NEWS BRIEFS FOR THE WEEK OF AUGUST 10, 2006

NEWS BRIEFS FOR THE WEEK OF
AUGUST 10, 2006Estate Tax Bill Blocked
Until September WASHINGTON (Aug. 3, 2006) - A motion to invoke cloture - ending further debate - and pass the Estate Tax and Extension of Tax Relief Act of 2006 (H.R. 5970) (S.5079) was defeated 56 - 42, ending hopes for a revision of estate taxation before Congress began its August recess. Under the cloture rule, the Senate may limit debate, including a blocking filibuster of a pending matter to 30 additional hours, but only if there are 60 votes. Being four votes short of cloture prevented a vote to pass the legislation from occurring the last day before the break. Commonly known as the "Death Tax," the proposed bill would have permanently reduced estate taxes by: * Increasing personal exemptions at death to $5 million for an individual's estate and $10 million for a couple. * Reducing the effective tax rate imposed on the net value of an estate being passed onto heirs. Estates valued at up to $25 million would be taxed at capital gains tax rates, which are currently 15 percent and scheduled to rise to 20 percent in 2011. Tax rates on estates above $25 million would fall to 30 percent by 2015. The defeat means that the proponents of the measure will have to reintroduce legislation after Congress resumes in September. Senate Majority Leader Bill Frist (R-TN), a key backer, switched his vote in a procedural maneuver to preserve his right to debate the bill at that time. He urged senators who voted against it to "rethink long and hard" before lawmakers reconvene.(Source: U.S. Senate)PEAK Offers Sweepstakes to Meet Danica, Win $300K

(Photo: Old World Industries)CHICAGO, IL (Aug. 9, 2006) - Old World Industries Inc.'s PEAK Antifreeze and Mr. Clean Windshield Wash brands have announced details of the "300 For The 300 Sweepstakes." PEAK is a sponsor of the Rahal Letterman teams in the IndyCar Series, including Danica Patrick's car. For the Indy race weekend at Chicagoland Speedway on Sept. 9 and 10, one lucky winner will be flown to Chicago for the weekend, with paid airfare, hotel, meals and limousine. The winner will meet Danica Patrick and other Rahal Letterman drivers, then watch the race from an executive suite. Best of all, if Patrick wins the race, the sweepstakes winner will be awarded $300,000. "I'm thrilled to be returning home for the Chicago race, and to be part of the PEAK 300 for 300 Sweepstakes. It offers one of my fans the chance to feel like [he or she is part] of the race, and adds a fun and unique element to the racing experience," says Patrick. For rules, registration and additional information, visit www.300forthe300.com. Entries will be accepted up 11:59 p.m. Central Daylight Time on Aug. 29, 2006. No purchase is required.(Source: Old World Industries Inc.)Innovation Enables Smaller, More Powerful Chips For Automotive Applications Des Moines, IA (July 26, 2006) - A team of scientists for the University of Iowa (UI), the University of Illinois and Princeton University has laid the groundwork for an advanced semiconductor computer chip that may have applications in the electronics, automotive and other industries. The team uses "spintronics" technology to establish and image the magnetic interactions between two magnetic atoms less than one nanometer apart (one billionth of a meter), which were embedded in a semiconductor chip. "With spintronics, data manipulation and long-term storage can be conducted in one computer chip, rather than separately in a CPU and a hard drive as currently practiced," explains Michael Flatt?, professor in the UI College of Liberal Arts and Sciences Department of Physics and Astronomy. "The data manipulation could also be done [more quickly] and requires less power. Such a computer would be much smaller in size and use less energy." Flatt? said this may lead to better magnetic semiconductor materials and related applications. For the automotive sector - where small, fast, high capacity and energy use matter - the innovation could drive applications such as telematics, remote diagnostics, control systems and infotainment.(Source: University of Iowa)DENSO Unveils 2010 Corporate Plan TOKYO, JAPAN (July 27, 2006) - In late July, DENSO Corp. announced its mid-term plan for 2006 to 2010. The global supplier's plan is consistent with its vision of an advanced automotive society that enables people, cars and the environment to coexist in harmony. "We want to help achieve such a society by providing innovative products worldwide while meeting local needs," says DENSO's President and CEO Koichi Fukaya. DENSO's goals include:* Implement advanced technologies and products that meet the two main market trends of higher performance and lower cost. * Develop new world-first technologies and products that add value to components and systems for both customers and society at large. * Leverage the company's automotive technologies and expertise to establish non-automotive and aftermarket businesses as one of the main sectors for growth. * Strengthen manufacturing capabilities and continuously improve product quality levels, aiming for zero defects. * Promote a dynamic working environment for employees to perform relentless improvements and assure top standards in quality, cost and delivery in each region worldwide. * Establish the most efficient global production and supply system by considering customer needs, product characteristics and regional situations. * Heighten dedication worldwide to corporate social responsibility from environmental and social aspects. "True globalization is more than just global business expansion," says Fukaya. "It also means building trust with customers worldwide, building and strengthening local operations and developing strong local management teams. We believe that our new mid-term plan will lead us to achieve these goals, helping us sustain long-term growth." (Source: DENSO Corp.)Coming To A Windshield Near You

