July 25, 2011

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New CEO Says Cummins Can Compete Despite Vertical Integration of Trucks

Transport Topics Magazine
Tom Linebarger, who will become Cummins Inc.’s next chairman and CEO on Jan. 1, said the company is well positioned to meet the competition of North American truck makers offering “vertically integrated” packages of their own trucks and engines.

Cummins’ board appointed Linebarger, currently the company’s president and chief operating officer, to replace Tim Solso, who is retiring on Dec. 31.

The Commercial Vehicle Outlook Conference 2011: A Premier Industry Educational and Networking Event!

Take Advantage of the Special Early Registration Offers!
FIRST 100 TO REGISTER: Attend the by-invitation-only Avondale Trucking Partners Summit FIRST 250 TO REGISTER: Receive an autographed copy of Karl Rove's book, "Courage and Consequence"

The conference will be held Noon to Noon, August 24 & 25, 2011 at the Dallas Convention Center, immediately preceding the Great American Trucking Show, and is hosted by HDMA and Randall-Reilly.

Trucking Company Earnings Up Despite Soft Economy

Fleet Owner Magazine
Overall, carriers are reporting strong gains in revenues and earnings for the second quarter this year, with expectations that this trend should continue despite a softening of the U.S. economy.

I would characterize the overall second quarter freight environment as a little choppy, but moving in an upward direction [while] pricing continued to be strong,” noted Henry Gerkens, chairman, president & CEO of Landstar System Inc., in the company’s quarterly earnings report.

Eaton’s 2Q Profit Rises 47 percent; Truck Segment Posts Record Sales

Transport Topics Magazine
Truck and auto components maker Eaton Corp. said Monday its second-quarter profit rose 47 percent as its truck unit’s sales rose to a quarterly record.

Eaton’s net income rose to $336 million, or 97 cents per share, up from $226 million, or 66 cents, a year ago. Sales rose 21 percent to $4.09 billion.

CARB Approves $40M for Clean Vehicle Purchases

Overdrive Magazine
The California Air Resources Board on July 21 approved up to $40 million for the third year of funding to promote the purchase of next-generation clean cars, trucks and off-road equipment.

Californians will be able to use vouchers or rebates on a first-come first-served basis toward the purchase of zero-emissions or plug-in hybrid cars and zero-emissions or hybrid trucks and buses.

Major Aftermarket Distributor FleetPride Joins CVSN

Truck Parts and Service Magazine
The Board of Directors of the Commercial Vehicle Solutions Network (CVSN) announces that FleetPride, Inc. was recently approved as a new CVSN member.

“FleetPride is a supporter of a strong independent channel and its critical role in serving the transportation industry,” says Lee Stockseth, Fleetpride’s chief operating officer. “Because CVSN is comprised of the premier aftermarket distributors and is committed to the advancement of its independent members and the industry as a whole, we are pleased to be a part of this organization.”

Opinion of Former NLRB Member: Business Under Assault

Peter Kirsanow – National Review
The National Labor Relations Board is poised to issue new union-election rules that will significantly increase the number of unionized workplaces while at the same time severely restricting employers’ involvement in the determination to unionize their businesses and forcing employees to make an uninformed choice regarding the decision to unionize.

The NLRB held hearings on the proposed rules earlier this week. I argued against issuance of the rules on behalf of the National Association of Manufacturers — the nation’s largest industrial trade association — saying that although the rules would be enormously beneficial to unions, they would be profoundly harmful to employees, employers, and the economy. NAM was at the forefront of defeating the Employee Free Choice Act, or “card check.” These proposed NLRB rules promise to achieve the primary objectives of EFCA — easing union organization and vastly increasing the number of unionized workplaces — by administrative rule, without the need for tough congressional votes.

