P.M. Executive Briefing - Sept. 1
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U.S. Purchasing Managers Report Decline in August Activity
It had not happened since January 1999, but on Friday the trade group for U.S. factory purchasing managers said manufacturing activity actually declined in August, wire services reported.This adds to the growing body of evidence that the economy is not only cooling, but that some sectors are feeling a deeper chill. The domestic goods-producing sector feeds a lot of truck shipments, so the NAPM report suggests more weakness for truck shippers.
The National Association of Purchasing Management said that its overall factory activity index fell to 49.5 in August from 51.8 in July. A reading above 50 generally signals that the sector is still expanding, but below 50 suggests a contraction may be taking place.
EU Conditionally Approves Volvo Acquisition of Renault Truck Unit
As expected, the European Commission said it will not oppose Swedish truck maker Volvo's acquisition of Renault's truck division, Bloomberg reported Friday.The approval is based on concessions by Volvo that the acquisition will not have a negative effect on competition in European markets, the article said. Bloomberg on Thursday reported that a Swedish wire service, Direkt, had been told of the pending approval. Transport Topics
Williams Named Chairman of CFI
Technology finance company CFI Mortgage announced Friday its board of directors has elected Stephen Williams chairman.CFI Mortgage's Surfside Software Solutions unit develops business applications software and services for the transportation industry.
Williams has been president and chief executive officer of CFI Mortgage since July 1999, and has improved its financial performance during that period, the announcement said. Transport Topics
Deadline Nears On Possible Bridgestone/Firestone Strike
Union negotiators and Bridgestone/Firestone officials talked through Thursday, took a break and resumed contract negotiations Friday morning, the Associated Press reported, but a midnight strike deadline loomed that could see workers close nine of the company's 11 U.S. tire plants. The plants make tires for cars and light passenger trucks, some commercial trucks, plus off-road and farm vehicles, a union official explained. The company is already scrambling to meet demands of a huge recall of tires implicated in fatal accidents of Ford sport-utility vehicles, and faces a possible expanded recall.
A strike at any type of major manufacturer would affect truck companies that normally handle its shipments, and could emperil production schedules for its customers as well. However, Bridgestone/Firestone has said a strike should have only minimal impact on its production, AP said. Transport Topics
Navistar Completes 85% of Planned Layoffs
Truck maker Navistar International has officially laid off 805, or 85%, of the employees it had planned to in a cost-cutting move, Bloomberg reported Friday.An additional 140 workers will be laid off, and 155 positions will be eliminated through attrition, a company spokesman told Bloomberg. The company may also lay off 500 more workers at its Chatham, Ont. plant, Bloomberg said.
These layoffs, as well as others planned by fellow truck makers Freightliner and Paccar, are among cost-cutting measures taken in response to a slumping North American truck market. Transport Topics
High Gas Costs Won't Curb Labor Day Travel, AAA Says
Even as gasoline prices continue to climb, an estimated 33.7 million Americans are expected to travel 100 or more miles from home over the Labor Day weekend – 5% more than during the 1999 holiday, AAA reports.AAA said the national average price for regular unleaded gasoline Friday is $1.51 per gallon, with many consumers paying as much as 25 cents more per gallon than a year ago. But that won't be stopping an estimated 28.3 million people from traveling by automobile over the weekend, AAA said.
AAA bases its Labor Day travel projections on a national survey of 1,500 adults by the Travel Industry Association. Transport Topics
Several Companies Trying to Develop Self-Cooling Can
Truckers would have less need to use refrigerators or coolers in their cabs to keep drinks cold, if any of the companies in a Friday Wall Street Journal feature can bring plans for a self-cooling can to fruition.International Thermal Packaging, Tempra Technology and JosephCo. all say they have designed cans that can chill beverages without an external cooling unit such as a refrigerator, the article notes.
However, these companies face such problems as public doubt – due to a 1980s con artist who fooled scores of people into buying stock for his self-cooling can company – and economic feasibility, as the cans must be made cheaply to make them cost-effective to consum-ers, the Journal said.
The companies have varying plans, but each involves a chemical reaction to draw heat from the can to cool the beverage inside. For example, Tempra's can is cooled through evapora-tion, when water and a drying agent are combined in a chamber by twisting the can's bottom. Transport Topics
BorgWarner to Sell Aftermarket Truck Parts Under QUIK-KOOL Label
BorgWarner Cooling Systems, which makes engine cooling parts for trucks and autos, announced Friday it will sell all aftermarket products under the QUIK-KOOL label.The products will include on/off fan clutches, viscous fan drives, polymer fans, metal fans, sensors and radiator shutters, the company said. The Kysor and Schwitzer brand names will be included under the QUIK-KOOL aftermarket label.
The company said its network will include at least 15 master warehouses, plus more than 300 truck or auto parts retailers. Transport Topics
Headlines From Today's A.M. Briefing
- Death Tax Repeal Down But Not Yet Out
- U.S. Jobless Rate Edges Higher Amid More Signs of Slowing Economy
- Hart-Scott-Rodino Waiting Period Expires on Western Star-Freightliner Deal
- C.H. Robinson Acquires Trans-Continental
- FedEx to Debut Newest Electronic Shipping Options
- Most Drivers Say They Are Friendlier Than Others, Survey Reveals
- Bridgestone/Firestone Update: Strike Possible; More Deaths Linked to Tires
- DaimlerChrysler Performance Worries Market Analysts
- Railroads Impose Surcharge on Containers at West Coast Ports
