As crude oil prices soar to new records, the U.S. Department of Energy is predicting the price of a gallon of diesel will average close to $4 per gallon in 2008, and Democrats in the U.S. Senate are proposing measures to address the situation. According to the Associated Press, Senate Democrats Wednesday called for a temporary windfall profits tax on oil companies and cutting out $17 billion in oil industry tax breaks as part of an energy package. The proposal also calls for federal fines for energy price gouging and stopping oil deliveries into the government's emergency reserve. Wednesday, the price of a barrel of oil surged soared to a record 123.53 on the New York Mercantile Exchange. In its May "Short-Term Energy Outlook," the DOE's Energy Information Administration predicted that crude oil prices will average $110 a barrel this year, about $9 per barrel higher than the projections it made just a month earlier. It predicts the average price for diesel will be $3.94, more than a dollar over last year's average and higher than the $3.62 forecast issued last month.
Source:  Truckinginfo.com

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Gary L. Gibson, president of Tri-State Sterling Trucks in Cincinnati, Ohio, began a two-year term as ATD chairman at the organization's recent convention. Improving truck manufacturers' perceptions of ATD will be a high priority for Gibson. "ATD needs to encourage truck manufacturers to leverage ATD-NADA assets through their dealers," said Gibson. "In light of the continuing battle over CAFE, it seems there will be ample opportunity to demonstrate to truck manufacturers the importance of a close and supportive relationship with ATD." In a speech to attendees of the 45th annual ATD Convention & Expo in Dallas, Gibson emphasized the need to recruit qualified dealership employees, especially truck technicians, to protect the industry's long-term viability. "We need to raise the profile of our business in the minds of people who may not know they can find well-paying careers as sales and service professionals in our dealerships," said Gibson. Noting the many challenges currently facing the retail truck industry - from the strained economic environment to the pending legislative and regulatory challenges - Gibson said, "Dealers will have their hands full as they attempt to operate profitably during these difficult times. But ATD, along with NADA, will actively work to represent the interests of dealers." Another initiative that comes to mind is strengthening our ties with manufacturers on lobbying efforts, Gibson said. "Whenever the legislative interests of truck dealers and manufacturers are aligned, truck makers could become more effective by leveraging ATD's respected position on Capitol Hill."
Source:  Truckinginfo.com

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Pledges Steps to Reduce CO2 Emissions
American Trucking Associations and a group of trucking companies Thursday launched a program of initiatives to move the trucking industry toward a more sustainable future, which includes steps to reduce carbon dioxide emissions from heavy trucks. Launched under the banner “Trucks Deliver a Cleaner Tomorrow,” the industry-wide environmental sustainability program identifies a series of initiatives to reduce fuel consumption and CO2 emissions, the group said. ATA President Bill Graves praised the program as a “landmark effort that will join all trucking industry stakeholders to work together on these issues.” ATA has committed itself to a series of measures that can reduce fuel consumption by 86 billion gallons and CO2 emissions by 900 million tons for all vehicles over the next 10 years, Graves said. “Our proposals are practical, reasonable, and doable. They make environmental sense, and they make common sense.” He was joined at the program’s launch in Washington by Margo Oge, director of the Environmental Protection Agency’s Office of Transportation and Air Quality, and the chief executive officers of several prominent trucking companies including FedEx Freight, UPS Inc., Schneider National, Titan Transfer and Con-way Inc.
Source:  Transport Topics

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Sales of medium- and heavy-duty trucks fell 30.8 percent in March from a year earlier, to 28,777 units. Sales of large trucks continued to decline, with Class 7 vehicles taking the biggest hit in sales, dropping 40.5 percent to 4,524 units. Sales of Class 8 trucks tumbled to 10,419 vehicles, down 35.2 percent. Sales of Class 5 and 6 trucks declined by single-digit percentages in March. Class 5s dropped 9.9 percent to 3,618 vehicles, and Class 6 sales fell 6.3 percent to 4,757 units. Class 4 truck sales followed the trend, plummeting 38.1 percent to 5,459 units.
Source:  Automotive News (Subscription required.)

