NEWS BRIEFS FOR THE WEEK OF MAY 4, 2006

Jan. 1, 2020
President Seeks CAFE Reforms For Passenger Cars ... DENSO Launches Sales Incentive Program ... Big Three To Meet With President ... Automotive Service Professionals Get Their Own Celebration ... Automotive Students Shift to Hydrogen ... and other hea
NEWS BRIEFS FOR THE WEEK OF MAY 4, 2006 President Seeks CAFE Reforms 
For Passenger Cars
WASHINGTON (April 28, 2006) - President Bush asked Congress today for the authority to reform car Corporate Average Fuel Economy (CAFE) standards, consistent with the approach taken with the light truck rule issued March 29. Of particular note was the intent to take measures based on sound science and a view to avoiding a decrease in public safety, rather than see Congress react to high fuel prices and subsequent public pressure with knee-jerk measures. "Congress is debating some other ideas. And one idea is to give me the capacity to raise CAFE standards on automobiles. I encourage them to give me that authority. It's authority that I use for light trucks. And I intend to use it wisely if Congress would give me that authority," said the president. In his proposal to Congress, President Bush outlined three main themes: * The U.S. Department of Transportation (DOT) should have the authority to reform the CAFE standards. Current arbitrary statutory increases do not take careful account of economic impact, job loss or technological advances. The proposal does not specify a fuel savings target or a new miles-per-gallon standard. Those will be left to a subsequent U.S. Department of Transportation (DOT) rulemaking, similar to the rule for light trucks, that takes into account stakeholder comments as well as considerations such as technological feasibility and economic practicality and the costs and benefits of new mileage requirements.  * A size-based standard should be instituted. Automakers would face a uniform standard for their entire car fleet, regardless of the composition of that fleet. A standard based on vehicle dimensions will improve safety by eliminating the incentive for manufacturers to downsize vehicles and by increasing incentives for technological improvements that will improve fuel efficiency and will make passenger cars safer. It would also level the playing field for U.S. manufacturers, who are competing with foreign manufacturers that sell many more mini and subcompact class cars than U.S. manufacturers.  * CAFE credits should be tradable. Manufacturers should be able to trade fuel economy credits to ensure fuel savings are achieved at the lowest possible cost to consumers and automakers. If a manufacturer surpasses its CAFE standard, that company should receive credits they can sell to other manufacturers that find it more expensive to meet the standards. A similar market-based system works effectively for power plants and many other regulated industries. In a letter to Congress, DOT Secretary Mineta supported the president's measures. "Our National Highway Traffic Safety Administration (NHTSA) has the technical expertise to regulate fuel economy in a manner that is cost effective, based on sound science and safeguards vehicle occupants," he said. "The administrative process provides safety and other public interest groups, the auto industry and the general public an opportunity to develop and provide NHTSA with policy suggestions and detailed technical, economic and other relevant data necessary for reforming the passenger car CAFE system and setting new CAFE standards."  (Source: White House) DENSO Launches 
Sales Incentive Program
LONG BEACH, CA - DENSO Sales California Inc. announces the "Fistful of Fives" incentive promotion for repair professionals. DENSO's promotional program offers a free pair of Mechanix work gloves to repair professionals for every five DENSO First Time Fit starters and alternators purchased from an authorized distributor. These exclusive gloves sport the DENSO First Time Fit logo. This promotion runs through June 30, 2006.  The company's First Time Fit line of starters and alternators is designed to provide original equipment fit, form and function. In addition to its comprehensive Japanese coverage, expanded coverage for popular domestic applications also is available.  More information about the promotion is available through authorized DENSO First Time Fit distributors or by visiting www.densoaftermarket.com. Big Three To Meet With President WASHINGTON (April 26, 2006) - According to the New York Times and CNN, President Bush will meet with the CEOs of General Motors, Ford Motor Co. and DaimlerChrysler in mid-May. This would be the first meeting between the president and the three CEOs since April of 2003.  CNN cited Ford spokesman Josh Gottheimer as saying that plans for the meeting were the result of "an ongoing, constructive dialogue with the White House," before he added, "We are meeting in the near future." The newspaper report said that the high level meeting would focus on three areas: energy and the environment; costs like pensions and health care premiums that add hundreds of dollars to the price of a Detroit car; and how currency issues affect the Japanese automakers competitiveness in America. According to the reports, the domestic industry is not looking for any kind of bailout/government help. Rather, it was noted that "These are the issues that put a lot of head winds out there for us vis-a-vis the [Asian] manufacturers."  The Big Three face competitive problems compared to Asian automakers because of their retiree health care costs, which add an estimated $1,500 to the cost of a vehicle, costs Japanese automakers do not face. The source also said that E85 may be the majority focus of this meeting, suggesting that, "The problem is finding cost-effective production and getting enough supply into the market place."  Finally, while the Chinese yuan's valuation is a central issue to the huge U.S.-China trade deficit, it was reported that the Japanese yen's valuation impacts the U.S. automakers the most, and it is alleged that the manipulation of the yen has provided the Japanese with an unfair competitive advantage for some time.  (Sources: CNN, NY Times, The White House) Automotive Service Professionals Get Their Own Celebration
