NEWS BRIEFS FOR THE WEEK OF AUG. 17, 2006
NEWS BRIEFS FOR THE WEEK OF AUG. 17, 2006"NASCAR Angels" Reality TV Series Premieres Next Month CHARLOTTE, NC (Aug. 8, 2006) - The National Association for Stock Car Auto Racing (NASCAR), in partnership with MagicDust Television, will officially launch the automotive reality television series "NASCAR Angels" this fall. The first episode will air the week of Sept. 18 on local stations nationwide. Former NEXTEL Cup Champion and current broadcaster Rusty Wallace will host the 22-episode, half-hour series, which will set out each week to find deserving Americans in major NASCAR markets and fix their cars. Families will get the chance to go behind the scenes to meet their heroes - top NASCAR drivers and crew chiefs - and get an up-close-and-personal glimpse into the NASCAR experience, while their car is looked after by the "Angels," all professional automotive technicians, supplied by Goodyear Gemini Automotive Repair. Odis Lloyd, NASCAR's managing director of automotive licensing, says the series promotes the industry's image, as well as emphasizes the need for technician recruitment and continued education to consumers about regular vehicle maintenance. To apply as a participant, NASCAR has provided instructions, deadlines and
a downloadable application form on its Web
site. (Source: NASCAR)OEMs Run Trials on New Safety Technology WESTERVILLE, OH (Aug. 6, 2006) - Several automakers and Tier One suppliers are testing a new product, Lifesaver, that mimics highway rumble strips. The technology, although new to the automobile industry, has long been used in theatres, gaming, entertainment and other industries where vibrations can enhance the user experience. Manufactured by Guitammer Co. Inc., the product uses optical readers to detect when a vehicle crosses a white line, triggering Lifesaver transducers to electronically "vibrate" the driver's seat. Guitammer says it expects future versions of Lifesaver to incorporate GPS functionality and radar systems to warn the driver when closing too quickly on a vehicle ahead or being approached too rapidly from behind. (Source: Guitammer Co.
Inc.) Maximize a Car's Resale Value RICHMOND, VA (Aug. 2, 2006) - CarMax Inc., one of the nation's largest resellers of used cars, has issued a list of tips to get the most for your car when it comes time to sell or trade it in. "There are four major factors taken into account when evaluating the worth of a car: mileage, market data, the condition of the vehicle and how well it has been maintained," says Cliff Wood, vice president of purchasing for CarMax. Based on the four value factors, CarMax advises the following: 1. Stick to the vehicle's regular maintenance schedule. Keep all records and documentation of maintenance performed. 2. Try to only put a reasonable amount of mileage per year on your car. Staying between 10,000 and 12,000 miles per year is best. 3. Keep the interior and exterior clean. Don't neglect the carpet or floor mats. 4. Don't smoke in your car. Smoking in a car narrows the market because it is very difficult to remove the smell of smoke. 5. Avoid eating in your car. It may damage the interior by leaving stains or unwanted odors. 6. Have scratches and dents repaired in a timely manner. If left alone, they may lead to rust or other expensive damage. 7. Make major repairs before attempting to sell your vehicle. 8. Avoid customizing your car. It does not add to its value. Adding aftermarket accessories can lower the market value for a car by narrowing its appeal. 9. Don't paint or detail your car with wild colors. Such colors may lower the vehicle value. 10. Drive carefully to avoid lowering your car's market value because of accident damage. (Source: CarMax Inc.) Certified Pre-Owned Vehicles
Gain Popularity ORADELL, NJ (Aug. 1, 2006) - According to a recent study by research and consulting firm TechnoMetrica Market Intelligence, today's consumers are increasingly turning to certified pre-owned vehicles (CPOs) as an option when making a purchase. The major findings of the study include: * One in 12 households has purchased a CPO within the past 12 months, and a significant number (28 percent) have purchased one sometime in the past. * When consumers were asked about the main reasons that affected their decisions to purchase a CPO, 43 percent said they were driven by initial cost, 21 percent indicated operating affordability and 9 percent cited they were looking for a good deal. * The most successful CPO brands, in terms of sales over the past 12 months, include Chevy (18 percent), Ford (18 percent), Dodge (9 percent) and Honda (5 percent). * There is an opportunity for dealerships and repair shops to ride the rising CPO trend, especially by networking with the youth market, which has an interest in CPOs. "CPOs have a natural appeal to consumers who are feeling the pinch of high gasoline prices, high insurance rates for young drivers and rising interest rates on the horizon," says Raghavan Mayur, president of AutoView, TechnoMetrica's automotive division. (Source: TechnoMetrica Market Intelligence) Automakers Increase
