P.M. Executive Briefing - Dec. 20

• Headlines From Today's A.M. Briefing

Bush Taps O'Neill as Treasury Secretary

The Treasury secretary post is an extremely important position that oversees administration economic policies including tax proposals, plus U.S. Customs and the Internal Revenue Service. That makes the job one that can affect trucking from any number of angles.

Even issues normally the province of other departments, such as transportation or labor, can be affected by the treasury secretary in his role as top economic policy-maker for the president. Border trucking issues with Mexico, for instance, can draw in Treasury as a Customs issue or as it involves bilateral economic relationships.

News reports have noted that he once supported the idea of taxes for burning carbon fuels - an idea of Vice President Al Gore's that had been offered in President Clinton's first deficit-reduction plan. Transport Topics

Isuzu Motors to Make More Diesel Engines

Isuzu anticipates an increased demand for fuel-efficient diesel engines, often used for heavy trucks, as fuel prices rise. Curruntly, Isuzu's U.S. plant makes 100,000 6.6-liter V8 diesel engines per year for GM pickup trucks.

The new plan aims to produce 150,000 engines per year by 2002 and 200,000 by 2004, the article said. Transport Topics

Bush Nominates Evans for Commerce

Mel Martinez was tapped for Housing and Urban Development, Reuters reported. Martinez chairs Orange County, Fla.'s board of commissioners. HUD is often involved with inner-city properties located near warehouses.

Bush also named Ann Veneman, California's agriculture director, to be his agriculture secretary, the news service said. California is one of the largest agricultural states and has often influenced federal policy in farm matters.

Dan Coats, formerly a U.S. senator from Indiana, is likely to be tapped for defense secretary, Reuters reported. From moving military families to commissioning research on sleep and many kinds of equipment, the Pentagon has tremendous impact on trucking.

Wisconsin Gov. Tommy Thompson, who championed welfare reform, may be named secretary of health and human services. That position oversees medical drug and device research and regulation, and plays a major role in health insurance. Tests to detect the presence of drugs or alcohol need to be approved by HHS's Food and Drug Administration.

Montana Gov. Marc Racicot may be tapped for attorney general, instead of the previously mentioned Oklahoma Gov. Frank Keating, according to Reuters. That office is very involved in antitrust work, and does the heavy lifting for enforcement of all federal laws. Transport Topics

N.J. Gov. Whitman May Get Top EPA Post

EPA has a major impact on trucking, in part by setting pollution standards for engines. During Whitman's first term, she was criticized for cutting staff at the state Department of Environmental Protection and reducing fines imposed upon industry, said the Record of Hackensack, N.J.

Reacting to the potential appointment, officials of two environmental advocacy groups - the National Resources Defense Council and Greenpeace - made cautiously positive statements to the paper about Whitman.

As governor of Texas, Bush has come under fire by environmentalists, who said he gave industry too much leeway. He has also been criticized during the presidential campaign for advocating oil drilling in the Arctic National Wildlife Refuge.

Land protection was a hallmark of Whitman's second term, during which she pushed to preserve open space in New Jersey, the Record said. EPA also influences highway building, by exercising some authority over construction in wetland areas. Transport Topics

Toyota to Cut Parts Costs

The plan involves the possibility of using fewer auto parts when manufacturing cars and trucks. This would mean fewer parts for trucks to carry to assembly lines.

Toyota will also request parts makers to reduce their manufacturing costs. However, the company does not plan to ask suppliers to cut costs, the article said. Transport Topics

UPS, FedEx, USPS Brace for Busier Peak Days

During its peak day, UPS expects to deliver 19 million packages, up from the 18 million parcels handled during the same day last year.

FedEx reported that its FedEx Express and FedEx Ground units planned to process 6.5 million packages on peak day this year, a 5% increase from last year.

The U.S. Postal Service also said it expected a 3% increase during peak day this year, processing at least 280 million packages and letters just on that day.

The article said the increased volume comes from better planning on the part of online merchants. Last year, many dotcoms did not plan ahead and their shipping and distribution systems were overwhelmed with the influx of orders for the holidays, leaving some angry shoppers without holiday gifts. Transpoart Topics

Bush Warns Again of Economic Slowdown

e made the remarks in a midday press conference to announce Paul O'Neill as his choice for Treasury secretary. Analysts have noted that both Bush and Vice President-elect Dick Cheney have repeatedly cautioned that the economy is weakening, and have recently been using that to help justify Bush's $1.3 trillion tax-cut plan. In addition, by warning about it now Republicans may avoid being blamed for it if the economy gets even weaker.

The economy is already in a de facto slowdown, but the growing fear is that it could develop into a severe slowdown or an actual recession. Most analysts think that if a recession is in the offing any tax relief would take too long to get through Congress to make much difference. However, tax changes can lay the basis for long-term shifts in economic activity, and the trucking industry has favored several types of tax cuts.

Bush's latest warning came as financial markets continued for the second day to show their disappointment over Tuesday's news that the Federal Reserve was keeping short-term U.S. interest rates steady for now. The Fed officially warned about the slowdown, which signals likely rate cuts ahead, but the markets were hoping for an immediate cut to stimulate an economy weakening faster than most had expected. Transport Topics

Okla. Raising Tolls for Truckers by 25% to 30%

Truck drivers who now pay $11 to traverse the Turner Turnpike from Oklahoma City to Tulsa will pay $14.25 beginning in January.

A $10 toll charge to take the H.E. Bailey Turnpike from Wichita Falls, Texas to Oklahoma City will rise to $12.50 for truck drivers, according to AP.

The revenue is slated for extensions of the state turnpike system. Transport Topics

I-80 Weigh Stations in Illinois Now Fully Automated

Registered trucks can use the PrePass system, which uses on-board transponders, to roll through a weigh-in-motion station. A scale is built into the pavement that can record the weight while the truck moves slowly over it.

The PrePass system is used by 19 states, and about 162,000 trucks are registered in it, the Tribune said.

Not only are all 20 of the weigh stations in Illinois fully automated, the stations along I-80 in Indiana, Iowa, Ohio and Nebraska are as well, the paper reported. Transport Topics

Transportation Tops Wash. State Budget Proposal

The budget proposal involves spending $5.9 billion to relieve congestion on major highways. Locke said the funds would improve both urban and rural routes.

Canada, the United States' largest trading partner, borders the state on the north. Transport Topics

Headlines From Today's A.M. Briefing

• Swift Transportation to Acquire Cardinal Freight
• FedEx 2Q Earnings Up 18%
  
• Still More Snow, Wind to Hit Midwest
• Housing Starts Leveling Off
• Fed Shift Leaves Markets Worried, Down
• Slow North American Market Brings Volvo Sales Down
• Guide Corp. CEO Resigns, Blames GM for Profit Woes

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