P.M. Executive Briefing - Dec. 18
This Afternoon's Headlines:
enault owns Mack Trucks.
Volvo would have three years to sell its 45.5% stake in the other company, which makes heavy-duty cab-over-engine models. Share of the garbage truck market was a focus of regulatory concern, the news service said.
However, the merger would still more than double Volvo’s U.S. market share, cranking it up to 24%, and bring cost savings of $363 million after two years.
Governmental involvement in the deal is not done yet -- a federal court must still approve it -- according to Bloomberg. Transport Topics
Schrempp called commercial vehicles is an "excellent example" of the company's approach to global and segment diversification.
This year, the company offset the downturn in the U.S. heavy truck market with a successful performance in the European and emerging markets in van business, Schrempp said.
Thus, while the outlook for unit sales for the year as a whole is a little lower than last year, the company expects earnings to be slightly higher.
In the future, it also expects to develop the commercial vehicle business through opportunities provided by an Asian alliance, Schrempp told the shareholders.
He added that the company has "considerably strengthened" its commercial vehicle business through the acquisitions of Western Star, a Canadian truck maker, and the outstanding shares in Detroit Diesel, a U.S. truck engine manufacturer. Transport Topics
Shareholder Jonathon Lovejoy headed a class action alleging board members failed to disclose important information about the deal, and asked a court to decide if those members were benefiting themselves at shareholders' expense, according to AP.
But last week, Boone County, Ark., Chancellor Gary Isbell granted the request of his attorneys to dismiss the suit, AP reported.
AF is a scheduled, for-hire carrier of less-than-truckload shipments of general commodities, serving direct all points in the nation's 39 easternmost states. On Nov. 13, AF announced that FedEx would buy it. Transport Topics
The company hopes to increase its earnings per share, Bloomberg said, noting that MAN's ordinary shares have fallen 21% so far this year.
The repurchase of the non-voting shares is aimed at a long-term effect of keeping the price at or above 80% of the price of ordinary shares, Bloomberg reported. Transport Topics
Iowa, Illinois and southern Wisconsin could see accumulations of three to eight inches. Lighter snow was expected across southern Minnesota and northern Wisconsin south into Missouri.
Winds behind the storm were expected to boost the wind chill factor to between 30 and 60 degrees below zero Monday night.
An icy mix of freezing rain was expected in Arkansas, and snow was expected in western New York, USA Today said. Transport Topics
GM plans to take a 34% stake in Liuzhou Wuling Motors, which is based in southern Guangxi province, the news service said.
GM would buy that stake through a B-share initial public offering that could occur during the first quarter of 2001, the news service reported.
Wuling was expected to produce about 110,000 trucks and vans in 2000, with prices ranging from $2,500 and $5,500 in U.S. dollars, Reuters reported.
Transport Topics
Patrick Lupo, the company's executive chairman, will begin a new assignment Jan. 1 to integrate U.S. operations into DHL's global network, the news service said.
DHL's new majority owner is Deutsche Post World Net and the move shows the big German company's determination to take on the largest express delivery market in the world, JOC said.
DHL is already seeking approval from the U.S. Department of Transportation to split DHL airways and its ground operations, JOC said. U.S. law limits foreign ownership of an airline to 25%, JOC said. Transport Topics
- Volvo-Renault Merger Gets U.S. Antitrust Approval
- Chairman: DaimlerChrysler Commercial Trucks Strong
- Shareholders Call Off Suit Over AF/FedEx Merger
- German Truck Maker MAN AG Plans Stock Buyback
- Snow, Wind Hitting Central States
- GM Buying Into Chinese Truck Maker
- DHL's Lupo Coming After US Market
Volvo-Renault Merger Gets U.S. Antitrust Approval
U.S. regulators said Volvo AB could buy Renault SA’s truck unit if it sells its stake in rival Scania AB, Bloomberg News reported Monday.enault owns Mack Trucks.
Volvo would have three years to sell its 45.5% stake in the other company, which makes heavy-duty cab-over-engine models. Share of the garbage truck market was a focus of regulatory concern, the news service said.
However, the merger would still more than double Volvo’s U.S. market share, cranking it up to 24%, and bring cost savings of $363 million after two years.