Modularization Efforts LONDON (Aug. 1, 2006) - Frost & Sullivan recently reported that front-end modules and systems have experienced a growing importance with automakers. The increase is linked to the enhanced focus on vehicle safety issues and the need to comply with regulatory guidelines. "In view of the benefits of cost savings and enhanced efficiency in manufacturing and assembly processes, vehicle manufacturers expect suppliers to offer more innovative products, functional integration of front-end components and cost-reduction ideas to embrace modularization," says Frost & Sullivan Research Analyst Vigneshwaran Chandran. Chandran adds that automakers are convinced that the tremendous potential of modularization remains unrealized. The value addition from suppliers will lead to flexibility and functional integration in the final assembly; engineering and assembly cost advantages; and a reduction in the number of components and their weight, thereby enhancing module performance and improving overall module quality and price. The modular assembly approach will also enable automakers to increasingly shift program management responsibilities to module suppliers. (Source: Frost & Sullivan) Three Automakers Named in
Top 15 Brand Names NEW YORK, NY (Aug. 9, 2006) - According to a poll conducted by Innovation Metrics (IM) and published in Business Week magazine, only three automakers made it into the Top 15 of the "2006 Top 100 Brand Names" in the world: Toyota (No. 7), Mercedes-Benz (No. 10) and BMW (No. 15).
(Information Source: Business Week) Ford was the only U.S.-based automaker to crack the Top 100, ranked at No. 30. Other automakers included were Honda (No. 19), Volkswagen (No. 56), Audi (No. 74), Hyundai (No. 75), Porsche (No. 80), Nissan (No. 90) and Lexus (No. 92). No other automobile companies or Tier One suppliers made the list. To even qualify for the full list of 100 Top Brands for 2006, IM requires that each brand: * Have a market value greater than $1 billion, with publicly available marketing and financial data on which to base that value. * Be global in nature, deriving more than 20 percent of its earnings outside its home country. * Be recognizable outside of its base of customers. * Stand alone and separate from a parent company. One or more of these criteria eliminated such heavyweights as General Motors, Visa, Wal-Mart and CNN. (Source: Business Week) Visteon Nets Top
Vehicle Multimedia Kudos WESTLAKE VILLAGE, CA (Aug. 7, 2006) - J.D. Powers and Associates (JDP) named Visteon Corp. as the highest-ranked supplier of vehicle multimedia systems. The ranking was reported in JDP's recent 2006 Multimedia Quality and Satisfaction Study, which measures owner experiences with the quality, design satisfaction and features of automotive multimedia systems in new vehicles. "Many of the most common problems owners face with their multimedia systems are design issues, and are not related to the functionality of the system," says Allison LaDuc, senior research manager of automotive product quality at JDP. "However, the way technology is integrated into new-vehicle design is as important to vehicle owners as are defects and malfunctions. It is imperative for suppliers and manufacturers to work together to design systems that are more convenient and user-friendly for their customers." LaDuc says she commends Visteon for setting a benchmark for quality for multimedia suppliers. In particular, she notes that Visteon produces a variety of systems for several different models with few quality problems.(Sources: JDP, Visteon) Automotive Coatings:
