WASHINGTON -- The Bush administration in the past week has adopted several hot-button regulatory changes long sought by business groups, drawing criticism from congressional Democrats.
The changes include new rules that open the way for commercial development of oil shale on federal land, allow truckers to drive for longer periods, and add certain restrictions on employee time off under the Family and Medical Leave Act.
Earlier this year, White House Chief of Staff Joshua Bolten set a Nov. 1 deadline for federal agencies to take final action on new regulations, allowing an exception for "extraordinary circumstances." In a memo dated May 9, Bolten called on agency heads to "resist the historical tendency of administrations to increase regulatory activity in their final months."
Some agencies haven't met Bolten's deadline, but are expected to adopt final rules before the end of President George W. Bush's term on Jan. 20. The Transportation Department, for example, has yet to complete vehicle fuel-economy standards. An agency spokesman, citing the cost and complexity of the rulemaking, said it "clearly meets the extraordinary circumstances test."
Some congressional Democrats, noting that other rulemaking is still under way at federal agencies, have accused the administration of seeking to make changes that would undermine environmental or public-health protections. On Wednesday, Rep. Jerrold Nadler (D., N.Y.), chairman of the Judiciary Subcommittee on the Constitution, Civil Rights and Civil Liberties, introduced legislation that would require regulatory changes made within the last three months of an administration to be approved by the relevant incoming cabinet secretaries of the next administration.
White House spokesman Tony Fratto said the congressman's criticisms were ill founded. "There will be some exceptions [to the Nov. 1 deadline] and some judgment calls," Fratto said. "Some of those exceptions are because of events beyond our cont
Oshkosh Corporation (Oshkosh) (NYSE: OSK), a company that produces specialty trucks and truck bodies for defense, industrial and fire emergency, has opened a new manufacturing facility in Tianjin, China.
The plant is to produce JLG(R) access equipment specifically for the Asian market. This move is another step in Oshkosh’s strategic business initiatives to meet the demands of a global economy, and the growth potential of the China and Asian markets in particular.
According to Robert G. Bohn, Oshkosh’s chairman and chief executive officer, ‘Today’s groundbreaking is confirmation of our investment in the future, and a significant opportunity for our customers, as well as the company. This facility will be the first ever China-based manufacturing facility for Oshkosh Corporation.’
Volvo Trucks North America and Mack Trucks announced Tuesday, Nov. 18, the launch of a large-scale program to remanufacture diesel particulate filters (DPF). The program will operate out of the Middletown Remanufacturing Center (MRC) in Middletown, Pa.
The truck makers say the program enables customers to simply exchange the used ceramic filter element from their DPF for a clean one when service is required, reducing service time and simplifying emissions control systems maintenance. Customers also are assured of receiving a warranted clean filter, while at the same time avoiding the need to invest in expensive filter cleaning systems, according to the companies.
The companies say the DPFs are remanufactured to more than 90 percent of original capacity: The process begins by blowing air across the filters and removing contaminants via a powerful vacuum; filter elements with a high level of oil or particulate buildup are baked in state-of-the-art industrial ovens to further reduce accumulated material prior to the vacuum process.
According to Bob MacPherson, MRC's manager of lean systems and new engine projects, a key advantage of the program is the ability to remanufacture in bulk, instead of servicing one filter at a time. "A DPF filter element is reusable," MacPherson says. "When it's no longer doing its job optimally, the component is sent to us, and we return it to useful service. It's a great deal for customers."
It's also a great deal for the environment, according to the truck makers. The U.S. Environmental Protection Agency's 2007 emissions regulations required a dramatic reduction of particulate matter emissions by heavy-duty trucks. Trucks sold in 2007 with EPA '07 engines now are approaching the mileage at which filters require routine service; if the filters are not remanufactured, the accumulation over time of ash and other material leads to decreased engine performance, the companies say.
The DPF cleaning p
No longer an option on commercial vehicles, cruise control systems have become a standard capability of electronic engines. These programmable systems boost fuel efficiency by ensuring that a carefully chosen road speed is maintained. It’s a well-known fact that for every mile per hour over 55, fuel economy is reduced by 0.1 MPG.
Cruise control also provides a safety benefit for fleets, drivers and the motoring public. Using cruise to slow down makes driving easier, and by smoothing the ride, especially over rolling terrain, driver fatigue is reduced.
Now available for heavy-duty vehicles is a relatively new adaptation of cruise control and one that provides even greater safety value. Known collectively as “adaptive cruise control,” these more advanced systems work in conjunction with conventional cruise control and forward-looking radar to detect speed and distance of vehicles ahead and automatically adjust your vehicle’s speed to maintain a safe following distance.
SmartCruise
An exclusive feature of Eaton Corp.’s VORAD collision warning systems, SmartCruise collects data from the collision warning system to assist drivers with maintaining safe following distances. To help prevent collisions, the system automatically adjusts vehicle speed, based on pre-determined parameters, by defueling the engine and engaging the engine retarder. When partnered with an Eaton automated transmission, SmartCruise automatically downshifts to maintain a safe following distance.
