Monday April 28 2008

Resources

Brand Protection Council June 10 Meeting Open to All Members

All members are invited to attend the next meeting of MEMA Brand Protection Council from 9 a.m. until 1:30 p.m. on Tuesday, June 10, at the Hyatt Regency Capitol Hill, Washington, D.C.

Held in conjunction with the Legislative Summit, this special meeting of the BPC will feature guest speakers from government agencies including the FBI, Department of Justice, Immigrations and Customs Enforcement, Customs and Border Patrol, and the National Highway Traffic Administration to discuss intellectual property and compliant parts enforcement.

Hino and Mitsui JV to Establish CV Sales in Russia

Hino has announced that it will establish a sales company in Russia through a joint venture with Mitsui. The new company, Hino Russia, will market Hino's full range of light- to heavy-duty trucks and be operational by June 2008.

The joint venture is reported to involve an investment of 400m (US$3.8m). Hino will hold 65 percent and Mitsui 35 percent. The venture plans to sell 500 trucks during the first year and targets 5,000 per year within five years.

Volvo Truck Group Posts 12 Percent Rise in Net Income in Q1 ’08

The Volvo Group has reported a 12 percent increase in its net income in the first quarter of CY2008, rising to SEK 4.21bn (US$703.66m), compared with SEK 3.75bn in the corresponding period of the previous year.

This rise in net income was due to a significant increase in the Group's operating income, which rose by 22 percent year-on-year to SEK 6.49bn, up from SEK 5.33bn a year earlier. The bulk of the operating income came from Volvo's industrial operations, which accounted for SEK 6.1bn, while the remaining SEK 381m was from its customer finance business.

Suppliers to Honor Dingell as Industry Champion

The Motor and Equipment Manufacturers Association (MEMA) will honor Rep. John Dingell as the 2008 recipient of the "Joseph M. Magliochetti Industry Champion" award. The award will be presented during MEMA's annual Legislative Summit in Washington, D.C. on June 11.

MEMA established the Industry Champion award in 2004 in the memory of Joseph M. Magliochetti, who served as the chairman and CEO of Dana Corp. until his death in 2003. The award was designed to recognize lawmakers that have shown leadership and initiative on issues impacting automotive and heavy duty suppliers.

Used US Truck Exports to Russia Booming, Thousands per Month

An unprecedented wave of exports, mostly to Russia, has cushioned a downturn in the Class 8 used-truck business, which has been hurt by high fuel prices and a weak freight market, according to industry executives.

The overseas demand has helped firm up prices for used units, the officials said; historically, economic downturns have sent used heavy-duty truck prices spiraling downward.

Carlisle to Drop On-Highway Brake Business

Carlisle Companies, Charlotte, N.C., has decided to dispose of its on-highway brake business and its power transmission belt business.

A strategic plan announced during the company's fourth quarter 2007 earnings call was developed to simplify Carlisle's business and focus management's attention on the growth and margin improvement opportunities in its Construction Materials, Transportation Products and Applied Technologies segments while maximizing value and considering strategic alternatives for some of the businesses in its Specialty Products segment, explained David A. Roberts, Chairman, President and CEO. "After evaluating the power transmission belt business and on-highway brake business, which recorded combined net sales of approximately $200 million in 2007, a decision was made in April 2008 to develop an exit strategy for these businesses."

March Truck Sales Fall By 35 Percent, But Orders Rise for Sixth Month

Heavy-duty truck making continued its contraction in March, the 15th straight month that U.S. retail sales declined on a year-over-year basis, but orders continued climbing, holding out hope for a rebound later this year.

Truck manufacturers and their dealers moved 35.2 percent fewer vehicles in March, compared with last year, and 40.8 percent fewer in the first quarter, according to the monthly survey by WardsAuto.com.

GAZ and Marcopolo to Produce Buses in Russia

Russian automakers continue to forge ties with foreign companies in order to boost growth at home. In the latest industry developments Russia's GAZ and the Brazilian bus manufacturer Marcopolo have invested some US$300mn in a joint venture that will produce buses in Russia.

According to company sources, the JV will launch production of Brazilian Real and Andare buses at two plants located in the Volga area and in central Russia. Some 150 Real buses have already been made at a plant in Pavlovsk, and output is expected to reach 3,000 units a year by 2011. Production at a plant in Golitsino is expected to hit 1,000 units a year by 2013.

Technology Drives Growth Opportunities in the NA HD Truck Aftermarket

Consolidations characterize the current business environment in the North American heavy-duty truck aftermarket. The aftermarket continues to witness greater truck complexity, a declining skilled worker population and distribution channel cost compression.

New analysis from Frost & Sullivan, Strategic Overview of the North American Heavy Duty Truck Aftermarket, finds that demand for on-road freight hauling continues to rise along with the number of vehicles. The number of class 3-8 commercial vehicles is rising at a CAGR of 2.0 percent and is forecast to top 11.4 million by 2014. This study examines the various challenges facing the heavy-duty repair and service industries and highlights where participants need to direct their focus to sustain market growth.

MAN CEO Samuelsson Pushes for Further Growth, More Flexibility

MAN AG's (MAN.XE) Chief Executive, Hakan Samuelsson, said Friday he wants to enhance flexibility at the German truck maker and engineering group as he pushes for further growth.

"Following recent years' refocusing efforts your company has now set its sights clearly on growth," Samuelsson said in a prepared statement at the company's annual general meeting, adding that MAN is "fully preoccupied with satisfying demand and expanding...capacities."

Nominations Open for MEMA's Triangle Award

The Motor & Equipment Manufacturers Association has opened nominations for its Triangle Award, the association's most prestigious award. The deadline for nominations is Friday, Sept. 12.

For more than 30 years, the Triangle Award has been presented periodically to that person, persons or organization whom the membership of MEMA chooses to honor for selfless contribution to the automotive industry.

MAN Eyes Bigger Slice of Russian Heavy Truck Market

MAN has announced that it plans to increase its share of the booming Russian heavy commercial vehicle market and close the gap between itself and its rivals, Volvo Truck and Scania, according to a Reuters report.

The group expects Russian demand for heavy trucks exported from Western Europe to grow by about 60 percent this year to between 32,000 and 34,000 vehicles, from around 20,300 during 2007. Russia’s market for medium- and heavy-duty trucks weighing over six tons grew by almost 25 percent during 2007 to around 126,000 vehicles.

ArcelorMittal Will Apply Steel Surcharge for US Customers

Citing high raw-materials costs, the world's largest steel producer, ArcelorMittal, sent a letter to U.S. auto makers and other U.S. contract customers saying that it would apply a rare $250-a-ton surcharge to the price negotiated in existing contracts, according to people who received the letter.

Contract customers, including Ford Motor Co. and General Motors Corp., may have no immediate option but to pay up because of the tight steel market world-wide. Moreover, other steelmakers are likely to increase prices or add surcharges for the same reason. But the higher costs come at a difficult time for car makers, which are contending with a downturn in the U.S market because of the housing slump and credit crisis. Passing on the higher steel costs to car-buying consumers is an increasingly difficult option, given higher food and energy costs, and consumers' concerns about the weak economy.

Truck Tonnage Sees Largest Drop Since August 2006

The American Trucking Associations' advanced seasonally adjusted For-Hire Truck Tonnage Index fell 3.3 percent in March 2008, after remaining unchanged in February -- the largest month-to-month contraction since August 2006.

The not seasonally adjusted index increased 3.8 percent from February to 113.2.

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