More Than Just Cosmetics PALO ALTO, CA (Aug. 7, 2006) - According to Frost & Sullivan (F&S), new "green" technologies are bringing changes to the automotive coatings market. Coatings are no longer just a cosmetic addition. They also increase the lifetime of components and protect them from corrosion. F&S says the automotive coatings field is rapidly developing, especially in nanotechnology coatings, as manufacturers strive to offer automakers high-quality, low-cost and environmentally friendly coatings. As focus increases on discovering new coatings, such as diamond-like carbon coatings that have high-temperature applications, producers and suppliers are keen to exploit the opportunities provided by the automotive market. "The automotive coatings industry is mainly driven by the demand for [environmentally] friendly and cost-efficient technologies that will improve fuel efficiency and cause less pollution," notes Frost & Sullivan Research Analyst A. Sumithra. That said, the automotive industry is very conservative, and technologies used by most manufacturers take significant time to commercialize, Sumithra says. Even a remarkable technology takes time to find acceptance because the supply chain is often slow to adopt it, citing economic uncertainties. "It is not possible to develop a single coating technology, as different coatings cater to different automotive applications. For instance, coatings that are applied for piston rings cannot be applied for exterior body applications," explains Sumithra. "Recent economic conditions have made coatings suppliers and auto manufacturers push each other to deliver the best product to the consumer at the lowest possible price. "(Source: F&S) July Hybrid Sales Set U.S. Record LOS ANGELES (Aug. 7, 2006) - The Green Car Congress (GCC) has reported that for the first time ever in the United States, monthly sales of hybrid vehicles topped 25,000 units in July. U.S. Hybrid Sales 2004-2006
Gain Popularity ORADELL, NJ (Aug. 1, 2006) - According to a recent study by research and consulting firm TechnoMetrica Market Intelligence, today's consumers are increasingly turning to certified pre-owned vehicles (CPOs) as an option when making a purchase. The major findings of the study include: * One in 12 households has purchased a CPO within the past 12 months, and a significant number (28 percent) have purchased one sometime in the past. * When consumers were asked about the main reasons that affected their decisions to purchase a CPO, 43 percent said they were driven by initial cost, 21 percent indicated operating affordability and 9 percent cited they were looking for a good deal. * The most successful CPO brands, in terms of sales over the past 12 months, include Chevy (18 percent), Ford (18 percent), Dodge (9 percent) and Honda (5 percent). * There is an opportunity for dealerships and repair shops to ride the rising CPO trend, especially by networking with the youth market, which has an interest in CPOs. "CPOs have a natural appeal to consumers who are feeling the pinch of high gasoline prices, high insurance rates for young drivers and rising interest rates on the horizon," says Raghavan Mayur, president of AutoView, TechnoMetrica's automotive division. (Source: TechnoMetrica Market Intelligence) Automakers Increase
Modularization Efforts LONDON (Aug. 1, 2006) - Frost & Sullivan recently reported that front-end modules and systems have experienced a growing importance with automakers. The increase is linked to the enhanced focus on vehicle safety issues and the need to comply with regulatory guidelines. "In view of the benefits of cost savings and enhanced efficiency in manufacturing and assembly processes, vehicle manufacturers expect suppliers to offer more innovative products, functional integration of front-end components and cost-reduction ideas to embrace modularization," says Frost & Sullivan Research Analyst Vigneshwaran Chandran. Chandran adds that automakers are convinced that the tremendous potential of modularization remains unrealized. The value addition from suppliers will lead to flexibility and functional integration in the final assembly; engineering and assembly cost advantages; and a reduction in the number of components and their weight, thereby enhancing module performance and improving overall module quality and price. The modular assembly approach will also enable automakers to increasingly shift program management responsibilities to module suppliers. (Source: Frost & Sullivan) Three Automakers Named in
Top 15 Brand Names NEW YORK, NY (Aug. 9, 2006) - According to a poll conducted by Innovation Metrics (IM) and published in Business Week magazine, only three automakers made it into the Top 15 of the "2006 Top 100 Brand Names" in the world: Toyota (No. 7), Mercedes-Benz (No. 10) and BMW (No. 15).
Of note, Toyota is poised to break into the Top 6-ranked brand names, which have remained unchanged in more than six years. BMW enters the Top 15 for the first time this year.
