REGULATORY REPORT         SUPPLIER NEWS                    

ECONOMIC TRENDS                  PEOPLE IN THE NEWS

ASSOCIATION NEWS            FACTOID

REGULATORY REPORT

DOT Report Urges Caution on Mexican Trucks in U.S.

The inspector general of the U.S. Department of Transportation (DOT) issued a 62-page report earlier this month that said no Mexican motor carrier should be issued authority to haul freight in the U.S. before a number of problems are addressed.

According to the report summary, �Until an agreement or other understandings related to on-site safety reviews is reached with Mexico, the Federal Motor Carrier Safety Administration (FMCSA) cannot, in our view, grant long-haul operating authority to any Mexican motor carrier. Additionally, given new background requirements for U.S. drivers applying for hazardous materials endorsements, an agreement will need to be in place with Mexico before vehicles owned or leased by a Mexican motor carrier that is granted operating authority by FMCSA can be permitted to haul hazardous materials beyond the commercial zones.�

For the summary and full report, visit www.oig.dot.gov/item_details.php?item=1485.

Source: Truckinginfo.com, Jan. 27, 2005

Accuride Completes Acquisition of Transportation Technologies Industries

Accuride Corp. has announced the completion of its acquisition of Transportation Technologies Industries, Inc. (TTI). TTI is a large, North American manufacturer of truck components for the heavy and medium-duty trucking industry. Details of the transaction were not disclosed.

Terry Keating, Accuride's current president and CEO, will serve as president and CEO of the combined company, which is headquartered in Evansville, Ind. Accuride officials said they expect the company to become one of the largest suppliers to the heavy/medium commercial vehicle industry.

Source: Aftermarketnews.com, Feb. 1, 2005

J.D. Power Says Medium-Duty Customer Satisfaction Up

J.D. Power and Associates has released the results of their 2004 Medium Duty Truck Customer Satisfaction Study based on responses from more than 1,500 primary maintainers of two-year-old Class 5-7 trucks.

According to the J.D. Power press release, Peterbilt performed significantly above average on each of the six factors of vehicle satisfaction in the conventional medium duty segment. For the third consecutive year, Hino ranked highest in overall vehicle satisfaction among cab-over medium duty trucks, receiving segment-leading ratings in five of six factors. UD Trucks also ranked above average.

Both conventional and cab-over owners in the 2004 study reported considerably higher satisfaction levels compared to three years ago on each of the six key factors, researchers said. Loyalty among medium-duty truck owners is also at a three-year high. Forty-five percent of those included in the study said they definitely would repurchase the same make, compared to 38 percent in 2003 and 39 percent in 2002.

Source: Truckinginfo.com, Jan. 20, 2005

ECONOMIC TRENDS

2004 Truck Sales Top 203,000

U.S. retail sales of Class 8 trucks surged 44.5 percent in December to their highest level in almost four years, pushing sales for the full year above 200,000 for the first time since 2000.

The 2004 sales total of 203,197 heavy-duty trucks � a 43.1 percent gain over 2003 � was the fourth-highest volume ever, Ward�s Communications reported. Sales figures trailed 1999, 2000 and 1998, which were, respectively, first, second and third.

December�s single-month total of 21,822 trucks sold made it the strongest month for Class 8 sales since March 2000, when truck makers sold 23,562 units. Some manufacturers said the recent momentum was an important signal for 2005 as well.

Source: Transport Topics, Jan. 24, 2005

Freight Haulers Expand Fleet, Class 8 Trucks in Use Rise in Third Quarter

Led by a surge in new truck registrations by general freight carriers, the number of heavy-duty vehicles in use for all types of operations expanded by more than 80,000 in the third quarter from the same period in 2003, according to R.L. Polk & Co. Based on an analysis of vehicle registration data for the July-September period, Polk estimated that 3,147,088 Class 8 vehicles were in operation, up 2.6 percent from 3,066,551 a year earlier. Polk said its vehicle data includes heavy-duty commercial trucks used in general freight hauling, vocational-business trucks, buses, recreational vehicles and specialty registrations such as antique trucks.

Source: Aftermarketnews.com, Jan. 25, 2005

GDP Grew at 3.1 Percent for Fourth Quarter

The U.S. economy grew at an annual rate of 3.1 percent in the fourth quarter, down from 4 percent in the third quarter, the Commerce Department said last week.

The gross domestic product (GDP) growth rate was smaller than expected and was affected by a record trade deficit, Bloomberg News reported. The trade deficit grew to $609.3 billion last year, its highest level ever, and reduced fourth-quarter growth by 1.7 percent. For all of last year, the U.S. GDP rose 4.4 percent, the most since 1999, compared with 3 percent in 2003.

The deceleration in GDP growth primarily reflected fewer exports, more imports and fewer consumers spending that were partly offset by an upturn in private inventory investment. Economists had forecast a 3.5 percent GDP gain for the fourth quarter. Consumer spending, which accounts for about two-thirds of GDP, rose 4.6 percent for the quarter and 3.8 percent for 2004. GDP for all of 2003 was 3.3 percent.

The trade deficit, which swelled to its widest ever in November, subtracted 1.7 percentage points from fourth-quarter growth. That was the largest cut from GDP since mid-1998. Commerce also said that business fixed investment rose 10 percent for the quarter, compared with a 13 percent rate in the third quarter. Companies raised their inventories at a $45.8 billion annual rate, compared with $34.5 billion the previous quarter.

