Saturday, August 26, 2006
1999 Trucks Hit The Road
With the new model year arriving, small-truck makers are fulfilling buyers' wishes for carlike comforts, and large-truck makers are racing to catch up with demand.
The new light-, medium-, and heavy-duty trucks coming on the market for model year 1999 reflect the wishes of truck drivers, both those who drive commercially and those who use their trucks as practical personal transportation.
The Polk Co., an automotive market-research firm based in Southfield, Mich., outside Detroit, reported in July that there are now 68.4 million light trucks on the road in the United States and Canada, accounting for more than one-third of the total vehicle count. The company, which compiles an annual "population profile" of vehicles for the automobile industry; also said that in the past 10 years, the number of passenger cars has increased by 4.8 million while the number of trucks has risen by more than 29 million.
The total number of light-, medium-, and heavy-duty trucks sold in 1997 was 7.2 million. This year's sales through July were at 4.6 million, so total sales for 1998 are expected to surpass last year's.
With so many people driving trucks, it's no surprise that manufacturers are relying more and more on driver input in the development of trucks.
Mixed Messages
According to Automotive News, n trade publication, drivers want trucks to be more carlike and cars to be more truck-like.
Pickup-truck drivers want more comfort and convenience options, extended cabs, and doors for access to the cabs. Buyers of sport-utility vehicles (SUVs) are indicating that they prefer the carlike ride and handling of vehicles built on the smaller platform of a car rather than that of a truck.
Minivan buyers want a second sliding door on the driver's side, and manufacturers are complying. However, because nearly all minivans in production have front-wheel drive, many businesses that once preferred rear-wheel-drive minivans because of their cargo-carrying ability are now opting for SUVs instead.
In 1997, 6.8 million light trucks-- including pickups, vans, and SUVs-- were sold in the United States, up nearly 4 percent from 1996.
Sales of light trucks will continue to increase, says Lincoln Merrihew, an analyst at the Troy, Mich., location of J.D. Power and Associates, a marketing-information and consulting firm based in Agoura Hills, Calif.
Merrihew believes that the addition of carlike comforts, ride, and handling to light trucks has been an important factor in their sales growth.
Getting "Productive Miles"
In the medium- and heavy-duty-truck market, productivity is the key for buyers. They want trucks that reduce downtime by minimizing maintenance requirements and that are custom-tailored to handle specific tasks. "Productive miles is what original-equipment manufacturers are selling," says Marc Gustafson, president and CEO of Volvo Trucks North America, Inc.
Truck makers have been consulting commercial drivers about features that could help the drivers avoid fatigue and stress and do their jobs as efficiently as possible.
Two recently developed transmissions that can help reduce driver fatigue and training time are the Eaton Fuller AutoShift 10-Speed, from Eaton Corp. in Cleveland, and the Meritor SureShift, from Mentor Automotive, Inc., in Troy
With the Eaton transmission, the clutch is used only for starting or stopping, reducing the driver's workload. When the driver wants more control of shifting, there is a "hold" mode, which maintains the current gear until a new gear is selected with the push of a button.
The Meritor system reduces shifting effort and complexity like an automated transmission but retains the driver's ability to choose manual control.
As with light-duty trucks, the ranks of medium- and heavy-duty trucks are increasing. Major truck-manufacturing companies are forecasting that U.S. sales of Class 8 vehicles-those with a gross vehicle weight (GVW) of more than 33,000 pounds-will total 200,000 for 1998. Last year's sales were about 178,500.
With growing backlogs of orders, heavy-duty-truck makers are trying to increase production to meet strong demand.
The Outlook On Prices
Prices for light trucks are expected to remain steady, although manufacturers sometimes increase prices during the model year.
The announced prices for most new-model light-duty 1999 trucks are only 0.5 to 1 percent higher than the prices for comparable 1998 models, and some prices have dropped.
In addition, competition recently has prompted makers of passenger cars to offer incentives such as low finance rates and cash rebates, and such offers are spilling over into the light-duty-truck market.
In the medium- and heavy-duty-truck segment, manufacturers are calling for price increases to offset the bare-bones prices of recent years.
Light-Duty Trucks
Following are new trucks and features in Class 1, up to 6,000 pounds GVW; Class 2, 6,001 to 10,000 pounds; and Class 3, 10,001 to 14,000 pounds.
ACURA
The upscale SLX sport-utility is essentially unchanged for 1999. It has a 3.5liter V-6 engine and "torque on demand" four-wheel-drive, which transfers power to all four wheels with the touch of a button.
Bent Frame Rumors Unfounded On GM Trucks
One of the hottest rumors sweeping the auto industry is that the Magna-supplied, hydroformed frames on GM's GMT800 full-size trucks are bending. There have even been confirmed sightings of damaged trucks at dealerships, giving momentum to the report. GM has downplayed the rumor officially, but offered AI exclusive access to Ken Sohocki, chief engineer GM Truck Group, to explain the confusion.
"The rumor exists because we have had 36 trucks damaged in transit," Sohocki says. "The carriers did not comply with GM procedures for vehicle tie-down, and instead of using a manual winch they have been using hydraulics to apply center tension." He adds that GM's follow-up investigation showed that the hydraulic cylinders fitted to car carriers put about 9,000 pounds of pressure per side on the trucks, bending the lipped C-section center mils just behind the cab area. The hydroformed sections of the frame were not involved.
Sohocki says it's not unusual in any new vehicle launch to have shipping damage, since carriers often try to apply shortcuts they used on old products with disastrous results.
"People don't realize it, but we validate new tie-down points even before we validate the truck," he says.
Sohocki adds that there are front, rear and center tiedowns on GMT800. He says the center tie down helps achieve higher shipping density, allowing more units per load. "In the shippers defense, maybe we didn't do a good enough job of communicating our procedure," he offers. "But still they had to come up with real money to pay for those trucks." In either case, procedural bulletins have gone out and the damage has stopped, claims GM.
Art on the road - popular art and culture reflected in colourfully decorated trucks and buses - includes
Art on the Road
Pick a street, any street, in Panama City or Port-au-Prince and you'll probably see them. You'll find them in Medellin, Colombia, as well, but there you must visit the outskirts of town or the market area. "They" are the wonderfully decorated buses and trucks which are the privately-owned public transportation of these cities. Ride a tap-tap, chiva or bus and you're in for an aesthetic treat. You'll travel down the street in a marvellous mix of art and words, accompanied by flashing lights and pulsating music.