LEESBURG, VA (May 2, 2006) - The National Institute for Automotive Service Excellence (ASE) has declared June 12 through 18, 2006 as National Automotive Service Professionals Week. Building on the success of Automotive Service Professionals Day that began in 2001, ASE established National Automotive Service Professional's Week in 2005 to honor the commitment and dedication of automotive, truck and collision technicians, along with parts specialists and other support professionals who serve the motoring public "Twenty-seven states issued proclamations honoring National Automotive Service Professionals Week in 2005," said Trish Serratore, ASE group vice president, Industry Relations. "We will once again push to have all 50 states recognize the outstanding work done by automotive professionals across the nation in 2006."  As was done in 2005, ASE will provide a form letter and enlist the aid of local shop owners in each state to petition their respective governors to mark this special week. "We established National Automotive Service Professionals Week to recognize the men and women who service and maintain the highly complex vehicles upon which we depend so much for our day-to-day transportation," said Ron Weiner, ASE president. "This event acknowledges their skill and dedication, and ASE is proud to help recognize these individuals for their commitment to their customers, their craft and the American economy." (Source: ASE)MI Automotive Students 
Shift to Hydrogen
LANSING, MI (April 19, 2006) - In a state where the gasoline-powered internal combustion engine has ruled the roads and defined the economy for more than a century, students in an automotive technology class at Lansing Community College (LCC) are shifting gears. LCC students are building three internal combustion engines that will run on hydrogen, positioning themselves for the future and repositioning what can be accomplished at a community college that's willing to look ahead of the curve on new technologies. The automotive technology students have been working nearly three semesters now, building the automobile engines and calibrating them to work specifically with hydrogen rather than gasoline. Testing is scheduled for later this month. LCC's hydrogen project is part of its Alternative Energy Initiative. The college, located in the heart of Michigan's auto manufacturing belt, was tapped by the U.S. Department of Energy to develop an alternative energy curriculum, train the workforce in alternative energy and educate the general public on alternative energy.  "Most people think the research is being done exclusively by the automakers. But it's also being done right here in this classroom," says Winston Lane, an automotive machinist consultant who is overseeing the project. "That's what makes this project so exciting. Research and development must be done before hydrogen-powered vehicles will be a cost-effective alternative to gasoline-powered vehicles, and we're a part of it." Lane says that regardless of what happens when the engines are tested, the hands-on experience of building the engines from the ground up prepares students to build or service them when hydrogen-powered engines are brought to market. It also provides those who might move on to four-year engineering programs with a practical understanding of the technologies that underlie the use of hydrogen as an automotive fuel. "We know the hydrogen economy is coming, and we want to be ready," said Lane, who says his students will be well-prepared to take jobs as automotive technicians specializing in alternative fueled vehicles or transfer on to an engineering program with an alternative energy specialty. (Source: Lansing Community College) Toyota To Market 
Flex-Fuel Vehicles By 2008
LONDON (April 20, 2006) - The Financial Times reported that Toyota Motor Corp. intends to produce and market ethanol/gasoline flex-fuel vehicles by 2008. An unnamed company spokesperson told the FT that the initiative was being done to meet demand in Brazil initially and other markets such as the United States thereafter.  The automaker still has concern about ethanol-powered vehicles, noting the impact of highly corrosive ethanol on rubber seals in the engine, according to the report. Toyota's new vehicle would be fitted with anti-corrosive parts to meet U.S. regulations, but the automaker suggested that a less ambitious strategy of mixing only 10 to 15 percent ethanol into gasoline might produce greater savings, the paper said. (Source: Financial Times) Bridging The Generational Gap Between Workers ATLANTA, GA (April 26, 2006) - According to a survey released today, conducted by Harris Interactive for Randstad USA, employees in multigenerational workplaces have disparities between how older (age 55+) and younger employees (18- to 34-year-olds) view each other. Of the questions asked of older and younger workers - about relating, being energized, seeking advice from and learning from each other - in all but one case, older workers held a more positive regard for younger co-workers than younger employees held of older workers. For example, 43 percent of older workers felt younger employees bought energy and new ideas to the workplace, whereas only 23 percent of younger workers thought older co-workers did. Genia Spencer, managing director of operations and human resources for Randstad said that despite age differences and the existing gap, the multigenerational workplace is mutually advantageous for both employees and employers: "Many of the advantages may not be readily apparent to the nation's employers who can benefit from the synergy of ideas and insight that younger and older workers jointly bring to the table."  Spencer suggested the following "ABCs" to bridging generational gaps: * Avoid any age-based assumptions about employees and recognize that all of your colleagues will potentially bring different and insightful ideas to the table. * Be open-minded to learning new ways of doing things and be receptive to time-tested ideas. * Create an environment where all employees have a meaningful opportunity to contribute. By fostering effective communication and collaboration with all of your colleagues, you may be surprised how many good ideas develop. (Source: Randstad USA) Mileage Tips For HEMI Engines AUBURN HILLS, MI (April 20, 2006) - Just a few simple tips can help owners of DaimlerChrysler (DCX) 5.7L HEMI V8 engines equipped with the Multi-Displacement System (MDS) get the most fuel mileage possible.
