P.M. Executive Briefing - Jan. 19

• Headlines From Today's A.M. Briefing

Germany Opposes Tax Breaks for Trucks

Those three countries give truckers an exemption on fuel excise taxes, something the drivers demanded during their strikes last year, the article said.

However, the European Union has made such tax breaks illegal beginning this year and said it would sue any government that does not phase out the exemption.

USDOT Allocates Funds for Bridge Repairs

Several bridges used frequently by trucks are on the list: the Q Bridge on I-95 across New Haven Harbor, Conn.; the Chouteau Missouri River Bridge in Kansas City, Mo. and the 14th Street Bridge on I-395 in Virginia.

The funds are part of the Discretionary Bridge Program that was established along with the Surface Transportation Assistance Act of 1978. The program gives federal money for bridge replacement and rehabilitation projects. Transport Topics

Noble Intends to Buy CD&L

Noble said it is interested in CD&L because of its strength in urban centers along the U.S. East Coast.

If the transaction goes through, Noble's wholly owned subsidiary - Noble Logistics Services - will actually acquire CD&L.

South Hackensack, N.J.-based CD&L operates 78 offices in the United States that provide ground and air delivery. Transport Topics

Consumer Sentiment Down in December

Since consumer spending accounts for two-thirds of the economy, a lack of confidence could mean fewer purchases and therefore fewer loads of consumer goods for trucks to haul.

Market sources told the news service that the preliminary January sentiment index went to 93.6, falling from 98.4 in December. The surveyors had not seen that level since October 1998 during the Russian currency devaluation crisis. When Reuters polled economists, they predicted a preliminary score of 99. The monthly numbers are directly released to subscribers only.

The story appeared the same day as a New York Times report about a recent trend of consumers tapping equity in their homes, leaving them far more vulnerable in a recession. Transport Topics

Saturn Renews Ryder Contract

The contract continues a relationship begun in 1990. Under a separate contract, Ryder provides direct materials logistics services for Saturn's Wilmington, Del., assembly plant.

In addition to logistics, Miami-based Ryder provides full-service leasing, commercial rental and programmed maintenance of vehicles, as well as dedicated contract carriage and carrier management. Transport Topics

Wabash Plans Downsizing

The company said it will only break even for the fourth quarter, while two analysts had expected a 13-cent a share profit.

In a Thursday statement, the company blamed at least some of its troubles on a generally uncertain economic climate that affects purchasing activities in the trucking industry.

The Lafayette, Ind.-based manufacturer had previously announced a restructuring effort which includes plans to stop making products for export. Transport Topics

FMCSA Statement on Rush Trucking Was Misleading, Attorney Says

Following a June 2000 compliance review, FMCSA tagged Rush, which hauls general freight and auto parts, with citations for 285 counts for failure to detect logbook violations.

Rush drivers either worked more than 70 hours in an eight-day period or they violated the 10-hour rule that limits truckers to 10 hours maximum driving followed by eight consecutive hours of rest, the agency said.

FMCSA issued a statement Jan. 17 saying the company falsified the logs. Tauscher said the FMCSA statement misrepresented the language in a consent decree between Rush and FMCSA.

Company staffers failed to detect falsification of logs by owner-operators but did not themselves falsify records, he said.

Patrick B. Muinich, director of FMCSA's Michigan field office, acknowledged that the release should have stated that the company failed to detect the false records. He said an amended press release would be forthcoming. Tauscher said the company contracts with 750 owner-operators. Daniel L. Whitten, Transport Topics

FedEx to Realign Logistics Units

FedEx Supply Chain Services, which specializes in comprehensive logistics and transportation management and electronic logistics, will become a subsidiary of FedEx Services. Douglas E. Witt will be president and chief executive of the Hudson, Ohio-based unit. He will replace Gary Gilbert, who resigned to pursue other interests.

Also, Caribbean Transportation Services, which specializes in customs clearance and international trade facilitation, will become a subsidiary of FedEx Trade Networks. Greensboro, N.C.-based Caribbean Transportation provides airfreight forwarding services between the United States, Canada and Puerto Rico. Rick Faieta will remain president and CEO. Transport Topcis

Myers Warns on 4Q Earnings, Will Close Plant

The quarter ended Dec. 31 showed estimated earnings of 21 cents a share, compared to 44 cents in 1999. Actual results will be announced Feb. 9.

The declines in truck production and auto production hurt the company, as did competitive pressures in the plastics products industry, Myers said in an earnings announcement. But a new plas-tics venture also took up some cash.

In addition to manufacturing, the company is also the largest wholesale distributor of tools, equipment and supplies for the tire service and underbody repair industry in the United States. It has 42 distribution branches in 31 states, and is based in Akron, Ohio. Transport Topics

Headlines From Today's A.M. Briefing

ul>