Each of these vehicles began life as a solid colour truck or bus accented with chrome. Each has now been rebuilt for its new role in life and decorated to suit the current fashion. Students of popular culture agree that the paintings and words decorating these vehicles offer an insight into widely shared attitudes and beliefs, into the "soul", perhaps, of Panama, Haiti and Colombia.
The art of decorating these painted trucks and buses basically started after the Second World War, although there may be older examples of it. Chivas, tap-taps and buses quickly won an important place in the local economies and affections. Every so often other types of buses or trucks are brought in to replace the painted vehicles, but these interlopers will never obscure the place which chivas, tap-taps and buses have already earned in the literature and art of their respective countries.
In Panama, yellow school buses built in the United States are the raw material. The original colour is quickly hidden under layers of sprayed or airbrushed paint. Along the sides of the bus, beneath the windows, very long images are shown. A speeding semi-trailer truck, a mermaid in her undersea home, a view of mountains with a distant castle, or even the turning, writhing form of a dragon are among the images painted here.
Bus art
The rear emergency door is regarded as the most important spot for bus art, a focal point where an artist concentrates his best work, probably because the rear door is seen the most easily and for the longest time as the bus passes. Artists sign these back door paintings with name or nickname, sometimes with "Painted by ..." and, occasionally, with a telephone number so that other customers may locate them.
The subject for a back door bus painting can be religious or secular, but it is almost never political. Artists become adept in certain categories. Those bus owners who want Christ, the Virgin Mary, or various saints painted know which artists to choose, as do those who prefer comic strip superheroes like Mexico's Kaliman, commercial cartoon characters like the Playboy Bunny, or television actors. A star's popularity could well be rated by his appearance or disappearance from bus art. Hollywood's "Mr. T" in his gold chains and Don Johnson, the $IMiami Vice$N cop, may well be painted over now that their programmes no longer appear on prime time television.
Jesus Teodoro de Villarue, or "Yo To" as he is affectionately known, is regarded as one of the old masters of Panamanian bus art. Yo Yo taught his sons and other apprentices how to paint, but he felt that there were other bus artists who needed his guidance as well. So Yo Yo created for posterity a series of lessons in rear door painting. Carefully numbered and titled "Arte Popular", Yo Yo's lessons can be seen on the rear doors and windows of twenty Panamanian buses.
Ferocious lions, fierce eagles and even cigar-smoking dogs are portrayed on the back doors of buses and trucks. Two painters, one in Panama and the other in Colombia, were inspired by the same advertising calendar printed by the Brown and Bigelow Company, a North American advertising specialties firm. For many years Brown and Bigelow calendars have featured a series of dog paintings originally created by a New York artist named Cassius Marcellus Coolidge who died in 1934. Often shown smoking fat cigars (Coolidge had earlier painted cigar box lids), these bulldogs, collies and Great Danes played cards, billiards and baseball, and went to the races.
While Panamanian bus art reflects the changing urban popular culture of television, movies and music, the subjects for Colombian chiva painters focus more often on rural life. Chivas are rebuilt trucks, converted to carry both passengers and agricultural products from Colombian villages to markets in larger cities such as Medellin, Cali or Cartagena. Both the names for these trucks and the styles of decoration vary from one colombian province to another. Many observers feel that the camion de escalera or ladder truck of Antioquia province is the most beautiful of all.
Cows and coffee
To rebuild a large Ford or General Motors truck, workers remove the entire cargo area, replacing it with a partially enclosed structure. The interior is arranged with rows of removable seats which can be entered from the outside at every row. This arrangement was copied from old trolley cars which also had numerous side entrances. If the chiva's load is large, two cows, for example, or multiple sacks of coffee, it is easy to remove most, if not all, of the seats.
Friday, August 25, 2006
Toyota Unveils Hybrid Truck in Detroit - Column
Take the matter of Toyota's proposed full-size pickup truck, the FTX. Press introduced it to the media here Sunday as the ultimate American pickup fighter.
That means the FTX will roll into the U.S. market in the winter of 2006 with a big V-8 engine, huge cargo bed, and the ability to haul and tow anything that can be hauled or towed by a Chevrolet Silverado, Ford-F Series or Dodge Ram pickup truck.
That isn't what environmentalists enjoy hearing from a car company that promotes itself as the greenest of the green -- especially not from one that received the 2004 "National Car of the Year Award" for its second-generation, gas-electric, fuel-efficient, clean-burning Prius Hybrid sedan.
But the Prius is a niche car in a North American automotive market filled with niches, including exceptionally lucrative foxholes for a variety of pickup trucks. Toyota talks green; but it also likes to put as many U.S. greenbacks as possible into its corporate pockets.
It needs a bigger and better pickup than its current Tundra to help haul in that loot. It's business; but it tends to corrupt the purity of a true-green environmental image.
Press obviously was aware of that contradiction Sunday when he introduced the FTX, which he strategically saved for the last part of Toyota's news conference.
With ruffles and flourish, Press told the international audience of journalists that Toyota was prepared to install a gas-electric hybrid power system in the FTX.
The journalists gasped. There was a murmur of approval. Press seized the moment.
"Not today," said Press. "Not tomorrow," he said. "But to give you an idea of what it will look like . . . ." There was a dramatic pause. Press reached into his coat pocket and pulled out a chrome-plated, script logo that read, "Hybrid." He stuck that magnetic logo on the truck's rear pillar, placing it above the FTX badge -- just as his news conference ended and photographers from around the world began taking pictures of the "Hybrid FTX."
Press stood on the stage next to the truck, thus assuring that no journalist could photograph him without also shooting the "Hybrid FTX."
I asked press when the hybrid version of the FTX would go on sale. He smiled. He demurred. He said "2008 . . . possibly. Our people are working on it."
I thought Toyota would remove the "Hybrid" logo from the FTX when the truck was moved to the main display floor in Cobo Hall here. I was wrong.
