REGULATORY REPORT         SUPPLIER NEWS                    

ECONOMIC TRENDS                  

ASSOCIATION NEWS            FACTOID

REGULATORY REPORT

Trucks Now Consume More Than Half of Vehicle Fuel

For the first time, trucks account for more than half of all vehicle fuel consumed in the U.S., according to a new study, �The U.S. Commercial Fleet Market Forecast, 2004-2008,� by Havill & Co. Inc.

According to Justin Zohn, Havill senior consultant, the number of trucks on the road has grown at more than twice the rate of the overall vehicle population since the late 1990s.

The study series began in 1995. Between the fall of 2004 and spring of 2005 more than 1,100 executive telephone interviews were conducted with fleet administrators across the country.

Other topics included in the study are: vehicle procurement and leasing; advance vehicle and fuel technologies, including hybrids; onsite and offsite fueling, tires, maintenance and payment methods; leasing programs; and fleet administration practices, including safety, insurance and the use of telematics. The complete study will be published in August 2005.

Source: Truckinginfo.com, June 8, 2005

EPA Announces In-Service Diesel Testing Program

The U.S. Environmental Protection Agency (EPA) last week announced a new in-use testing program for diesel truck and bus emissions. Prior to this program, an engine had to be removed from the truck for testing in a laboratory. The testing procedures were cumbersome, less accurate and more expensive.

In the new program, vehicles from a selected sample of trucks and buses are assessed while in operation. Portable measuring devices attached to the engine will assess exhaust emissions of hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter.

According to EPA, state-of-the-art technology will ensure EPA's stringent emission standards are met under real-world driving conditions and deliver increased public health benefits.

In a press release, the agency said the new program results from cooperation involving EPA, the California Air Resource Board and diesel engine manufacturers. The program involves testing engines while they are in service and begins this month. A pilot program calls on manufacturers to recruit volunteer test vehicles from fleets or individual owners. The program will expand nationwide starting with 2007 model year diesel trucks.

Source: Truckinginfo.com, June 7, 2005

SUPPLIER NEWS

ArvinMeritor Raises Third Quarter and Fiscal Year 2005 Guidance

ArvinMeritor announced this week it expects earnings from continuing operations for the third quarter to be at the higher end of the range forecasted in early May of 60 cents to 70 cents per diluted share, before special items. In addition, the company now expects its earnings for the full fiscal year to be at the higher end of the previously forecasted range of $1.40 to $1.60 per diluted share, before special items.

The sale of the company's North American Light Vehicle Aftermarket business is also on track, and is to be completed in the second half of the fiscal year. The company plans to release its third quarter results on July 28.

Source: Aftermarketnews.com, June 8, 2005

ECONOMIC TRENDS

April Wholesale Inventories Rise More Than Forecast

Wholesale inventories increased 0.8 percent to $350 billion in April, the Commerce Department reported this week. The increase was double economists� forecasts, Bloomberg reported. Wholesalers� sales rose 1.5 percent in April, the most since March 2004. When inventories and sales increase, it usually means trucking companies received additional demand to deliver goods to stores.

Inventories of durable goods at wholesalers, which include imported cars and computers, rose 0.4 percent in April after rising 0.2 percent in March. Stockpiles of non-durable goods increased 1.4 percent following a 1.2 percent rise in March. Sales of such goods rose 1.5 percent in April after a 0.8 percent rise in March.

Commerce said the inventory-to-sales ratio, a measure of how long supplies on hand would last at the current sales rate, was 1.18 months, down from 1.19 months in March.

Wholesalers account for about a fourth of all business inventories. Retailers and factories account for the rest.

Source: Transport Topics, June 8, 2005

Heavy-Truck Sales Increase 24.2 Percent in April

April heavy-duty truck sales rose 24.2 percent to 20,390 units compared with 16,416 a year earlier. Sales of mid-range, medium- and heavy-duty trucks, Classes 4 through 8, totaled 42,997 units in the month, up 17.0 percent from April 2004.

Total truck sales, including Classes 1 through 3, were up 1.3 percent from a year earlier to 815,077 units. Sales of Class 1 through 3 trucks totaled 772,080 units for the month, up 0.5 percent from April 2004.

Freightliner was the No. 1 seller during April in Class 8. The company's sales totaled 5,658 units, up 35.5 percent from a year earlier.

