Mitsubishi Motors is in talks with DaimlerChrysler regarding management changes, in light of an ongoing investigation into a defects cover-up, the Associated Press reported.

DaimlerChrysler holds a 34% stake in Mitsubishi, which makes heavy trucks as well as cars. A Japanese television station reported Monday it will boost its holdings to 40%, making the German vehicle giant the top Mitsubishi shareholder, the AP report said.

A Mitsubishi spokesman did not give details about the talks, but did confirm that the two companies are discussing drastic changes in Mitsubishi management, according to AP.

The Japanese vehicle maker is under investigation over a cover-up of driver complaints, defects and recalls of its vehicles. Transport Topics

French Truckers, Farmers Launch Crippling Fuel Protests

Blockades by truckers and farmers angry over spiraling fuel costs have paralyzed fuel distribution in that nation and triggered panic buying by French motorists, the news wire Agence France Presse reported.

The new agency said the protests have sealed off about 60 of France's 70 main oil installations, and trucks and farm vehicles blocked fuel tankers from going in or out. It said the country's main freight transport group, known as FNTR, had said only oil storage and processing facilities would be affected at first by the protests, and since there were enough stocks to last several days that should not hurt averge motorists.

But AFP added that as the French transport minister has been negotiating with groups representing truckers, lines have formed at some fuel stations as drivers try to beat any developing shortages by fueling early. Transport Topics

Tire Maker Avoids Strike With Labor Day Union Deal

Bridgestone/Firestone officials and union leaders struck a tentative deal in the early hours of Labor Day, news services reported, averting a strike by 8,000 steelworkers that would have closed nine of the tire maker's U.S. plants and could have rippled through to hurt its vehicle-making customers.

Firestone also recalled all 62,000 of its Wilderness AT line of tires circulating in Venezuela, which have been linked to at least 46 fatal accidents there, Reuters reported.

That news agency also said company shares in Tokyo Monday hit nearly a seven-year low as officials of the Japan-based company prepare to answer questions in U.S. congressional investigations into tire-related accidents that have killed at least 88 in this country. Transport Topics

CSX Corp. Selling Logistics Unit

CSX Corp. – a rail, intermodal, container-shipping and terminal management giant – announced Monday it has agreed to sell its logistics division, CTI Logistx, to European logistics firm TNT Post Group.

TNT Post Group will pay $650 million in cash for CTI Logistx, and the deal is expected to close later this month, according to the announcement.

Jacksonville, Fla.-based CTI provides logistics services to the automotive, tire, electronics, rail and retail sectors, plus to general industry. Transport Topics

Pacer Completes GTS Acquisition

Transportation and logistics provider Pacer International announced Tuesday it has completed its acquisition of GTS Transportation Services for an undisclosed amount.

Pacer offers freight transportation and logistics services – including intermodal, trucking, warehousing, consolidation and other logistics services – through its Pacer Logistics and Pacer Stacktrain divisions.

GTS is a non-asset-based logistics and brokerage company, covering the contiguous 48 states, Canada and Mexico. The company reported $87 million in revenues as of Dec. 31, 1999.

GTS President Patrick Nolan and Vice President Jeff Roths will continue to serve in those capacities, a Pacer official said. Transport Topics

Accuride Forms Alliance With Italy's Gianetti

Accuride, a leading North American provider of steel and aluminum wheels for the trucking industry, announced late Friday it has formed a strategic alliance with Gianetti Route S.p.A. of Italy, which manufactures steel wheels for trucks as well as buses and off-the-road vehicles.

The partnership will allow the companies to combine and be a global source of their products, and will also increase the number of locations where their products can be purchased.

"This alliance will allow us to efficiently develop additional global marketing strategies and further build upon our respective cutting-edge technology in wheel manufacturing," said Accuride President and CEO Bill Greubel. Transport Topics

Satsafe, Nokia, Europolitan Link Up in Truck Tracking

Swedish companies Satsafe, Nokia and wireless provider Europolitan AB have signed a partnership agreement to develop a short messaging service for truck tracking, the companies announced Friday.

