HEAVY DUTY DISTRIBUTOR COUNCIL

HDDC NEWSLINE

October 6, 2009 Volume 1, Issue 1

Hello from Dispatch

Just in case you missed it, we’ve just had our long awaited summer -

in September! Field reports indicate that everyone is back at the wheel and

forging ahead. Considering the extreme drop off in new Truck and Trailer

production - that according to the experts has no apparent signs of a

recovery in the immediate future - the prospects for a gradual increase in

demand for service parts is seen by those in the Aftermarket as that

proverbial ‘Light at the End of the Tunnel’.

Update: Access to Diagnostic and Repair Information:

At a recent press conference given by Tony Clement on the above subject,

the government endorsed an agreement named the Canadian Automotive

Service Information Standard (CASIS) between the Canadian Vehicle

Manufacturers Association (CVMA), the Association of International

Automobile Manufacturers of Canada (AIAMC) and the National

Automotive Trades Association (NATA).

The agreement completely ignores commercial vehicles. The agreement

includes only motor vehicles under 14,000 GVWR. HDDC has been a

lobbying ally with the AIA since last year on this issue. The commercial,

US based, Truck Chassis manufacturing industry was also apparently absent

from the discussions. HDDC is now in renewed discussion with the AIA

over a new strategy and with the hopes of attending a meeting of the

Standing Committee to question their position in the case of commercial

vehicles.

The oft-unheralded Trailer manufacturing sector has never seen production

declines like those experienced today. There are an estimated 25,000 Van

Trailers parked across the country which is roughly equivalent to a years

production in good times. Class Eight Truck production, which had

achieved a peak of 350,000 units just a few years ago has dropped to an

estimated 75,000 units over the past 12 months. Then there is the latest news

that Peterbilt will close its Madison, Tenn., truck assembly plant, effective

December 1st, as a result of falling demand for the heavy-duty trucks and a

labor contract that was unresolved. All truck manufacturing will take place

in their non-union plant in Denton, Texas.

In spite of the depressed Truck manufacturing sector, news comes about funding for Medium-Heavy Truck Technology in the US. H.R. 3246, the Advanced Vehicle Technology Act passed the US Legislature. The Bill would establish funding for a program of research, development, for commercial application of advance technologies in medium- and heavy-duty truck and transit vehicles at the Department of Energy. The Bill, will next be placed before the Senate.

Here at home, our stimulus projects were confirmed as:

The Southern Ontario Development Program will deliver close to $100

million in funding in 2009-10 to promote economic development, economic

diversification and job creation;

The Community Adjustment Fund (CAF), a short-term economic stimulus

for communities impacted by the global recession, will contribute $350M

throughout Ontario;

Southern Ontario’s Community Futures Development Corporations

(CFDC), which provide important services to businesses, entrepreneurs and

social enterprises, will receive $30M from the Community Adjustment Fund

in 2009-2010;

The Business Development Bank of Canada (BDC) will invest a total of

$50M in Southern Ontario through venture capital firms and the BDC’s own

programs;

The National Research Council’s Industrial Research Assistance Program

(NRC-IRAP), which stimulates wealth creation through technological

innovation, had a $67.3M grants and contributions envelope for Ontario in

2009-2010. It will receive an additional $27.5M to foster innovation among

Southern Ontario’s small and medium-sized enterprises, and supporting

organizations.

Members should be looking into such programs. As I was told a recent BDC

meeting, some folks have been leaving a lot of money on the table simply

because they did not ask if they qualified. Even if you have already spent

the money you may still be eligible!

All is not well - way south of the border since the U.S. decided to end a

cross-border trucking program with Mexico. According to a U.S. Chamber

of Commerce study released on Sept. 15th 2009, 25,000 Americans have lost

their jobs. Mexico subsequently imposed $2.3 billion in duties on U.S.

import products having an immediate added import cost to American

consumers of about $421 million, according to the study.

The Teamsters have always opposed the opening of U.S. highways to

Mexican truckers claiming they were a safety and environmental threat. The

union also blames the NAFTA for at least 1 million lost jobs in the States,

maintaining that the agreement gave U.S. business an incentive to relocate

production to lower-cost Mexican locations.

