NEWS BRIEFS FOR THE WEEK OF SEPT. 8, 2005

CHICAGO, IL (Sept 3, 2005) - Responding to the need for relief in the wake of Hurricane Katrina, automakers are stepping up to the plate. In addition to the industry's own financial woes, some automakers have suffered damaged or destroyed dealerships, as well as the impact on their employees and families. Still, they are finding a way to help.

Toyota said 15 of its dealerships in Louisiana, Mississippi and Alabama suffered extensive damage, with at least five totally destroyed. Yet Toyota companies pledged $5 million to disaster relief for victims of Hurricane Katrina. 

"We're hopeful that aid may quickly reach those who fell victim to the torrential wind and rain," said Toyota Motor Sales USA President and COO Jim Press. "It's gratifying to be of some assistance during this difficult time." Toyota is contributing $3 million to the American Red Cross (ARC) while the privately owned Toyota distributorship for the Gulf of Mexico region established a $2 million relief fund to specifically aid Toyota and dealership employees and their families in the Gulf States region with both immediate and long-term needs. 

Honda Motors has pledged $5 million, generators and other equipment and supplies for relief agencies.

General Motors said it is donating $400,000 to the American Red Cross hurricane relief fund, and the GM foundation will match employees' collective donations up to $250,000. GM also is making 25 vehicles available to the Red Cross to use as needed.

Nissan North America Inc. said it would donate $500,000 in cash to the ARC and provide 50 full-size trucks to the Mississippi Emergency Management Agency to assist with relief and recovery efforts. In addition, Nissan will match dollar-for-dollar employee donations to the ARC's Hurricane 2005 Relief Fund up to a total of $250,000 in employee contributions.

DaimlerChrysler donated $1 million to the ARC and has offered some payment relief to affected customers. 
The finance arms of Ford Motor Co., BMW, Volkswagen of America Inc., Audi of America Inc. and Bentley Motors Inc. are offering payment deferrals to qualifying customers affected by the disaster.

(Sources: Toyota, Honda, GM, Nissan, Ford, BMW, DaimlerChrysler, VW, Audi)

STUTTGART, GERMANY (Sept. 1, 2005) - DaimlerChrysler AG (DCX) and Ford Motor Co. have finalized the acquisition of the fuel cell system business of the Vancouver, Canada-based Ballard Power Systems Inc. 

The two automakers have established a joint venture, NuCellSys GmbH, with equal ownership. The acquisition of the fuel cell system business represents an important step in the reorganization of the alliance between Ballard, DCX and Ford with the aim of bringing fuel cell drive systems to the series production stage.

In the acquisition agreement signed on June 23, 2005, Ballard, DCX and Ford settled the details of the transaction, which put the cooperation between the alliance partners on a new footing via the sale of Ballard Power Systems AG to the automakers. The shareholders of Ballard Power Systems approved the acquisition agreement on Aug. 29, 2005. 

In addition to reorganizing the fuel cell systems business, DCX and Ford will be focusing on ways to best integrate fuel cell drives into vehicles, while Ballard will continue to develop and manufacture fuel cells and electric drives for fuel cell vehicles. The reallocation of tasks will allow the alliance partners to focus on their respective areas of expertise.

(Sources: DaimlerChrysler, Ballard Power Systems Inc.)

BETHESDA, MD (Sept. 6, 2005) - The Automotive Aftermarket Industry Association (AAIA) is offering an opportunity for its members to aid in the relief efforts for victims of Hurricane Katrina. AAIA's initiative will benefit both aftermarket professionals affected by the storm, as well as the general populations of the area. The association will match monetary donations to both the Aftermarket Foundation and the Salvation Army, up to $10,000 per entity.

The Aftermarket Foundation is in its 46th year of assisting those individuals and families of the automotive aftermarket less fortunate and in desperate financial need because of unexpected death, catastrophic illness or financial hardship. Monies collected for the Aftermarket Foundation will be designated for the employees of aftermarket companies and their families affected by Hurricane Katrina. 

The Salvation Army has functioned successfully for more than a century, and its outreach has been expanded to include more than 100 countries, speaking more than 160 languages. Monies collected for the Salvation Army will be donated to their general Hurricane Katrina relief fund. 

Donations should be sent directly to AAIA headquarters, c/o Susan Medick, 7101 Wisconsin Ave., Suite 1300, Bethesda, MD 20814. Please make checks payable to either the Aftermarket Foundation or the Salvation Army. With the industry's generosity and AAIA's match, each company can contribute up to $40,000 combined for Hurricane Katrina relief efforts. Please send all donations by Tuesday, Sept. 20.