The SMS unit will allow trucks and goods to be tracked, positioned and communicated with while on the road, using a wireless network. Transport Topics

Oil Prices Climb Upward as OPEC Contemplates Output Boost

Crude oil prices continued their climb above 10-year highs in London, as traders expect a proposed OPEC output boost will not affect the market, Reuters reported Tuesday.

Brent crude hit a new high of $32.88 a barrel before finishing at $32.65; U.S. crude jumped above $34 per barrel for the first time since March, then finished just below that level at $33.97, Reuters noted.

OPEC is expected to increase production by 500,000 barrels per day after its Sept. 10 meeting, but traders fear that will not be enough to cool off the market, according to Reuters. The group is under pressure by many, including President Clinton, to help lower prices to acceptable levels before winter sets in, to avert dramatic price spikes in heating oil and diesel fuel. Transport Topics

OTR Warns It Will Report Third-Quarter Loss

Olathe, Kan.-based OTR Express – a dry van truckload carrier and logistics company in the 48 contiguous states – warned Friday that "escalating fuel costs, a lower level of seated tractors, a slower freight market and a weak used truck market" would cause it to report a net loss for its third quarter.

William P. Ward, OTR's chairman, president and chief executive officer, said in a statement that "We are very disappointed to be reporting another sizable quarterly loss. We are moving quickly to divest less-productive equipment, reduce our non-driver payroll and strengthen our balance sheet." He added that "streamlining our business is essential, as OTR and other companies work through a challenging time in the trucking industry."

Ward said the plan includes selling 100 of OTR's 48-foot trailers, and 36 of its tractors. "We recognized substantially all of the loss on the sale of the trailers and a percentage of the loss on the sale of the tractors in the second quarter. As we sell this revenue equipment, we pay down long-term debt," he explained.

He added that "the used truck market continues to be very weak, with speculation that it may not recover until some time in 2002." After selling those 36 trucks, OTR will still have about 500 trucks, including 50 owner operators. Ward said OTR is "very close to filling our remaining trucks, which is very important toward improving cash flow." Transport Topics

L.A. Transit Strike Avoided for Now

A development that could have put more cars in competition with trucks on the already clogged Los Angeles roadways was averted for now, as the Associated Press reported Tuesday that L.A. transit and union at least temporarily avoided a strike by agreeing to a short extension of the old contract.

The two sides had had hoped to reach an agreement over the Labor Day weekend, AP said, before the end Tuesday morning of a state-imposed 60-day "cooling off" period. A strike could affect nearly 1.5 million L.A. commuters.

The three unions involved represent bus and rail operators, dispatchers, clerical workers and mechanics. Their contracts expired June 30, but the governor imposed the 60-day waiting period to prevent a strike during the Democratic National Convention in Los Angeles last month, AP noted. Transport Topics

Lazer Transportation to Develop U.S.-U.K. Trade Service Group

Lazer Transportation Services announced Tuesday it will develop a United States-United Kingdom trade service group to expand offerings to its customers.

The trade service group is expected to strengthen supply chain services and just-in-time production and distribution between the two countries, the company said. A marketing development manager will be put in place on each side of the Atlantic as part of the new development.

Lazer offers freight forwarding and customs house brokerage to customers in over 200 mar-ketplaces worldwide. Transport Topics

Nissan May Write off $5.1 Million Debt From Trucking Companies

Heavy truck maker Nissan Motor Diesel may have to write off $5.1 million, or 537 million yen, because two small Japanese trucking companies cannot pay, Reuters reported Tuesday.

However, Nissan said it expects its earnings forecast for the group to remain unscathed, Reuters added. A company spokesman said Nissan Diesel expects to recover part of amount owed because the trucking firms have trucks they had bought from Nissan's sales units.

Nissan Diesel is owned 22.5% each by Nissan Motor Co Ltd and Renault SA, Reuters noted, and in May it had forecast group net profit of 500 million yen for the current fiscal year from a net loss of 728 million yen a year earlier. Transport Topics

A.M. Executive Briefing - Sept. 5

Mitsubishi, DaimlerChrysler Discuss Management Changes in Wake of Scandal