & industrial facilities that contribute to haze
Web Source
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Sourced
from: PRNewswire, 11/06/2001
21)
Jeep Liberty Wins "Economy SUV" Award From NW Auto Press Assoc
For On & Off-Road Refinement & Size
Situation
- All-new 2002
Jeep Liberty is segment winner in Northwest Automotive Press Association's
(NWAPA) annual awards
- 8th annual NWAPA
competition held in Olympia, Washington
- 2-day "Mudfest"
featured @ 20 NWAPA auto journalists
- 26 competitors
put through tests at Bremerton Speedway & Thurston County Off-Road
Vehicle Park
- Jeep Liberty
earned "Economy SUV of the Year"
- Vehicles rated
on overall design, comfort & convenience, quality, cornering ability,
ride & handling, braking, on & off-road performance, value
& personal appeal
Significant
Points
- New Liberty's
on & off-road refinement & size make it unique in market
- 210 hp 3.7L
SOHC 12-valve V6 makes it most powerful in segment
- Liberty also
features coil spring independent front suspension & link-coil
rear for on & off-road refinement
- Also features
patented single-action swing gate/flipper glass system for quick &
easy access to cargo area
Web Source
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Sourced
from: The Car Connection, 11/05/2001
22)
Dodge 2002 Ram 1500 Wins 'Four Wheeler' Magazine Race; Has "Qualities
Enthusiasts Look For"
Situation
- Four Wheeler
magazine held annual "Pickup Truck of the Year" competition
- 2002 Dodge Ram
1500 wins top honors
- Featuring 4-wheel
drive & 4 doors
- Full competition
appears in January 2002 issue of Four Wheeler
Significant
Points
- Ram has "qualities
enthusiasts look for" says magazine
Web Source
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Sourced
from: Popular Mechanics 10/31/2001
23)
Popular Mechanics Editors Pick Top Products Of AAIW; 6,000+ Booths Reviewed
At Auto Show
Situation
- 2001 Popular
Mechanics Editor's Choice Awards held in Las Vegas at Automotive Aftermarket
Industry Week
- AAIW is annual
gathering of tens of thousands of manufacturer reps, chain-store buyers,
retail shop owners & journalists
- Popular Mechanics
auto staff scoured latest products brought to $25B aftermarket industry
Significant
Points
- 6,000+ exhibitors
booths reviewed before selecting best products for annual Editor's
Choice Awards
Top Aftermarket
Products
- AutoXray
EZ-Link: Consumer-oriented diagnostic code reader upgradeable
via Internet
- Robert Bosch
Corp: Platinum2 spark plugs, mid-priced at $3.99
- Delphi Aftermarket
Operations: Driver Selectable Ride shock absorbers
- BFGoodrich
Tires: G-Force T/A KDW, 1st 24" diameter tire for high-performance
SUVs
- Goodyear
Tire: Fortera HL SUV, dedicated luxury SUV tire offering car-like
ride & handling but looks like car tire
- Longhorns
West: Rail-Rider Rolling Toolbox is stake pocket-mounted box
that slides to back of bed on rails for easy access
- Mothers Polishes
Waxes Cleaners: California Gold Paint Chip Repair puts professional-looking
flush finish on small blemishes
- Simple Green:
Total Automotive Foaming Cleaner/Degreaser is non-toxic, biodegradable,
non-abrasive, non-corrosive clinging foam that can be used on most
surfaces like paint & rubber
- Tesla Electronics:
G-Tech Pro Liberator - compact portable display that mounts to inside
of windshield with suction cup to record tax-deductible miles, provides
current traffic & weather
- Trico:
Teflon Blade is Teflon-coated wiper with reduced friction for smoother,
cleaner wipe on windshield; it repels water, snow & ice, won't
crack
Web Source
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