HILDESHEIM, GERMANY (Aug. 6, 2006) - As the range of information and entertainment available in vehicles continues to expand, Blaupunkt GmbH, a Robert Bosch GmbH subsidiary, is developing heads-up display (HUD) technology to help drivers to manage this surge without being overloaded.

Heads-up displays project information for the driver onto the windshield, directly into a driver's normal range of vision.
(Photo: Blaupunkt GmbH) "It is becoming more important all the time to relieve the driver of undue stress and strain by implementing simple operating and display systems," says Dirk Hoheisel, Blaupunkt's executive vice president of engineering. HUDs project driver information onto the vehicle windshield, directly into the driver's primary range of vision, thus enabling the driver to become aware of pertinent information quickly and easily. For example, a night-vision image can indicate the exact location of an obstacle that the driver is not yet able to see and then issue the corresponding warning. According to Hoheisel, Blaupunkt is currently developing the so-called "box-based" systems, which already meet automotive manufacturers' stringent demands in terms of image size and resolution, as well as HUD technologies based on the "flying-spot" technology that Bosch is now developing, which overlays the virtual HUD image on the actual visible surroundings. Hoheisel says Blaupunkt expects that as popularity for this technology grows, traffic safety will be improved.(Source: Blaupunkt)Modine Introduces CO2 HVAC For Heavy-Duty Trucks RACINE, WI (July 17, 2006) - Modine Manufacturing Co. has unveiled a new fuel cell product that the company says will reduce emissions, help the environment and cut costs for over-the-road truck drivers. This advanced idle reduction system (idle-off) incorporates high efficiency and zero emissions fuel cells, and uses carbon dioxide (CO2) as the refrigerant. The system can be used for both cooling and heating the sleeper cabin in a heavy-duty truck, creating multiple benefits for truck drivers and fleets. "Our engineers are working on cutting-edge technologies in various areas, including fuel cells, CO2 and HVAC," says Dr. Jonathan Wattelet, Modine's director of research and development. "This product gives us an opportunity to combine these technologies in one package. It's something that no one has done before." There are more than 500,000 heavy-duty diesel trucks on the road in the United States today. Long-haul truck drivers are required to have an off-duty period of 10 hours after driving 14 hours. In the past, if the driver wanted to heat or cool the sleeping compartment during that time, the truck had to be idled to provide a comfortable environment within the sleeper cab. The U.S. Department of Energy estimates that more than 1 billion gallons of fuel are currently consumed each year while trucks idle in these conditions. Dr. Tony De Vuono, Modine's chief technology officer, says 22 states have pending legislation that limits idling in some form. "Our new technology offers a solution, helps to eliminate those emissions, and reduces energy consumption, while still providing a comfortable air conditioned or heated sleeper cab for truck drivers," he adds. Modine's CO2 air-conditioning and heating system provides an environmentally friendly refrigerant with zero Ozone Depletion Potential (ODP) and a zero net Global Warming Potential (GWP), as defined by the U.S. Environmental Protection Agency. The unique properties of CO2 make it advantageous for both cooling and heating a vehicle, says Modine. Using a CO2 heat pump to heat the cabin in cold weather conditions is more energy-efficient than using other conventional heating products, the company adds. Modine sourced the fuel cell power pack from General Hydrogen Corp. The fuel cell power pack uses hydrogen gas as the fuel, with water as the only byproduct. It was specifically designed for a truck auxiliary power unit application to produce electrical energy continuously for more than 10 hours. (Source: Modine)CUVs Heat Up the
Automotive Segment DIAMOND BAR, CA (June 28, 2006) - The Specialty Equipment Market Association (SEMA) recently reported that crossover utility vehicles (CUVs) will leapfrog four segment groups to become the highest-volume sector in North America in terms of production by 2009, citing data from Ward's AutoForecasts. It is currently in the fifth position.

