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ARI Push No. 80
September 6, 1999

ARI Push #80 - Week of September 6, 1999

SIGNIFICANT AUTOMOTIVE INDUSTRY NEWS & DEVELOPMENTS OF PARTICULAR INTEREST TO FLEET MANAGEMENT EXECUTIVES
Week of September 6-10, 1999

Table of Contents

[1] GM, FORD, CHRYSLER STRIKE DEADLINE

[2] New DOT Truck Regs for Bobtails & Transports

[3] New DWI Laws for Texas Effective 9/1/99

[4] Methanol Challenge to Gasoline Fuel Cell

[5] AQMD May Adopt Tougher Pollution Rules

[6] Internet Mobile Tracking Connections

[7] E-mail Product for Small Truck Fleets

[8] Ford Revamps Web Site, Takes E-commerce Lead with Dealer Links

[9] Michelin to Puts $400M in SC Plant, Goodyear Move Prompt $900M Spending

[10] UC Market Stays Strong, 40M Retail Sales, Dealers Sell 15.2M

[11] Kutner To Lead Fix of Snafu'd VOMS, Toyota Test & Web Shakes GM

[1] GM, FORD, CHRYSLER STRIKE DEADLINE

 Situation At 12:01 a.m. on September 15, 1999,
  1. One of the big three auto manufacturers could be facing a strike by the United Autoworkers Union.
  2. UAW not telling which company will be the target
Significance to Fleets
  1. If not settled, all orders for one auto maker becomes frozen
  2. Orders cannot be canceled or changed until work resumes at the plant
A recent announcement from the UAW that Ford autoworkers agreed to allow the Union to call a strike is just a formality and does not mean that Ford will be the target this year.
Source: ARI

[2] New DOT Truck Regs for Bobtails & Transports

New Truck Regs in Effect 7/1/99
  1. Bobtails & transports
  2. MC330 & MC331 cargo tanks
Significance of New Rules for Propane Marketers
  1. Require inspection of hoses, discharge systems & new hardware
  2. Set forth new operational procedures
  3. Paperwork must be available for inspection after 7/1/2000
For More Information
  1. DOT Hazmat Center (800-HMR-4922)
  2. National Propane Gas Association
Source: Butane-Propane News, August 1999 (page 24) & Automotive Digest

[3] New DWI Laws for Texas Effective 9/1/99

 Texas Reduces Legal Blood-Alcohol Limit to 0.08 Percent
  1. DWI blood-alcohol limit lowered from 0.10 percent effective 9/1/99
  2. All children 15 and younger must use seatbelts even in the back seat (previously applied to children 4 & under)
Some Groups Say Lower Threshold Ignores the Cause of Drunken Driving
  1. The average driver involved in alcohol-related fatalities has blood-alcohol level of 0.18 percent
  2. June highway safety study (US General Accounting Office) finds several NHTSA studies fail to provide "conclusive evidence that 0.08 laws by themselves have been responsible for reductions in fatal crashes."
Source: San Antonio Express-News, August 28, 1999 (Lisa Sandberg & Jamie Castillo) & Automotive Digest

[4] Methanol Challenge to Gasoline Fuel Cell

 Entrepreneur Says His Fuel Cell Technology Eliminates Some Basic Problems
  1. DTI Energy Inc. linked a deal last month with Ballard Power Systems Inc.
  2. "Direct Methanol Liquid Feed" fuel-cell eliminates need for the reformer, but is 30% less efficient than "direct" fuel-cells
  3. Fuel cell reformers add complexity & present storage & temperature problems
Auto Makers Have Invested Significant Dollars in "Indirect" Fuel-cell Technology
  1. They say direct fuel-cells show promise, but standard fuel-cells will be ready to market sooner
  2. Expect to see a variant of conventional gasoline that can use the existing infrastructure first
See Background Statistics & Quote at www.automotivedigest.com
Source: Wall Street Journal, California Edition, August 25, 1999 (page CA1)

[5] AQMD May Adopt Tougher Pollution Rules

 Federal Judge Requires South Coast Air Quality Management District to Adopt 31 Tough Anti-pollution Measures
  1. Judge critical of Air District for proposing 2010 implementation date
  2. Will issue a final ruling after both sides submit written comments on his opinion
Significance of Tentative Ruling
  1. SCAQMD contends many measures are unfeasible, outdated & would cause severe economic dislocations
  2. Judge says only the US EPA can modify the plan
See More on Background on Lawsuit at www.automotivedigest.com
Source: Los Angeles Times Electronic Edition, August 28, 1999 (David Rosenzweig)