Source: Transport Topics, Jan. 28, 2005

RMA Releases Shipment Numbers for 2004

Broad-based economic growth in the consumer and commercial sectors helped spur about a 2.5 percent increase in tire shipments for 2004 compared to 2003, according to the preliminary estimates by the Rubber Manufacturers Association (RMA). The group cited strong increases in the nation's gross domestic product (GDP) and industrial production index (IPI) as the basis for this increase.

Overall, the combined original equipment and replacement tire shipments for 2004 light vehicle and commercial truck categories are anticipated to increase by 7.7 million units to approximately 318 million units compared to 2003�s 310.3 million total shipments. Other key components of 2004 shipment statistics include: original equipment medium/wide-base truck tires; replacement medium/wide-base truck tires.
 
Source: Modern Tire Dealer, Jan. 26, 2005

Polk Launches New Commercial Aftermarket Parts Consumption Models

R. L. Polk & Co. this week launched a new, one-of-a-kind fact-based reporting system that will enable commercial vehicle aftermarket manufacturers and retailers to access information and reports on the overall demand for commercial vehicle tires, engine oil, filters and brakes (drums/discs) by geographic location and specific vehicle categories.

Called the Polk Aftermarket Parts Consumption Models, this new commercial vehicle solutions product will be updated quarterly with the most recent market information available. Each Parts Consumption Model provides guidance to identify best-selling product types, "hot" markets, demand potential and probable purchase date. The Polk Parts Consumption Models are accessible via Polk's TIP Net Web-based commercial vehicle market intelligence system and also are available in report form on a subscription basis.

Source: Aftermarketnews.com, Feb. 1, 2005

PEOPLE IN THE NEWS

ArvinMeritor Names New VP, GM of Commercial Vehicle Aftermarket Business

ArvinMeritor has appointed Joe Mejaly to the position of vice president and general manager of its Commercial Vehicle Aftermarket business, part of the company's Commercial Vehicle Systems (CVS) business group. According to Tom Gosnell, senior vice president and president, CVS, Mejaly is now responsible for ArvinMeritor's commercial vehicle aftermarket global business, including sales, marketing and customer services.

Mejaly has worked his entire career at ArvinMeritor, joining the company in 1985. He progressed through positions of increasing responsibility in commercial vehicle marketing, sales and service. Before being named to his current position, Mejaly was director of customer support for CVS Sales and Marketing in Troy, Mich.

Source: Aftermarketnews.com, Feb. 3, 2005

Alapont Chosen as President and CEO of Federal-Mogul

Federal-Mogul Corp. has just announced that Jose Maria Alapont has been chosen to be the new president and CEO of the company. The appointment was authorized by the court presiding over Federal-Mogul's Chapter 11 proceedings. Alapont also will join the board of directors of Federal-Mogul.

Alapont, who served as CEO of IVECO, the commercial vehicle company of the Fiat Group, will replace Robert "Steve" Miller, who has been serving as interim CEO of Federal-Mogul since January 2004. Miller will continue to serve as chairman of Federal-Mogul's board of directors.

Alapont brings to Federal-Mogul more than 30 years of leadership experience in both the automotive manufacturer and supplier industries. As CEO of IVECO, he ran one of the world's largest manufacturers in the transport sector. During his tenure there, the company consistently achieved profitable sales growth and efficiency gains.

Source: Aftermarketnews.com, Feb. 2, 2005

ASSOCIATION NEWS

International Buyer List Available to AAPEX Exhibitors

AAPEX exhibitors can obtain a list of all international buyers, or just those associated with delegations. International buyer participation at the 2004 Automotive Aftermarket Industry Week (AAIW) was up 12 percent from the previous year. Of the 9,349 international buyers, 1,198 were part of the Department of Commerce (DOC) International Buyer Program (IBP) that certifies AAIW. The program is designed to increase exports of domestic products overseas.

In 2004, 65 U.S. embassies promoted AAIW and a total of 37 delegations attended the show. The information for the international buyers that were part of a delegation includes name, title, address, city/country/postal code, phone, fax, e-mail and company Web site (if available).

In addition, there is information on opt-in agreements, buyer classification, buying authority, buying objectives, number of years in business, percent of business that is imported from the U.S. and product interest. International buyers are also asked to list three products for which they are specifically shopping. The information is posted on the AAPEX Web site under International Trade Leads.

Exhibitors who would like to get this information may log in at www.aapexshow.com, or contact Judy Novak at W.T. Glasgow, Inc. at 708-226-1300 or e-mail novakjudyann@aol.com.

AAPEX Exhibitor Contracts Deadline on Friday

AAPEX exhibitors should send their contracts to W.T. Glasgow, Inc. by close of business Friday, Feb. 4, 2005, in order to participate in the online space draw scheduled for mid-March. The Joint Operating Committee (JOC) for AAIW agreed the rate for members would stay at $19.95 per square foot, and that the non-member rate would increase to $29.95 per square foot. To qualify as a member, AAIA or MEMA dues must be valid when the contract is submitted.

For questions regarding your membership at AAIA, contact Jim Hilbert, director of membership at 301-654-6664 or e-mail jim.hilbert@aftermarket.org.

FACTOID

Ford and GM companies are spending millions on Super Bowl ads airing pregame, during and postgame. Ford's Ford, Lincoln and Volvo companies are the third biggest spenders overall at $9.6 million for two minutes total ad time. GM's Cadillac division is tied as the fourth biggest spender with Honda, other non-automotive companies spent $4.8 million for one minute total ad time.

Source: Detroit News, Jan. 25, 2005