5.7L HEMI V8 Engine with MDS
(Photo: DaimlerChrysler) With MDS, owners get the power and capability of the HEMI V-8 that they desire with the fuel economy of a less powerful engine, says DCX. MDS alternates between smooth, high-fuel economy four-cylinder mode when less power is needed, and V8 mode when more power from the 5.7L engine is needed. This optimizes fuel economy when V8 power is not required, says the automaker, without sacrificing vehicle performance or capability. Drivers do not need to drive in a certain way to realize a fuel economy improvement with MDS, but using the following driving habits will keep the engines in four-cylinder mode and thereby maximize their fuel savings with this technology: * Keeping speeds to 65 mph or below - MDS uses four-cylinder mode most at these speeds. * Use cruise control - this helps maintain a steady speed, generally allowing the engine to run on four cylinders for longer periods. * Accelerate more gradually - the engine will provide V8 power whenever it is requested by the driver. * Use a steady throttle whenever possible - this maximizes four cylinder mode. (Source: DaimlerChrysler) Chevy Searching For The Longest-Lasting Silverado DETROIT, MI (April 27, 2006) - The Chevrolet Division of General Motors today announced a nationwide search for the most dependable, longest lasting Chevrolet Silverado trucks on the road today.  Chevrolet is looking for personally owned Silverado trucks with 200,000 miles or more to join the "Silverado 200,000 Mile Club" and to help celebrate Silverado's legacy of quality and endurance. Chevrolet hopes to capture stories that show the integral role these trucks have played in American life - from our farms to our factories, from our countryside to our cities.  Ed Peper, Chevrolet general manager said, "Chevy Silverado owners have a strong bond with their trucks and are among the most loyal in the industry. We know they have stories to share about how a Silverado helped save the family farm, served as an impromptu delivery room or in some other way acted as a trusted partner. We know our customers love their trucks and we want to hear their stories."  Helping with this quest are husband/wife journalists from the Trans-Americas Journey, Karen Catchpole and Eric Mohl. They are heading out for a year-long drive in their 2006 Chevy Silverado to reconnect with America. As they chronicle their adventures, they will also be searching the country to find the longest-lasting Chevy Silverados and their owners. During their trip, they will include a travel journal and extensive photo gallery on their Web site www.trans-americas.com (Source: GM) North American HVAC Aftermarket Battles Inexpensive Offshore Products PALO ALTO, CA (April 24, 2006) - Growth in the volume of low-priced imported components has resulted in declining revenues for North American heating, ventilation, and air-conditioning (HVAC) component aftermarket manufacturers. According to Frost & Sullivan's (F&S) latest research, manufacturer-level revenues fell markedly in recent years. In 2005, revenues totaled approximately $920.3 million, down 18.6 percent from approximately $1.13 billion in 2002. In North America during 2005, manufacturers in Southeast Asia - China in particular - accounted for 30.5 percent of revenues and 51.7 percent of units sold in the replacement market. The spread between Southeast Asian unit shipments and revenues compared to domestic manufactured products reflects the price difference between offshore and domestic suppliers. Components included in the data are compressors, condensers, heater cores, evaporators, accumulators and receiver-driers, expansion valves and radiators.