GARDENA, CA (Aug. 31, 2005) - Nissan Motor Co. Ltd. announced that it has begun operations at its newly constructed Nissan Advanced Crash Laboratory (NACL) located at the company's Oppama Proving Ground in Yokosuka City, 50 kilometers southwest of Tokyo. The 40,000-square-meter, state-of-the-art laboratory will be used for testing safety performance in vehicle-to-vehicle crashes and occupant protection performance in rollover accidents. 

Kimiyasu Nakamura, senior vice president at Nissan stated, "Nissan Advanced Crash Laboratory will go a long way to support the development of improved safety systems for Nissan's vehicles under our Safety Shield approach."

The Safety Shield program encompasses Nissan's safety-related technologies that address both accident prevention and management. Under this approach, which was introduced in fiscal year 2004, Nissan believes that the driver is key to improved safety when it comes to helping to prevent an accident from occurring. Nissan's focus is on how the company can best support the driver with technology that helps him or her avoid an accident or minimizes damage in case of a crash.

Nissan has set a goal of halving the number of traffic fatalities or serious injuries involving Nissan vehicles in Japan by 2015 compared with 1995. As of 2003, Nissan had reduced the number of fatal and serious injuries by 22 percent compared with 1995, indicating that steady progress is being made toward the attainment of its goal.

At NACL, tests designed to reproduce vehicle-to-vehicle crashes can be conducted over a wide range of collision angles from 85 to 185 degrees in five-degree increments, in addition to frontal collisions at 180 degrees and side collisions at 90 degrees. Oblique-angle crashes between vehicles traveling in the same direction can also be reproduced at seven different collision angles of five, 10, 15, 30, 45, 60 and 75 degrees. 

Nissan also can evaluate occupant protection performance in four types of rollover crash modes. The new lab will enable four tests to be conducted:

* Dolly rollover test: Simulates a rollover curb impact crash with the vehicle in a fixed position on a dolly. 

* Trip-over test: This test simulates an accident where a vehicle spins and slips sideways until it comes in contact with a curb or some other formation that causes it to roll over.

* Ditch rollover test: This test simulates an accident where a vehicle leaves the road, travels down a sloped embankment at an oblique angle and rolls over.

* Corkscrew test: This test simulates an accident where the wheels on one side run up on the center divider or some other structure, causing the vehicle to tip and roll over. 

(Source: Nissan)

DETROIT, MI (Aug. 31, 2005) - General Motors Corp. (GM) in a meeting with analysts and shareholders said it was making progress in turning around its money-losing North American operations, but it declined to provide a timetable for a return to profitability.

GM officials did not comment on crucial negotiations with the United Auto Workers aimed at renegotiating union health-care benefits, which GM has stated is a major barrier to profitability and its ability to compete with foreign rivals. 

When pressed for details, GM Chief Financial Officer John Devine told the analysts, "A lot of the pieces on the recovery plan, certainly around the structural costs area, are very sensitive and very difficult. We dont get anywhere by laying those on the table too early. Nothing is more important to us and the corporation today than the pace of the recovery actions that we need for North America to get it back in the black." 

GM said its finance arm and global operations, outside North America, remain on track to meet or exceed its 2005 profit targets. But it offered no earnings forecast for its core North American operations. The automaker stopped issuing profit outlooks after posting a record $1.1 billion loss in the first quarter. 

(Source: GM)

TORRANCE, CA (Aug. 31, 2005) - In a week where gasoline prices surged and consumers fumed, American Honda Motor Co. announced the delivery of its 100,000th hybrid vehicle to an American retail customer. 

According to the automaker, the milestone combines sales of all three of its hybrid vehicles starting with the first Insight sale in 1999. 

"We are proud to have achieved this accomplishment of selling 100,000 units," said Richard Colliver, executive vice president of American Honda. "Honda's products deliver on the needs of a concerned automotive consumer who believes in minimally impacting the environment and conserving natural resources." 

(Source: Honda)

AUBURN HILLS, MI (Sept. 1, 2005) - In the shadow of a week of rocketing gasoline prices, DaimlerChrysler (DCX) provided some tips to help owners of vehicles powered by Multi-Displacement System (MDS) engines such as the 5.7L HEMI V8 engine, as well as owners of vehicles with other powertrains.

