Executive Briefing - Jan. 24
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GM Recalls 1.38 Million Pickups, SUVs
General Motors (GM)is recalling 1.38 million pickup trucks and sport utility vehicles to fix potential brake problems, Bloomberg News reported Wednesday.The National Highway Traffic Safety Administration announced the recall Tuesday for 1991 and 2000 model year Chevrolet Silverado and GMC Sierra pickup trucks and 2000 model year Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon and GMC Yukon XL SUVs. Some of those models are popular with commercial users and municipal fleets.
NHTSA said a front right-hand brake pipe can make contact with another part of the vehicle, sustaining damage and allowing brake fluid to spill – raising the potential for impaired braking and crashes.
Lucent Cutting 10,000 Jobs
Telecommunications manufacturer Lucent Technologies (LU) plans to cut about 10,000 jobs, or nearly 8% of its worldwide workforce, after a year of financial problems, various news agencies reported Wednesday.The economic slowdown hitting manufacturers is resulting in fewer hauls for trucking and other transportation providers, and many of them are laying off some of their own workers as a result.
Freight logistics company EGL Inc. (EAGL) said Monday it expected to miss earnings, and was beginning layoffs of 300 employees in the United States. Norfolk Southern (NSC) announced plans to cut 1,000 to 2,000 employees over the next 12 months.
For the quarter ended Dec. 31, Lucent reported a loss of 30 cents a share, a result even worse than the 27-cent loss analysts had predicted.
The Murray Hill, N.J.-based company said facility consolidations and plant closures are among its plans for a return to profitability, according to CBS MarketWatch. Transport topics
Three Companies to Buy Out Renault Logistics
Autologic Holdings, TNT Post Group (TP) and Wallenius Lines plan to buy Renault SA's (13190-PAR) logistics division, Bloomberg reported Wednesday.In the four-company combination, Autologic would hold a 40% stake, while TNT, Wallenius and Renault would each hold 20%. The company would be called Alba-team, Autologic and Renault, the report noted.
The group plans to further expand in Europe. Currently, Autologic has 85% of the U.K. market, while the other companies are strong in Belgium, the Netherlands and Luxembourg.
The action comes as Renault focuses its energy on building cars, the article said. In April 2000, Sweden's AB Volvo (VOLVY) agreed to buy Renault's heavy truck unit. Transport Topics
Simon Buys Westway Assets
Simon Transportation Services announced Tuesday it has closed its purchase of part of Westway Express' trucking assets.Salt Lake City-based Simon, a refrigerated and dry van truckload carrier, hired a number of company drivers, independent contractors, maintenance employees and office personnel of Denver-based Westway.
Simon Transportation is No. 66 on the Transport Topics 100. Transport Topics
OTR Express Warns of 4Q, 1Q Earnings
Dry-van truckload carrier OTR Express (OTR) said late Tuesday it plans to report net losses for both its fourth and first quarter.The company blamed high fuel costs, lower used-truck values and a slowing economy among the reasons for the anticipated losses.
However, company Chairman and Chief Executive Officer William Ward said that “one relatively bright spot during December was a slight drop in the cost of fuel.” He said he hopes that diesel prices will continue to drop to more normal levels.
The company will release results of its fourth quarter in February. Transport Topics
Trans-Pacific Ocean Carriers Stand by Their Rate Hike
A slowdown in the U.S. economy has not spurred ocean ship lines in the Transpacific Stabilization Agreement to back down from rate increases they announced last fall, the Journal of Commerce Online reported.Despite the slowdown in Asian imports, the 14 carriers plan to increase eastbound rates by $525 to $750 per 40-foot container on May 1, when the contracts roll over.
TSA expects rate levels to be sustained by import growth exceeding 5%.
However the JOC noted that the contracts are confidential, and said some sources believe they will not ultimately include the increases. Transport Topics
Mesilla Valley Buys J.H. Rose Trucking
Mesilla Valley Transportation, a truckload carrier based in Las Cruces, N.M., has purchased all the assets of J.H. Rose Trucking, also located in Las Cruces.Although a spokesman at Ahern Associates, a consulting firm that handled the deal, declined to put a specific price tag on the deal, he said it ran to "seven figures."
The deal involves 150 tractors and 250 trailers, which Mesilla may add to its own assets of 200 trucks, 500 53-ft. dry vans and 100 48 ft. refrigerated vans.
Annual revenues for J.H. Rose have been about $15 million, Mesilla Valley said. Dan Lang, Transport Topics
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