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Transportation Update

August, 2009

EDITORIAL FEATURES
• FoodBusinessNews – September 15 issue features Health Claims and distributed
at the Natural Products Expo East
• Food Logistics – September is Annual Safety issue and features Warehouse and
Transportation Safety Issues
• Land Line – October issue features Tire Market and Chain Law Update
• Logistics Management – September issue features 18th Annual Masters of
Logistics and Inventory Optimization
• Modern Materials Handling – September issue features Warehouses/Distribution
Centers
• Overdrive – September issue features Over-Dimensional Hauling and Add-Ons
that Pay Off
• Over The Road – September issue features Expedited Freight
• Purchasing Magazine – September issue features Medal of Professional Excellence
and Procure-To-Pay Best Practices
• Transportista – September issue features the Future of NAFTA and Cutting-Edge
Aerodynamics
• Transport Topics – August 31 issue features National Truck Driving
Championship Winners
• Trucker’s Connection – September issue features Stinky Jobs: Landfill Hauling
• Truckers News – September issue features 2010 Engines and Job Issue Survey

NEWSPAPER SPECIAL SECTIONS


Birmingham News National Driver Appreciation Week August 23
Las Vegas Review Journal Transportation August 20

CONFERENCES AND SEMINARS


Association of Diesel Specialists International Convention & Trade Show
August 5–9
National Harbor, MD

Brockway Truck Preservation Association Show


August 8
Cortland, NY

Great Salt Lake Truck Show


August 13–15
Lehi, UT

ATA National Truck Driving Championship


August 17-22
San Jose, CA

Commercial Vehicle Safety Alliance NAIC 2009


August 17–23
San Jose, CA

Great American Trucking Show


August 20-22
Dallas, TX

LAYOFFS
Chrysler announced that more than 900 workers at their Belvidere Plant will lose
their jobs. For the first time in more than two months, production restarted at the
factory. Because of the cuts, the factory will only operate on one shift. About 970 of
the 992 workers losing their jobs are out of work immediately. The other 22 will
stay for another month or two to help with the transition. WREX 13 Rockford
General Motors has announced it will cut another 4,000 white-collar jobs by the end
of the year. The automaker continues to restructure under Chapter 11 bankruptcy
protection. ABC News

Harley-Davidson will eliminate another 1,000 jobs. These job cuts are in addition
to those previously announced. The company cites slow motorcycle sales and an
expected reduction in shipments as reasons for the layoffs. Kansas City Journal

US Airways will cut 600 airport service and baggage-handling jobs in order to cut
costs. Layoffs will take place after the summer traveling season ends in September.
Bloomberg

Virginia Department of Transportation is informing about 600 full-time workers


this week that they're losing their jobs. VDOT Commissioner David Ekern said
Monday the agency is notifying individual employees in its central Richmond office
and its nine districts about the job reductions. They are part of a previously
announced plan to cut 1,000 full-time and 450 part-time workers to help address a
projected six-year, $2.6 billion revenue shortfall. The agency currently has about
8,200 workers and is required to reduce staffing to 7,500 employees by next July.
WTOP

TRENDS
Emergence of Hybrid Trucks
Twenty-one of the biggest mixed fleets in North America are working together to
help speed the development of a cost-effective, light-duty work truck that reduces
exhaust emissions while improving fuel economy. These fleets make up the Light-
duty Hybrid Action Group facilitated by the National Truck Equipment Association
(NTEA). They represent a cross-section of work truck users, including utilities (such
as American Electric Power and Florida Power and Light Company), state and county
transportation departments (such as Arlington County, VA, government), and private
companies (including Heritage Propane and Titan Propane). Combined, they manage
more than 200,000 vehicles across Classes 1–8.

ServiceMaster, a Fortune 500 company with brands such as TruGreen ChemLawn,


Terminix, and Merry Maids, requested that NTEA facilitate a hybrid action group in
Spring 2006. The NTEA has monitored hybrid initiatives in the work truck and trailer
industry since the concept began to determine how the technology might impact its
members. As hybrid and alternative-fuel technology have become commercially
viable, the association agreed to facilitate the group to further technical knowledge
on the subject.

Hybrids Present Maintenance Concerns


Hybrid trucks using an electric motor coupled with a gas or diesel engine present
special maintenance concerns. "The hybrid system uses voltages that range from
about 100 to more than 300 volts. As such, the unique service procedures and safety
precautions pose additional challenges when performing some repairs," said Ken
Gillies, manager, truck operations for GE Capital Solutions Fleet Services.
Independent repair facilities face decisions regarding what training and maintenance
services to provide, which will cause further service availability issues depending on
the geographic areas of operation.
"Independent shops can easily provide basic hybrid maintenance services including
oil changes, air/fuel/cabin filter and brake repairs, but may be slower in adopting the
procedures and purchasing special tooling to address any hybrid system repair
needs," said Gillies. "Training for OEM dealerships is in place, which will provide
support for repairs, especially where warranty coverage applies."

Overall, the hybrid systems will further strain the already capacity-challenged
maintenance and repair community. "Fleets with their own service infrastructure will
need additional investments in training. The judicious use of OEM dealerships for
certain repairs may be a temporary bridge for some, and others may elect to stay
that course long-term," said Gillies.

A key factor to increased hybrid acceptance will be pricing.

"Medium- and heavy-duty hybrids are becoming more commonplace in the market
when prices for the hybrid system start coming down. The hybrid systems would
include parallel system, series system, and hydraulic," said Jeff Robley, national
truck sales manager – western zone for ARI.

The challenge, as always with early adoption, is supply and demand, which has a
direct impact on overall cost. "Although fleet management companies would like to
think they have some control over the successful adoption of ‘green solutions’ we will
most likely be at the mercy of government intervention and the free enterprise
system. Economics always have and will most likely continue to dictate the adoption
of alternative-fuel development. It will, in all likelihood, also drive the evolution of
alternative transportation and commerce," said Greg Carson, director of operations
for Union Leasing.

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