The metallic blue "Hybrid FTX" pickup was sitting there in all of its fictional glory when Jeffrey W. Runge, the administrator of the National Highway Traffic Safety Administration, arrived Tuesday for a lengthy tour of the Detroit show.
(Runge said he would have attended the Washington auto show, which ran Dec. 26 through Jan. 4, but: "The problem with that show is that it falls right in the middle of Christmas, when [official] Washington empties out," Runge said.)
Press guided Runge to Toyota's big-truck market warrior, extolling its potential environmental virtues as a gas-electric hybrid. Runge listened politely, attentively. But his questions to Press mostly concerned the FTX's rollover potential and the truck's compatibility with smaller vehicles on the road.
I found this amusing, and asked a Runge aide if the administrator already knew that the "Hybrid" label on the FTX was, for the moment and the foreseeable future, pure marketing hype.
The aide smiled and said of his boss: "He's pretty sharp. He sees a lot of things people think he doesn't see."
I asked another Toyota executive why the company had not removed the "Hybrid" logo from the FTX before Runge's arrival. "We just wanted to show what the possibilities were," the Toyota executive said.
None of this is to say that Toyota is pulling the wool over the eyes of the public or official Washington on the issue of hybrids. In addition to its award-winning Prius, the company has plans to introduce a gas-electric, midsize Highlander SUV hybrid in 2006 and a luxury Lexus RX 400h hybrid the same year.
All major car companies will offer hybrid cars and trucks by 2007. Among those will be Ford Motor Co.'s gas-electric hybrid Ford Escape compact SUV, now scheduled to go on sale this summer.
But the "Hybrid FTX" sales pitch made to Runge and other high-level Washington visitors to this show --which opens to the public Saturday, Jan. 10--indicates the political value that the entire auto industry is attaching to hybrid technology.
The car companies think they have a winner with the gas-electric vehicle. But they will have to persuade more than Washington to make that victory a reality. Their toughest customers will be the thousands of rank-and-file consumers walking through the doors of auto shows here, across America, and around the globe.
Automotive Coatings, Adhesives & Sealants Demand to Exceed $7 Billion in 2010
Demand for automotive coatings, adhesives and sealants in the United States is forecast to rise 4.1 percent per year to over $7 billion in 2010. Growth in OEM demand will be supported by US motor vehicle production, which will rebound from declines posted during the 2000-2005 period. However, these gains will be mostly linked to passenger cars, which consume less coatings, adhesives and sealants on a per vehicle basis than larger vehicles. Aftermarket demand will benefit from gains in the number of vehicles in use, which will rise 1.5 percent annually through 2010. These and other trends including market share, market Leaders, Market Size and Company Profiles are presented in "Automotive Coatings, Adhesives, and Sealants ," a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
In addition to growth in vehicle production and vehicles in use, demand for coatings, adhesives and sealants will benefit from other factors, which will increase utilization rates of these materials. For example, although consumer tastes have tended to favor larger, heavier vehicles over the last decade, automotive designers continue to stress weight reduction and improved fuel efficiency, while focusing on safety, aesthetics and durability. Taken together, these efforts are promoting greater use of structural adhesives such as epoxies and polyurethanes at the expense of mechanical fasteners, both to reduce weight and to eliminate potential corrosion problems. Similarly, sealant demand has directly benefitted from efforts to make car cabins quieter and better insulated.
Aftermarket demand will continue to benefit from a change in the product mix over the last decade favoring larger light vehicles, particularly sport utility vehicles (SUVs). Although demand for light trucks and vans (including SUVs) is slowing compared to recent years due to of high fuel prices and market saturation, the number of such large light vehicles will continue to increase as a percentage of total light vehicles in use. Because of the relatively recent emergence of light trucks, vans and SUVs, fewer of them are being retired from the light vehicle park relative to conventional automobiles. The resultant shift in composition of the vehicle park will favor the aftermarket for coatings, adhesives and sealants, as larger light vehicles require more materials on a per vehicle basis than conventional automobiles.
Dysfunctional Darling. - Nissan Motor Co. Ltd - Toyota Motor Corp - Ghosn, Carlos
Nissan Motor Co. Ltd. became the darling of the automotive world when it not only achieved an extraordinary financial turnaround but did so with some head-turning new vehicles, including the 350Z and Murano.
But Carlos Ghosn, while not ignoring the accomplishments he orchestrated, doesn't believe the hype.
"Dysfunctions are everywhere," says the Nissan president and CEO during a roundtable interview at the North American International Auto Show. "We're an 11.3% operating-margin company, and we've had a remarkable recovery. But I'm very frustrated this year at how bad we can be in certain areas - how much dysfunction we can see inside the company."
When asked just where all that dysfunction lies, Ghosn quickly rattles off a list: marketing, sales, engineering, quality, manufacturing - everywhere, he concludes.
"Look at all these holes around us," he says. "We need to take the opportunity of the momentum created now and solve the problems."
Momentum certainly is on Nissan's side. The auto maker has trumpeted its myriad accomplishments ever since it declared itself financially solvent - with the help of Renault SA - at the successful culmination of its famed Nissan Revival Plan nearly two years ago.
Its most recent moves include storming the once-U.S.-only big-truck segment with the Titan fullsize pickup, getting its Infiniti luxury division back on the map and taking bold steps in high-risk foreign markets such as China.
Global achievements in 2003 speak for themselves: Nissan ended the year in the U.S. with sales of 794,784 vehicles, up 7.4% over prior-year tallies.
Infiniti, long-ago discounted as a sub-par player in the luxury market, largely fueled the recovery, with sales of 118,655 units, prompting a 35% rally over year-ago. Its G35 coupe and sedan, along with its new FX cross/utility vehicle, led the surge.
And for the Nissan brand, trucks meant growth, up 10.6% on the strength of new entries such as the Murano CUV, Quest minivan and new-in-October Pathfinder Armada.
In Japan, a robust performance in a weak market (8.2% year-on-year growth for a 17.5% market share) put Nissan back in the No.2 market position as plummeting sales dragged down Honda Motor Co. Ltd.
And in Europe, a pleasant surprise: Nissan racked up record growth in a volatile market.
"We said it was going to be the year of the United States, but the strongest performance was Europe," Ghosn says.