Top 15 Brand NamesBrand Name20062005200420032002Coca-Cola11111Microsoft22222IBM33333GE44444Intel55555Nokia66666Toyota7991112Disney87677McDonald's98788Mercedes-Benz1011111010Citigroup111213NRNRMarlboro12101099Hewlett-Packard1313121214American Express1414141515BMW1516171920Note: NR = Not Ranked(Information Source: Business Week) Ford was the only U.S.-based automaker to crack the Top 100, ranked at No. 30. Other automakers included were Honda (No. 19), Volkswagen (No. 56), Audi (No. 74), Hyundai (No. 75), Porsche (No. 80), Nissan (No. 90) and Lexus (No. 92). No other automobile companies or Tier One suppliers made the list. To even qualify for the full list of 100 Top Brands for 2006, IM requires that each brand: * Have a market value greater than $1 billion, with publicly available marketing and financial data on which to base that value. * Be global in nature, deriving more than 20 percent of its earnings outside its home country. * Be recognizable outside of its base of customers. * Stand alone and separate from a parent company. One or more of these criteria eliminated such heavyweights as General Motors, Visa, Wal-Mart and CNN. (Source: Business Week) Visteon Nets Top
Vehicle Multimedia Kudos WESTLAKE VILLAGE, CA (Aug. 7, 2006) - J.D. Powers and Associates (JDP) named Visteon Corp. as the highest-ranked supplier of vehicle multimedia systems. The ranking was reported in JDP's recent 2006 Multimedia Quality and Satisfaction Study, which measures owner experiences with the quality, design satisfaction and features of automotive multimedia systems in new vehicles. "Many of the most common problems owners face with their multimedia systems are design issues, and are not related to the functionality of the system," says Allison LaDuc, senior research manager of automotive product quality at JDP. "However, the way technology is integrated into new-vehicle design is as important to vehicle owners as are defects and malfunctions. It is imperative for suppliers and manufacturers to work together to design systems that are more convenient and user-friendly for their customers." LaDuc says she commends Visteon for setting a benchmark for quality for multimedia suppliers. In particular, she notes that Visteon produces a variety of systems for several different models with few quality problems.(Sources: JDP, Visteon) Automotive Coatings:
More Than Just Cosmetics PALO ALTO, CA (Aug. 7, 2006) - According to Frost & Sullivan (F&S), new "green" technologies are bringing changes to the automotive coatings market. Coatings are no longer just a cosmetic addition. They also increase the lifetime of components and protect them from corrosion. F&S says the automotive coatings field is rapidly developing, especially in nanotechnology coatings, as manufacturers strive to offer automakers high-quality, low-cost and environmentally friendly coatings. As focus increases on discovering new coatings, such as diamond-like carbon coatings that have high-temperature applications, producers and suppliers are keen to exploit the opportunities provided by the automotive market. "The automotive coatings industry is mainly driven by the demand for [environmentally] friendly and cost-efficient technologies that will improve fuel efficiency and cause less pollution," notes Frost & Sullivan Research Analyst A. Sumithra. That said, the automotive industry is very conservative, and technologies used by most manufacturers take significant time to commercialize, Sumithra says. Even a remarkable technology takes time to find acceptance because the supply chain is often slow to adopt it, citing economic uncertainties. "It is not possible to develop a single coating technology, as different coatings cater to different automotive applications. For instance, coatings that are applied for piston rings cannot be applied for exterior body applications," explains Sumithra. "Recent economic conditions have made coatings suppliers and auto manufacturers push each other to deliver the best product to the consumer at the lowest possible price. "(Source: F&S) July Hybrid Sales Set U.S. Record LOS ANGELES (Aug. 7, 2006) - The Green Car Congress (GCC) has reported that for the first time ever in the United States, monthly sales of hybrid vehicles topped 25,000 units in July. U.S. Hybrid Sales 2004-2006
