Tuesday May 26 2009

Resources

Commentary: EFCA-You Know You are a Target When...

Robert Chiaravalli (Commentary) If only we knew how to predict the future, then we could avoid all of our costly mistakes. Hectic, all of our mistakes – costly or not. But that is not the case, and as business leaders we are always walking the tight rope of managing well or managing poorly. With the renewed interest in a stronger labor movement by President Obama and a Democratic majority in both the House and Senate, there will be many firms targeted by unions for organizing in non union firms and regaining collective bargaining losses in union firms. So, how do you know when you are targeted.

The Long March to Lower Emissions, SCR-DEF-EGR May be Temporary

The syngas generator has a small electric blower and glow plug and burns diesel fuel at a rich mixture ratio, the total flow being only about 2 percent of engine flow. This produces carbon monoxide (CO) and hydrogen in a partial reaction. When these products are subjected to normal diesel exhaust temperatures, they burn using the oxygen that’s always in diesel exhaust, especially under light load, and heat the exhaust. The result, says Holt, is a DPF that can keep itself clean even when the engine is loaded lightly.

Commercial Vehicle Market Intelligence Report—March 2009

Polk Industry Overview—U.S. New Commercial Vehicle Registrations March 2009 and CYTD March 2009

New Commercial Registrations for GVW 3-8 vehicles for the first quarter of the 2009 Calendar Year were 79,800 units, down 40.0 percent from the comparable period of the 2008 Calendar Year.

Congress Outlines Policy to Reduce Trucking’s Freight Share by 10 Percent

The debate over future surface transportation policy is likely to be directed by Congress, rather than the Obama administration, several industry lobbyists said following the recent release of numerous documents.

Last week, in a handwritten outline for the bill, Rep. James Oberstar (D-Minn.), chairman of the House Transportation and Infrastructure Committee, sketched out a dramatic overhaul of federal transportation policy that would include “freight improvement.”

Fleets See Slight Freight Gain; May Not be a Trend

A broad spectrum of truckers are reporting modest recent improvement in freight levels, but industry executives last week said it still was too early to declare a steady positive trend is emerging.

Using words such as “encouraged” and “a little better,” 12 truckload and less-than-truckload leaders said that volumes are better, particularly in the past two or three weeks. None of the executives who commented on market trends reported a business decline.

Fleets Cutting Costs, Size, Buying Plans

NEW YORK - For-hire carriers are responding to the prolonged freight drought by shrinking fleets as much as 20 percent, while lowering operating costs by consolidating operations and by cutting driver pay and fuel costs. Most also have plans to limit, in not eliminate new truck purchases over the next 12 to 18 months, according to fleet executives addressing an audience of financial analysts at the Wolfe Research Global Transportation Conference here.

Since 2007, Swift Transportation has taken 2,000 tractors out of its fleet, which now stands at 16,000 tractors, according to CFO Ginnie Henkels. The truckload carrier instituted a hiring freeze last November, and then reduced driver pay and bonus payments, she told the analysts. The fleet has also sought to reduce fuel costs by limiting the top speed for its trucks and stepping up no-idling enforcement. A realignment of its 30 shops has also helped the fleet reduce operating costs and improve vehicle efficiency by lowering downtime for routine maintenance, Henkels said.

Navistar’s Hebe: Trucking Hit by ‘Perfect Storm’

A “perfect storm” of a nose-diving economy, high fuel prices and governmental missteps have all combined to ravage the trucking industry and the companies that supply its equipment, according to Jim Hebe, senior vice president of North American sales for Navistar Inc.

Hebe, addressing the annual meeting of the National Tank Truck Carriers here May 11, said while trucking has always had to deal with business cycles, “they’re happening more often and they’re getting steeper. The highs are higher and the lows are lower.”

Hebe said new Class 8 truck sales have fallen significantly this year (see story, p. 1), while another speaker, Qualcomm’s Norm Ellis, cited data that showed tanker loads have fallen 40 percent during 2009, compared with last year’s already de-pressed levels.

Mack Trucks Reaches Agreement with UAW

Mack Trucks Incorporated, a subsidiary of Volvo AB (NASDAQ: VOLV) (STO: VOLVA) (STO: VOLVB), has reached a tentative agreement with the United Auto Workers union on a new 40-month Master Agreement.

The contract includes the creation of a trust that will completely eliminate Mack’s health care liabilities for retirees.

Caterpillar, Navistar Confirm; Cat-branded Truck Available in 2011

Caterpillar Inc. and Navistar International Corp. announced last month they had signed a definitive agreement to produce Caterpillar heavy-duty vocational trucks for sale in North America and had formed a 50/50 joint venture to pursue commercial truck opportunities outside of North America and India. The agreement, which is subject to regulatory approval, finalizes a planned alliance announced in June 2008.

The new Caterpillar trucks, to be unveiled in late 2010, will be co-developed by Caterpillar and Navistar and built at Navistar’s facility in Garland, Texas. They will be sold and serviced exclusively through the Caterpillar North American dealer network. The North American truck deal is subject to various closing conditions, including the execution of the related strategic alliance agreement and certain other ancillary agreements, the companies said.

Clean Diesel Makes its Case to Congress

WASHINGTON D.C. To combat its often negative image as a “dirty” and inefficient source of energy, the diesel-fuel advocacy group Diesel Technology Forum (DTF) hosted a special event on Capitol Hill here to bring together members of Congress and elements of the diesel industry and show off how current diesel-based power systems can curb pollution and reduce overall fuel consumption.

“When people think of ways to address climate change and energy security, they typically think of solar power, wind power, things that are new and different,” Allen Schaeffer, DTF executive director, told FleetOwner.

An Invaluable New Study, Sales Best Practices Among Commercial Vehicle Parts Suppliers Report, is Now Available for Purchase!

The NAFTA commercial vehicle industry is facing one of its most difficult periods in decades due to economic and EPA regulatory issues. OEM component suppliers are under intense pricing pressure in this tightening market.

Commercial vehicle component suppliers, following a set of proven best-practices for sales and pricing, are able to negotiate effectively even in this difficult current economic environment, based on the findings of a ground-breaking new industry study, Sales Best Practices Among Commercial Vehicle Parts Suppliers, released by the Heavy Duty Manufacturers Association (HDMA) and Kotler Marketing Group.

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