In Western Europe, sales of 479,789 vehicles only amounted to a 2.9% market share, but the 12.6% year-on-year growth helped narrow the gap with Toyota Motor Corp., the only Japanese auto maker that outsells Nissan in that market.
And Ghosn says the auto maker will have no problem meeting the overall goal of Nissan 180, the company's second 3-year plan that serves as Act Two to the Nissan Revival Plan.
Nissan already has taken care of the "8" (at least 8% operating margins) and the "0" (zero debt). And Ghosn says the "1" (1 million units of additional sales globally) will be realized when Nissan 180 culminates in September 2005.
Sales then will have reached 3.6 million units globally, Ghosn says, up from an anticipated 3,040,000 in the fiscal year ending March 31.
Much of that volume growth will come from China, where a bold initiative with Dongfeng Motor Corp. designed to quickly turn Nissan into a full-line domestic manufacturer serves Ghosn's ultimate objective: a presence in every segment of every market.
In the face of boundless "dysfunctions," Ghosn assures Nissan will embark on yet another 3-year plan - which he will announce in April and put into effect one year later.
Details of the plan, now simply dubbed Post-Nissan 180, remain a secret. But broad goals of optimizing and consolidating operations are nicely timed. In 2005, Ghosn takes over the top spot at parent company Renault SA while retaining his position at the helm of Nissan.
But while the CEO position, some platforms and internal operations such as purchasing will be consolidated between the auto makers, Nissan and Renault never will operate as one.
"I think obviously when you have the same CEO for both companies, somehow you're going to have better alignment," Ghosn says. "But (the) two companies remain separate. You're not going to see one headquarters for the alliance, and you're not going to see people coordinating between the two companies. People belong to one or the other."
Ghosn implies the extreme levels of separation may stem from lessons learned from other, less auspicious mergers.
"We're trying to work in a way that is very simple, very clear, where there is no blurring between the companies," he says. "Because that's what happens when you have alliances and mergers - you don't know at the end who's responsible for what. You have everybody blaming everybody else."
And Post-180 wouldn't be a Nissan 3-year plan without growth targets.
"We have major projects coming, major growth," he says. "But growth is not an objective by itself. We have no objective for market share. We're just using growth as a pillar for profits and for creation of value. That's why we're not going into the incentives games." Nissan's incentives trail the industry average, and Ghosn vows to contain them.
Wednesday, August 23, 2006
Who Will Build Army's Next Medium Truck? - Oshkosh Truck Corp., Stewart and Stevenson Tactical Vehicle Systems LP compete for contract
Stewart & Stevenson and Oshkosh Truck begin the competition to build up to 14,000 trucks in a five-year, $2 billion contract
Stewart & Stevenson's Tactical Vehicle Systems LP, Sealy, Texas, (TVSLP) and Oshkosh Truck Corp., Oshkosh, Wis., have begun the competition to build the U.S. Army's next generation of medium tactical trucks. At stake in what is officially called the Family of Medium Tactical Vehicles Al Competitive Rebuy (FMTV Al CR) are an estimated 14,000 trucks and trailers over five years in a contract that could total $2 billion.
Stewart & Stevenson is the current manufacturer of the 2.5 and 5 ton FMTV trucks and has built more than 14,000 FMTVs to date, with another 5800 to be built through March 2003. In addition, over 100 FMTV trailers have been built with another 1500 remaining to be built. There are 14 variants of the trucks with 85 percent commonality between versions.
Among the goals for the next generation of trucks is compliance with 2004 EPA diesel engine emissions requirements, reduced life cycle cost and improvements in performance and reliability while also ensuring commonality in components with the existing FMTV fleet. The trucks must be air transportable byC-130, C-141, C-17 and C-5A aircraft or externally transportable by CH-47 and CH-53 helicopters.
In late April, Stewart & Stevenson and Oshkosh were both awarded Phase 1 contracts to produce eight FMTV trucks for testing leading up to the Phase 2 production contract.
The eight test vehicles from each manufacturer are scheduled to be delivered to the Army in February 2002. The vehicles will be tested, likely at the US. Army Aberdeen Test Center in Maryland, through September or October 2002. A request for production proposal is expected to be issued around that time and the contract could be awarded by the U.S. Army Tank & Automotive Command in March 2003.
While neither Oshkosh nor Stewart & Stevenson would discuss driveline particulars of the new proposed trucks, with one of the program goals being commonality with the existing fleet, it can be speculated that the new trucks will have a drivetrain similar to the current models.
The current FMTV Al trucks are now powered by a Caterpillar 31 26B diesel rated 275 hp at 2400 rpm in the 2.5 ton configurations and 330 lip at 2400 rpm in the 5 ton trucks. Torque is 817 lb.ft. at 1600 rpm in the 2.5 ton version and 851 lb.ft. in the 5.0 ton configuration.
The transmission is an Allison MD 3070 PT electronically controlled sevenspeed automatic with full-time all-wheel drive and an integral transfer case. In normal operation the torque is split 30/70 between the front and rear. In off-road use the torque is split evenly front and rear.
ArvinMeritor front, intermediate and rear axles are used with a single reduction, amboid-gearing carrier. Bevel wheel end reduction ratio is 2:1, with an overall gear ratio of 7:8:1.
The current trucks were designed with a dual-circuit, four-channel air anti-lock braking system. There is also a central tire inflation system with cab-mounted electronic controls that are operable in virtually all conditions.
The Aftermarket Advantage - recommended 'stock' accessories for automobiles and trucks
Don't settle for second-best `stock' accessories on your new car or truck. `Aftermarket' suppliers offer all kinds of gadgets that can make your vehicle run smoother and look better.
As good as the new cars and trucks are, there's always room for improvement. That's where the automotive "aftermarket" comes in. Aftermarket suppliers specialize in components and gadgets designed to better the performance, functionality and appearance of factory "stock" vehicles.
Hundreds of such products are available. Insight rates the following as among the best available to "accessorize" your wheels from this $20 billion industry.
Mechanical/Drivetrain Upgrades
Computer chips/engine controllers: Fuel delivery and spark curves on all late-model vehicles are governed by the engine's electronic "brain." The factory settings usually are quite conservative, designed to economize and accommodate low octane. If you want noticeably better performance, are willing to use premium fuel and don't mind a small decrease (generally about 3 to 5 mpg) in fuel economy, plug in a reprogrammed chip or engine.