For those of you who follow the US regulatory trail; the NHTSA is expected

to issue the rewrite to FMVSS108 by year- end. No real changes are

expected except that the rules are to be better organized to clear up previous

misinterpretations. Speaking about the US regulatory and enforcement

agencies, both NHTSA and FMCSA have been without a Director since the

election of Obama. Folks down south are now waiting for the Senate to

make the appointments. Meantime there is no Driver at the Wheel!

On another subject, the recent report on the study and evaluation of the

effectiveness of the Rear Impact Guards and ABS systems on Trailers

produced literally no tangible statistics except to suggest that on a per-capita

basis the systems are relatively inexpensive to maintain, according to Jeff

Sims at the TTMA. Jeff reminds us too of California’s pending aerodynamic

devices rulemaking. The rule takes effect on all Trailers operating in that

State after January 1, 2010. If you have customers operating in California it

might be interesting to find out how they are going to deal with the

requirements. Perhaps some vehicle accessory business is coming your

way?

APRA to Host European Symposium & Exhibition in

Hungary: April 26-28, 2010

Fernand Weiland, European Chairman of APRA,

announced that Budapest, Hungary would be the

location for APRA!s Second Exhibition in Eastern

Europe on April 26-28, 2010. The expo will be followed

by the 22nd annual APRA Symposium on April 27,

2010 at the Corinthia Grand Hotel Royal in Budapest,

Hungary. Plans are being explored to have plant visits

on April 28th.

Weiland stated, “Central and Eastern Europe are new

automotive markets which are steadily growing. Due to

this growth, remanufacturing is gradually becoming a

very important part of the service and installation

market.”

Companies interested in exhibiting should contact

Jeanie Magathan for a copy of the floor plan and

exhibitor application form. She may be reached by

phone at APRA Headquarters USA: 001-703-968-

2772, ext. 104 or by email at

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October 31 – November 2, 2009 / INTERNATIONAL

BIG R SHOW & ATRA POWERTRAIN EXPO / The

Riviera Hotel & Casino / Las Vegas, Nevada.

“A Gaze is Not a Gauge”

Proper tire inflation practices protect your family!

In the beginning there were summer tires and snow

tires. Then several decades ago, the all-season tire

was introduced into the marketplace that provided

motorists with better winter driving performance

than a summer tire and the opportunity to avoid

the cost and inconvenience of the bi-annual winter

tire changeover. Some Canadian motorists still

choose all-season tires because those tires meet

their personal needs based on driving habits, where

they live and their comfort level with winter driving.

For those wanting the very best, safest winter

driving experience, the tire industry recommends

winter tires. Tire technology advances in tread

compound and tread design have improved driving

performance across the entire spectrum of tires,

but none more pronounced than with winter tires.

All tire rubber will begin to stiffen as the weather

gets colder, but the latest generations of winter

tires maintain their elasticity even at extremely low

temperatures approaching -30°C and below, thus

providing superior traction and grip.

Today's winter tires are not only designed to

perform in snowy conditions, but they also perform

better on cold, dry pavement too! And remember,

once you can see your breath, it's already time to

put on those winter tires.

Gilles Paquette [ This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ]

The HDDC Board of Directors Fall meeting has just completed and plans

are well underway for the 26th Annual Business Conference to take place in

Halifax NS May 30-June1, 2010.

The East Coast ‘Almanac’ (Edited by Robert Siddall) forecasts clear sailing

around that time and that Alexander Keith will be extending his usual hearty

welcome. A draft agenda can be previewed on HDDC’s Website

When we talk about ‘Change’ these days, it seems that everyone is catching

on to the idea. Case in point. On a recent trip through the Waterloo area of

Ontario and in particular a drive through Mennonite country I noticed a two-

horse team pulling a makeshift wagon with seating for nine 9 (no seat belts

of course) with two gentlemen up front. One held the reins while the other

was texting a message on his Blackberry! Now I’ve seen it all. I wondered if

these folks would be subject to the pending new Ontario rules about not

using a mobile phone/wireless device while operating a moving vehicle?

Will they go hands free? Perhaps I mused, the local Colony has gone

Wireless?

Lets all keep both hands on the wheel and drive to arrive alive!

Happy Thanksgiving

Tuck