NEWS BRIEFS FOR THE WEEK OF FEB. 2, 2006

NEWS BRIEFS FOR THE WEEK OF FEB. 2, 2006Use of Domestically Grown and Produced Fuels To Increase

WASHINGTON - The U.S. Environmental Protection Agency (EPA) has released its interim rule governing implementation of the Renewable Fuels Standard (RFS), included in the Energy Policy Act passed in 2005. EPA's interim rule provides guidance to oil companies as the RFS is introduced.

Starting in 2006, Americans will be fueling up with nearly three percent of clean-burning, domestic renewable fuels such as ethanol under the new standards. The RFS program is designed to reduce vehicle emissions and strengthen U.S. energy security by doubling the use of fuels produced from American crops by 2012. 

"Under President Bush's leadership, we are addressing our nation's growing energy demand in a way that supports our goals for a clean environment and healthy economy," said EPA Administrator Stephen L. Johnson. "This investment in renewable fuels made from domestic crops will support American agriculture and replace fossil fuels with an increasing amount of cleaner-burning alternatives such as ethanol or bio-diesel illustrating that environmental progress and economic development can, in fact, go hand-in-hand."

The program is designed to significantly increase the volume of renewable fuels blended into motor vehicle fuels. Various renewable fuels can be used to meet the requirements of the program, including ethanol and bio-diesel. Under this standard, refineries, blenders and importers would be collectively responsible for meeting program requirements for 2006, where compliance would be calculated over the entire pool of gasoline sold to consumers. 

The RFS program explains how industry will comply with the Energy Policy Act's default provision requiring that 4 billion gallons of the gasoline sold or dispensed to U.S. motorists in 2006 be renewable fuel. The regulation is intended to provide market certainty for smooth implementation of the program beyond 2006, as EPA expands the program in increments up to 7.5 billion gallons in 2012. Many of the act's other provisions regarding the program for 2007 and beyond will be implemented in subsequent regulations. Details of the RFS can be viewed at www.epa.gov/otaq/renewablefuels/.

(Source: EPA)

WASHINGTON - The U.S. Environmental Protection Agency (EPA) has issued two actions related to vehicle emissions durability testing procedures. 

First, EPA is issuing a final rule that establishes a vehicle's aging procedures that automotive manufacturers must use to demonstrate that their vehicles will continue to meet the emission standards throughout the required useful life period - 120,000 miles for most cars and trucks). The Agency is completing this action to fulfill a court mandate issued on Oct. 22, 2002, by the U.S. Court of Appeals for the District of Columbia Circuit to vacate the existing aging procedures and issue new regulations. This decision arose from a petition from the Afton Corp. (formerly known as Ethyl Corp.) to reconsider EPA's existing durability regulations. 

Second, EPA is proposing options for testing the durability of vehicle emissions-related components, such as oxygen sensors and catalytic converters. This supplemental proposal will include options for addressing the durability of emissions-related components from three testing procedures. The first option would retain the current EPA process of allowing manufacturers to use "good engineering judgment," such as computer modeling, test data or other established methods to demonstrate component durability. The second option would allow manufacturers to continue using the current EPA process, but would require the manufacturers to submit whole vehicle testing data for a worst-case vehicle configuration. The third option would allow manufacturers to continue using the current EPA process, but would also require that manufacturers submit data when a new type of component or a new technology is being introduced. 

For additional information, visit EPA's Web site.

(Source: EPA)

ST. PAUL, MN (Jan. 2, 2006) - University of Minnesota researchers have found that most aggressive drivers also tend to be hostile outside their vehicles. 

"People don't change their behavior dramatically when they get in the car," study co-author Kathleen Harder told the St. Paul (Minn.) Pioneer Press. She and two others administered a battery of personality, emotional and behavioral questions to a group of 710 drivers between the ages of 18 and 45. 

They discovered that a group who scored as "high hostile" in the survey became more emotionally activated while driving than people labeled as "low hostile," Harder said. In addition, as a group, the "high-hostiles" reported more driving after drinking more often than the low-hostiles, more speeding, the willingness to taking more risks while driving and becoming angrier at slow drivers, police, slow or discourteous drivers and road construction, she said.

Continued experimentation and research is ongoing, with a view to linking personality traits and styles to driving behavior, to then develop strategies to manage and reduce aggressive driving.

(Source: University of Minnesota)

LONDON (Jan. 2, 2006) - Expect vehicle makers plan to introduce new technology that provides lighter driveshaft components, improves fuel economy and betters overall vehicle performance. 

Developed by GKN Driveline, the technology is scheduled to appear on new models built in the United States in 2006, followed by European automaker introductions. Rob Rickell, director of engineering for GKN, said that compared with current designs, the new driveshaft components will offer new-car buyers the following benefits: 

* Weight reduction of 9 pounds.

* Improved fuel efficiency - a gain of 0.16 litres/100 kilometres.

* Easier parking due to a turning-circle reduction of 1 meter or more.

* A quieter ride resulting from reduced driveline noise, vibration and harshness.

"Our new designs represent the first major change in constant-velocity-joint (CVJ) technology, designed to help transfer power from a vehicle's engine to its wheels, in more than 70 years," said Rickell. Central to the innovation are the use of proprietary Countertrack and Crosstrack technologies. 

Countertrack technology for fixed joints has the ability to reduce vehicle weight, and improve driveline efficiency - keys to improving fuel economy, performance and driveability. The Countertrack system balances internal forces within a joint to improve operating efficiency by reducing energy losses due to heat and friction. Another design feature allows engineers to reduce overall package size and increase steering angles to enhance maneuverability.

