SEGMENT NEWS

REGULATORY REPORT         SUPPLIER NEWS                    

ECONOMIC TRENDS                  PEOPLE IN THE NEWS

ASSOCIATION NEWS            FACTOID

SEGMENT NEWS

Council of Fleet Specialists Joins Heavy Duty Aftermarket Week

The Council of Fleet Specialists (CFS) at its 2005 Executive Conference announced its support for Heavy Duty Aftermarket Week (HDAW) and will hold meetings and programs as part of the first-ever event being held at the Mirage in Las Vegas on Jan. 23-27, 2006. The announcement was made by Gene Damron, general manager of Page Brake Company and president of CFS.

�CFS will become an integral part of Heavy Duty Aftermarket Week by pledging one of our two annual meetings and becoming a HDAW sponsor,� said Damron. �The concept of HDAW has the potential to reduce costs and provide significant value for all participants, particularly when CFS�s participation influences the end product, further ensuring that the independent distributor�s interests are represented.�

CFS is a committed sponsor of HDAW, which includes seminars, a trade show, award presentations, one-on-one meetings, a reception and other networking opportunities for companies in the independent heavy-duty aftermarket. CFS�s decision underscores the rationale for heavy-duty aftermarket groups to schedule their programs in conjunction with HDAW, thereby offering more value and choices to their members than would be otherwise possible. 

Event organizers are the Heavy Duty Distribution Association and Heavy Duty Manufacturers Association.

For more information about Heavy Duty Aftermarket Week, visit www.hdaw.org. Companies interested in exhibiting should contact W.T. Glasgow, HDAW show management, at 708-226-1300.

Source: HDAW News Release, May 13, 2005

Heavy Duty America Announces Participation in First-Ever Heavy Duty Aftermarket Week

Heavy Duty America (HDA) announced this week it will join the growing list of leading heavy duty industry aftermarket groups sponsoring the inaugural Heavy Duty Aftermarket Week (HDAW) set for Jan. 23-27 in Las Vegas. HDA will hold a membership meeting and an operations meeting during the event.

�Heavy Duty Aftermarket Week has been a long time coming and we have been involved in its development for most of that time,� said HDA president Pat Beirmann. �We feel this is the greatest value for all of our members and the industry. Where else will our members be able to interact with the top executives from the manufacturers on solving the challenges of the commercial vehicle parts industry?�

Source: Aftermarketnews.com, May 23, 2005

REGULATORY REPORT

House Approves Anti-Counterfeiting Measure

HDDA salutes the U.S. House of Representatives for passage of the Stop Counterfeiting in Manufactured Goods Act (H.R. 32) on May 23 with broad bipartisan support. Special thanks are owed to the bill sponsor, Rep. Joe Knollenberg, R-Mich., who introduced the bill last January and helped gather 59 bipartisan Congressional cosponsors.

The measure, strongly supported by HDDA and AAIA, would strengthen anti-counterfeiting laws by adding provisions to the trademark law that mandate the destruction not only of the pirated products but also the equipment used to produce the bogus goods or packaging. In addition, it would clarify that it is illegal for counterfeiters to traffic in counterfeit labels and packaging. The bill now moves to the Senate where action is expected.

For more information, contact HDDA liaison Lee Kadrich at 240-333-1050 or e-mail lee.kadrich@aftermarket.org.

AAIA Declares Support for Senate Asbestos Legislative Efforts

AAIA expressed strong support this week for the legislative efforts now underway in the Senate Commerce, Science and Transportation Committee to pass the Fairness in Asbestos Injury Resolution Act of 2005 (FAIR). The legislation (S. 852) establishes a $140 billion no-fault trust fund that would provide compensation to workers that have been harmed by exposure to asbestos. The fund would be comprised of contributions from companies and insurers with significant asbestos litigation experience.

In the letter from Kathleen Schmatz, AAIA president and CEO, to committee chairman Sen. Arlen Specter, R-Pa., she pointed to the growing number of asbestos lawsuits that has cost American businesses, including those in the vehicle aftermarket, billions of dollars, and has sent more than 60 companies into bankruptcy.

Not only have many of AAIA�s manufacturing members been impacted, but vehicle parts sellers also have felt the sting, Schmatz explained. �These companies have been dragged into asbestos lawsuits for products for which their sole involvement included obtaining the product from the manufacturers for sale to a parts installer. Although they often are able to eventually extricate themselves from the lawsuits, the legal costs run into the thousands of dollars, all of it totally unnecessary.�

�AAIA fully supports the process now being undertaken by the Senate Judiciary Committee to develop legislation that will appropriately compensate those truly injured by exposure to asbestos and that is fair to those companies that will be required to contribute to the trust fund,� the letter concludes.
 
For a copy of the letter sent to Senator Specter, visit the Legislative Action Center at www.aftermarket.org, or contact Lee Kadrich at lee.kadrich@aftermarket.org.

Senate Panel Begins Work on Bill Pushing Anti-Idling Methods

The Senate Energy and Natural Resources Committee began work last week on an energy bill that would encourage the use of anti-idling technology on heavy-duty trucks and would fund biodiesel and fuel-cell research.

