REGULATORY REPORT         SUPPLIER NEWS                    

ECONOMIC TRENDS                  

ASSOCIATION NEWS            FACTOID

REGULATORY REPORT

FMCSA to Hold Public Meeting on Cargo Securement

The Federal Motor Carrier Safety Administration (FMCSA) has scheduled a public meeting on implementation of the North American Standard for Protection Against Shifting and Falling Cargo. The meeting is scheduled for April 21-22 at the Albuquerque Convention Center in Albuquerque, N.M., immediately after the Commercial Vehicle Safety Alliance's Annual Conference. The meeting will be open to the public.

According to the FMCSA, the meeting will deal with a process for ensuring consistent interpretation of the harmonized cargo securement standards by FMCSA and the Canadian Provinces. The new Canadian securement requirements are expected to be fully implemented by this summer. In the U.S., the new cargo securement rules became effective on Jan. 1, 2004.

For more information, visit www.fmcsa.dot.gov.

Source: Truckinginfo.com, April 8, 2005

Eaton Wins Ruling Against ArvinMeritor Transmission Imports

Eaton Corp. said last week that it won an order blocking importation of truck transmissions made by a German company and ArvinMeritor Inc.

The International Trade Commission determined that ArvinMeritor, ZF Friedrichshafen and a joint business between the two called ZF Meritor LLC infringed on an Eaton transmission patent, Eaton said in a statement.

ArvinMeritor officials told Transport Topics they were preparing comments on the decision.

Eaton manufactures drivetrain systems and components for medium-duty and heavy-duty trucks. Its Roadranger division sells diagnostic tools, lubricants and truck information systems.

According to Eaton, they were committed protecting its investments in research and development, and �will continue to vigorously defend our patents against infringement by any other companies, domestic or foreign.�

Source: Transport Topics, April 8, 2005

ArvinMeritor to Develop Specialty Vehicle Drivetrain With Unicell Ltd.

ArvinMeritor has entered into program to develop a new alternative-power vehicle with an electric drivetrain. ArvinMeritor will work on the project with Unicell Ltd., a medium-duty body builder with operations in Toronto, Ontario and Buffalo, N.Y. The new electric drive vehicle will be equipped with a fully-electric drivetrain and will be demonstrated to the public in 2006.

The initial vehicle application is for pickup and delivery vehicles. The particular fleet name is being withheld pending completion of the vehicle development.

Many commercial vocational applications exist where this type of zero emissions vehicle will become dominant over the next five to 15 years, primarily due to reduced emissions in urban environments. The rate of adoption will be largely dependent on the cost of battery energy storage relative to the cost of fossil fuel.

According to ArvinMeritor engineers, the new electric drivetrain system will provide the fleet operator lower energy costs, zero emissions and considerable operations efficiency.

Source: Aftermarketnews.com, March 31, 2005

ECONOMIC TRENDS

EIA Projects Gasoline Prices to Rise, Diesel May Drop Slightly

Diesel and gasoline prices this summer will remain high, with diesel at an average $2.24 a gallon and gasoline at $2.28, the Energy Department�s Energy Information Administration (EIA) said in a report released last week.

If the projections hold, it would mean a slight drop in current record-high retail diesel prices and new highs for gasoline.

In EIA�s latest weekly survey released last week, retail gasoline and diesel prices each hit record highs for a third consecutive week, with diesel hitting $2.303 and gasoline hitting $2.217.

Similar high prices are expected throughout 2006, EIA said in its monthly Short-Term Energy Outlook. It projected average gasoline prices to peak at $2.35 a gallon in May, 38 cents over last year.

The agency cited crude oil costs as the primary factor in the projected increase. High world oil demand will continue and increase competition for imports, it said.

EIA said additional changes in gasoline specifications and tight U.S. refinery capacity could also push up operating costs and limit supply, adding further pressure on pump prices.

Source: Transport Topics, April 7, 2005

ASSOCIATION NEWS

Top Industry, Technology Experts to Address Aftermarket eForum� 2005

Top vehicle aftermarket industry and technology experts will address the Aftermarket eForum�, slated for Tuesday, July 19 through Thursday, July 21, at the Hyatt Regency O'Hare in Chicago. Speakers will include:

• John Saia, University of Toyota
• Dennis Welvaert, Dayco/Mark IV
• Lisa Henkel, Gates Corp. 
• John Ruck, Detroit Diesel
• John Rubich, United Components
• Ed Coyle, Department of Defense
• Drew Gude, Microsoft
• Todd Sharman, Canadian Tire
• Mike Altendorf, ACE Hardware

The program will also include panel discussions on industry standards and e-marketing, and breakout sessions on best practices in sales force automation; e-business for small and medium resellers; and Internet parts ordering.

Members of sponsoring associations can attend the event at a discounted rate. Members who register before Friday, May 20 can attend for $695; after the May 20 deadline, registration is $895 for members.

For more information about the eForum, click here.

