NAFA ConnectionNAFA Fleet Management AssociationNAFA News "If the last two years have been ones of tremendous change at NAFA, the next two will be a continuation of the good work that's already begun," Chris Amos, CAFM, promised while taking the reins as president of the organization at the NAFA Annual Business Meeting Sunday, April 26. Amos said the organization will continue to move forward in expanding educational offerings and partnering with other fleet organizations to raise the professionalism of fleet management. He also expects to continue building on-campus programs at colleges to train graduates for careers in fleet management and to expand into new regions. "The remarkable thing is that we are already well on our way to achieving all of these objectives," Amos said. "Some will be accomplished while I am NAFA's President. Some will be accomplished when one of you, just now getting a taste of NAFA service, becomes NAFA's President but we will achieve all of these remarkable things and so much more working together." Amos assumed the presidency from Gayle Pratt, who opened the annual business meeting detailing accomplishments of her tenure. "When we began our rebranding process more than two years ago, I wasn't quite sure what the outcome would be or how we would get there," Pratt said. "At that time, though, the leaders of NAFA made several promises to you. We promised we would know, understand, and support you as a fleet professional. We promised you would know the Association as a trusted partner who provided fair, unbiased, neutral, and cutting-edge information. We promised we would represent you well. And, we promised we would advance the fleet management profession in every arena. I believe we have delivered on those promises, and that we have built the foundation that will enable us to continue to do so for many years." Pratt announced endorsements of the CAFM program by the National Conference of State Fleet Administrators and the Rocky Mountain Fleet Management Association and approval of the program by the United States Department of Veterans Affairs, meaning veterans may receive reimbursement for testing. She also detailed the Certified Automotive Fleet Supervisor (CAFS) designation, which NAFA announced in December, and announced that Ferris State University, which partners with NAFA on the CAFM certification, has approved a Minor in fleet management. Pratt detailed how Mercury Associates will take NAFA seminars to Alaska, Hawaii, and Puerto Rico. "In the near future, we hope to expand this relationship to cover overseas markets, such as Europe, Asia, and Australia, thereby tangibly beginning our foray into becoming a truly international association." This year's I&E marked a historic event in NAFA history: the largest-ever graduating class of Certified Automotive Fleet Managers! The class celebrates 50 men and women having passed the CAFM exam since last May; all of whom will be featured in an upcoming issue of FLEETSolutions. In addition to this news, Ferris State University recently approved the start of a certificate program and a minor in Fleet Management. This was one of NAFA's most sought-after goals in the Strategic Plan and the partnership was originally announced at a press conference in Salt Lake City during the 2008 Institute & Expo. "Beginning in the fall, students at FSU can minor in our profession – and get a taste of what we do," said former NAFA President, Gayle Pratt. "Just think of the possibilities this has for future members and leaders for this organization! Just think of what this does in terms of improving the image and prestige and perception of our profession!" The arrangement includes a four-step degree plan that begins with awarding CAFM program participants 12 semester hours of college credit for successful completion of the program and ends with a Bachelor of Science Degree with a minor in Fleet Management. It was three decades ago when NAFA partnered with the Wharton School of Business to develop the first-ever fleet management certification program. The CAFM program has been approved by the U.S. Department of Veterans Affairs has more than 500 participants, and more than 250 graduates. A couple of years ago, Graeme Maxton may have looked like a doomsday prophet when he spoke to NAFA's Institute & Expo attendees, predicting turmoil in the worldwide auto market. This time, he looks more like a futurist, but that doesn't mean the news is all happy. Maxton, an expert on the worldwide auto industry with an emphasis on the Asian markets, made a repeat appearance at I&E, bringing updated information in his keynote address. "I've got two things to talk about, the world economy and the auto industry, and it