REGULATORY REPORT         SUPPLIER NEWS                    

ECONOMIC TRENDS                  PEOPLE IN THE NEWS

ASSOCIATION NEWS            FACTOID

REGULATORY REPORT

CARB Orders Reprogramming of Older Truck Engines By April

The California Air Resources Board (CARB) voted Dec. 9 to require five engine manufacturers to upgrade emission reduction software in certain trucks that operate in the state by the end of April 2005. The mandate replaces the voluntary plan instituted earlier in 2004.

The engine manufacturers would have to pay to reprogram the engines of all 1993 through 1998 trucks operating in California, regardless of where they were registered, by a certain deadline, said Jerry Martin, a CARB spokesman.

Under the voluntary guidelines adopted by CARB in March, manufacturers had until November to reprogram 35 percent of their trucks registered in California. That did not include all their trucks operating in the state. Martin said engine manufacturers weren�t satisfying the voluntary plan.

Reprinted from Transport Topics, Dec. 20, 2004.

CARB Delays Action on Clean Air Act Waiver Request

The California Air Resources Board (CARB) delayed action earlier this month on a request for a waiver from the federal Clean Air Act, a waiver that would allow the state to impose tougher emission rules. The waiver would allow a requirement that public fleets purchase vehicles with cleaner-running engines, CARB representatives said.

CARB had scheduled a closed-door review of the request Dec. 8, to be followed by a decision by CARB executive officer Catherine Witherspoon on whether to seek a waiver from the U.S. Environmental Protection Agency. However, the agency got 3,000 comments on the possible waiver, said CARB spokesman Jerry Martin. He said the board would probably delay the discussion until its next meeting on Jan. 20-21.

Reprinted from Transport Topics, Dec. 20, 2004.  

Michelin Announces U.S. Price Increases

Michelin North America (MNA) announced price increases affecting several U.S. replacement tire lines. Also, effective March 1, prices on both BFGoodrich and Michelin brand commercial truck tires will increase up to 6 percent. Effective Jan. 1, prices on earthmover tires will increase by 5 percent. Agricultural radial tire prices will increase up to 6 percent, and agricultural bias tire prices will increase up to 12 percent, MNA reported.

Reprinted from Aftermarketnews.com, Dec. 28, 2004.

Michelin Recalls 4,000 Commercial Truck Tires

Michelin Americas Truck Tires (MATT) has notified the National Highway Traffic Safety Administration (NHTSA) that it is recalling a maximum of 4,000 Michelin XDE M/S Size 10R22.5 (Load Range F and Load Range G) commercial truck tires. MATT�s decision comes after its quality control system indicated a condition that could possibly result in rapid air loss, the tiremaker reported. To date, there have been no accidents or injuries reported and no property damage claims filed, according to MATT.

The recalled tires were produced at Michelin�s Ballymena plant in Northern Ireland from May to October. The tires are typically used on the drive axle of a variety of commercial vehicles in North America. Affected tires have DOT markings beginning with HJ and ending with 2104 through 4304. Michelin said it would replace all potentially affected tires produced during that period.

Reprinted from Aftermarketnews.com, Dec. 27, 2004.

Accuride to Acquire Transportation Technologies Industries

Accuride Corp., a manufacturer of wheels for heavy/medium trucks and trailers, recently announced it has agreed to acquire Transportation Technologies Industries Inc., a manufacturer of truck components for the heavy and medium-duty trucking industry. The common stock of both companies is privately held. Upon completion of the merger, the combined company will offer the trucking industry a one-stop component sourcing solution.

Terry Keating, Accuride's current president and CEO, will serve as president and CEO of the combined company. The transaction, which is subject to customary closing conditions, is expected to be completed in January 2005.
  
Reprinted from Truckinginfo.com, Dec. 28, 2004.

Dana Announces Manufacturing Consolidation of Off-Highway Transmissions and Axles

Dana Corp. recently announced that it will consolidate manufacturing of off-highway transmissions and axles, which will result in the closure of Dana's Statesville, N.C., facility. The company also announced a work force reduction in Brugge, Belgium, and the realignment of machining and assembly operations in North America and Europe.

The consolidation and related transfer of production assets are expected to be completed by December 2005. Production in Statesville is scheduled to end in September. These actions will eliminate about 300 jobs and result in an after-tax charge of approximately $25 million, of which $22 million will be recorded in the fourth quarter of 2004.

Outplacement training and separation benefits will be provided to the affected employees. Additionally, these people will be kept informed of openings at other Dana facilities.

Reprinted from Truckinginfo.com, Dec. 22, 2004.

Bendix Airbrake School Announces 2005 Schedule

Bendix Commercial Vehicle Systems LLC recently announced its 2005 schedule for Air Brake Training School. The Bendix school curriculum covers the fundamentals of compressed air, air system failure mode diagnosis tactics and troubleshooting. This year's classes feature exercises that emphasize hands-on opportunities for participants. Last year Bendix air brake experts trained more than 8,000 people, equaling just over 40,000 student hours.

