A.M. Executive Briefing - Feb. 4
This Morning's Headlines:
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Nissan's Troubled Truck Unit Given 1.9-Billion-Dollar Lifeline
Nissan Motor announced that the struggling Nissan Diesel Motor truck unit will be given a $1.9 billion, four-year line of credit by its creditor banks. It also announced that the truck unit will issue a roughly 5 billion-yen convertible bond but did not say who would subscribe to it; reportedly, subscribers include Nissan and certain creditors.The restructuring plan also involves French truckmaker Renault Vehicules Industriels, which will sell two Nissan Diesel light truck models outside Japan and, along with parent company Renault, will be supplied with Nissan Diesel engines. Two Renault light commercial vehicles will be distributed in Japan by Nissan Diesel. The full Nissan Diesel rescue package will be revealed before May. Agence France Presse (02/04/00)
55 NAVL Workers Cut in Overhaul
Allied Worldwide laid off 158 employees across all its departments Tuesday as it cuts out duplicate positions following the merger of Allied Van Lines and the former North American Van Lines. Fifty-five of the jobs cut are in Fort Wayne, Ind., where the trucking and van-line company is based.Company spokeswoman Paula Felbein says the laid-off workers "were given comprehensive information as related to out-placement opportunities" and "will be provided a full range of support during this transition." Executives expect a 10% reduction in employment expenses. Fort Wayne (Ind.) News-Sentinel (02/03/00) P. 1B; LeDuc, Doug
Incidents Involving Trucks Vs. Metrolink Trains on 'Alarming' Rise
After five Metrolink commuter trains have been involved in accidents with trucks in southern California in the past three months, Metrolink is requesting that trucking companies instruct their truckers to expect trains when they come up to crossings.Last week, a truck carrying an oversize load became stuck on Metrolink tracks in Glendale and was struck by a train. In two years prior to the last three months, there was only one such crash, and 17 in the last seven years, all but three in Los Angeles County.
Metrolink CEO David Solow says the rise of truck traffic with the booming economy has increased the amount of new truckers who "may not be familiar with Metrolink's level of train operations."
Metrolink faces difficulty in trucking-industry outreach because many of the trucks come from outside California; it concentrates on businesses close to railroad tracks. Also planned is "Trucker on the Train" day, in which truck drivers will ride with engineers to learn how to stay out of accidents. City News Service (02/03/00)
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Bridgestone Develops Single Tire for Trucks, Buses
Bridgestone says its new Greatec tire has sufficient strength and breadth to allow single-tire configurations to take the place of double tires on truck and bus driver axles. It will reduce fuel usage, the need for rubber to make tires, the storage space needed for tires, and the amount of vehicle space taken up by tires, the company said Thursday. The company expects vehicles will be on the road with Greatec tires by 2001. Jiji Press Ticker Service (02/03/00)Link Drops Legal Battle With UPS
Fort Lauderdale, Fla.-based Link Express, citing lack of money and resources, has dropped its antitrust case against United Parcel Service, although if Link's finances improve it can resume the suit.Roughly six months after Link started sending packages by such companies as UPS and Federal Express – as well as its own employees – in 1998, Link was dropped by UPS, which also says it would not handle packages from Link-owned pack-and-ship stores.
Vendors and employees soon started saying bills had not been paid and checks would not clear; in October, Link filed a complaint claiming UPS's action was monopolistic. Some of Link's creditors sued Link to be compensated for unpaid bills, and Link founder Paul Johnson countersued most of them, alleging they had gone back on contracts.
Trying to keep up Link's plans for an IPO next month, Johnson has signed more contracts and received more money from investors. He says he will resume the case against UPS after the IPO, in which he expects to raise $75 million. Miami Herald (02/03/00) P. 1C; Rejtman, Jack
1,166 Truck Inspections
The Houston Police Department truck squad has done Level 1 inspections on 1,166 trucks, arrested 181 drivers, and given 1,432 citations and 5,536 warnings since its creation in October to respond to a spate of fatal truck accidents. Most of the arrests took place because of warrants for unresolved traffic offenses, while others were for suspended licenses or DWI. Houston Chronicle (02/03/00) P. 22AJudge Rules Out-of-State Trash Restrictions Unconstitutional
U.S. District Judge James Spencer Thursday ruled that Virginia's laws intended to cut down on garbage entering the state are unconstitutional because of their burden on interstate commerce.The laws, which would have become effective July 1 had it not been for a court order by Spencer in June, would have made trash truck regulations stricter in the state. It also would have prohibited garbage barges on three rivers, banned municipal waste from going to barge facilities, and set limits on landfill growth.
Spencer's ruling cited comments by legislators and Gov. Jim Gilmore that the purpose of the laws was to cut down on out-of-state trash entering Virginia. State Attorney General Mark Earley said only the letter of the law, not elected officials' statements, should be up for consideration; he vowed an appeal. Associated Press (02/03/00) ; O'Dell, Larry
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