A.M. Executive Briefing - Jan. 12
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DaimlerChrysler Lays Out Three-Year Output Estimates
DaimlerChrysler predicts its annual sales of commercial vehicles would rise to 600,000 units annually within three years, compared with 549,000 in 2000, Reuters reported Friday.But a company official told reporters at a Brussels news conference that 2001 would be a difficult year, in part because North American and Western Europe markets were likely to stagnate or possibly suffer a slight decline.
The official said DaimlerChrysler was discussing a 50-50 joint venture for commercial trucks with Hyundai Motor Co., to tap the burgeoning Asian truck market.
Eaton Reorganizing Truck Parts Business
Cleveland-based vehicle parts maker Eaton Corp. is reorganizing its truck parts business and firing 100 workers, Bloomberg News reported Thursday.Eaton is considering closing its plant in St. Nazaire, France.
The company's truck part sales fell 1.7% in the first nine months of 2000, to $1.18 billion from $1.2 billion a year earlier.
The profit margin from truck part sales dropped to 2%, from 16% a year earlier, as truck makers produced about 85,000 more units than they could sell. Eaton makes truck transmissions, clutches and drivetrains, and is based in Cleveland. Transport Topics
Economy: Dec Producer Prices Flat; Retail Sales Nearly So
Two key U.S. economic reports Friday showed that average wholesale prices were unchanged for December, while overall sales by the hard-hit retail industry managed a scant 0.1% gain after falling 0.5% in November. Both numbers were better than economists had predicted.For trucking, the ongoing weakness in retail sales reported by the U.S. Commerce Department implies more slowness ahead in orders for news goods from manufacturers, and therefore trucking shipments may weaken further. But since sales managed a slight gain, things are better than if sales had actually fallen as many expected.
The unchanged reading in the Labor Department's producer price index can suggest the Federal Reserve has more room to push interest rates lower to spur the economy without worrying about an inflation rebound.
However, some analysts cautioned that an unexpectedly high 0.3% rise in the core PPI - wholesale prices other than the volatile food and energy components - indicates some mild inflation pressure remains. That sort of concern could affect how aggressively the Fed keeps cutting rates.
i>Transport Topics
Scania Trucks in Use Up 10% Through Nov.
wedish truck manufacturer Scania reported that registration of its trucks in Western Europe from January through November of 2000 were up 10% over 1999.
Sales were up in most West European countries, with the greatest increases in Sweden (3.6%), Great Britain (3.3%) and the Netherlands (3%).
Overall, Scania's share of the market in that region was 15.6% in the first 11 months of 2000, an increase of 0.8% from a year earlier. Transport Topics
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Mitsubishi Backs Volvo Alliance, But Review Under Way
Japanese vehicle manufacturer Mitsubishi says it will keep its alliance with Swedish truck maker Volvo, but that the Japanese company is reviewing its business plan, Bloomberg reported Friday based on an interview with a senior Mitsubishi official.Industry analysts have speculated that Volvo might sell its 5% stake due to conflicts with rival DaimlerChrysler, which owns a 34% stake in Mitsubishi.
Bloomberg quoted Steven Torok, a Mitsubishi senior vice president, saying there were no changes in the Volvo plan but that a review of the business strategy would be done in time to annouce the strategy in early March. The story also cited analysts doubting the alliance can survive.
Volvo and Mitsubishi are planning to jointly build a medium-sized truck. However, Bloomberg said some analysts still anticipate a possible exit by Volvo, which has strong links to French truck maker Renault and through it to Nissan Diesel, a Mitsubishi competitor. Transport Topics
Headlines From Yesterday's P.M. Briefing
- U.S. Import, Export Prices Fall in December
- New Jobless Claims Fall, But Labor Market Seen Easing
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- Thermo King Gets 5-Year Air Force Contract
- Jury: Driver, Trucking Co. Liable in Texas Truck Accident
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