probably will not make your lunch go down any better." Maxton envisions that the global economy is only going to continue to worsen. "We think there's a 30 percent chance of a depression, not just a recession," he said. Maxton predicts, "Something much more like what we've seen in Japan for the past 20 years." As the jobless rates in the U.S. continue to grow, he sees the credit market worsening. The subprime credit meltdown pales in comparison to what might happen as those who took out moderately risky loans begin to struggle with job loss. "There's going to be another wave of debt flowing through the global sector," Maxton said. "If politicians tell you they know what they're doing, don't believe them. This is uncharted territory." The value of the U.S. dollar could collapse, Maxton believes "because the government keeps printing money." And the uncertainty and length of the crisis may be enough to permanently alter consumer spending patterns. He said one thing we're absolutely sure to see is higher taxes. "There are things to look for, but don't expect them to come quickly. It's probably going to take until 2011 until we begin to see the bottom and a fairly long flat period until we begin to see upward growth," Maxton said. His forecast for the auto industry was no brighter. Maxton made five predictions:
Most of the issues, Maxton said, are "self-inflicted." Beyond the walls of the convention center and the sights and sounds of Bourbon Street, a group of Institute & Expo attendees got a unique perspective on the City of New Orleans on Friday, April 24th. They took part in a local Habitat for Humanity International project, helping build a new home for someone in need. "It was an absolutely amazing feeling," said NAFA Executive Director Phil Russo, CAE. "The majority of the people there had never done something like this before. I think, for them, it wasn't that it was life changing. But it certainly was a brand new experience that opened them up. And it's my hope that it won't just be eight hours on a hot Friday. I hope it continues on, in a pay-it-forward kind of way, that these people will bring something back to their own communities, too." "By the time Hurricane Katrina ravaged the City of New Orleans in August 2005," Russo said, "NAFA had already planned to visit the area for this year's Institute & Expo." Suddenly, just coming to "take" no longer seemed appropriate; there had to be an opportunity to "give," as well.
"It's tough to break apart the personal and business reasons for being involved, but I think all of us today have a responsibility to the communities we're in, to try to make them better places, especially in these economic times," Pitcher said. Just over 40 men and women showed up for the day-long build, and Russo said talks are already underway to include volunteer opportunities at future conferences. In 2010, NAFA's I&E moves to Detroit, MI, and in 2011, it's scheduled for Charlotte, NC. "It was an absolutely amazing thing," Russo said. "There was almost instant camaraderie. There were what I'd call NAFA dignitaries there, but for the most part, I don't think I knew 37 of the 42 people who attended. And by the end of the day, every one of us was hugging and high-fiving. It was just a great experience." NAFA and LeasePlan each made $2,000 contributions to the New Orleans Area Habitat for Humanity organization. Fleet managers came prepared with laptop computers and a boatload of questions for Jason Mathers, Fleet Project Manager for the Environmental Defense Fund, who led NAFA's Masters' Seminar, "Carbon Footprint Calculation and Management."
"Ultimately, greenhouse gas emissions are the main cause of global warming," Mathers said. "Starting today, even making marginal steps, is very important. Access to accurate fuel data is the key. If you don't have good data, it all comes down to assumptions." Recognizing that it is difficult to capture the complete data required by more advanced calculation methods, the Fleet Greenhouse Gas Calculator is designed to minimize data entry needs for fleets while retaining accuracy. "I think there are really two advantages for fleet managers," Mathers said. "One is that they get to have an accurate assessment of their greenhouse gas emissions today, so they can start to consider ways to reduce those emissions. The second is that the data entry required in this is fairly minimal; it's fuel consumption data. It's data that we hope fleets have. If fleets have that tool, they can get a really good calculation of their greenhouse gas emissions." In the end, the attendees were in agreement that the seminar was a success. There are three compelling reasons to adopt a green fleet program, according to the