(Table source: Green Car Congress) Led by the Toyota Prius (11,114 units) and Camry (5,203) models, a total of 25,652 hybrids were sold - a 32 percent increase over July 2005. Contributing factors, according to the GCC, included a 29 percent drop in light truck sales, higher fuel prices and a lack of heavy discounting incentives from domestic automakers compared to the summer of 2005. (Source: GCC) Isuzu Launches Online Diesel Engine Emissions Information CERRITOS, CA (August 12, 2006) - To keep consumers up-to-date with changes resulting from the 2007 emissions standards, Isuzu Commercial Truck of America Inc. launched a new Web site and enhanced its current commercial vehicle site. Isuzudieselengine.com provides visitors with detailed information exclusive to the Isuzu diesel engines, the 6H (7.8L) and the 4H (5.2L) - including features and benefits, specifications, horsepower and torque ratings, and warranty information to Isuzu outfitters and end users. It also contains a competitive comparison section to examine how Isuzu ranks alongside the competition. Isuzucv.com now includes features, specifications, horsepower and torque ratings and warranty information for both the Isuzu diesel and Vortec gas engine options. The site also describes the 2007 emissions standards and how Isuzu is prepared to meet them, as well as meet the needs of the medium-duty vehicle consumer. Both sites include downloadable emissions brochures for both Isuzu and General Motors medium-duty vehicles. All diesel engines produced starting Jan. 1, 2007, must comply with the new regulations that require the reduction of oxides of nitrogen (NOx), hydrocarbons (HC) and particulate matter (PM) by 90 percent compared to the current 2004 emissions standards. (Source: Isuzu)UTI, Cummins Rocky Mountain Ink Training Contract PHOENIX (Aug. 7, 2006) - Universal Technical Institute Inc. (UTI) recently signed a training contract with Cummins Rocky Mountain LLC, which is the exclusive distributor of Cummins Inc. and Onan Corp. products for the Rocky Mountain and Southwest regions, covering nine states. The 15-week, student-paid graduate technician training program is devoted to Cummins diesel engine diagnosis and repair. Classes are scheduled to begin during the second quarter of fiscal 2007. The program will be offered at UTI's Avondale, AZ, campus. As part of the contract, Cummins will supply specialized equipment and tools to UTI, as well as the curriculum that will support its unique training needs. Students who successfully complete the training will earn the designation of "Cummins-qualified" technicians. (Source: UTI) Avoid Mistakes When Selling
Your Business SCHAUMBURG, IL (Aug. 11, 2006) - John Greco, a broker of businesses for Sunbelt Business Advisors, shares some common mistakes people can make when trying to sell their businesses, including: * Providing seller financing. Many lenders are available to buyers who will finance the purchase of privately owned businesses. Your objective should be to "cash out." If you do agree to provide any financing, it should be a very small percentage relative to the final sale price. * Lack of confidentiality. Keep the entire process completely confidential, or you create the risk of losing employees, customers, vendors, etc. This can negatively impact both value and marketability. * Allowing the buyer to control the process. Decide how "interested" a buyer is in your business before releasing too much information, at the wrong time, to the wrong person. * Only having one buyer involved in the process ("One buyer is no buyer."). Simply put, this means that with three or four buyers competing to purchase your business, you are more likely to end up with the best possible transaction regarding price, tax structuring, cashing out and reducing overall risk. * Not understanding tax issues. The money left after taxes have been paid in the sale of a corporation can vary between 45 percent and 85 percent of the final sale price, based solely upon tax structuring issues. You should understand the process and your post-sale tax burden before you sell your business. * Neglecting the business during the selling process. Once you decide to sell your business, there is an inclination to slow down or spend time on the selling process. This can cause earnings to suffer and expose weaknesses, which