Substantial increases in peak output (10 to 20 horsepower or more) can be achieved without any mechanical changes to the engine itself. Installation is simple and requires no special tools or knowledge. A lower temperature thermostat (160-degree as opposed to the factory 195-degree thermostat) is often recommended to maximize performance by helping the engine run cooler.
Hypertech is the leading seller of high-performance chips, which are priced between $104.95 for GM vehicles to $221.95 for Ford vehicles. Available at auto-parts outlets, speed shops or directly from the supplier in Memphis (Hypertech-inc.com).
Filterchargers: To get a cheaper "best-bang-for-the-buck" upgrade, just swap your car or truck's paper air filter for a free-flowing K&N brand reusable "filtercharger." K&N filters allow more air into your car's engine than the factory filter and also deliver superior filtration of dirt and other harmful contaminants.
The K&N filter drops right in place with no modifications, providing 5 to 15 horsepower increases. Plus, the K&N filter can be cleaned, re-oiled and re-used dozens of times. Available at local auto-parts stores for most late-model vehicles. Cost ranges between $20 and $50.
Exhaust systems: Flowmaster, Edelbrock and Borla can add 15 to 30 horsepower to your engine without affecting emissions legality or compromising your new vehicle's warranty. The quality of these systems often surpasses the original equipment on your car and typically will be a direct "bolt-in," with no additional cutting necessary. In addition to the performance gain, your vehicle will run cooler and get better fuel economy.
Complete Flowmaster custom exhaust systems -- mufflers, pipes and mounting hardware -- are available for most new cars and trucks, import and domestic, with prices ranging from $128 for an Edelbrock "crossflow" muffler for a Camaro or Firebird to $249.39 for a Chevy Tahoe truck. (There will, of course, be an additional cost to have these parts properly installed by a muffler shop.)
Summit Racing Equipment in Akron, Ohio, is one of the best mail-order sources for all the above products. Technical advisers can help you chose the best add-ons. For a catalog, call (800) 230-3030. For import-car specialists, contact Generation Performance (888) 539-2002 or Steve Millen Performance Products (714) 540-9154. BMW owners can call Dinan Performance Products (650) 962-9401; they're legendary for making BMWs scream.
Other performance upgrades, such as superchargers and turbochargers, are not recommended since they put extreme stress on engine components not designed to handle the extra load. Such upgrades will void your new car warranty and almost certainly result in more problems than power.
Electronic Gadgetry
Computer navigational systems: Philips Car Systems' CARiN 520 interactive navigational computer and display monitor duplicates factory-installed satellite-navigation systems found on Acura, BMW and Lexus models. (Philips Electronics is the supplier of satellite-navigation systems to BMW and the other automakers.) Computer navigational systems can be installed in any vehicle from a lowly economy car to a beefy 4x4 truck. The cost for the complete CARiN 520 kit is $1,999, which does not include labor (add $300) or the necessary CD-ROMs (there are seven) that provide the mapping information. CARiN 520 is sold directly by Philips Car. Call (770) 821-2400 for more information.
Aluminum firms expect a pickup in trucks - Automotive Aluminum
A tentative upswing in vehicle orders, coupled with some new applications for aluminum, has sparked suppliers' hopes for heftier shipments to the truck and trailer market.
In the small truck market, where sales are tracked monthly, pickup truck and van sales rose during the first five months of this year, pacing the passenger car market. V
Through the end of May, Ford's F-series pickup sales were 14 percent ahead of the same period a year ago at 169,900 units. Also running slightly ahead of last year's rate were Chevrolet C/K pickups, of which 169,906 were sold during the five months.
But the primary demand for aluminum in trucks and trailers comes from the larger vehicles. For aluminum suppliers, there also seems to be good new there.
Ron McClure, sales and marketing manager for Kaiser Aluminum's extrusion business, saw similar improvement in demand for aluminum in larger trucks, including Class 8 tractor-trailers.
He cited figures indicating production of 126,000 trailers in 1991. Projections call for a 14 percent increase to 144,600 units this year, to be followed by another hike in 1993 to 169,000 units.
"For the early months of this year those forecasts seem to be holding true," McClure said.
Mike McGroarty, vice president of sales and marketing for Kaiser's Forging & Castings division, called attention to similar figures. During 1991, less than 100,000 Class 7 and 8 trucks were registered, he noted. "We think registrations will increase about 15 percent during 1992," he said. "We expect this (growth) to continue through all of 1993.
"This increase will be brought about not only by demand for replacement of older trucks, but also by new truck emission standards which will go into effect in 1994. A lot of fleets and owner-operators will purchase vehicles to beat this deadline and get a lower-priced truck without a lot of the anti-pollution equipment needed to meet the new standards."
McGroarty and Richard Hayes, forging and castings transportation sales manager at Kaiser Aluminum, cited some of the specific applications for aluminum from their division:
* Heavy truck suspension brackets.
* Lightweight forged aluminum front and rear truck hubs. During the past two or three years those hubs have been lightened considerably. Kaiser also supplies truck hubs meeting the standards of the International Standards Organization, just catching on in the United States.
* Aluminum wheels for heavy trucks.
* Blocks, heads and manifolds. Aluminum has won acceptance in passenger car power train applications, and is now moving into heavy trucks.
Marc Czachorski, transportation marketing manager for Reynolds Metals Co.'s extrusion division, cited industry-wide figures for 1991 showing 48 million pounds of aluminum extrusion shipped for truck production and 166 million for truck trailer manufacturing.
Bob Kazmier, transportation marketing manager for mill products at Reynolds Metals, added some figures on shipments from aluminum mills. Those statistics, also industry-wide for 1991, indicate that 92 million pounds were used for truck and bus manufacture and 128 million pounds for semi-trailers.
Tony Gosse, president of Lockhart Aluminum in Pittsburgh, said that sales to the truck and trailer market during the first half of 1992 -- particularly truck bodies for hauling coal, gravel, sand and other bulk materials -- were "a bit spotty or patchy, but I think it is perhaps picking up slightly.