session: a reduction of operating costs; reduced greenhouse gas emissions; and improved corporate reputation. Fleets were advised to measure emissions; set goals; improve vehicle selection; improve the way vehicles are used through encouragement of better driving habits; and to consider carbon offsets. "Bullish" hasn't been a word used to describe issues in the auto industry lately, but the term came up frequently during the I&E Original Equipment Manufacturer Panel. That's not to say that the panel, which included representatives from nine of the major automakers, was unrealistic about the current state of the industry. The discussion highlighted: "On April 1, the Obama administration did us a favor by approving our discussions [with Fiat] to continue forward," Ring said. "The hard part was he gave us 30 days to get the job done. We've been working daily with Fiat to come to agreement." Jim Campbell, General Manager of GM's Fleet Division, also updated attendees on GM's viability plan. "We will have four key brands: Chevrolet, Buick, Cadillac, and GMC. We did make the decision that at the end of 2010, we'll stop making Pontiacs. We'll still have a network of dealers that will be able to service and we'll have parts available." Campbell detailed a more aggressive plan to streamline GM dealers, which numbers more than 6,000. The automaker is also working on aligning its production capacity. The state of the industry: John Ruppert, Ford's General Manger, Commercial and Government Operations, predicted an upswing in commercial sales in the last half of the year, putting the total market production at about 10 million vehicles in 2009 and that's compared with 13 million in 2008. Paul Jonting, Toyota's National Fleet Sales Manager, also anticipated a "strong second half year. As far as the economy goes, we're looking forward to the stimulus plan with money going to state and local governments. Toyota is very bullish on the year." Order-to-delivery times: With the instability in the auto market currently, the rapid changes in production schedules may be impacting a fleet's order-to-delivery time, but communication is key. Campbell said that GM is working to make sure that any fleet orders that are already placed are built before GM begins shutting down its plants for much of the summer. Ruppert said that Ford has been working to make sure its supply and demand equation stays in balance by assessing which plants need to remain, how many shifts can be run there, how many are built per hour, and whether more than one platform can be built there. Executive vehicle sales: This was another bright spot for the industry. Rich Maksym, Lead National Account Manager for Mercedes, said commercial sales was up 24 percent at the automaker in 2008, at a time when retail sales were down 25 percent. "Volvo also noticed an increase in executive sales," Doreen Paris, Volvo's Fleet Sales Manager, said. "It's a rational choice for irrational times." "Audi, too, is benefiting," said Ross Friedman, Senior Commercial Accounts Manager for the company. Resale values: "I'm of the opinion that a shortage is a thing that we won't see in the true sense of the word again," said Charlie Reed, Manager National Fleet Sales Operations for Subaru. "What you will find is a greater demand for a static supply. I think anybody who wants to find a good used car will find one, but they'll pay more for it." Julie Furlotte, CAFM, was honored with NAFA's "Excellence in Education Award" for her dedication to fleet management education. This award honors someone who has gone above and beyond to help the association enhance its educational offerings. Furlotte is only the sixth person to ever receive this award. Furlotte, the National Manager, Land Fleet for the Royal Canadian Mounted Police, was instrumental in establishing the first Canadian-specific version of the CAFM curriculum, ensuring that her fellow countrymen and women studied and mastered the unique aspects of Canadian law, regulations, and business practices essential to their professional success. As a Certification Board leader serving six years as vice chair, chair and the reporting officer, Furlotte guided the program through the sometimes tumultuous transition from the Wharton Business School version, with its infamous case study, to today's better balanced and completely objective testing version, which has achieved college accreditation. Furlotte also helped define and write several major reference publications providing both Canadian-specific content and general technical knowledge on a wide variety of topics. She delivered presentations at several NAFA Institutes and four Fleet Management Seminars, including the ground-breaking 2008 Canadian