P.M. Executive Briefing - Dec. 3
This Afternoon's Headlines:
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Trucker Falsified Log, Grand Jury Says
Chaplin, Conn., truck driver James Palmer, 47, was indicted on charges of making inaccurate logbook entries and breaking hours-of-service rules by a grand jury in the federal District Court in Philadelphia.According to Palmer's logbook, the indictment says, he was in his rig's sleeper from 9 p.m. to midnight on May 27, when in actuality he was hauling an oversize load on the Schuylkill Expressway for Extec USA. The load, for which he had no Pennsylvania permit, hit a railroad bridge around 10 p.m., sending a metal blade flying into an oncoming car and causing the death of a 25-year-old woman.
Palmer and Extec USA were fined $2,400 in June by the Pennsylvania State Police because of the lack of an oversize-load permit and for not performing a pretrip inspection. The indictment says Palmer was driving fatigued due to most of the alleged false logbook entries, which occurred on seven or more days the month the accident happened. Philadelphia Inquirer Online (12/03/99) ; Raghavan, Sudarsan
State Audit Says Agency Should Enforce Collection For Road Damages
An audit of the Missouri Transportation Department's 1997 and 1998 records says the department could have saved up to $1.2 million, out of the roughly $3 million written off for property damage from the start of 1995 until March of this year, if it could have tracked down 40% of drivers responsible for damage to roads and bridges. That is the percentage of "unknown damage accounts" that the state auditor's office was able to identify via accident reports. The audit report said the Transportation Department should have tried harder to find the drivers who caused the damage and pass on the bills.The department said it was trying to evade counter claims and that among the $4.8 million in damage money it has gotten in the past half-decade was $1 million-plus for a garbage truck's damage to a St. Louis bridge. St. Louis Post-Dispatch (12/03/99) P. C9; Bell Jr., Bill
Volvo Follows the Consolidation Route
Restructuring has been taking place for some time in the truck-manufacturing business, and consolidation got another shot in the arm when Volvo bought a controlling share of Scania this year. Smaller firms that lack economies of scale and worldwide markets will have an even tougher time competing, and the industry is trying to figure out what is next in line for purchase.Volvo still will have only a bit over 50% of DaimlerChrysler's output, so it might make moves in North America, perhaps taking aim at Navistar, as well as possibly linking with a Japanese company to heighten its Asian presence.
Although the industry once thought potential consolidation between companies in different world regions to be limited, that has changed in the last ten years as Renault took over Mack, Volvo purchased White and GMC, and Daimler-Benz acquired Freightliner.
Now, a move toward converging components and design is likely. Renault subsidiary RVI and Iveco, of Italy, would make a good match in the truckmaking world; the two have combined their coach and bus manufacturing already. Volkswagen wants to augment its current business by becoming a truckmaker as well; it may make sense for it to go with its fellow German firm MAN.
Consolidation will probably be on an even faster track should the drop in European truck sales be bigger than predicted. Some companies are already working together in order to cut expenses. European firms also might have to start using separate engine suppliers, the way North American manufacturers turn to companies like Cummins, rather than making everything themselves. Financial Times (12/03/99) ; Griffiths, John
Colorado Senator Spending Break at Truck Driving School
U.S. Sen. Ben Nighthorse Campbell (R-Colo.) has spent $1,500 for a refresher course at the United States Truck Driving School in Midway, Colo., in order to get his Class A CDL.Campbell, who put himself through college by working as a trucker, is spending the week living at a truck stop. "We do so much in Congress to regulate the lives of people, and the trucking industry is an example, that I decided to come back and see what that really means to drivers today," he said.
Campbell said the trucking industry is a great deal more safe now than in the 1950s. He cited hours-of-service rules as changing the way drivers once had to stay out until their bosses let them stop, and he said the first truck he drove required both hands to shift gears, so he had to use his elbow to steer. Associated Press (12/02/99) ; Roper, Peter
Carrier Certifies Used Reefers
Carrier Transicold is now offering a Certified Pre-Owned Equipment Coverage warranty on used reefer units that have undergone inspection and testing by a company technician and meet other criteria established by the company. Heavy Duty Trucking Online (12/02/99)Roadway Express Re-Aligns Information Technology Network
Roadway Express' information technology function has undergone a restructuring as the LTL carrier responds to the growth of e-commerce."E companies expect all services, including transportation, to be available through the Web and delivered at 'Web speed,'" said recently-named Vice President and Chief Information Officer Robert Obee. "Roadway is externalizing its industry-leading information systems so that its customers have complete, real-time visibility into their supply chains."
Obee, who made it into Information Week's top 500 chief information officers list, is in charge of the new top IT management at the carrier. The appointed management team includes Director-IT Applications Development Mark Fleishour, Director-IT Infrastructure Management Kevin Carracher, and Director of e-Commerce Technologies David Pavlich. James Rowe took over Obee's previous role as assistant vice president of operations planning and engineering. Automotive Wire (12/02/99)
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