NEWS BRIEFS FOR THE WEEK OF MARCH 16, 2006

NEWS BRIEFS FOR THE WEEK OF 
MARCH 16, 2006Bill Introduced to Halt Sale of Katrina-Damaged Cars

WASHINGTON (March 2, 2006) - A legislative fix may be necessary to keep shiny wrecks with phony titles from being sold to gullible car buyers, Representative Joe Barton (R-TX) said at a House Energy and Commerce subcommittee hearing. He and others supporting the drafting of legislation to deal with title washing maintain that purchasers should have full and available information before they make a purchase.

"I think we should pursue a legislative draft - this looks like an issue where something needs to be done," said Barton, chairman of the full committee. Title fraud, also known as title washing, occurs by altering or duplicating the title of a flood-damaged or totaled car to give it a clean title history. The scale of Hurricanes Katrina and Rita highlighted the title fraud problem, with some estimating that more than 600,000 vehicles may have been damaged.

Barton explained, "Among these things lost to the storm were hundreds of thousands of automobiles and trucks, possibly as many as 600,000. Most of those vehicles were damaged beyond usefulness. But it seems inevitable that a few bad actors will seek to spread the misery of the hurricane by shining these vehicles up and selling them to gullible buyers in states far from the Gulf of Mexico."

Representative Jan Schakowsky (D-IL) a Democrat on the subcommittee on Commerce, Trade and Consumer Protection stated, "This is a financial issue for consumers and the industry, but it is also a very serious public safety issue. Currently, there is no way to tell if a car that is on the used car lot should be on the scrap heap instead."

"What I'd like to know is why practices like title washing are still a major problem in a world that is so networked with real time information," said Cliff Stearns (R-FL). "It seems to me that the problem of title fraud is one that can be solved, or at least greatly reduced, by allowing greater and more immediate access to information about a car's history, including when that car is damaged by flood or other means, as well as creating more uniform standards nationwide for title branding designations, like salvaged or flood-damaged."

(Source: Rep. Joe Barton)

GAAS Ready to Roll

RESEARCH TRIANGLE PARK, NC (March 1, 2006) - With the frequent trend shifts and changes in the automotive aftermarket, companies within the industry need to stay current to remain competitive. Even the smallest change in the industry can have a big impact on the way you do business. 

The 11th Annual Global Automotive Aftermarket Symposium (GAAS) is drawing near. Attendees can hear a stellar lineup of speakers and industry leaders as they discuss aspects of this year's theme "Thriving in a World of Change." A number of speakers are scheduled, along with panel discussions including "Adapting to the Changing Automotive Aftermarket," hosted by MEMA President Bob McKenna, "Who Will Fix the Cars?," moderated by ASA President Ron Pyle, and "Who Needs Marketing?" facilitated by Tom Marx of the Marx Agency.