FMS, which was NAFA's first bilingual education offering. She was also instrumental in planning and delivering NAFA's first Canadian Fleet Conference in 2007, and the encore conference happening later this year in Toronto. In addition to these direct contributions, Furlotte has provided excellent leadership in her roles as reporting officer for the education develop committee, member of the education steering board, member of the university partnership negotiation team, and Vice President for Canada these past four years. Jon Crull, CAFM, Fleet Manager for the City of Daytona Beach, Florida, joined an elite group, those who have been awarded NAFA's Lifetime Honorary Membership. "To date, only 40 people have earned this award in NAFA's 52-year history," said NAFA President Chris Amos, CAFM. "The winners have all made extraordinary professional and personal contributions to the Association." Other honorary members in the past have included Patrick O'Connor, Sal Giacchi, CFM/CAFM, Gerald Keenan, B.L. Groser, and J. Paul Hubbard. Click here to see more past recipients. Crull has served his local NAFA chapter in nearly every capacity, including three terms as Sunshine State Chapter Chair. He has served on the national level as chair and vice chair of two large committees: the Arrangements Committee and the Public Safety Group. Crull has also been a member of the national Nominating Committee and the National Curriculum Committee. Crull was recently appointed as the chair of the 2011 Curriculum Committee for the I&E in Charlotte, North Carolina. "This year's winner exemplifies what NAFA is all about," Amos said. "He is an excellent example of volunteerism and dedication to an industry." Thank you John for your dedication and service to the Association! The gathering honored this year's winners of the Larry Goill Quality Fleet Management Idea Award, presented to fleet managers whose innovative ideas have improved productivity or resulted in bottom-line savings for their employers. The awards, sponsored by Bell Canada, are named for Goill, a vibrant member of NAFA in the late '80s and early '90s. At the time of his death in 1995, Goill was NAFA's Vice President for Canada and the Supervising Engineer of Fleet Services for Bell Canada. The first award went to a trio of fleet managers from the Hampton Roads region of Virginia: Mark Bellamy, CAFM, of County of York VA; George Hrichak of the City of Chesapeake VA; and Bob McElheney, CAFM, of the City of Newport News VA. Realizing that no one locality in the area was large enough to garner above normal purchasing power, they formed the Southeastern Virginia Public Fleet Consortium. The consortium meets every couple of months to discuss bids and bidding processes for common procurements. The group also contracts out for fleet services, "and next on the horizon," Weichman said, "are parts contracts." With its success, the consortium has attracted membership from three additional cities and three additional counties, enhancing the consortium's purchasing power even further. The next award went to Charles Stang from the State of Ohio Department of Administrative Services. In 2007, the Ohio Office of Fleet Management reviewed each agency's fuel data, prorated their goals, and developed an easy-to-understand Alternative Fuel Scorecard. Each agency's scorecard—complete with green, yellow, and red designations to mark progress—was then posted online to take advantage of a little competition. And the results? "Phenomenal," Weichman said. "In 2008, E85 usage increased more than 700 percent, and B20 use increased an incredible 2,300 percent. In real numbers, the agencies are now using an average of more than 13,000 gallons of E85 and 173,000 gallons of B20 each month." The Second Annual Green Fleet Awards showcased ideas that ranged from the easy-to-implement to the long-range. All made significant strides, though, in environmental responsibility. The awards were divided into two categories, for fleets located in either EPAct or clean air mandated areas in the United States, or in Pollution Emission Management mandated areas in Canada and those in nonmandated areas. In clean air mandated areas, the winners were:
In the non-clean air mandated categories:
The Green Fleet Award winners participated in an I&E session entitled "Greening Your Fleet: Learn from the Winners," offering in more detail exactly how they accomplished these initiatives. Green fleets come both big and small, as evidenced by the annual Green Fleet Ride-and-Drive. The "big" came courtesy of Dueco's diesel hybrid bucket truck and John Deere's loader, the latter of which meets 2007 diesel emission standards, something that's coming to off-road vehicles in 2011.