Governmental involvement in the deal is not done yet -- a federal court must still approve it -- according to Bloomberg. Transport Topics
Chairman: DaimlerChrysler Commercial Trucks Strong
DaimlerChrysler's commercial vehicles have performed well, Chairman Juergen Schrempp told shareholders in a letter that also described losses from the Chrysler division.Schrempp called commercial vehicles is an "excellent example" of the company's approach to global and segment diversification.
This year, the company offset the downturn in the U.S. heavy truck market with a successful performance in the European and emerging markets in van business, Schrempp said.
Thus, while the outlook for unit sales for the year as a whole is a little lower than last year, the company expects earnings to be slightly higher.
In the future, it also expects to develop the commercial vehicle business through opportunities provided by an Asian alliance, Schrempp told the shareholders.
He added that the company has "considerably strengthened" its commercial vehicle business through the acquisitions of Western Star, a Canadian truck maker, and the outstanding shares in Detroit Diesel, a U.S. truck engine manufacturer. Transport Topics
Shareholders Call Off Suit Over AF/FedEx Merger
Shareholders have pulled back a class-action suit challenging the sale of American Freightways to FedEx Corp., the Associated Press reported Friday.Shareholder Jonathon Lovejoy headed a class action alleging board members failed to disclose important information about the deal, and asked a court to decide if those members were benefiting themselves at shareholders' expense, according to AP.
But last week, Boone County, Ark., Chancellor Gary Isbell granted the request of his attorneys to dismiss the suit, AP reported.
AF is a scheduled, for-hire carrier of less-than-truckload shipments of general commodities, serving direct all points in the nation's 39 easternmost states. On Nov. 13, AF announced that FedEx would buy it. Transport Topics
German Truck Maker MAN AG Plans Stock Buyback
Germany's second-ranked truck maker MAN AG is planning to start buying back 7.7 million preferred shares, 5% of the company's capital stock, on Jan. 8, Bloomberg News reported.The company hopes to increase its earnings per share, Bloomberg said, noting that MAN's ordinary shares have fallen 21% so far this year.
The repurchase of the non-voting shares is aimed at a long-term effect of keeping the price at or above 80% of the price of ordinary shares, Bloomberg reported. Transport Topics
Snow, Wind Hitting Central States
In what will probably be more bad news for a transportation system already suffering from a solid week of bad weather, USA Today reported that snow was expected Monday to cut a swath through the Upper Mississippi Valley and Great Lakes regions.Iowa, Illinois and southern Wisconsin could see accumulations of three to eight inches. Lighter snow was expected across southern Minnesota and northern Wisconsin south into Missouri.
Winds behind the storm were expected to boost the wind chill factor to between 30 and 60 degrees below zero Monday night.
An icy mix of freezing rain was expected in Arkansas, and snow was expected in western New York, USA Today said. Transport Topics
GM Buying Into Chinese Truck Maker
General Motors is buying into a Chinese truck maker, Reuters reported Sunday.GM plans to take a 34% stake in Liuzhou Wuling Motors, which is based in southern Guangxi province, the news service said.
GM would buy that stake through a B-share initial public offering that could occur during the first quarter of 2001, the news service reported.
Wuling was expected to produce about 110,000 trucks and vans in 2000, with prices ranging from $2,500 and $5,500 in U.S. dollars, Reuters reported.
Transport Topics
DHL's Lupo Coming After US Market
Brussels-based DHL is taking aim at the U.S. market with a new executive focus, the Journal of Commerce Online reported Monday.Patrick Lupo, the company's executive chairman, will begin a new assignment Jan. 1 to integrate U.S. operations into DHL's global network, the news service said.
DHL's new majority owner is Deutsche Post World Net and the move shows the big German company's determination to take on the largest express delivery market in the world, JOC said.
DHL is already seeking approval from the U.S. Department of Transportation to split DHL airways and its ground operations, JOC said. U.S. law limits foreign ownership of an airline to 25%, JOC said. Transport Topics
Headlines From Today's A.M. Briefing
- Volvo, Renault Merger Nod Expected Monday
- Freightliner Workers Approve Contract
- Fed's Interest Rate Policy Draws Spotlight
- EPA Prepares to Issue Final Diesel, Engine Rules
- NTSB's Hall Retiring Jan. 18
- USF Worldwide Gets New CEO
- ABF Stubblefield To Chair Motor Freight Carriers
- 4Q Chrysler Loss of $1.2B Hitting DaimlerChrysler
- General Motors Plans More Cutbacks
- Gillette Closings Plants, Cutting Jobs