[6] Internet Mobile Tracking Connections

 Internet Becomes Popular Channel for Information & Data Exchange between Trucks & Dispatchers
URLs
http://www.aercomtec.com
http://www.fms-online.com
Source: Heavy Duty Trucking, August 1999 (page 104)

[7] E-mail Product for Small Truck Fleets

 Vendor Makes "TruckMail" Technology Available for Small Fleets
  1. Qualcomm of San Diego targets fleets of 25-50 trucks
  2. Sends e-mail over same satellite system used by biggest US fleets
What TruckMail Does
  1. Allows free-form messages between driver & dispatch
  2. Offers discounted long-distance phone service
  3. Includes PC & software
See More at www.automotivedigest.com
Source: Heavy Duty Trucking, August 1999 (page 98)

[8] Ford Revamps Web Site, Takes E-commerce Lead with Dealer Links

 Why Ford is overhauling its Web site
  1. Track sales leads better
  2. Link retail customers to dealers faster
Ford's Commitment to its Web site:
  1. Taking leadership in electronic commerce is 1 of 4 chief goals for Ford Division this year
  2. Asking all 4,200 dealers to sign up for Web link through Ford.com
Significance for Fleets
  1. Expect continued expansion of Internet access to enhance fleet capabilities
  2. Access to all Ford deals via one web site
Source: Automotive News, August 23, 1999 (page 6)

[9] Michelin to Puts $400M in SC Plant, Goodyear Move Prompt $900M Spending

 How Michelin's NA Unit is moving to Expand in U.S. Tire Market:
  1. Plans to spend at least $400M in South Carolina on new factory & various plant expansions
  2. Money to be spent over next 5 years
  3. Total investments could rise to $900M over next decade
Why Michelin is making this Move
  1. Response to Goodyear's linkup with Sumitomo Rubber Industries Ltd., say analysts
  2. Goodyear alliance catapulted company back to No. 1 position in terms of size
  3. Alliance also gave Goodyear big boost in European markets Michelin's home turf
  4. Goodyear expanding in Europe faster than Michelin expanding in U.S.
Significance of Tire Expansion to Fleet Management
  1. Excess capacity & improved efficiencies could mean lower prices for fleet buyers
  2. Michelin's new investments will help keep U.S. plants up-to-date
See More at www.automotivedigest.com
Source: Wall Street Journal, August 19, 1999 (page A6)

[10] UC Market Stays Strong, 40M Retail Sales, Dealers Sell 15.2M

 Why 1999 is one of Best UC Retail Sales Years
  1. Retail sales of used vehicles to exceed 40.1M units this year
  2. Up from 39.7M in 1998, say analysts
  3. NAAA reported sales of used cars & trucks by member auctions at 8.3M units in 1998
  4. 14.5% sales increase over previous year
  5. 1999 volumes likely to exceed 1998 by hefty margin
  6. Prices surprisingly strong for this time of year
Predictions For Off-Lease Vehicles In Wholesale UC Market Next Year
  1. Supply in 1999 going to be very high from 2- to 3-year-old leases
  2. Will fall off a bit due to decline in leasing caused by fewer factory incentives for leasing
See More at www.automotivedigest.com
Source: Auto Auction Shopper/Used Car News, August 16, 1999 (page 1)

[11] Kutner To Lead Fix of Snafu'd VOMS, Toyota Test & Web Shakes GM

 The Problems with GM's Vehicle Ordering Management System
  1. No just-in-time pipeline from vendors
  2. Assembly schedules stall
  3. Customer sold-orders outside metro markets skid to 42-day avg. wait
  4. Large metro dealers get most orders filled ASAP
  5. Smaller dealers left to wait...& wait
The Details about Group Worldwide Purchasing Vice-President, Harold Kutner
  1. Delegated to head task force to slash delivery times
  2. Brings to job longtime supplier associations
What Triggered This Sudden GM Change?
  1. Toyota's test of system to cut special-order build times to 5 days or less
  2. GM entry into Internet sales, where ASAP deliveries are must
Fleet Management Relevance
  1. Recent Automotive Fleet Magazine survey named Dodge Intrepid as quickest in order-to- delivery time for the important intermediate-size vehicle segment (averaging 44 days)
Website: www.dowjones.com
See More at www.automotivedigest.com
Source: Wall Street Journal, 8-25-99 (Gregory L. White) & Automotive Fleet, August 1999 (page 28)