A.M. Executive Briefing - April 28
This Morning's Headlines:
ul>
Prevention Programs Can Trim Costs
As trucking insurers increase rates to cover the losses they are sustaining, Inland Marine Underwriters Association President Ron Thornton recommends that carriers keep their insurance expenses in line by establishing loss-prevention initiatives.California-based Rawlings Trucking showed Kemper Insurance its commitment to theft prevention, and reduced its premiums by about $2,000 per tractor-trailer, by putting in video cameras at its trailer yard and adding electronic tracking devices to the trailers. The 40-trailer firm has had two trailers stolen in the past two years and recovered both of them, one with the cargo still inside, and company owner Jerry Eatmon says getting the trailers back saved Kemper as much as $100,000.
Nissan Diesel to Seek 60 Bln Yen Cost Cuts in 3 Yrs to March 2003
By the end of March 2003, Nissan Diesel Motor intends to cut accumulative costs 20% and increase the operating profit-to-sales ratio to 4.5%, and it intends to make interest-bearing debt amount to only 50% of sales two years later.The cost-cutting strategy will center around consigned truck and engine production, helped by a partnership with Renault, and the company may supply Renault with small diesel engines, begin selling Renault trucks in Japan, and distribute small trucks through Renault's foreign sales channels. AFX - Asia (04/28/00)
Teamsters Endorse Hoekstra; Republican's Probe Helped Hoffa Win Union Post
The Teamsters union has endorsed Rep. Peter Hoekstra (R-Mich.) for reelection, despite giving his 1999 voting record a zero rating due to a lack of pro-Teamsters votes, because of Hoekstra's leadership in a probe of former union President Ron Carey and the Congressman's drive to end federal oversight of the union.The endorsement has already created controversy within the union, including Local 406, which is in Hoekstra's district. A member of the local, Herman Aurich, charged that the endorsement is simply union President James Hoffa's means of paying back Hoekstra for the investigation that helped Hoffa win the office, and said the decision will not be accepted by rank-and-file union members.
Bill Black of Michigan Teamsters Joint Council 43 expressed awareness of Hoekstra's voting record on Teamsters issues, but pointed to the fact that Hoekstra is taking action to end federal oversight of the union while saying the Democrats have done little to end it. Roll Call (04/27/00) P. 1; Chappie, Damon
Three Grocery Chains Agree to Cut Big-Rig Pollution
In order to settle a lawsuit from California Attorney General Bill Lockyer and three environmental organizations, the big grocery chains Vons, Ralphs Grocery, and Albertson's/Lucky Stores will begin using 150 trucks with alternative-fuel systems.The lawsuit claimed that diesel exhaust from five of the chains' distribution facilities in Southern California put the companies in violation of the Unfair Business Practices Act and a state law mandating that products with carcinogenic ingredients be labeled. The companies will also have to notify the centers' employees and neighbors that the emissions can cause cancer.
According to the Natural Resources Defense Council's Gail Ruderman Feuer, the suit was "Round 1" in an effort to make companies follow the labeling law, Proposition 65, while "Round 2" will go after retailers with big distribution sites.
Vons, which is owned by Safeway, has been using 30 dual-fuel trucks since 1999 and has a liquid natural gas fueling site in California. The other two companies will use 25 alternative-fuel vehicles apiece, some using natural gas only, and will convert all of the yard tractors at the five facilities. Associated Press (04/27/00); Keith, Leon Drouin
Future Unclear for Back-Office After Merger of Volvo and Mack
Now that Volvo is purchasing Mack Trucks parent company Renault VI, a likely candidate to head up the new Volvo-Mack is Volvo Trucks North America President and CEO Marc F. Gustafson, who had extensive experience with Mack before joining Volvo.While Duff & Phelps Credit Rating analyst Marvin G. Behm said the acquisition will help Mack, because Volvo is strong in highway trucks and Mack has a healthy position in vocational trucks, Pennsylvania state Sen. Lisa M. Boscola is concerned about the 2,500 Lehigh Valley residents whose jobs are on the line. She has requested intervention by the state governor's action team.
S&P Equity Group analyst Robert Friedman said that after the merger Volvo will need to keep costs and prices in line by reducing unused plant capacity. Gustafson said that the combined firm will need to keep Mack's plants in Winnsboro, S.C., and Macungie, Pa., as well as Volvo's site in Dublin, Va., so no plant closures are planned.
In addition, no dealer organizations or product lines will end at either firm, he said. While there is no reason to shut down the Volvo headquarters in Greensboro, N.C., or Mack's Allentown, Pa., headquarters, the company will need to look into synergies in parts distribution and back-office functions, he told the magazine Heavy Duty Trucking. Morning Call (Allentown, Pa.) (04/27/00) P. A13; Shope, Dan
Denton, Va. City Vie for Plant, Jobs
Denton, N.C., and Martinsville, Va., are competing over which will be the site of a new W.F. Mickey Body Co. plant, along with the 150 jobs averaging $14 an hour that the plant will bring.The family-owned High Point, N.C., truck-body manufacturer will hold a public hearing May 9 and anticipates choosing a site about a week later; right now, the two towns have an equal chance of winning, said Davidson County, N.C., Economic Development Commission executive director Ed Church.
Church said he is aware that the Virginia site is offering more money, and it allows property-tax breaks that North Carolina law bars, so he intends to request that Davidson County commissioners offer a direct five-year, $80,000 grant.
If Denton wins the plant, it will help the town recover from the closure of a Burlington Industries yarn plant four years ago. W.F. Mickey President and CEO Dean Sink would not say which town is ahead in the race but said the company plans to expand and "add some new products." Greensboro News & Record (04/27/00) P. B10; Helms, Chris
Md. Inspection Teams Will Target Truckers
The Maryland Transportation Authority will increase its number of truck-inspection teams to twice the current level in order to step up the amount of Level 1 inspections at MdTA sites around the state.Targeting trucking companies with a history of problems, MdTA will conduct the inspections at the Baltimore tunnels, the weigh station in Perryville, and the Francis Scott Key, Chesapeake Bay, and Thomas J. Hatem Memorial bridges.
More trucks are inspected in Maryland than in a number of other states; in 1999, MdTA alone inspected 29,000 commercial vehicles, citing 10,500 of them, and putting more than 4,800 trucks and 6,100 truckers out of service.
A spokesman for the Maryland Motor Truck Association said the initiative demonstrates that the police are more interested in saving lives than writing tickets. But association President Walter Thompson said Level 1 inspections may not be the best way to do so, saying driver error is the cause of most accidents.
The MdTA acknowledged that doing more of the lengthy Level 1 inspections may mean fewer inspections will be done in all. Maryland Daily Record (04/24/00) P. 1A; Bernstein, Amy L.
© copyright 2000 INFORMATION, INC. Terms of Service