GAAS to Hold 2005 Pre-Symposium Seminar

In cooperation with the Global Automotive Aftermarket Symposium (GAAS), the University of the Aftermarket will present a pre-symposium seminar entitled, �Leadership Lessons From the Past, Leadership Perspectives for the Future.� The seminar will take place on May 10, 2005 from 1:30 p.m. to 5 p.m. at the Hyatt Regency O�Hare in Chicago. Sponsored by Automotive Week/The Greensheet, the seminar will be lead by Dr. John A. Passante. Passante has been involved in all areas of the aftermarket industry from manufacturing, distribution, sales and marketing and human resources and administration.

The seminar is presented the day before the start of the tenth annual GAAS and will examine the role that leadership has played in the automotive aftermarket over the past 20 years.
The seminar will provide pragmatic tools for your leadership tool kit:

• How to build and maintain trust in an organization through leadership 
• The characteristics of a strong and effective leader 
• How to implement various leadership styles in your company 
• How leaders communicate vision and mission for their organizations

For your attendance at this seminar, you will earn 0.3 CEUs toward the University of the
Aftermarket�s AAP/MAAP designation. The registration fee for this event is $265 per person. Please note that registration for GAAS is required in order to attend this special pre-symposium program.

To register for GAAS, visit www.globalsymposium.org or call 301-654-6664. To register for the pre-symposium seminar, visit www.univaftmkt.org/courses/G535.htm, call 800-551-2882, fax 989-837-4439 or e-mail reg@univaftmkt.org.

Governors Proclaim April Car Care Month

The Car Care Council has reported that 16 states and the District of Columbia have officially proclaimed April as National Car Care Month, urging residents to inspect their vehicles and perform routine maintenance.

�State and city leaders are becoming more aware of the positive safety, economic and environmental implications of proper vehicle care and maintenance,� said Rich White, executive director, Car Care Council.

The complete list of 2005 state proclamations includes Alabama, Connecticut, District of Columbia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Michigan, Nebraska, Nevada, New Hampshire, North Carolina, New Jersey, South Carolina and Vermont.

For more information about the �Be Car Care Aware� campaign, visit www.carcare.org.

Insurance Firms Drop Support of Asbestos Fund

While the number of claimants seeking restitution for asbestos-related claims continues to grow, more than a dozen insurance companies have withdrawn their support for the proposed $140 billion federal trust fund that would serve to pay these claims, according to a recent report from the Wall Street Journal (WSJ).

This will likely have an impact on Congress' passage of legislation on asbestos litigation, as Senate Judiciary Committee chairman, Sen. Arlen Specter, was expected to introduce a trust fund bill this week.

The insurers that have pulled support, including American International Group, Chubb Corp., Liberty Mutual, Nationwide Financial and Zurich Financial, now join conservative Republicans and a number of major corporations that feel the fund is too big and would not adequately protect them. Opponents of the trust fund would prefer that Congress use medical criteria to determine payouts to claimants.

According to WSJ, another opposing party, The Coalition for Asbestos Reform, plans to deliver a similar message via letter to Congress this week. The coalition consists of major corporations such as Exxon Mobil and Federal-Mogul. However, other members of the group, including Goodyear Tire & Rubber Co., Shell and John Deere, said they won't sign the letter.

On the other side of the argument, Democrats previously would not back the bill, arguing that it wasn't large enough to compensate for Americans at risk of developing asbestos-related illnesses in the future. To garner the Democrats' support, previous Judiciary Committee chairman Orrin Hatch, increased the size of the fund from $90 billion to $140 billion.

NHTSA Issues Final Tire Regulations

The National Highway Traffic Safety Administration (NHTSA) issued its final regulations today concerning installation of tire pressure monitoring systems (TPMS) on all new passenger vehicles sold in the U.S.

The precise details of NHTSA�s new regulations must still be determined as a copy of the 187-page document was released today. NHTSA did note that final rule requires automakers to install �a system that can detect when one or more of the vehicle�s tires are 25 percent or more below the recommended inflation pressure.�

The Rubber Manufacturers Association (RMA) said that the final regulation�s proposed 25 percent standard �may leave the tire so under-inflated that it is unable to carry a fully-loaded vehicle safely. Under NHTSA�s standard, motorists could be driving for thousands of miles on tires that are appreciably under-inflated but still not receive a warning.�

The final regulations had been expected since late last fall. NHTSA had issued preliminary regulations in September 2004, which were widely panned by the tire industry and consumer safety group.

According to NHTSA, the new regulations will take effect 30 days after being posted in the Federal Register. They call for all passenger vehicles (under 10,000 pounds GVW) to have TPMS installed by automakers beginning with the 2006 model year, with all new passenger vehicles so equipped by the 2008 model year.

The phase-in period will begin this coming September.

FACTOID

The West Coast region�s average gas price hit $2.585 per gallon and California�s surged to $2.625, the country�s highest. The Gulf Coast had the smallest rise, a 1.1-cent uptick to $2.251, the lowest regional average, according to the Department of Energy.

Source: Transport Topics, April 11, 2005