can lower the business' value and marketability. * Selling without professional assistance. In most cases, buyers are far more educated in the process of buying than sellers are in selling. Hiring an experienced professional with a vested interest can increase the likelihood of a successful transaction for the best price and terms with the lowest amount of risk. * Paying upfront fees. If you elect to employ professional assistance, do not pay brokers or advisors any front-end fees other than those necessary to close the transaction. Capable professionals earn adequate commissions upon completing a successful transaction. * Lack of planning or waiting too long to sell. Waiting too long, or not planning in advance, can cause many owners to miss their window of opportunity. It takes an average of one year to sell a small, privately held business. Therefore, long-term planning is key to any successful business sale. (Source: Sunbelt Business Advisors) BP Shutdown Reduces Oil Supply 20060816_BP Map_Courtesy of BP.jpg ANCHORAGE, AK (Aug. 8, 2006) - British Petroleum (BP) began a phased shutdown of its Prudhoe Bay, AK, oil field following the discovery of unexpectedly severe corrosion inside a Prudhoe Bay oil transit line to the Trans-Alaskan Pipeline. The corrosion resulted in a small spill estimated at less than five barrels. BP operates 22 miles of oil transit pipeline at Prudhoe Bay. A "smart" inspection - where a mechanical inspection device is run through pipeline - has been completed over about 40 percent of that length. Analysis of the data revealed 16 anomalies in 12 locations in an oil transit line on the eastern side of the oil field. The shutdown will reduce Alaska North Slope oil production by an estimated 400,000 barrels per day - which represents 2.5 percent of total U.S. production. "We deeply regret that it has been necessary to take this drastic action of an orderly and planned shutdown of the Prudhoe Bay oil field," says Bob Malone, president of BP America Inc. "We have now taken the decision to replace the main oil transit lines at Prudhoe Bay. This will be accomplished as part of our overall plan for ensuring the integrity of the field." (Source: BP) Lang: Vehicle Per Service Bay
Count Rising WYCKOFF, NJ (Aug. 8, 2006) - As the car and light truck population on U.S. roads increased more than 39 million vehicles between 1996 and 2006, there are 44,000 fewer service bays to repair them. The drop in service bays could manifest itself as a crisis - with implications for the aftermarket, vehicle fuel efficiency and even highway safety, says Jim Lang, president of Lang Marketing Resources Inc., in his recent "Aftermarket Annual 2006/2007" report. With the number of cars and light trucks on U.S. roads dramatically increasing over the past 10 years, one would expect a proportionate expansion in service bay population to accommodate this expanding market. However, the opposite is occurring. While dollar volume of products installed by aftermarket mechanics rocketed more than $18 billion during this period, the car and light truck service bay count plummeted. In 1996, there were fewer than 155 light vehicles per service bay in the United States. However, with nearly one in 20 service bays closing during the last 10 years, coupled with a 22 percent unit gain in light vehicles on U.S. roads, the average number of cars and light trucks per service bay grew rapidly. In 2000, there were 166 vehicles per service bay, nearly 180 vehicles per service bay during 2003, and at mid-year 2006, there are more than 190 vehicles per service bay. Lang forecasts that by 2008, the number will climb to 200 vehicles per service bay, exacerbating the problem. "The growing service bay crisis has significant consequences for vehicle fuel efficiency, highlighted by skyrocketing gas prices, as well as vehicle safety," says Lang. He says that the key to stemming a crisis is to improve service bay productivity, which would include better mechanic training and enhanced tools and equipment, as well as sophisticated diagnostic techniques and shop management software. "How the aftermarket responds to the growing service bay crisis will play a critical role in determining the future of the light vehicle service market in the [United States]," says Lang. (Source: Lang Marketing Resources Inc.)
