A.M. Executive Briefing - Oct. 9

• Headlines From Friday's P.M. Briefing

Oil Back Up on Israeli-Palestinian Tensions

U.S. crude oil rose as much as 94 cents to $31.80 per barrel on the New York Mercantile Exchange, while in London Brent crude rose as much as 88 cents to $31.10 per barrel on the International Petroleum Exchange, Bloomberg said.

More than 80 people have died in two weeks' worth of violence in that region, and President Clinton is reportedly considering a trip to the Middle East to help end the conflict. Transport Topics

GM, Fiat Reported Eyeing Daewoo

GM would not comment on reports from several newspapers that it had reached agreement to begin a potential purchase, but company vice president Steve Harris confirmed that preliminary contact had been made with the South Korean government, the article said.

Reports are conflicting over the amount GM and Fiat will purchase - some say all of Daewoo's assets; others say GM would hold 50% and Fiat 20%.

In other acquisition news, DaimlerChrysler (DCX) has reportedly expressed interest in Daewoo affiliate Ssangyong Motor Co., a Korean sport-utility vehicle maker, Bloomberg reported Monday. The German vehicle maker is not interested in Daewoo, the report said. Transport Topics

ComRoad Sales 10% Over Forecast

Third-quarter sales rose to 25.1 million deutsche marks (U.S.$11.2 million), thanks mainly to successful new partnerships, the company said. ComRoad has 28 service centers in 27 countries and has established 13 of the 15 new partnerships planned for 2000, the article said. Transport Topics

Grupo Dina Workers Go on Strike

The Mexican truck and bus maker is negotiating with the workers in efforts to end the strike, which one Grupo Dina official said he expected to be settled in a few days, the article said. The plant affected by the strike accounts for about 8% of the company's sales, Bloomberg noted.

This is the latest in a series of bad news for Grupo Dina, whose truck making contract with Western Star (WSH was cancelled after that company's acquisition by DaimlerChrysler's (DCX) Freightliner. Transport Topics

Vehicle Parts Firm SPX Expecting $76.1 Million Charge

Of those charges, about $63.8 million is related to restructuring SPX's service solutions unit, the article said. In the third quarter, SPX closed its Wayland, Mich., facility, reduced operations in Kalamazoo, Mich. and Montpelier, Ohio, began consolidating European operations into its Hainburg, Germany facility and restructured its Brazil manufacturing, Reuters noted. Transport Topics

Three Small Firms Among Those With SPR Contracts

Euell Energy Resources of Aurora, Colo.; Burhany Energy Enterprises Inc. of Tallahassee, Fla.; and Lance Stroud Enterprises Inc. of New York, N.Y. were awarded the swaps contracts. Like others that submitted winning bids for SPR oil, they will have to pay back the oil taken from the SPR plus additional amounts representing interest, but many oil traders and analysts have never heard of them, the Journal said.

Stroud is run from a New York apartment by a man who reportedly has never negotiated an oil deal, the Journal said, while Euell is a company mainly focused on construction projects. Transport Topics

Ford Says Recall Cost Estimate in "Ballpark"

Meanwhile, a Washington Post article reveals that Ford's Explorer has a higher rate of tire-related accidents than other sport-utility vehicles regardless of the tires used. That suggests the problem that led to numerous deaths and injuries and forced a massive recall of Firestone tires may involve the Explorer itself, according to comments by auto analysts in the Post story, although Ford has insisted the issue is Firestone tires and not the vehicle.

Responding to a question that the recall had cost Ford nearly $500 million, Nasser told CBS' "60 Minutes" that figure was "probably in the ballpark." Nasser also continued to state that Ford did not know Firestone tires on its Explorers were defective, AP said. Ford had cut some vehicle production so that more more tires would be available more quickly to replace recalled tires that were already on the road. Transport Topics

Headlines From Friday's P.M. Briefing

• GM Moving Janesville, Wis., Medium Truck Production to Flint Plant
• Biodiesel Planned for 100% of 95-Truck Garbage Fleet
• Heat Bills Will Rise About $200 for Oil, Gas Consumers
• Midrange Fleets Can Benefit From Extended Drain Intervals
• U.S. Air Freight Kept Growing in August
• Linens Maker Closing Two Plants

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