MDS is standard equipment with the 5.7L HEMI on seven vehicles: the Chrysler 300C, Dodge Charger R/T, Durango, Magnum R/T, Ram 1500 pickup and Jeep Grand Cherokee and Commander. MDS technology will be extended to HEMI-equipped Dodge Durango and Ram models in 2007.

According to DCX, MDS gives customers the power and capability of the HEMI V8 that they desire with up to 20 percent more fuel economy, typical of a less powerful engine. The technology alternates between smooth, high-fuel-economy four-cylinder mode when less power is needed and V8 mode when more power is needed. This optimizes fuel economy when V8 power is not required, without sacrificing vehicle performance or capability, says DCX.

MDS incorporates a number of technologies to accomplish this: the speed of electronic controls, the sophistication of the algorithms controlling the systems and the use of Electronic Throttle Control. With MDS, the same four cylinders (1, 4, 6 and 7) are deactivated each time MDS kicks in.

The company suggested the following driving habits would maximize fuel economy for drivers with MDS HEMI engines by keeping the vehicle in four-cylinder mode longer: 

* Keep speeds to 65 mph or below. MDS uses four-cylinder mode most at these speeds.

* Use cruise control, which helps maintain a steady speed.

* Accelerate more gradually.

* Use a steady throttle whenever possible. This maximizes four-cylinder mode in these engines.

DaimlerChrysler offered some general other tips for all drivers, with or without MDS:

* Slow down. Every 5 mph over 65 mph can decrease fuel economy by as much as 7 percent.

* Use modest acceleration when possible, minimizing "jack rabbit" starts.

* Use air conditioning and other accessories, such as interior lighting and heated seats, only when necessary.

* Use cruise control to help maintain a steady speed.

* Limit extended idles and warm-up periods. For example, don't leave vehicles idle while running in for the cup of coffee in the morning.

* Plan your trip to avoid rush hour, if you can, to avoid idling in traffic.

* Ensure proper vehicle maintenance. For example, replace dirty air filters, as a clogged air filter can reduce fuel economy as much as 10 percent. Keep vehicle engines tuned up, as a noticeably out-of-tune engine can reduce fuel economy as much as 4 percent. If the vehicle engine light is on, have the vehicle serviced, as faulty components such as an oxygen sensor can reduce fuel economy as much as 40 percent.

* Check tire pressures. Under-inflated tires by just two psi can reduce fuel economy as much as 1 percent.

* Remove extra weight from vehicles. An extra 100 pounds in the trunk or pick up box can lower fuel economy 1 to 2 percent.

* Reduce aerodynamic drag on a vehicle by removing empty cargo carriers, bike racks, ski racks, etc., when not in use. At highway speed, 50 percent of the engine power is used to overcome aerodynamic drag. Remove unused items from roof racks, as a loaded roof rack can reduce fuel economy at highway speeds by as much as 5 percent.

(Source: DaimlerChrysler)

WASHINGTON (Sept.2, 2005) - The U.S. Department of Labor's (DOL) Bureau of Labor Statistics Office released its August 2005 report, "National Compensation Survey on Employee Benefits in Private Industry in the U.S.," which used data as of March 2005. The survey reported the percent of total private sector employees who had access to a specific type of benefit, followed by the percent of total private sector employees who participated in that benefit. 

The table below summarizes benefit access and participation for "blue collar" employees. 

The report also provided details of paid leaves, long term care, bonuses, wellness-of-life and other benefits. On an overall basis, the survey also reported the following findings:

* "White collar" workers had more access to, and participation in, each benefit surveyed than "blue collar" workers.

* Those in jobs paying $15 per hour or more were offered more extensive benefits and had higher participation rates than those paid less than $15 per hour.

* Larger employers (more than 100 employees) had more access and participation.

* As well, differences between union verses non-union employees were provided. For example, union employees generally had access and participation for each benefit.

(Source: Department of Labor, Bureau of Labor Statistics)

NAGOYA, JAPAN (Sept. 2, 2005) - Toyota Motor Corp. is recalling 14 fuel-cell vehicles leased in the United States and Japan, after a vehicle leased to a U.S. university was found leaking hydrogen from its fuel storage tank in late August, company officials said Friday.

Reported first in the Kyoda News, and later in a press release from Fuel Cell Works, the recall for free repairs covers the Toyota FCHV vehicles whose lease contracts took effect between 2002 and June this year. Toyota decided to recall the 14 units of the older FCHV model to "take all possible measures" to prevent any malfunctioning, accompany spokesperson said.

(Source: Kyoda News, Fuel Cell Works)