(Graphic: Frost & Sullivan) The outsourcing of production to low-cost offshore centers has accelerated in recent years, with a majority of condensers, evaporators, accumulators and receiver-dryers, and radiators manufactured overseas in 2005. Only the heater core line, which costs little to produce, has attracted little foreign competition. Price differences vary by HVAC product. For example, offshore compressors may be 15 or 20 percent lower in cost, while offshore receiver-driers may cost less than half as much as a domestic unit. One of the key findings in the F&S research concerns the growth within the distribution channel of leading parts store chains. Declining prices from offshore HVAC parts have enabled them to be competitive with wholesalers and jobbers, selling to service outlets and garages. In addition, F&S says that a common and effective practice among the parts store chains is to promote system renewal rather than component replacement. Those who purchase the entire system are extended through the full manufacturer's warranty; those who buy single parts are provided a warranty that may last no longer than 90 days. As a result, retailers accounted for 27.9 percent of 2005 revenues, compared to approximately 13.0 percent in 2002. (Source: Frost & Sullivan) Bosch: Safety Is ESCential  FARMINGTON HILLS, MI (April 24, 2006) - Robert Bosch Corp. today announced the launch of a new Web site, www.bosch-escential.com, designed to educate the public on the safety benefits of electronic stability control (ESC), first introduced by the company in 1995.  ESC functions instantaneously and independently of the driver's action. The system maintains continuous analysis of the driving conditions to determine the driver's intended course versus the vehicle's actual movement. This technology intervenes when needed, keeping drivers on the road and reducing rollover. Bosch said it is continuing its commitment to ESC. The ESCential Web site consists of basic and technical information about ESC as well as games, animations and studies that discuss the technology's effectiveness. Visitors to the site can access videos, animations and interactive graphics that discuss safety study and product information aimed at providing insight into how the technology works. "It's not sufficient to just talk about how a technology works. Sometimes it's necessary to provide a way for people to interact with and experience a safety system like ESC," said Rich Golitko, marketing director, electronic stability control, Robert Bosch Corp. "Our ESCential Web site will provide the information needed to understand the system, serve as an educational resource and allow users to have fun with this revolutionary safety technology." (Source: Robert Bosch Corp.) Security, Multimedia and Managing Complexity To Drive Telematics PALO ALTO, CA (April 24, 2006) - In an interview with Frost & Sullivan (F&S), QNX Software Systems' Automotive Business Manager Andrew Poliak shared a number of insights as to the future role software will have in the rise of telematics in automotive applications.  F&S had recently presented its 2006 Automotive Software Industry Innovation & Advancement of the Year Award to QNX, a unit of Harman International, for its QNX Neutrino Real Time Operating System. The software powers infotainment, navigation and Bluetooth-based telematics in vehicles in North America. QNX competes directly with Microsoft's operating system. Poliak differentiated his company's approach by explaining, "Our business model has always been relentlessly focused on developing close relationships with automakers and Tier 1 suppliers and on providing products that complement their research and development philosophies." He stressed that QNX does not compete against the Tier 1 suppliers. When asked by F&S what the dominant automotive applications would be in the future, Poliak responded that they would include current applications such as vehicle telematics, infotainment and navigation systems, as well as emerging applications in critical engine control, under-hood systems and the integration of aftermarket electronic devices. He identified three trends that would drive growth opportunities within these applications. Security: "Going forward, virtually all in-cab systems will connect to the outside world, whether to download new applications or to interact with mobile appliances. The problem is, how do you safeguard these systems from hackers, malware, and network-based exploits?" said Poliak. One solution is via "adaptive partitioning" that foils malicious attacks and guarantees the performance of critical system functions.  Multimedia: Currently, infotainment systems have to support a myriad of competing media standards and digital rights management (DRM) technologies throughout their lifetimes. To keep pace with customer demands, Poliak sees next generation multimedia frameworks that empower infotainment systems to dynamically upgrade in the field. Being capable of offering early support for WiFi, Bluetooth, Ultra-Wideband and other emerging wireless technologies is another theme that multimedia products will have to address. The ever-increasing complexity in vehicles: "As in-cab systems add audio, video, DRM, networking, Java, wireless and other technologies, CPU demands will increase to the point where it will be impossible for a single processor to stay within the temperature, electromagnetic interference, and power-disbursement limitations of the automobile," Poliak explained. "The CPU will simply have to run too fast and too hot." As a result, Poliak say there will be growth in multicore processors with operating systems that can deliver the required boost in performance, while satisfying the demanding requirements for durability in automotive applications.  (Source: Harmon International, Frost & Sullivan) Man Faces Nine-Month Jail Sentence For Pirating Software POWAY, C-A (April 7, 2006) - Authorities in Las Vegas, NV, have sentenced a man to nine months in jail for possessing and selling stolen Mitchell 1 software, thanks to the help of Mitchell 1 sales representative John Fowkes. Fowkes was in a friend's shop the day the impostor posing as a Mitchell 1 sales representative approached, offering to sell the "pirated" software for $150. Not realizing Fowkes was an actual Mitchell 1 sales representative, the man agreed to meet Fowkes the next day to install the stolen software. With the help of a detective in the electronic crimes division of the Las Vegas police department, the man was caught in the act and arrested for possessing and selling stolen software.  "We're lucky that John was in the right place at the right time to help catch this criminal," said Dan Williams, senior director of sales operations for Mitchell 1. "Unfortunately, this is a prevalent problem in our industry, and while this is one more criminal off the street, there are others just like him still out there. In a continual effort to stop the fraudulent use of our products, we ask that shops be aware of this scheme and report any suspicious activities to the proper authorities."  (Source: Mitchell 1)

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