"Our business is made up of a large number of smaller companies," Gosse said. "Some are having good times, some are not. Generally, I think the trend is improving a little bit."
Overall, transportation -- including cars and truck -- represents Kaiser Aluminum's biggest single market, McClure said. The dominant alloy is 6061, accounting for approximately 90 percent of shipments, with some 6063 used in cosmetic applications.
Series 5000 allow is used for cab fenders, hoods, roofs and doors, and in fuel tanks. Series 30003 is used in decorative applications. Specific aluminum components in trailers -- both dry freight and flatbeds -- include top and bottom rails sold in lengths of 28 to 56 feet The typical length is 40 to 48 feet.
Other uses include flooring, side posts, exterior skins and cross members.
Aluminum is employed in cabs for both structural and accessory applications, as well as cosmetic touches. Examples are steps, grab-handle brackets and mirror supports.
Aluminum drive shafts were recently introduced on light trucks, such as pickups. Now that idea is being looked at for possible use in larger trucks as well. The concept of an aluminum spaceframe is also being explored for trucks as well as passenger cars.
Tuesday, August 22, 2006
What makes good PR? Tricks of this critically important, much misunderstood trade, and an AI media survey to learn who does it best, and worst
Flash back to 1979, when U.S. import sales totaled slightly over two million for a record 19.5 percent of the market. Toyota was on a tear with 637,891 U.S. vehicle sales, Nissan (Datsun) was second at 574K, Honda third at 353K and Mazda fourth at 243K.
"While Honda's cars were already among the best on the market, its public (really media) relations were among the very worst. Fast-rising Mazda, meanwhile, was pushing a growing stable of so-so products while excelling in the highly important PR game.
Mazda PR materials were excellent, phone calls promptly returned and questions accurately answered, test vehicles were readily available and new-product press preview events were wall planned and executed. Mazda treated auto reporters as valued customers, not annoyances or adversaries, and its PR pros clearly understood their needs.
By contrast, American Honda PR at the time was either ignorant or arrogant, or both. For all but the very top-tier media, test vehicles were hard to come by, phone requests were returned late or not at all, and product intro events were typically held well after the new models being "previewed" were in dealer showrooms.
This latter bad habit was infuriating to writers for "long lead-time" (typically three months from preparation to delivery) publications. Everyone else's info and photos were available mid-summer, in time for fall "What's New" articles, and most held summer "long-lead" previews where long-lead media could learn about, photograph and drive their fall-intro products. Honda refused to provided early materials, and its concept of a long-dead was to host three major enthusiast mags in Japan. Everyone else had to wait until its new cars were on the street.
As a result, nearly everyone in the automotive media loved Mazda and hated Honda. And while this theoretically should make no difference to fair, accurate and objective reporting most couldn't resist cutting Mazda some slack while looking extra hard for things to criticize about Honda's products. The point is that, whatever else your company does and however wall it does it, PR Professional Rule #1 is to constantly keep in mind that it can't hurt if the media likes you and your company, and definitely can if it doesn't.
What Exactly is "PR?"
Public relations, sometimes called "public affairs," should really be called "media relations." Many companies have renamed it "Communications," which includes both internal and external communications. Its largest ultimate target is the public, which is most effectively reached through the media. While advertising targets that same public through purchased space and time in those very same media, it has limited credibility--no matter how good and creative (and expensive) it may be--because everyone knows it's a paid commercial message.
Most PR professionals' primary challenge is to get their companies' products and messages positively portrayed in the not-for-sale pages and air time filling the valuable space between the ads. That's where journalists report the news, express opinions and review new products. And while most try hard to be fair and objective, they can't help having feelings and opinions--based on past experience and knowledge--about any company and its products going into any story.
Because every automaker has a long-established, deeply entrenched reputation that is very difficult to change, one wag suggests that the average auto review is 70 percent expectations (the reviewer knows what to expect based on his/her experience with that maker and its past products), 20 percent styling (positive or negative based on his/her reaction to the new product's appearance) and 10 percent the way it actually drives.
The PR pro's job is obviously easier when his/her company is riding high and its products are respected, and much more difficult when the company is down and its products disrespected. Since perception lags reality by many years, the former situation can lead to arrogance, believing you'll get good treatment and reviews regardless what you do. The latter can be challenging and frustrating, believing that no matter how hard and well you work, no matter how good your products may be, they're rarely given an open mind and a fair shake.
PR pros don't design, engineer, develop or build vehicles. But--because they know and understand media opinions of specific designs, materials and features--the product-savvy among them can influence their companies' products by effectively communicating to those who do that work.
They can also positively influence media reactions by the ways in which new cars and trucks are positioned, presented and demonstrated. The product presentation, who delivers it and how well, and the media drive--carefully designed to showcase the product's strongest points and downplay its weaker ones, if any--can be key. Most, but not all, of the best PR people have operated on the "customer" side of the relationship as media members themselves. They know how the media operates and what is most important to them.
Gem Plumbing & Heating automates field service: a New England contractor raises the bar on field technician productivity
The truth is that the average field service technician is only 50% productive. This is so of even the most successful field service contractors. "That means that half the technician's time is spent traveling from one job to the next, stopping at supply houses to pick up parts, going on vacation, attending training sessions, and performing other activities not billed to the customer," says Anthony Gemma, president of Gem Plumbing & Heating of Lincoln, R.I.
Gemma's company is the largest plumbing and heating contractor in Rhode Island, with over 300 employees and 110 trucks. In addition to plumbing and heating, its mobile service technicians provide air conditioning and drain cleaning services from its new headquarters near Providence.
Gemma is shooting for productivity of 75% to 80%, and he intends to achieve that goal through a three-pronged automation program that Gem is in the process of implementing. The success of Gem's program will hinge on tying inventory management, dispatching, and customer interaction into a single seamless process. That part of the implementation is still ongoing.
Three Not-So-Easy Pieces
"We decided to automate within the last five years or so," Gemma explains. "We just moved into a new facility, and now all of the automation is being deployed."
The procurement and inventory management piece of the automation process began four and a half months ago. At that time, Gem outsourced its procurement activities to Ferguson Integrated Supply, a subsidiary of Ferguson Enterprises Inc., a $7 billion building supply company based in Newport News, Va. Ferguson manages Gem's inventory with a four-person on-site team and provides Gem with proprietary supply chain integration and inventory management systems that accommodate just-in-time delivery of parts and materials.
