A.M. Executive Briefing - Sept. 14
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British Protests Slow; Other Countries Tackle Fuel Issue
Several blockades of oil refineries, by British truckers upset over high fuel taxes, have been called off as organizers claim a moral victory, the Associated Press reported Thursday. The topic remains hot in many other European countries; protests continue in Germany and Belgium and may flair up in Italy, news agencies noted.Protests were halted at nine British oil refineries and depots, a quarter of the total affected by blockades. Spokesmen for protesters urged a total end to blockades, saying public opinion would soon turn against them if the protests do not end, AP reported. The country faces severe fuel shortages, which have many workers off the roads and hospital and emergency services curtailing operations.
German and Belgian truckers continued protests as their country's leaders refused to curb the fuel taxes that drive prices far higher than in the United States, the report also said.
DaimlerChrysler Hit With Penalty From NHTSA
The U.S. National Highway Traffic Safety Administration has hit DaimlerChrysler with a $400,000 penalty to settle allegations made against the company over defects, the Wall Street Journal reported in its online edition Thursday.The charges had been over two recalls - one involving 700,000 1993-97 cars with 3.5-litre engines and the other for 9,000 1994-99 Dodge Ram four-wheel-drive pickup trucks with eight-liter engines, the report said.
NHTSA claimed DaimlerChrysler had failed to respond adequately to the reported defects. DaimlerChrysler said there were no reported injuries as a result of those recalled vehicles, the Journal noted.
This is just the latest in a series of developments involving various vehicle or parts manufacturers around the world, in which governments and news agencies reported that companies did not sufficiently notify authorities about problems with their products. Transport Topics
International, DaimlerChrysler to Lay Off Workers
Slumping sales make layoffs necessary at an International Truck and Engine Corp. Ohio plant, while DaimlerChrysler is also laying off German office workers as a cost-cutting move, several news agencies are reporting.Like many other North American truckmakers - including DaimlerChrysler's Freightliner, which announced the release of more than 3,700 workers in August - the weak market is forcing International to lay off 500 workers at its Springfield, Ohio, plant, the company's largest in North America, the Associated Press reports. Navistar International, its parent company, had also announced 1,600 layoffs in August, Transport Topics previously reported.
An early release of Friday's WirtschaftsWoche magazine (Germany) includes news that DaimlerChrysler plans to cut 800 jobs at its Stuttgart headquarters over the next three years, Bloomberg reports. The move stems from a desire of the vehicle maker to cut costs by 25% at each unit, and will affect lower-level managerial and clerical car and truck positions, the article said. Transport Topics
U.S. August Inflation, Retail Sales Both Lower Than Expected
U.S. government reports Thursday on U.S. wholesale inflation and consumer spending for retail goods in August came in below expectations of economists and financial markets,ore evidence of a slowed economy with little inflation risk despite soaring energy costs.
That is both good and bad news for the trucking industry - good in that this is more reason to think interest rates will not rise further in coming months, but bad in confirming that the economy will not starting to accelerate its flow of freight that trucks haul.
He government said its producer price index fell 0.2%; a 0.2% rise was expected. Retail sales rose 0.2%, but a 0.4% rise had bee looked for. Transport Topics
GM Will Double Suzuki Holdings to 20%
General Motors will spend $600 million to double its stake in Japan's Suzuki Motor Corp., giving it 20%, the Associated Press reported Thursday. GM Chairman Jack Smith will also join the Suzuki board of directors, the report said.GM's increased holdings will boost joint vehicle projects with Suzuki and manufacturing and distribution initiatives, according to AP.
The company joins fellow vehicle giants DaimlerChrysler, which is upping its stake in Mitsubishi Motors, and Ford Motor Co. in taking big pieces of Japanese vehicle makers. Transport Topics
West Coast Port Drivers Back to Work After Winning Concessions
Harbor truckers serving the ports of Los Angeles, Long Beach and Oakland returned to work Wednesday after their companies agreed to increase fuel surcharges, and in some cases the rate of pay per trip, the Journal of Commerce Online reported.Truck owner-operators said skyrocketing fuel costs kept them from earning enough to cover costs. Over several days they withheld their services from some truck companies that work with terminals in the area, until the companies agreed to raise fuel surcharges paid to drivers by 6% or 7% and increase their trip rates by $5 to $10, according to the report.
While these stoppages were spontaneous and aimed only at certain trucking companies, the Teamsters union offered support when asked, a union official told JOC Online. The Teamsters are trying to organize U.S. harbor truckers, the report noted. Transport Topics
Five More U.S. Deaths Linked to Firestone Tires
The U.S. National Highway Traffic Safety Administration has found an additional five deaths allegedly caused by faulty Bridgestone-Firestone tires, the Wall Street Journal's online edition reported Thursday.Bridgestone is currently replacing Firestone Wilderness AT tires tha it recalled; 2.2 million have been replaced - a rate of 70,000-90,000 per day - since the recall was an-nounced, the report said. Transport Topics
Allied Holdings Issues 3Q Warning
Allied Holdings announced Thursday it expects a loss of 50-60 cents per share for the third quarter ending Sept. 30, $2-3 million more than current estimates. This is linked mainly to suspension of production at three Ford plants due to the Firestone tire recall, Allied said.Company officials said in the annoucement Allied is still expected to meet or exceed current First Call fourth-quarter consensus earnings estimates of 77 cents per share.
Through its various subsidiaries, Allied Holdings provides logistics, distribution and transportation services to the automotive industry. Transport Topics
New E-Tool Added to American Freightways Web Site
American Shipper Logistics, an e-logistics shipment management tool, is a new feature on the American Freightways Web site, the company announced.Using this tool, AF customers can manage the entire shipping process via the Internet. Features include an address book for consignee records, real-time shipment tracking and on-line shipping document creation.
American Freightways is a general commodity, less-than-truckload carrier directly serving 40 states, as well as Alaska, Canada, Caribbean Islands, Central America, Hawaii, Mexico, Puerto Rico and South America through various partnerships. Transport Topics
Information On Untethered Trailers Now Accessible via Internet, Through AirIQ
AirIQ announced Thursday that location information about trucks and trailers - including untethered ones - can be accessed from any Internet connection through technology the company is offering.This is based on an on-board computer, with an integrated global positioning system and wireless transceiver. It uses the latest mapping technology, according to the company.
The company will market the systems to "all private fleets and for-hire carriers - not just those that can afford to make a large upfront investment in hardware and software," said Miguel Gonsalves, vice president of AirIQ's Commercial Transport Division.
AirIQ is an application service provider based in Pickering, Ontario, Canada, near Toronto. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Florida Truck Firm D & K Transport Slashes Size on Fuel Crunch
- Truck Tire X-ray Practices May Point Way for Smaller Vehicles
- Clinton Comes Under Attack by Republicans on Oil Prices
- Major Fuel Protests Seen as Unlikely in United States
- US&T's Velocity Express Goes for Green Shipping
- Overnite Improves Several Regional Services
- Deutsche Post Eyes France's Geodis, Larger Stake in DHL
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