Putting fleet managers behind the wheel of the vehicles, according to Bill Roberts, Director of Fleet Services for the University of Minnesota, "was a great learning experience." Though Roberts' fleet already includes two E-Ride trucks. "We're looking to see if we can find the right application for an electric car," he said. "We're interested in green fleets, but it's not like we're going to just buy anything out there." The event gave Roberts and others like him a chance to speak directly with manufacturers and ask questions that are pertinent only to them. Roberts, for example, was interested in how electric vehicles perform in Minnesota's cold weather. The next step would be to bring a vehicle to the campus and see how it performed there. The Ride-and-Drive had already helped him eliminate some of the possibilities. The information exchange was critical for vendors as well. Joe Mastanduno, Product Marketing Manager, Engine/Drivetrain, for the John Deere Construction & Forestry Division, was there to make sure fleet managers knew about the emissions changes coming to off-road vehicles. "I've been pleasantly surprised at how many good questions they're asking," Mastanduno said. The Deere loader was the only vehicle at the event to actually not be driven, because of its off-road nature and safety considerations. Proving NAFA's Institute & Expo is the fleet industry's leading event, Bobit Business Media chose to present all three of its fleet executive awards during this year's I&E. The awards followed the Annual Business Meeting, marking a key partnership between the two organizations. Public Sector Fleet Manager of the Year Award Doug Weichman, CAFM, Director of Fleet Management of the County of Palm Beach (Fla.) and NAFA's Senior Vice President, was honored as the Public Sector Fleet Manager of the Year by Government Fleet magazine. Weichman oversees nearly 5,000 on- and off-road vehicles and a budget of $46 million. His accomplishments in 2008 included expanding contracts to include 3 million gallons of biodiesel and expanding hybrid fleet to 220 vehicles. Weichman was a runner-up for the award in 2008. Fleet Manager of the Year Award Christy Coyte, Global Fleet Manager with Johnson Controls, Inc., was named Fleet Manager of the Year by Automotive Fleet magazine. Coyte, who oversees 14,500-plus vehicles worldwide, was honored for her "great reputation for dealing with global solutions in a very challenging time," said Wheels, Inc. President and CEO Jim Frank, who presented the award. Fleet Executive of the Year Award Satish Natarajan, Senior Director, Fleet Operations, Aramark, was named Fleet Executive of the Year by Fleet Financials magazine. Natarajan oversees 6,000 vehicles and a staff of 110 fleet managers, analysts and technicians. Natarajan was honored for implementing standardization of shop diagnostic tools in all U.S. shops, centralizing truck procurement, designing a Web-based asset management tool and developing a green fleet strategy that is currently testing CNG vehicles and hybrid trucks. Gravel was flying and cones were falling. Yes, it was the annual Public Safety Group Roadeo, a time in which public safety fleet managers climb behind the wheel for timed trials. Participants were able to test-drive some of the most popular police vehicles — the Ford Crown Victoria, the Dodge Charger, and the Chevy Impala — through an obstacle course. The timed trials include penalties for knocking down cones. At some points, it was unclear if the goal was to avoid the cones or knock them down. There was plenty of good-natured ribbing, as well. "I think we have our first one minute time," one fellow was teased. "Leave him alone, he drives a minivan." Beyond fun, though, letting managers experience the vehicles is a critical goal, according to Jon Crull, CAFM, Chairman of the Public Safety Group. "When we get to go out in a vehicle, we learn how it handles," Crull said. "It's so much easier for us if we know what they're talking about. We can say, 'We've seen that and you don't really want it,' or 'Have you thought about this?'" In addition to the three timed trials, attendees could try out a Pierce fire engine and personal patrol vehicles. A fully adapted SWAT vehicle also was on display. "A police department sees that, they've got to have it," Crull said. "At least we've had a chance to see it first." They got a look at how the pros perform, too. A team from the St. Tammany Parish Sheriff's Department showcased Harley-Davidson motorcycles at high speed in a tight formation. Those test driving the vehicles were warned not to exceed 35 miles per hour during the test trial. That was perhaps reinforced by a demonstration in which the St. Tammany Parish fire department showed how to cut a person trapped in a vehicle. For Rick Buckner, Fleet Program Administrator with the Dallas Fort Worth International Airport and a first time attendee, the Roadeo offered an opportunity to round out his fleet knowledge. "It gives me more of an appreciation for the equipment and helps in talking with people that use it," Buckner said. "It's all new for me and I learn something every day. This certainly helps." With you in mind, the Guide is designed to help you understand fuel supply and demand dynamics to better anticipate price changes, understand key fuel standards, and identify appropriate policies, activities, and technologies to improve fuel efficiency. A valuable appendix comprised of additional references make this an "evergreen" learning tool, as links to current websites provide you direct access to the most current information on fuels and pricing, as well as from government authorities; non-profit and association websites; and manufacturers. Information is easily accessible, as detailed chapters explore:
Topics covered include petroleum markets, the fuel supply chain, fuel quality standards, and fuel saving methods. You know it well, effective fuel management is an integral part of fleet operations. Whether you manage an in-house fuel program or a commercial fuel program, whether your fleet is centralized or decentralized, NAFA's Fuel Management Guide will help you gain a better understanding of your second largest fleet vehicle expense! Available in three formats to meet your project and budget needs!