The second piece of the process began about a year and a half ago and involves the use of SuccessWare's contract management system. This software helps call center personnel prioritize service calls and performs a host of accounting and reporting functions.
For the final piece, Gem is working with a company called Vettro, which provides a communications architecture that will interact with SuccessWare to provide information and functionality to remote technicians over mobile phones and deliver real-time data back to the company's accounting and dispatch systems. Vettro will also provide connectivity between the truck and Ferguson, providing the latter with real-time inventory information that it will use to restock the trucks.
Procurement and Inventory Management
Before Ferguson started managing inventory for Gem, the plumbing and heating company had to procure stock from multiple vendors. Items were often out of stock, and drivers had to take side trips to the supply houses to pick up parts for jobs.
Gem and Ferguson worked for two years to develop an automatic truck replenishment program, which went live three and a half months ago. Gemma was attracted to Ferguson because of its track record in managing just-in-time procurement and inventory for Fortune 100 companies, such as Motorola and General Motors, as well as other leading companies in aerospace, medicine, power generation, and semiconductors.
"We've contracted with Ferguson Integrated Supply to procure everything we need, from toilet paper to paper clips to plumbing materials to automotive supplies," Gemma explains.
Ferguson scours local suppliers for the lowest prices on materials and parts. Gem stocks 350,000 stock-keeping units in its warehouse, while each truck carries between 3,000 and 6,000 items. Gem's trucks are standardized so that each stocks every part in the same place. Each part, whether on board or in the warehouse, has been bar coded by Ferguson.
Prioritizing Service Calls
Ferguson's procurement and inventory transactions are uploaded into SuccessWare. This data lets the software calculate job costs and profitability so that Gem dispatchers can prioritize service calls.
Incoming calls are assigned one of five priority levels by SuccessWare, based on the type of call and the available technicians. "Prioritization enables us to take the most profitable calls available when we're over capacity," says Gemma. "If we can't get to all of them, we give priority to existing customers and turn away the least profitable jobs."
SuccessWare provides its product to Gem through a remote application service provider, which lets Gem run the software from any location with Internet access. The system is also available by way of a local area network installation.
SuccessWare also automates invoicing, which enables users to deploy office personnel more efficiently, according to the company's director of sales and marketing, Chris Di Re. In addition, the system provides customer-history information, which can be used to target sales. "The user can call customers to make repairs that have been recommended but not yet ordered," explains Di Re.
New chief in charge - Newsbytes - Ed Welburn was named new vice president of General Motors
Taking General Motors to the next level of creating compelling cars and trucks is the charge of Ed Welburn, GM's new vice president of design. The 53-year-old Welburn is the sixth person in GM's 95-year history to hold the position--and the first African American. Welburn assumed the post after outgoing design chief Wayne Cherry resigned.
"The choice of Ed is interesting for obvious reasons," says Brett Smith, a senior industry analyst at the Center for Automotive Research in Detroit. "He certainly has done a fantastic job of working through the corporate system, which at GM can sometimes be a difficult thing to do."
That system has often been criticized for putting constraints on the creative process. "Hopefully this will be an opportunity for [Welburn] to go back in time when design was king at GM and to let the people who are good at it do it and not let the bean counters and engineers tell them how to design," adds Smith.
A native of Philadelphia and graduate of Howard University's College of Fine Arts, Welburn began his GM career in 1972 as an associate designer. His first major project was the Cutlass Supreme. His designs of the Oldsmobile Aerotech established two world records. He played an instrumental role in the design of the Cadillac Escalade, Hummer H2, and the Chevrolet SSR.
Welburn has been in love with car design all his life. "I've been drawing cars since a very early age, and when I was 11, I sat down at my mother's desk with my parents and sent a letter off to GM. I always wanted to work there and never even thought about working at any other car company," he recalls.
Monday, August 21, 2006
First Major Government Study Validates Need for Iteris Lane Departure Warning Technology in Commercial Trucks; FMCSA Report to Congress Labels Lane an
The study found that over 32 percent of crashes where the truck was at fault were the result of departing from the roadway or crossing over the lane line, making it the single-largest cause of large truck injury and fatality crashes. Additionally, the study found that in crashes caused by the driver, 40 percent resulted from driver inattention/distraction, fatigue or other physical ailments.
According to prior studies conducted by the FMCSA, the average cost of an accident caused by a large truck involving fatalities is approximately $3.4 million while the average cost of an accident involving injuries was $217,000. These costs include medical expenses, emergency services, property damage, lost productivity and monetized quality-adjusted life years.
"We believe the number of accidents prevented and lives saved are increasing with the widespread deployment of active safety technologies such as our award-winning Lane Departure Warning system," said Jack Johnson, president and CEO for Iteris. "Iteris is encouraged the government conducted such a realistic study on causes of large truck crashes. We believe these findings make a strong case for LDW systems to be in all commercial vehicles."
The study was mandated as part of The Motor Carrier Safety Improvement Act of 1999 and was conducted to determine the causes of, and contributing factors to, crashes involving commercial motor vehicles. The U.S. Department of Transportation's (DOT) Federal Motor Carrier Safety Administration (FMCSA) and National Highway Traffic Safety Administration (NHTSA) conducted the multi-year, nationwide study. This Large Truck Crash Causation Study (LTCCS) identified areas that need to be addressed by effective crash countermeasures. These findings were recently transmitted in a formal report to Congress.
A nationally representative sample of large truck fatal and injury crashes was investigated during 2001 to 2003 at 24 sites in 17 states. Each crash involved at least one large truck and resulted in at least one fatality or injury. Data was collected on up to 1,000 elements in each crash. The total sample involved 967 crashes, which included 1,127 large trucks, 959 non-truck motor vehicles, 251 fatalities and 1,408 injuries.
Iteris developed its vision-based LDW technology to help address the problem of vehicle-related highway fatalities -- unintended lane changes caused by distracted, inattentive or fatigued drivers. Iteris' LDW system was the first of its kind to be deployed in the commercial truck and passenger car markets and it still remains the only vision-based system in mass production in the U.S. and Europe.