The forecast says that by 2009, annual CUV output will equal nearly 21 percent of light-vehicle production, or about one of every five vehicles assembled. The projection is a signal for the aftermarket, suggesting a shift in inventory toward CUV accessories and products, and a corresponding decrease in segments showing declines in consumer demand.(Sources: SEMA, Ward's AutoForecasts)EPA, Customs Seize Illegal Imported Engines WASHINGTON (July 14, 2006) - The U.S. Environmental Protection Agency (EPA) and the U.S. Customs and Border Protection have seized and prevented the import of more than 11,000 pieces of illegal gasoline- and diesel-powered vehicles and equipment in the past nine months. In addition, EPA has assessed more than $798,000 in civil penalties against the importers, in addition to U.S. Customs penalties and storage fees. EPA says that more than half of the air pollutants in America come from "mobile sources" of air pollution, such as cars, trucks, buses, motorcycles, construction, agricultural and lawn and garden equipment, marine vessels, outboard motors, jet skis and snowmobiles. Mobile source pollutants include smog-forming volatile organic compounds (VOCs) and nitrogen oxides (NOX), toxic air pollutants such as benzene, and particulate matter or "soot." These pollutants are responsible for asthma and other respiratory illnesses. The federal Clean Air Act (CAA) requires new gasoline and diesel engines sold or distributed in the United States to meet EPA emissions requirements to protect public health and the environment from air pollution. There has been a recent and dramatic increase in imports of gasoline and diesel equipment that do not meet these standards, chiefly from China. EPA's Assistant Administrator of the Office of Enforcement and Compliance Assurance, Granta Y. Nakayama, emphasizes that "The Bush Administration will continue to enforce the Clean Air Act and stop illegal imports. The public's assistance and cooperation, along with EPA's commitment to enforcing these regulations, is essential to preserving and protecting the nation's air quality."(Source: EPA)Are Logistical Considerations Limiting The Benefits Of Globalization? DEARBORN HEIGHTS, MI (Aug.3, 2006) - With more North American OEMs and carmakers starting to source from China, quality issues could become the least of their worries. Leading automotive executives like Dr. Karl May, BMW's vice president of Logistics Planning and Transport Logistics, are predicting that logistics considerations are going to seriously limit the global sourcing of parts. The North American automotive industry is undergoing considerable upheaval at the moment, and Tier Ones and logistics companies are feeling the repercussions. In addition to plant closures, the flow of material into the United States from Asia - China in particular - is increasing, and carmakers and logistical service providers (LSPs) are struggling for capacity at ports, on the roads and the railways. Essentially, can carmakers afford to compete for space with Wal-Mart? "When you increase global sourcing, you end up with increasing traffic, and we simply don't have the infrastructure for that traffic anymore," says Mays. Automotive executives and other delegates will try to find solutions and derive strategies to address these challenges at the upcoming Seventh Automotive Logistics Global Conference, to be held Sept. 13 and 14, 2006, at the Ritz-Carlton Hotel in Dearborn. More details are available at www.automotivelogisticsglobal.com/aml2002.(Source: AutomotiveLogisticsGlobal.com)Using Telematics As Means To Vehicle Safety Leadership DEER PARK, IL (August 6, 2006) - Having recently acquired Motorola's Automotive Electronics Business, Continental AG has formed a new telematics business unit and unveiled the vision and roadmap for the telematics unit to grow globally.