Eaton’s latest generation VORAD VS-400 with 77-GHz radar is a forward-looking object detection system that helps drivers identify objects up to 500 ft. ahead and provides in-cab audio and visual alerts. The collision warning system detects both slow-moving and stationary objects that may present a danger, regardless of weather conditions.
Active braking
Introduced earlier this year by Meritor WABCO Vehicle Control Systems, OnGuard uses forward-looking radar sensor tec
General Dynamics and the private equity firm The Carlyle Group have entered into an agreement for General Dynamics to acquire AxleTech International, a manufacturer and supplier of axles, axle components, planetary axles, independent suspensions, brakes and aftermarket parts for military vehicles, commercial trucks, and off-highway vehicles.
AxleTech International employs about 1,000 people worldwide, is based in Troy, Michigan, and has manufacturing facilities in Oshkosh, Wisconsin; Detroit, Michigan; Chicago, Illinois; St. Etienne, France; and Osasco, Brazil.
The proposed acquisition, which has been approved by both companies, would be immediately accretive to General Dynamics' earnings. The transaction is subject to normal regulatory approvals and is expected to be completed by the end of 2008, when AxleTech International will become part of General Dynamics' Armament and Technical Products business.
Parts Makers Shift to Shorter Workweeks, Crack Down on Credit to Prepare for the Potential Loss of Their Big Customers.
U.S. auto suppliers are scrambling to extend their holiday-season shutdowns, shedding workers and developing contingency plans to deal with a potentially devastating failure of some of their biggest customers in Detroit.
The moves come as General Motors Corp. on Friday announced more production curbs and lawmakers in Washington began hashing out conditions that the Big Three auto makers -- GM, Ford Motor Co. and Chrysler LLC -- will have to meet before Congress will consider giving them a $25 billion emergency cash infusion. Many suppliers are counting on a federal bailout to rescue their big customers -- and, by extension, themselves.
In the meantime, suppliers, still unsure of what will happen to the nation's car makers, are conserving cash by shifting to shorter workweeks, canceling capital-spending plans and accelerating layoffs. Problems in the supply network have the potential to spread pain to a wide swath of the U.S. economy. Auto suppliers employ more than 730,000 workers in the U.S., about three times more than the Big Three.
Nescor Plastics Corp. in Mesopotamia, Ohio, which makes plastic parts such as cup holders, in the past month has shifted to a four-day workweek, implemented an across-the-board salary reduction and canceled costly machine upgrades planned for the company's normal two-week holiday shutdown. The company also has added a week both before and after its two-week shutdown in which it will operate at only partial strength.
Like many auto suppliers, Nescor doesn't sell directly to the car makers. Rather, its plastic parts are sold to larger suppliers that assemble modules that get fitted onto cars on the assembly line.
"Over the past 12 months, we had three customers file Chapter 11 on us, so we know what it means when you suddenly aren't getting receivables you're coun
Navistar International Corp.'s defense group said British authorities have chosen the company's MXT vehicle to replace a portion of its fleet of tactical vehicles.
The United Kingdom's Ministry of Defense said it intends to spend about $425 million on 400 tactical wheeled vehicles. It named Navistar as one of three suppliers of the vehicles, which are to come in heavy, medium and light models.
Navistar said it expects to be the builder of the medium-weight version and expects to provide 260 vehicles. Delivery will likely begin in the first half of 2009, the Warrenville-based truck and engine-maker said.
The company didn't provide a value on the expected contract. The MXT is designed for assignments such as military border patrols and reconnaissance missions.
But what of the two US-based truck OEMs? Paccar reported net income of US$299m or US$0.82 per diluted share in the third quarter of 2008, compared to US$302.3m (US$0.81) in the same quarter of 2007. Back in August 2008, Paccar began to cut both staff and output at its Kenworth plant in Melbourne, Australia. According to Belgian trade union ABVV, some 750 staff will lose their jobs at Paccar facilities within Belgium, whilst an as-yet unannounced number of staff are due to be laid off at Eindhoven, the Netherlands. In the UK, the night shift will be ended at the DAF plant at Leyland, and the company is now negotiating a further 250 redundancies likely to take effect from February 2009. In the US, where Paccar has already cut capacity quite markedly, the Kenworth plant at Renton, Washington, will lay off 430 employees from 16 January 2009. Just 66 hourly-paid workers will remain, and production of all on-highway trucks will be ended, according to local press reports.
The facility will produce just two off-highway trucks per day, down from an output of 18 units per day this time last year.
Three months ago, at Paccar's Q2 conference call, CEO Mark Pigott was asked about lead times, and said: "We're increasing the build rate; there are certainly a lot of benefits to having a backlog of one year but in terms of satisfying immediate customer demands that sometimes is a bit of a challenge. But right now it looks pretty good." Thirteen weeks on, and it appears a very different picture: "I think we are looking at four to eight weeks of build, which we typically look for around the world and then some people will have orders slated in the first and second quarter," said Pigott in response to an analyst's question.
Navistar's recent past has been characterized by a lot of uncertainties with regards to its accounts. At its Q3 conference, it revised full-year guidance up after posting record net income for the third quarter of US$272m, or US$3.68 per sh