Crosstrack technology for ball plunging joints combines straight-and-angled ball tracks to produce joints that allow carmakers to further reduce driveshaft noise, vibration and harshness. The technology will reduce driveline "clunk" noises and vibrations from imbalance - attributes that are key engineering concerns on front-wheel-drive sideshafts, fitted with automated manual or fully automatic transmissions and on all rear-wheel drive and all-wheel drive/4x4 propshafts.

"We expect Countertrack and Crosstrack technology to replace designs currently used on an industry-wide basis within a relatively short period of time," Rob Rickell said.

(Source: GKN Driveline)

DETROIT, MI and WESTLAKE VILLAGE, CA (Jan. 4, 2006) - The growing demand by consumers for hybrids is unlikely to surprise anyone in the aftermarket. It's not a matter of knowing a shift to hybrids is occurring; it's a question of whether the aftermarket will be ready, with better than adequate training, equipment and tools to compete for the servicing of them soon enough. 

According to KPMG LLP and J. D. Power and Associates (JDPA), despite already dramatic sales growth, the sales of hybrid vehicles will continue to rise.

A recent KPMG survey, based on interviews with 140 senior executives at vehicle manufacturers and automotive suppliers around the globe, found that auto execs believe that quality and fuel efficiency will be the top two criteria consumers will use in deciding which car to buy over the next five years. According to KPMG, automotive executives believe strongly that as a result, consumers will be opting for fuel-efficient, low-cost cars and hybrids rather than purchases of SUVs and luxury cars. A continuing rise in fuel prices would accelerate this trend.

"Automotive leaders are cognizant of the lasting impact of rising gas prices on the minds of consumers," said Betsy Meter, audit partner in KPMG's automotive practice. "The focus right now is on producing fuel-efficient vehicles that will meet consumer demand. While there are regional differences, there is one common theme. Consumers worldwide are now on the same page. They desire a good quality, fuel efficient car."

In the survey of auto executives, KMPG found that:

* 87 percent said new-car buyers will mostly base their purchase decisions on quality.

* 84 percent said fuel efficiency.

* 68 percent cited affordability.

* 47 percent felt sales incentives also were a factor.

In an update to JDPA's "Automotive Forecasting Services Hybrid-Electric Vehicle Outlook" released Jan. 4, the research firm anticipates hybrid sales volumes to grow by 268 percent through to 2012. Hybrid vehicle sales would grow from approximately 212,000 vehicles in 2005 to 780,000 by 2012. However, JDPA points out that even with that rate of growth, hybrids will still hold a small market share: 4.2 percent market share by 2012 from 1.3 percent of sales in 2005.

JDPA said the hybrid vehicle market has grown from two models and fewer than 10,000 vehicles sold in 2000 to 11 models and an estimated 212,000 vehicles sold in 2005. "Future growth will be the result of more vehicle manufacturers entering the hybrid-electric market and a greater number of hybrid models," said Anthony Pratt, senior manager of global powertrain forecasting at JDPA. "There are currently only 11 hybrid models available in the U.S. market, and by 2012, that number could increase to 52 models."

(Sources: KPMG LLP, J.D. Power & Associates)

QUEENS, NY (January 4, 2006) - The Greater New York Automobile Dealers Association (GNYADA) has opened the Center for Automotive Education and Training, a new $25-million, 90,000-square-foot dealership training facility.

The educational facility addresses the need for training qualified dealership employees, including service technicians. According to the U.S. Department of Labor, there is an annual shortage of 30,000 automobile technicians, and federal forecasts claim the numbers will continue to rise.

The GNYADA also will use the center for its own education programs, training sessions, seminars and workshops held each year for its membership, which encompasses service, management, billing, bookkeeping and sales specialists.

The association has also partnered with other organizations for use of the complex. These include Lincoln Technical Institute and Toyota. Toyota said much of the combined classroom/shop training will focus on servicing hybrid drivetrains.

(Source: GNYADA)

BRUSSELS, BELGIUM - The European Union (EU) cleared U.S. automotive systems maker Johnston Controls Inc. (JCI) and French-based advanced technology battery manufacturer Saft Groupe SA (SG) to form a joint venture for advanced technology car batteries. This deal was approved under the EU's simplified procedure, which clears deals after one month if no third-party complains.

JCI is a manufacturer of automotive batteries to automakers that include DaimlerChrysler, Ford, General Motors, Honda, Nissan and Toyota. It also invests in research and development for hybrid vehicle batteries, and the company recently announced that it would open a new Lithium Ion Development Laboratory. Saft Groupe specializes in the design and manufacture of advanced technology batteries used in high-performance industries.

The joint venture will develop, produce and sell nickel-metal-hydride and lithium ion batteries for hybrid and electric vehicles. The two companies will combine their development teams and invest in state-of-the-art manufacturing facilities to develop and market the next generation of lithium ion battery systems.

(Source: Morningstar)

GREENVILLE, SC - Michelin North America has notified the National Highway Traffic Safety Administration (NHTSA) that it is recalling approximately 6,500 Michelin Pilot Sport 255/35ZR20 97Y Extra Load tires. This recall involves these specific tires only and has no impact on any of the company's other tires.

This decision was taken after Michelin's internal quality control system indicated that the tires do not meet its standards and must be recalled. In an affected tire, the condition is ordinarily noticeable as a blister on the sidewall of the tire. The blister may produce a noticeable tire vibration, which a driver might detect. The condition may result in a rapid loss of air pressure, which could potentially lead to a loss of control and potential vehicle crash. To date, there have been no accidents or injuries reported in North America. 

The recalled tires were fitted as original equipment on some trim levels of Jaguar XJ8 vehicles and also were available in the aftermarket. The affected tires' DOT markings begin with FHPNEFMX and end with 00, 01, 02, 03 or 05. The company will be replacing all potentially affected tires at no cost, including mounting and balancing, to consumers through Michelin tire dealers.

(Source: Michelin North America Inc.)