Continental's Telematics systems help to increase active and passive safety performance of vehicles and provide vehicle occupants with conveniences.
(Photo: Continental AG) The new telematics business will enhance the active safety performance of vehicles through higher levels of collision avoidance capabilities, as well as help increase the post-crash safety and emergency assistance services available to vehicle occupants, the company says. Essentially, the telematics strategy consists of four themes: * Research and development activities will focus on how to link telematics connectivity systems with other in-vehicle safety systems, such as airbags, electronic brake and safety systems, sensors, radar/lidar and cameras. The division's advanced technologists also will continue to explore how car-to-car and car-to-infrastructure communication systems could one day help further reduce traffic crashes road congestion and save lives. * Dedicating resources to embedding wireless technologies into cars so vehicle occupants can, in a more convenient manner, operate and control their portable devices using voice recognition technology. Experts will continue tracking consumer lifestyle and wireless technology trends so telematics can help automotive customers manage the lifecycle of wireless technology and consumer electronics inside the vehicle. * Develop next-generation telematics systems that could incorporate third-generation cellular (3G), Bluetooth, Wi-Fi, Digital Video Broadcast-Handheld (DVB-H), mesh networks and Dedicated Short-Range Communications (DSRC) technologies. These technologies open the door to a range of new telematics experiences, such as wirelessly downloading digital music so it can be broadcast through the audio system inside the vehicle or movies to rear-seat entertainment systems. * Collaborate with members of the telematics value chain including cellular operators, telematics service providers, strategic technology partners, governments and other constituencies to explore how it could expand the telematics market in North America by making emergency call systems and services a reality in Europe and Asia. "We will focus on the evolution of safer driving in an ever more mobile world," says Kieran O'Sullivan, senior vice president for Telematics. "We will work hand-in-hand with the automotive industry to help improve vehicle safety and speed the time-to-market of new in-vehicle experiences." (Source: Continental AG)Is Our Love Affair Over? WASHINGTON (Aug. 1, 2006) - Any nation with more passenger vehicles than licensed drivers has a pretty serious love affair with the automobile. But the romance seems to be cooling off a bit for Americans, according to a July 2006 survey conducted by the Pew Research Center.

(Source: Pew Research Center)

The study compared responses this year to those in a Gallup poll in 1991. Surprisingly, Pew Research says the biggest reason the love of the car has soured for U.S. drivers isn't the recent spike in gas prices. Rather, it appears to be the result of a longer-term trend: the growing hassle of traffic congestion.

Other study findings include:
* Sixty-nine percent of American drivers say they like to drive, down from 79 percent in the 1991 Gallup survey. The balance in each case considered driving a chore, attributing congestion, rude behavior of other drivers and commuting as primary concerns.

* Just 23 percent say they consider their car is "something special -- more than just a way to get around" - barely half of the 43 percent who felt this way in 1991.

* Americans are driving twice as many miles today vs. 1991, and spending 60 percent more time today than in 1991 delayed in congested traffic.

* When asked why they like to drive, respondents cited quiet time alone, getting away to see new sights and the feeling of freedom as the top three reasons. Women are more likely than men to cite quiet time as the reason they enjoy driving, while men are more prone to cite seeing new sights.

* People see driving as a chance to take care of many of the other routines and amusements of daily living, including singing, using a handheld phone, eating a meal and applying makeup.

(Source: Pew Research Center) Pew Research says that, for most questions, there were no significant socio-economic differences on these measures across society. The notable exceptions included: * Drivers in the lowest income brackets are more likely than others to describe driving as a chore. *Drivers younger than 50 years old are more likely than older drivers to combine driving with singing, phone calls, eating and cursing at other drivers. * Female drivers are more likely than male drivers to break into song or take care of personal grooming. * Drivers in the northeast are more likely to report cursing at other drivers than are those in other regions. * Forty-one percent of 18- to 29-year-olds say their car has a personality, while just 25 percent of those ages 65 and older agree. The full report can be viewed online at the Pew Research Web site.(Source: Pew Research Center)J.D. Power: Time Is Key To Increasing Service Satisfaction WESTLAKE VILLAGE, CA -When it comes to repairs and maintenance, auto dealerships are doing better at getting the work done right the first time and having the vehicle ready when promised, according to a J.D. Power and Associates 2006 Service Usage and Retention Study released Aug. 3. The study, now in its tenth year, measures customer satisfaction of nearly 12,000 owners of 2001 and 2002 vehicles who visit a dealership service department for maintenance or repair work during the fourth or fifth year of ownership, which typically represents the period after the manufacturer's vehicle warranty expires. Overall customer satisfaction is based on six factors (in order of importance): service initiation, service advisor, service quality, user-friendly service, service delivery and in-service experience. This years results find that 86 percent of owners who took their vehicle to the dealership for a repair indicate that the work was done right the first time, up from 72 percent in 2001. In addition, 87 percent say the dealership had the vehicle ready when promised, up from 82 percent five years ago. "Time is important in every aspect of consumers' lives, and auto service customers, especially younger customers, are very sensitive to time," said Jeff Zupancic, director of automotive retail research at J.D. Power and Associates. "Any dealership process or event that extends the service visit or causes repeat dealer visits significantly erodes satisfaction. Despite the importance of time to customer satisfaction, this has been a difficult challenge for dealerships to overcome." (Source: J.D. Power and Associates)