The 100 percent ASE-certified Bendix Service, Warranty and Training (SWAT) team conducts as many as 29 three-day, in-depth product schools each year. Specialized, on-site fleet training is also available.

The Bendix Air Brake Training School costs $200 per attendee. All course materials are provided. Lunch is included when the class meets from 8 a.m. to 5 p.m. Transportation and lodging is the responsibility of the student. Dress code is casual. Class size is limited and enrollment is on a first-come, first-served basis.

For locations, times and registration information, visit www.bendix.com or call 800-AIR-BRAKE (800-257-2725).

Reprinted from Truckinginfo.com, Dec. 21, 2004.

ATA Says Truck Tonnage Up In November

The American Trucking Associations (ATA) recently reported that its advanced seasonally adjusted Truck Tonnage Index increased 1.6 percent to 160.0 (1993=100) in November. This followes a revised 0.1 percent decrease in October. Compared to November 2003, the unadjusted index surged 12.1 percent. Year-to-date, compared to the same eleven-month period in 2003, truck tonnage was up a solid 6.5 percent.

Reprinted from Truckinginfo.com, Dec. 30, 2004.

Class 8 Sales Jump 46.4 Percent

November�s U.S. retail sales of new Class 8 trucks climbed 46.4 percent to 17,793 units, from the previous year, as manufacturing sources said growing demand for both on-highway and vocational truck replacement expanded the market. The figures showed a continuation of what has been a strong year for heavy-duty truck demand. Industry observers also said the latest data supported a belief that sales would be even better in 2005.

Reprinted from Transport Topics, Dec. 20, 2004.

Class 4-8 Registrations Rise 26 Percent

Led by a steady surge in demand for Class 8 trucks, registrations of new Class 4-8 vehicles increased about 26 percent in the first nine months of 2004. However, medium-duty truck registrations grew at a significantly slower pace as commercial buyers mainly focused on acquiring new heavy-duty rigs, according to state-by-state data compiled by R.L. Polk & Co. on the number of new vehicles being registered after purchase.

Polk said registrations of Class 4-8 vehicles rose 30.9 percent from the same 2003 period in the Northeast, 29.2 percent in the South and 27 percent in the West. However, registrations grew just 18.8 percent among a grouping of central states, where the data showed medium-duty demand relatively weaker than in other regions.

Besides the big rigs used in freight hauling, Polk�s Class 8 category includes buses, recreational vehicles and vocational vehicles, as well as specialty registrations, such as antique trucks.

Reprinted from Transport Topics, Dec. 13, 2004.

Tire Shipments Decrease in September

Domestic replacement consumer tire shipments were down more than 5 percent in September compared to the same month last year, according to the latest report from the Rubber Manufacturers Association (RMA). Taking into account both replacement and original equipment tires, only OE medium truck tire shipments increased in September. Here are the 2004 vs. 2003 tire shipment comparisons for the month:

• Replacement medium truck: down 2.3 percent. 
• OE medium truck: up 49 percent.

For the first nine months of the year, replacement shipments in the United States remain up compared to 2003, says the RMA. In the medium truck tire segment, replacement shipments are up 3.4 percent through the first nine months, while OE shipments are up 40.1 percent.

Shipments of tread rubber are expected to finish the year up 2.3 percent over 2003 levels, according to RMA. Shipments in 2004 will produce approximately 16.7 million retreaded tires in the United States.

Reprinted from Modern Tire Dealer, Dec. 15, 2004.

2003 Trucking Revenues Increase

The U.S. Census Bureau reported that revenues for the trucking, warehousing and courier industries rose a combined 2.8 percent to $242 billion in 2003, from $235 billion a year earlier. Truck transportation rose 2.5 percent to $172 billion, the Census Bureau said in a statement. Courier and messenger revenues grew 2.8 percent to $54 billion, and warehousing and storage revenues jumped 5.8 percent to $16 billion.

The report also found that general freight trucking contributed about two-thirds of all trucking revenue, while trucks transporting specialized freight accounted for the remainder. In addition, the bureau said local general freight trucking revenues grew 7.3 percent to $16 billion, and long-distance freight revenues increased 2 percent to $95 billion.

Reprinted from Transport Topics, Dec. 28, 2004.

PEOPLE IN THE NEWS

Eaton Fills Four Executive Positions

Eaton Corp. has filled four positions in its Truck Components Aftermarket business unit.

Jeffrey T. Barylak has been named VORAD global marketing manager; David L. Plaster, global aftermarket marketing manager; Matthew A. Sturdy, aftermarket NAFTA sales manager; and Sergio Sanchez marketing and business development manager, mobile diagnostic tools and solutions.