Your Business SCHAUMBURG, IL (Aug. 11, 2006) - John Greco, a broker of businesses for Sunbelt Business Advisors, shares some common mistakes people can make when trying to sell their businesses, including: * Providing seller financing. Many lenders are available to buyers who will finance the purchase of privately owned businesses. Your objective should be to "cash out." If you do agree to provide any financing, it should be a very small percentage relative to the final sale price. * Lack of confidentiality. Keep the entire process completely confidential, or you create the risk of losing employees, customers, vendors, etc. This can negatively impact both value and marketability. * Allowing the buyer to control the process. Decide how "interested" a buyer is in your business before releasing too much information, at the wrong time, to the wrong person. * Only having one buyer involved in the process ("One buyer is no buyer."). Simply put, this means that with three or four buyers competing to purchase your business, you are more likely to end up with the best possible transaction regarding price, tax structuring, cashing out and reducing overall risk. * Not understanding tax issues. The money left after taxes have been paid in the sale of a corporation can vary between 45 percent and 85 percent of the final sale price, based solely upon tax structuring issues. You should understand the process and your post-sale tax burden before you sell your business. * Neglecting the business during the selling process. Once you decide to sell your business, there is an inclination to slow down or spend time on the selling process. This can cause earnings to suffer and expose weaknesses, which can lower the business' value and marketability. * Selling without professional assistance. In most cases, buyers are far more educated in the process of buying than sellers are in selling. Hiring an experienced professional with a vested interest can increase the likelihood of a successful transaction for the best price and terms with the lowest amount of risk. * Paying upfront fees. If you elect to employ professional assistance, do not pay brokers or advisors any front-end fees other than those necessary to close the transaction. Capable professionals earn adequate commissions upon completing a successful transaction. * Lack of planning or waiting too long to sell. Waiting too long, or not planning in advance, can cause many owners to miss their window of opportunity. It takes an average of one year to sell a small, privately held business. Therefore, long-term planning is key to any successful business sale. (Source: Sunbelt Business Advisors) BP Shutdown Reduces Oil Supply 20060816_BP Map_Courtesy of BP.jpg ANCHORAGE, AK (Aug. 8, 2006) - British Petroleum (BP) began a phased shutdown of its Prudhoe Bay, AK, oil field following the discovery of unexpectedly severe corrosion inside a Prudhoe Bay oil transit line to the Trans-Alaskan Pipeline. The corrosion resulted in a small spill estimated at less than five barrels. BP operates 22 miles of oil transit pipeline at Prudhoe Bay. A "smart" inspection - where a mechanical inspection device is run through pipeline - has been completed over about 40 percent of that length. Analysis of the data revealed 16 anomalies in 12 locations in an oil transit line on the eastern side of the oil field. The shutdown will reduce Alaska North Slope oil production by an estimated 400,000 barrels per day - which represents 2.5 percent of total U.S. production. "We deeply regret that it has been necessary to take this drastic action of an orderly and planned shutdown of the Prudhoe Bay oil field," says Bob Malone, president of BP America Inc. "We have now taken the decision to replace the main oil transit lines at Prudhoe Bay. This will be accomplished as part of our overall plan for ensuring the integrity of the field." (Source: BP) Lang: Vehicle Per Service Bay
Count Rising WYCKOFF, NJ (Aug. 8, 2006) - As the car and light truck population on U.S. roads increased more than 39 million vehicles between 1996 and 2006, there are 44,000 fewer service bays to repair them. The drop in service bays could manifest itself as a crisis - with implications for the aftermarket, vehicle fuel efficiency and even highway safety, says Jim Lang, president of Lang Marketing Resources Inc., in his recent "Aftermarket Annual 2006/2007" report. With the number of cars and light trucks on U.S. roads dramatically increasing over the past 10 years, one would expect a proportionate expansion in service bay population to accommodate this expanding market. However, the opposite is occurring. While dollar volume of products installed by aftermarket mechanics rocketed more than $18 billion during this period, the car and light truck service bay count plummeted. In 1996, there were fewer than 155 light vehicles per service bay in the United States. However, with nearly one in 20 service bays closing during the last 10 years, coupled with a 22 percent unit gain in light vehicles on U.S. roads, the average number of cars and light trucks per service bay grew rapidly. In 2000, there were 166 vehicles per service bay, nearly 180 vehicles per service bay during 2003, and at mid-year 2006, there are more than 190 vehicles per service bay. Lang forecasts that by 2008, the number will climb to 200 vehicles per service bay, exacerbating the problem. "The growing service bay crisis has significant consequences for vehicle fuel efficiency, highlighted by skyrocketing gas prices, as well as vehicle safety," says Lang. He says that the key to stemming a crisis is to improve service bay productivity, which would include better mechanic training and enhanced tools and equipment, as well as sophisticated diagnostic techniques and shop management software. "How the aftermarket responds to the growing service bay crisis will play a critical role in determining the future of the light vehicle service market in the [United States]," says Lang. (Source: Lang Marketing Resources Inc.)