Over 20,000 LDW systems have been sold for commercial truck platforms in the U.S. and Europe with an estimated billion miles traveled per year. In the U.S., there are currently 25 fleets specifying Iteris LDW system with a combined fleet size of nearly 13,000 trucks and another 50 fleets with approximately 105,000 trucks conducting field tests.
About Iteris Inc.
Iteris Inc. is a leading provider of outdoor vision systems and sensors that optimize the flow of traffic and enhance driver safety. Iteris combines outdoor image processing, traffic engineering, and information technology to offer a broad range of transportation and safety solutions. Iteris Inc. has headquarters in Anaheim. Investors are encouraged to contact the company at 714-774-5000, or at www.iteris.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements, which speak only as of the date hereof and are based upon our current expectations and the information available to us at this time. Words such as "believes," "anticipates," "expects," "intends," "plans," "seeks," "estimates," "may," "will," "can" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the performance and expected benefits of our technology and LDW systems, commercial vehicle and automotive standards and our future prospects. These statements are subject to change and we undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.
Fitch Issues Presale Report on HSBC Automotive Trust 2006-2
NEW YORK -- Fitch Ratings has issued a presale report on HSBC Automotive Trust (USA) 2006-2 discussing the analysis behind Fitch's expected ratings on the offered notes. The collateral securing the notes consists of simple interest retail installment sales contracts secured by new and used automobiles, light duty trucks and vans to subprime borrowers.
The presale report is available to all investors on Fitch's corporate site, www.fitchratings.com. For more information about Fitch's comprehensive subscription service Fitch Research, which includes all presale reports, surveillance, and credit reports on more than 20 asset-backed securities (ABS) asset classes, including collateralized debt obligations (CDOs), contact product sales at 212-908-0800 or at webmaster@fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Truck Shop
As novelist Robert Heinlein once famously asserted, specialization is something best left to insects. That's a sentiment with which most truck owners would probably agree. After all, a vehicle that specializes in doing only one thing well rarely inspires much day-in, day-out gratification. Rather, versatility seems to be the key to automotive bliss: The more uses you can find for your vehicle, the more time you'll spend enjoying it - and nobody enjoys their vehicles more than truck owners.
Let's face it, folks - there are just so many things you can do with a truck. Setting aside the obvious applications as travel trailer- or fifth-wheel-puller, you're still left with a vehicle that can haul cargo; tow a boat, jet-ski, snowmobile or motorcycle; transport friends or family in roomy comfort; lug along essential tools or camping gear; explore rugged, unpaved roads and paths; or carry a slide-in truck camper. The list of possibilities is almost endless. There's no doubt about it - in the world of motor vehicles, trucks are the ultimate generalists. And that, in a nutshell, is why they're so popular.
Not surprisingly, the huge and sustained appeal of pickups and SUVs continues to entice automakers into producing new models. Nissan recently introduced its first full-sized pickup and SUV; KMW, Mitsubishi, Buick, Honda and Isuzu have all expanded their SUV product lines (and Hummer will do so shortly); even Volkswagen and Porsche have SUVs. Additionally, there are persistent rumors of Honda introducing a mid-size pickup as a 2005 model, while both Hyundai and Kia have displayed near-production-ready pickups at recent auto shows.
Of course, this dizzying combination of vehicle variety and versatility raises almost infinite possibilities for customization - the uses for a truck are so varied that it becomes almost impossible for the factory to equip any vehicle to exactly suit its owner's tastes and needs. Naturally, the makers of aftermarket products are only too happy to step in to fill these voids. Any aftermarket accessories being offered for one truck brand or model invariably spill over into other similar brands or models, ensuring that virtually all of the popular brands and models are supported by a huge assortment of accessories.
Undoubtedly, one of the biggest attractions to many truck accessories is their ease of installation. As a group, truck owners are hands-on folks and thus often derive considerable satisfaction from customizing their vehicles themselves. This places a premium on designing truck accessories in a manner that makes them ownerinstallable. Also, trucks tend to be easier to customize than passenger cars - their manufacturers generally provide more "hooks" and technical support for aftermarket attachments, and the larger size and higher ground clearance of these vehicles provide more elbow-room for getting a wrench wherever it's needed during the installation process. This makes maintaining and repairing truck accessories easier, too.
The dynamic nature of truck ownership is another major reason for the popularity of aftermarket accessories. Many folks buy a truck for one purpose, but eventually end up using it for something else entirely. Also, trucks tend to be kept much longer than passenger cars, making them more likely to require enhancements or alterations as their primary purpose changes over the years.
For example, trading up to a larger trailer often mandates some upgrades in the powertrain, suspension, brakes, electrical system and/or hitch of the truck that tows it. Accessory manufacturers have responded to this trend by offering products that fit not only current trucks but also many of the more popular models produced 5, 10 or even 20 years ago.
Naturally, automakers haven't exactly been turning a blind eye to the amount of money being spent on accessorizing their products. Most brands have recently expanded their own lines of factory- and dealer-installed accessories in an attempt to divert some of this cash back into their own pockets. As a consequence, formerly aftermarket-only items such as spray-in bedliners, Class IV hitch receivers, custom aluminum wheels, premium shock absorbers, locking differentials and rooftop cargo racks can now be ordered as OEM equipment on a handful of models.
However, even for items that are available on an automaker's options list, there are often still some major advantages to going the aftermarket route. In some cases, the quality is higher and/or the warranty is better, the price for similar equipment is often considerably less (especially if you'll be installing the item yourself) and there is usually much more variety from which to choose.
Also, many aftermarket manufacturers have much more expertise with the products in their own niche markets; this often results in better technical support and customer service. Then, too, there's that procrastination advantage: Many enthusiasts simply don't know what accessories they want on a new truck until after they've had some time to drive it. Any shortcomings or quirks in a new truck will rarely become apparent during the test drive, raising the prospect of overlooking needed accessories (or worse yet, ordering unneeded ones) in the dealer's sales office. Sometimes, you just need to live with your purchase for a while before deciding what to do next. Finally, some people like to space out their accessory purchases over several years just to "keep things interesting" in the relationship with their vehicles. Installing aftermarket accessories allows this freedom, without any worries about buyer's remorse.
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