Barylak has worked in the automotive and heavy vehicle as well as the telecommunications marketplace for 19 years. He joins Eaton from Panasonic Automotive Systems of America, where he most recently served as a marketing strategist for New Business Development. With Barylak�s new position, he will grow the Eaton VORAD safety systems business in the North American and the global trucking industry and beyond, looking toward global sales and markets other than commercial vehicles.

Plaster will direct the global marketing activity and growth for Eaton�s aftermarket businesses. He is a 10-year veteran of the trucking industry, and joins Eaton from Hendrickson International where he most recently served as marketing director.

Sanchez will focus on Eaton�s new and growing mobile diagnostics MDTM tools business, as well as other growth opportunities for aftermarket, focusing on unidentified or unfulfilled customer needs. Sanchez served as the manager of business development and planning for Eaton Truck Components before accepting his current position.

Sturdy, a 20-year Eaton veteran, will direct the OEM and field sales activity for all truck components aftermarket activity in North America, including Fuller clutch and transmission parts and reman businesses, MD Tools and Roadranger aftermarket activities with Dana Corp. as part of the two companies� marketing agreement. He has served in several positions of increasing responsibility within Eaton and Roadranger Sales and Marketing, most recently as OEM sales manager.

Reprinted from Truckinginfo.com, Dec. 27, 2004.

Luc Named Managing Director of ArvinMeritor Worldwide Trailer Products

ArvinMeritor, Inc. recently announced the appointment of Stephen Luc to managing director, Worldwide Trailer Products. Luc will report to Sergio Carvalho, vice president and general manager Worldwide Braking Systems, Suspension Systems, Trailer Products and Ride Control within ArvinMeritor Commercial Vehicle Systems (CVS). Luc is responsible for Worldwide Trailer Products global sales, marketing and engineering. He will be based at the company's headquarters in Troy, Mich.

Luc has been with ArvinMeritor for nearly 28 years and most recently served as business unit director for the company's CVS European Trailer Products, based in Wrexham, Wales. He earned a bachelor's degree in business administration from Ohio University and master's degree in business administration from Xavier University.

Reprinted from Truckinginfo.com, Dec. 20, 2004.

ASSOCIATION NEWS

Gear Up to Attend the 2005 Aftermarket Legislative Summit on March 1-2

More than 200 aftermarket industry representatives from across the country are expected to take part in the Aftermarket Legislative Summit, Driving our Message to the Hill, March 1-2, 2005 in Washington, D.C. Aftermarket representatives will seek the support of members of Congress on a host of issues including the Motor Vehicle Owners' Right to Repair Act; association health plans; anti-counterfeiting; and asbestos litigation reform legislation.

The summit kicks off on the evening of March 1 with a reception on Capitol Hill, where aftermarket representatives will have a chance to network with lawmakers and their staff. On March 2, a morning issue briefing will be featured, followed by pre-scheduled meetings with your senator and representatives. 

Don�t miss this opportunity to influence legislation and protect the business interests of the aftermarket. There is no registration fee to attend. Attendees are responsible for their own hotel and transportation arrangements.

To register, visit www.aftermarket.org/events/legislative_summit/legislative_summit.asp, or contact the AAIA government affairs department at 301-654-6664.

AAIA Legislative Action Center Revamped for New Congress

With the 109th Congress opening this week, the AAIA government affairs department is rolling out its new and improved Legislative Action Center. The center is critical to the association�s legislative efforts, and provides the individuals employed in the aftermarket with a convenient and easy method for sending messages to their elected officials regarding issues of importance to the industry and their company. Last year, the center generated thousands of e-mails urging congressional support of the Motor Vehicle Owners� Right to Repair Act. Clearly, the newly renovated site will be critical to aftermarket efforts on this pro-competition legislation during the 109th Congress. 

The updated site features improved graphics; more comprehensive information on legislators and issues; and increased flexibility in developing and sending messages to elected officials.

To access the site, members may click here. The login is your e-mail address.   

For assistance using the Legislative Action Center, contact the AAIA government affairs department at 301-654-6664.

Seventeen AAIA Member Companies Named to Forbes 400 Platinum List

Forbes magazine recently published its annual 400 Platinum list, which picks the "Best Big Companies" from 26 different industries. Seventeen AAIA member companies were among the automotive, aftermarket and transportation names listed this year. To make the running, a company must have at least $1 billion in revenue and high rankings for corporate practices as well as long- and short-term sales and earnings growth and stock market performance.

The 17 industry company names are: Advance Auto Parts; BorgWarner; Clorox; Danaher; Eaton; Ingersoll-Rand; Johnson Controls; Lincoln Electric; Modine Manufacturing; O'Reilly Auto Parts; Parker Hannifin; PPG Industries; SPX Corp.; Stanley Works; Sunoco; 3M; and Timken.

To view the entire list, click here.

FACTOID

A survey from Nielsen/NetRatings, Goldman Sachs and Harris Interactive found that consumers spent $23.2 billion online during the 2004 holiday season, up 25 percent from a year earlier.

Reprinted from Transport Topics, Jan. 4, 2005.