The bill would also require the president to take steps toward reducing U.S. demand for oil by a million barrels below currently expected 2015 levels � a proposal rejected by the House � and to increase the Strategic Petroleum Reserve to a billion barrels of oil from its current 700 million-barrel level.

Energy Committee chairman Sen. Pete Domenici, R-N.M., said swift passage of the bill was necessary because the country was going to face �an energy crisis�that would be terribly debilitating for our economy.�

Source: Transport Topics, May 23, 2005

SUPPLIER NEWS

Yellow Roadway Completes Acquisition of USF Corp.

Yellow Roadway Corp. this week said it completed the $1.37 billion acquisition of USF Corp.

The deal, announced by the two less-than-truckload carriers Feb. 27, was amended by Yellow Roadway May 2 when it changed the cash component from a 50-50 cash-stock deal to 65 percent cash and 35 percent stock. That change eliminated the need for Yellow Roadway�s stockholders to approve the deal. USF�s stockholders approved the deal Monday.

Yellow's CEO Bill Zollars told CNBC the move would make Yellow Roadway a $10 billion company.

Source: Transport Topics, May 24, 2005

Amsoil Adds Donaldson Filters for Heavy-Duty Applications

Amsoil Inc. has made available to its dealer network Donaldson Co.'s full line of aftermarket heavy-duty air, oil, coolant, fuel and hydraulic filters. Amsoil's distribution network includes more than 80,000 dealers worldwide.

Donaldson filters are used in the over-the-road classifications up to and exceeding 33,000 GVW, off-road equipment such as construction and agriculture, plus industrial applications. Brands available from Donaldson include Endurance, PowerCore, Duramax, Synteq and Ultra-Web.

Source: Amsoil.com, May 2, 2005

ECONOMIC TRENDS

ATA Seeks Diesel Standard as Part of Energy Plan

American Trucking Associations (ATA) recently asked the Department of Energy to consider creating a single national diesel fuel standard as part of a long-term energy strategy. The request was filed to prevent high fuel prices from crimping the nation�s economy, ATA said.

In a letter to Energy Secretary Samuel Bodman, ATA president Bill Graves wrote that the �ongoing proliferation of so-called boutique fuels adds to the complexity and costs of diesel fuel refining. The trucking industry believes that a single national diesel fuel standard is the best way to ensure an adequate, uninterrupted supply of this commodity.�

Diesel prices have soared this year, setting four consecutive all-time records from late March into mid-April, when they peaked at $2.316. They have fallen more than 12 cents since then, as crude oil prices have slid.

Graves said that while the economy is still solid, rising energy costs have sapped consumers and businesses of some purchasing power, weakening the broader consumer sector and potentially cutting into economic growth.

Source: Transport Topics, May 17, 2005

Study Cites Fuel, Maintenance as Critical Issues for Private Fleets

Controlling escalating fuel costs for U.S. private truck fleets is the top industry concern, according to the results of a survey by First Fleet Corp. released this week.

Fleet managers said that maintaining their fleet at optimum operating conditions is a major focus and that their most important concern is how and where maintenance is performed.

About one-third of those surveyed said they have onsite maintenance facilities, with 23 percent outsourcing maintenance and repair services. The study also said that a large number of mechanics have been temporarily removed from the work force to serve in the war in Iraq.

It said about a third of respondents reported difficulties in recruiting or retaining qualified service technicians, but that just 3 percent of fleets have turned to outsourcing in the past two years.

Source: Transport Topics, May 24, 2005

PEOPLE IN THE NEWS

New Heavy Duty Division Manager at Grote

Grote Industries has appointed Mark Blackford as its new heavy duty division manager.

Blackford, a 14-year Grote veteran, formerly held the positions of south central regional manager and proprietary product manager. Prior to joining Grote, he was the inventory control manager for NAPA Auto Parts.

Grote Industries is a leading designer and manufacturer of vehicle safety systems. The company's products include LED and incandescent lamps, mirrors, obstacle detection systems, electrical accessories, harness systems and reflective accessories.

Source: Aftermarketnews.com, May 18, 2005

ASSOCIATION NEWS

Aftermarket eForum� Keynote Address

Dennis Welvaert, president of the North American Aftermarket Division at Dayco Products, LLC. will address the Aftermarket eForum�, July 19-21 in Chicago, with a presentation entitled, A Funny Thing Happened on the Way to the eForum.

Dayco has made the journey from skeptic to evangelist regarding the value of industry standards and a company-wide focus on data synchronization. Welvaert will discuss the human and technical obstacles that had to be overcome, the challenges of staying on the leading edge of business technology and the advantages and economic rewards of successfully adopting the best data management and communication practices in the industry.

Early Bird registration rates for the Aftermarket eForum� (save $200) apply until June 10. To register online, visit www.aftermarket.org. For more information, contact Barbara Clark at 301-654-6664.

FACTOID

The long-haul, heavy-duty truck transportation industry in the U.S. is experiencing a national shortage of 20,000 drivers, according to a report released by the American Trucking Association this week. The report predicts the shortage will increase to 111,000 by 2014 if current demographic trends hold and if the overall labor force continues to grow at a slower pace.

Source: Truckinginfo.com, May 26, 2005