A.M. Executive Briefing - Aug. 2

Volvo Submits Concessions On Renault Deal To Avoid Antitrust Problems

The $1.5 billion deal would create the world's second-largest heavy truck producer, the Associated Press said.

Volvo sold its car making division to Ford Motor Co. last year. According to the Bloomberg report, the European Union rejected a takeover of truck maker Scania AB in March. Volvo and Renault hope to relieve antitrust fears and avoid an investigation by the EU with their offer of concessions. Transport Topics

EPA Says Trucks Must Cut Back Emissions by 2004

All diesel truck and bus engines must emit 40% less nitrogen oxides and gasoline truck engines must emit 78% less pollution by 2004, the EPA ruled. In addition, an EPA official told Bloomberg that the agency's second phase, which will call for even less emissions and the use of cleaner-burning diesel fuel, should be completed by the end of the year.

Under an agreement signed with the federal government two years ago, seven diesel truck makers – including Cummins, Mack and Caterpillar – will have to meet the new standards by 2002. The agreement was signed to settle charges that they manipulated computer readouts to show lower pollution levels in their engines, the report said. Transport Topics

Deaton, Inc. Will Buy Cardinal Logistics' Flatbed Division

Cardinal Logistics Management's other divisions include Cardinal Freight Carriers, Inc., Cardinal Dedicated Delivery, and Cardinal Logistics.

Deaton President Jerry Crews said Cardinal Flatbed's operations will remain intact and the company will be a "sister company" to Deaton. Transport Topics

U.S. Crude Oil Inventories Decline, Prices Rise

The 9-million-barrel decline surprised analysts, who had predicted an increase of 400,000 to 1 million barrels, the report said.

In response, crude oil prices for September delivery rose 68 cents to $28.47 a barrel on the New York Mercantile Exchange, and 64 cents to $27.78 on London's International Petroleum Exchange, Bloomberg said. Transport Topics

Appeals Court Upholds Sexual Harassment Case Against Yellow Freight

David A. Jones successfully sued the carrier last year and was awarded $1.74 million. The three-judge panel hearing the appeal reduced that award to $1.09 million.

Jones, who was a dockworker at Yellow's Burnsville, Minn. terminal, filed his suit in 1998, claiming coworkers and supervisors who created a hostile work environment had targeted him. Jones said he had been grabbed on the buttocks, that coworkers put up obscene and threatening graffiti about him on bathroom walls and one coworker simulated a sexual act on him. Transport Topics

Volvo Starts New Production; No Plans To Rehire Laid Off Workers At Virginia Plant

A company official told The Roanoke (Va.) Times there were no plans to bring back any of the 900 workers let go in February when tractor sales began their continual downturn. Where the new model Volvo VHD brings needed business to the New River Valley's second largest employer, officials cautioned that construction trucks are only 25% of the heavy truck market.

Production of the second line of VHD is set to start this month as Volvo phases out Auto-car, its older model construction truck. Transport Topics

High Fuel Costs Put Hit On OTR Express In Second Quarter

The company experienced a slight increase in revenue for the quarter, jumping up 1% to $20,787,000.

OTR CEO William Ward attributed the second quarter loss to "higher fuel costs and a softer freight market." Transport Topics

FedEx Custom Critical Acquires Auto Mover Passport Transport

Terms of the acquisition were not disclosed. Both companies serve the continental United States.

Passport Transport is a hauler of specialty cars such as antique and racecars, and count collectors and celebrities among its customers. Transport Topics