Source: Automotive News, May 31, 2005

ATA Truck Tonnage Declined Almost 1 Percent in April

The American Trucking Association (ATA) said its advanced seasonally adjusted for-hire Truck Tonnage Index decreased 0.9 percent in April, corresponding with a deceleration in overall economic growth.

ATA chief economist Bob Costello said April�s numbers tend to agree with anecdotal reports from ATA members, who indicate that freight volumes were mediocre in March and April.

Costello said that year-over-year comparisons would become more difficult because freight demand was unusually robust in 2004 due to strong economic growth. ATA said truck volumes are expected to grow 3.5 percent in 2005.

Year-to-date, tonnage increased 3.7 percent, compared with a year earlier. The truck tonnage index increased 5.7 percent in 2004.

Trucks hauled 9.8 billion tons of freight in 2004. Motor carriers collected $671 billion dollars, or just under 88 percent of total revenues earned by all transport modes.

Source: Truckinginfo.com, June 2, 2005

U.S. Class 8 Fleet Rises 2.9 Percent in First Quarter

The number of heavy-duty trucks in use in the United States increased 2.9 percent, or 90,000, in the first quarter of 2005, reflecting a surge in Class 8 truck registrations, according to data from research firm R.L. Polk & Co.

Large fleets also accounted for a greater share of new truck registrations in 2005�s first quarter, compared with last year, said Gary Meteer, director of the commercial vehicle group at Polk in Detroit.

Source: Transport Topics, June 2, 2005

ASSOCIATION NEWS

Heavy Duty Aftermarket Week Momentum Building

Industry interest in the first-ever Heavy Duty Aftermarket Week (HDAW), Jan. 23-27 in Las Vegas, is mounting. According to HDAW show organizer William T. Glasgow, as of June 8, 32 exhibitors have purchased space and roughly one-third of the booths have been sold. In addition to an aftermarket-focused trade show, the week will offer comprehensive technical and business education sessions, one-on-one business meetings and a myriad of social and networking functions. An exhibitor prospectus will be mailed soon as well as an HDAW attendee piece.

For more information, visit www.hdaw.org, or contact HDDA liaison Lee Kadrich at 301-654-6664 or e-mail lee.kadrich@aftermarket.org.

Welcome New AAIA Members

June 1-9, 2005

Best Brakes
Midwest Transmission Center
Directed Electronics, Inc.
Fleet Source/AGS
Carrus Technologies
Collision Industry Electronic Commerce Association
Horn Pep Enterprise Co., Ltd.
All-Power America
Three-In-One Enterprises Co., Ltd
Tru-Line Laser Alignment

ROI of Standards-Based Technology to be Addressed at Financial Symposium

Learn the financial benefits of standards based e-business in the aftermarket at one of four breakout sessions on Sept. 7, at the Aftermarket Financial Symposium: Leveraging for Growth in Chicago, Ill.

Participants have the choice of attending two of four breakout sessions on Wednesday, Sept. 7. The Financial Benefits of Standards Based eBusiness in the Aftermarket session will be led by Scott Luckett, AAIA vice president for technology standards and solutions. Luckett will draw the technology roadmap to a standards-based digital aftermarket.

�Practicing good standard-based technology will reduce operating costs,� Luckett said. �eBusiness in the aftermarket is more than bells and whistles for the techies � it�s bottom line strategies for financial professionals.�

The Financial Benefits of Standards Based eBusiness in the Aftermarket will be held Wednesday, Sept. 7 at 2:45 p.m. and again at 4 p.m. It will run concurrently with three other breakout sessions: Managing the Volatility of Employee Benefits, Maximizing Business Values and Liquidity and Tax Planning: The Latest in Tax Planning Strategies.

The symposium will be held at the Hyatt Regency O�Hare in Chicago on Wednesday, Sept. 7 and Thursday, Sept. 8. For more information, contact Barbara Clark at barbara.clark@aftermarket.org or call 301-654-6664.

Register for both the Aftermarket Financial Symposium: Leveraging for Growth and the Aftermarket eForum�, July 19-21 in Chicago, Ill., and save $200. Register online at www.aftermarket.org.

FACTOID

Average retail diesel prices are expected to remain above regular gasoline prices through 2006, the Department of Energy said in its monthly Short-Term Energy Outlook released this week.

Source: Transport Topics, June 8, 2005