The event is scheduled for May 17 and May 18, at the Hyatt Regency, Dearborn, MI. By registering by Friday, March 24, participants from sponsoring organizations will receive the early bird discount of $200. Registration fees are $695 for the sponsoring associations' members' first registrant and $595 for each additional representative. More information and registration are available online at www.globalsymposium.org.ASE Updates L1 Test Vehicle LEESBURG, VA (March 2, 2006) - Time waits for no man, nor does technology. That's particularly true when talking about advances in automotive emissions control technology. In order to keep up with these changes, ASE is launching an updated version of the L1-Advanced Engine Performance Test this spring. The Composite Vehicle Type 3 will be introduced for testing during the Spring 2006 test administration.  The generic composite vehicle, upon which some of the test questions are referenced and which every L1 test-taker receives at the test center, has been revised. This non-OEM specific vehicle -often referred to as a "Camel" - has been officially dubbed, "Composite Vehicle Type 3."  The generic four-cycle, V6 engine has four overhead chain-driven camshafts, 24 valves, distributorless ignition and a mass airflow-type closed-loop sequential multiport fuel injection system. The Engine Control Module (ECM) receives input from sensors, calculates ignition and fuel requirements, and controls engine actuators to provide the desired driveability, fuel economy, and emissions control. The ECM also controls the vehicle's charging system. The powertrain control system has OBD II-compatible sensors and diagnostic capabilities. The ECM receives power from the battery and ignition switch and provides a regulated 5-volt supply for the engine sensors. The engine is equipped with a single exhaust system and a three-way catalytic converter, without any secondary air injection.  Major changes from the previous Composite Vehicle include variable valve timing, electronic throttle actuator control (drive-by-wire), a data communications bus, a vehicle anti-theft immobilizer system, electronically controlled EGR and onboard refueling vapor recovery (ORVR) EVAP components. These changes reflect the typical levels of equipment now commonly available to car owners at all levels. The composite vehicle also has a four-speed automatic overdrive transaxle, with shifting now being controlled by a separate transmission control module (TCM), again reflecting the technology available on today's vehicles. The TCM provides its own regulated 5-volt supply, performs all OBD II transaxle diagnostic routines and stores transaxle diagnostic trouble codes. In addition, the control system software and OBD II diagnostic procedures stored in the ECM and TCM can be updated using factory supplied calibration files and PC-based interface software, along with a reprogramming device that connects the PC to the vehicle's data link connector (DLC).  An updated ASE catalog of tests for L1 that includes the changes to the composite vehicle and other information is available at www.ase.com in the "Downloads" section at no charge or alternately by phone at (703) 669-6600, ext. 402.(Source: ASE)Dana Files For Chapter 11 Protection TOLEDO, OH (March 3, 2006) - Dana Corp. announced that in order to address financial and operational challenges that have hampered its performance, the company and 40 of its U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filings were made in the U.S. Bankruptcy Court for the Southern District of New York.  The company became insolvent in the days preceding the filing. Share prices had dropped more than 60 percent - substantially reducing the firm's market capitalization and impacting several financial commitments to creditors - in the days leading up to taking action. Dana also failed to make $21 million in interest payments on two bond issues due March1 but has a 30-day grace period to make good on these interest payments. Dana intends to use the Chapter 11 reorganization process to implement long-term solutions that will position the company for a stable and profitable future. The company cited several reasons for its filing: * A continued decline in revenues resulting from the decreasing market share and production levels of its largest domestic customers.

* Sharp increases in commodity and energy prices that have outpaced the cost savings Dana has been able to achieve. 

* The general financial condition of the industry.

* Inability to renew or expand its credit facilities in a timely manner. To fund its continuing operations during the restructuring, Dana has secured and received U.S. Bankruptcy Court - Southern District of New York approval for $1.45 billion in debtor-in-possession (DIP) financing from a consortium of banks - comprised of Citigroup, Bank of America and JP Morgan Chase Bank. DIP financing will be used for the company's normal working capital requirements, including employee wages and benefits, supplier payments, and other operating expenses during the reorganization process.  The court also approved Dana using $800 million of the loan to pay employees, including wages, healthcare coverage and other benefits; remunerate suppliers for goods and services provided; and maintain the delivery of products and services to its customers. Dana Chairman and Chief Executive Officer Michael J. Burns said, "This is an extremely difficult, but necessary and responsible decision that will provide us with the time and opportunity to strengthen our performance and achieve a sustained turnaround at Dana. The Chapter 11 process allows us to continue normal business operations, while we restructure our debt and other obligations and enhance performance. We want to assure everyone - our customers, suppliers, our people and our communities - that Dana is open for business as usual."(Source: Dana Corp.)AHP Legislation Moving Forward WASHINGTON (March 8, 2006) - "The Health Insurance Marketplace Modernization and Affordability Act of 2005," sponsored by Senator Mike Enzi (R-WY) was scheduled to be discussed in early March by the Senate Health, Education, Labor, Pensions (HELP) Committee. The bipartisan legislation (S. 1955) would provide more uniform federal regulations and make health plans more affordable for participants. Specifically, small business health plans, such as for associations, will be able to extend into multiple states to provide lower cost options to members. In addition, the bill's provisions will alter how insurers operate by creating a more competitive marketplace. In a statement Enzi said, "I spoke in person with the president last week. What he told me on health, education and competitiveness came through loud and clear in his speech. The president sounded the call for action on many of the same goals we've set for our work this year on the HELP Committee." Enzi said he applauded the President's vision to move forward on health care to benefit families with real relief and sensible solutions to rising health care costs.(Source: U.S. Senate)Ceramic Piston Heads Take The Heat