A.M. Executive Briefing - Dec. 21
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PNV Files for Reorganization Protection
PNV (PNVN), which provides communications services to truckers at truck stops, announced Wednesday that it has filed for Chapter 11 bankruptcy.PNV emphasized that the filing has been organized to permit normal operations of its communications, entertainment and Internet services until a decision has been reached about its sale.
3Q Gross Domestic Product Shows Slowdown
The Commerce Department's revised figures on the gross domestic product slowed even more sharply in the third quarter than previously stimated, further evidence that the economy has weakened a lot from earlier in the year.The GDP - which is the total value of all the goods and services produced in the United States - rose at a 2.2% annualized rate during the July-September period, well below the second quarter's 5.6% rate.
Analysts were expecting a 2.4% third-quarter growth rate, unchanged from the previous Commerce estimate for the July-September period, Bloomberg News reported.
Commerce has now twice revised the number downward from an initial reading of 2.7%, with the latest change coming from weaker-than-expected exports.
A slower economy means fewer goods are being produces, which in turn means fewer loads for truckers to haul. Transport Topics
Toyota May Build Diesel Engines in South
Toyota Motor Corp. confirmed more of the speculation about a new plant in the United States, announcing that it is considering building a facility in the southern U.S. to make diesel engines for Tundra pickup trucks, Reuters reported Thursday.Toyota now imports those engines from Japan, so the change could create more loads for trucking companies operating in the South.
However, plans are not yet firm, a Toyota spokesman told the news service.
A Japanese newspaper reported that Toyota would settle on plans by year's end to build a new engine plant in Tennessee, Alabama or Georgia, Reuters reported
That paper said the new plant would initially produce 100,000 to 150,000 of the 4.7-liter V8 engines per year. Transport Topics
CNF Expects 4Q Earnings to Fall Near Forecasts
Transportation holding company CNF Transportation Inc. (CNF) said Wednesday that it expects to post fourth quarter earnings of 63 cents to 67 cents per share - equal to or just below Wall Street forecasts, Reuters reported. CNF owns trucking unit Con-Way Transportation Services, airfreight unit Emery Worldwide and transports mail for the U.S. Postal Service. The company recently formed a joint venture with General Motors Corp. (GM) to handle GM's logistics.
Slow automotive and technology shipments have dropped Emery's domestic volumes from last year, the story said. Transport Topics
Volvo Prepared to Cut Truck Production
Swedish heavy-truck maker Volvo AB (VOLVY) said Thursday that it is ready to cut truck production in 2001 to meet a possible decline in the European truck market, Bloomberg reported.The company anticipates that the European market will follow the downward trend in the North American truck market, the article noted. An industry forecast has 2001 sales sliding 6% from 2000.
Volvo's global sales declined 3% as a result of a 31% drop in the North American sales. A 10% increase in European sales did not offset the North American losses. Transport Topics
President-Elect Bush to Resign as Texas Governor
President-elect Bush planned to resign as the governor of Texas late Thursday morning, CNN.com reported. Lt. Gov. Rick Perry will become the new Texas governor.Bush, who will be sworn in as president Jan. 20, selected four cabinet members Wednesday and plans to continue filling the rest of his top administration posts. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Bush Taps O'Neill as Treasury Secretary
- Isuzu Motors to Make More Diesel Engines
- Bush Nominates Evans for Commerce
- N.J. Gov. Whitman May Get Top EPA Post
- Toyota to Cut Parts Costs
- Bush Warns Again of Economic Slowdown
- Okla. Raising Tolls for Truckers by 25% to 30%
- I-80 Weigh Stations in Illinois Now Fully Automated
- Transportation Tops Wash. State Budget Proposal
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