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Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners, Canada and Mexico, was 16.3 percent higher in February 2008 than in February 2007, reaching $69.4 billion, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation. The value of U.S. surface transportation trade with Canada and Mexico rose 6.5 percent in February from January. However, the agency notes that month-to-month changes can be affected by seasonal variations and other factors. The value of U.S. surface transportation trade with Canada and Mexico in February was up 58.3 percent compared to February 2003, and up 89.5 percent compared to February 1998, a period of 10 years. Imports in February were up 104.8 percent compared to February 1998, while exports were up 72.5 percent. U.S.-Canada surface transportation trade totaled $45 billion in February, up 18.1 percent compared to February 2007. The value of imports carried by truck was 7.1 percent higher in February 2008 than February 2007, while the value of exports carried by truck was 10.2 percent higher.
Source:  Truckinginfo.com

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Truck dealership Rush Enterprises said Thursday it has acquired Peterbilt Carolina, which includes a Peterbilt, Hino and Isuzu heavy- and medium-duty truck dealership. Rush also acquired Adams International Trucks Inc., an International heavy- and medium-duty truck and custom chassis dealership. The total purchase price for the acquisitions was about $40 million, Rush said in a statement. Rush said he will integrate the operations into its dealership network immediately, to operate as Rush Truck Center-Charlotte and Rush International Truck Center-Charlotte. Both locations will offer new and used truck sales, parts and service support, as well as financing and insurance.
Source:  Transport Topics

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Volvo Trucks North America will cut 1,100 jobs at its Dublin, Va. plant, a reduction of more than third of the jobs at the plant and significantly more than was previously anticipated, according to The Roanoke Times. Volvo cited a weak truck market, soft economy and increasing fuel prices as reasons for the increased layoffs. Volvo had previously announced it would layoff 650 at the plant at the end of January. The layoffs were postponed due to a six-week strike at the plant, the Times reported. Volvo spokesperson, Jim McNamara, told the Times once the workers returned from the strike, the company faced a temporarily higher build rate. Once the company catches up, then the layoffs will occur, beginning May 12.
Source:  Truckinginfo.com

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ArvinMeritor Inc., unwinding an eight-year-old merger, plans to spin off its automotive-parts unit into a stand-alone entity, in order to focus on the commercial-truck market. The spinoff of the new company, to be named Arvin Innovation Inc., would be implemented through a pro rata tax-free dividend to ArvinMeritor shareholders, said Chief Executive Chip McClure. ArvinMeritor shareholders will own all of Arvin Innovation's stock, which will trade on the Nasdaq. The deal is slated to be completed within the next 12 months. Mr. McClure will continue as ArvinMeritor's CEO, while Phil Martens, a former Ford Motor Co. product-development leader and ArvinMeritor's senior vice president, will become Arvin Innovation's CEO. The new company will employ 9,000 workers, have 42 facilities in 16 countries and have its headquarters in Detroit. "If you look back, the original merger accomplished what it set out to do by protecting both companies from the cyclical nature of the businesses they were in," Mr. McClure said in an interview. "Things are different today. We have new products and we are less dependent on North America."
Source:  The Wall Street Journal (Subscription required.)

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Isuzu Motors Ltd. and Hino Motors Ltd., Japan's largest truck makers, rose on the Tokyo Stock Exchange after Lehman Brothers Japan Inc. raised its ratings on both companies. Isuzu shares rose 4.3 percent, the most in a month, to close at 509 yen in Tokyo. Hino gained 6.8 percent, the most in two months, to close at 676 yen. Hino, 50 percent owned by Toyota Motor Corp., expects economic growth in Southeast Asia and Latin America to boost demand and offset slumping sales in the U.S. Isuzu plans to more than triple sales in Russia this year as it cuts its reliance on Japan. "Unlike carmakers, truck makers will increase profit this year because they don't rely on the U.S.," said Chikashi Okabe, a truck maker analyst at Credit Suisse Securities Ltd. in Tokyo. "Their main markets are emerging markets, so the stronger yen will have little impact on their earnings."
Source:  Bloomberg News

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A Colorado bill concerning the removal of sales tax on the federal excise tax portion of truck leases passed the State Senate recently and is awaiting signature by Gov. Bill Ritter. The Colorado Motor Carriers Association brought HB 1171 forward on behalf of its members who lease trucks within the state. Under current law, the federal excise tax of 12 percent is rolled into the base lease and then is subject to state sales tax; the net effect is that truck operators end up paying state tax on a federal tax. HB 1171, sponsored by Rep. Ed Casso of Commerce City, will eliminate this tax-on-tax issue and will save truck operators who lease trucks significant money in the future, CMCA said.
Source:  Commercial Carrier Journal

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The survey is also available online at www.esurvey.cc/atd. ATD strongly encourages dealers to complete the online version of the survey. To do so, you'll need the code that was mailed along with your survey.

Those who prefer to return their survey by mail should send to:  ATD Survey Research Processing, 25 S. 7th Ave., Ste. 240, St. Cloud, MN  56301. Be sure to respond by June 6!