Ceridian-UCLA Pulse of Commerce Index Up 1.0 Percent in June

The Ceridian-UCLA Pulse of Commerce Index™ (PCI), issued today by the UCLA Anderson School of Management and Ceridian Corporation rose 1.0 percent in June on a seasonally and workday adjusted basis, a welcome rebound following declines in the previous two months. Despite the stronger performance in June, the economy continues to remain in idle with the PCI remaining below its level at the end of the first quarter.

“Over the past year the U.S. economy has been in ‘she loves me, she loves me not’ mode,” said Ed Leamer, chief PCI economist and director of the UCLA Anderson Forecast. “Bad news has been alternating with good, leaving investors and forecasters nervous and unable to identify sustainable trends.”

Ryder Names Cooke Senior VP, Fleet Management Solutions

Heavy Duty Trucking Magazine
Ryder System announced Dennis C. Cooke has joined Ryder's Fleet Management Solutions business segment as senior vice president and COO, U.S. and Canada.

Reporting to Ryder President of Global Fleet Management Solutions Robert Sanchez, Cooke will be responsible for leading the North American operations for the company's largest business segment, which manages a fleet of more than 180,000 vehicles from 850 locations, servicing the needs of more than 15,000 customers.

Caterpillar Profit Misses Estimates on Japan Quake Impact; Shares Decline

Bloomberg News
Caterpillar Inc. (CAT), the world’s largest construction and mining-equipment maker, posted lower- than-expected profit for the first time in 10 quarters after the Japanese earthquake reduced sales and manufacturing costs rose.

Second-quarter earnings excluding $204 million in costs related to its acquisition of Bucyrus International Inc. were $1.72 a share, Peoria, Illinois-based Caterpillar said in a statement today. That trailed the $1.75 average of 20 analysts’ estimates compiled by Bloomberg. The shares dropped the most in more than two years in New York trading.

AASA, HDMA, MERA and OESA Members: Say No to “Back-Door” Card Check

As has been previously reported in the Washington Insider, the Department of Labor (DOL) and the National Labor Relations Board (NLRB) have issued two proposed rulemakings that would significantly limit an employer’s ability to present information to employees and seek counsel in matters regarding union elections. The NLRB proposal seeks to dramatically shorten the time in which a union election can be held, and the DOL rulemaking would change the definition of “persuader activity” which would severely limit an employer’s ability to seek legal counsel in matters relating to union elections. These two rulemakings are in addition to the NLRB’s attempts to interfere in the Boeing Company’s decision to locate a facility in South Carolina instead of Washington State.

SmartWay Drops "Certified," Announces Recognition Program

Truckinginfo.com
The Environmental Protection Agency is changing the designation for tractors and trailers it lists as fuel-efficient options, from "SmartWay Certified" to "SmartWay Designated."

The agency says this will help distinguish top-performing vehicles that meet SmartWay specifications from vehicles certified to meet EPA regulatory requirements.

BAE Systems, Crane Carrier Form Alliance

Trailer/Body Builders
BAE Systems has entered into an agreement with Crane Carrier Company, a U.S. market leader in the refuse collection vehicle (RCV) industry, to integrate a heavy-duty hybrid electric propulsion system into one of its vehicles.

The newly formed alliance will perform field trials this year with a plan for Crane Carrier Company to offer HybriDrive powered vehicles to the market by the end of 2012. This alliance will introduce the use of the HybriDrive parallel system into the North American RCV market and is part of BAE Systems’ broader strategic initiative to address a range of heavy-duty truck vocations that also will include construction, pick-up and delivery, and utility.

Carriers, Ocean Shippers Clash Container Chassis-Safety Rules

Transport Topics Magazine
Two years after truckers won a decade-long battle to win new federally mandated chassis-safety rules, broad disagreement about the effect of those changes remains; marketplace confusion reigns and operational issues are unresolved, according to trucking officials and consultants.

Tired of being saddled with equipment violations on shoddy chassis owned by ocean carriers, the truckers’ effort to make the owners provide safer equipment began in 1999. Six years later, the effort bore fruit and the Federal Motor Carrier Safety Administration started writing new rules that began taking effect in June 2009.

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