NAFA's Fleet Management Seminars have provided fleet professionals with the most comprehensive information and training in the industry. Now you can save $50 by enrolling in the June FMS before the May 14th early-bird deadline. Don't wait too much longer! All of our past seminars have sold out! Fleet Management Seminar NAFA's Fleet Management Seminar is designed to provide comprehensive education to fleet managers and professionals who seek the fundamental principles and practices of successful fleet management. Topics covered include: Policies and Procedures; Acquisition and Disposal; Fleet Organization and Responsibilities; Maintenance Management; and Risk Management. If you have any questions regarding the Fleet Management Seminar, please contact Kate Shelko at 609.986.1059 or kshelko@nafa.org. Click here to download a registration form. Headline News Chrysler LLC announced that the U.S. Bankruptcy Court gave interim approval to Chrysler for $4.1 billion of Debtor-In-Possession (DIP) financing, funded by the U.S. Treasury and Export Development Canada, and the use of $400 million of cash collateral, enabling the company to meet its working capital and general business needs going forward. Approval of Chrysler's DIP financing provides the company with resources to continue "normal course" business operations pending approval of the sale transaction with Fiat. The Chrysler Chapter 11 case was filed on April 30, 2009, in the U.S. Bankruptcy Court, Southern District of New York. First-day motions were filed to support Chrysler's employees, dealers, vendors and suppliers, together with its customers and other stakeholders. The Court granted approval for the company's request to continue payment of wages and health and welfare benefits to employees and contractors, and continue its customer warranty programs. As part of Chrysler's alliance with Fiat, the company was seeking bankruptcy court approval of the sale to a new alliance company of the substantial majority of Chrysler's assets, operations, and plants. Chrysler employees will be offered employment with the new company. The assets and liabilities that are not needed to support the business plan developed by Fiat and Chrysler for the new company will remain with the old company and move through the Chapter 11 process for disposition. A list of assets which have been identified for disposition was included in initial court filings. An important point regarding employees is that, while some facilities may eventually close, none other than Newark and St Louis South are scheduled for closure in the near term. Virtually all labor associated with these facilities will be offered employment with the new company. In addition, as previously indicated, we expect that the alliance with Fiat will help to preserve and create in excess of 5,000 manufacturing jobs. Chrysler stated it is premature to speculate on the ultimate disposition of those facilities that are to remain with the company, e.g., sale as an operating asset to another company, sale to a new business, redevelopment, closure or other possible outcomes. Chrysler has a public restructuring information Web site at www.chryslerrestructuring.com. Court filings and other information related to this process are being regularly updated on this Web site. Ford Motor Company's Response to Chrysler's Chapter 11 Filing: Ford Motor Company had sent out a statement relating to Chrysler's Chapter 11 filing: Our teams are monitoring the situation and have been working hard for months to ensure that the external environment and industry restructuring do not slow progress on our Ford transformation plan, which remains solid and unchanged. Importantly, we share President Obama's hope that Chrysler's bankruptcy will be controlled and quick, while we continue planning for all contingencies as a prudent business measure. At this time, we do not expect any disruptions to our operations as a result of today's news. All of us at Ford remain absolutely committed to continuing to make progress on our transformation plan. Our greatest opportunity is to create ONE Ford, leveraging our global assets and delivering more high-quality, fuel efficient vehicles that customers want and value. Chrysler LLC Statement in Response to UAW and Chrysler Reaching a Tentative Agreement Attributed to Al Iacobelli, Chief Bargainer and Vice President – Employee Relations: Chrysler LLC has reached an agreement with the UAW subject to ratification. We commend the UAW's leadership for their endless determination and perseverance in reaching this tentative agreement especially during these unprecedented economic circumstances that plague the automotive industry. The provisional agreement provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U. S. Treasury Department. As a result, Chrysler LLC can continue to pursue a partnership with Fiat SPA. Chrysler management has the utmost respect for thousands of men and women who are an integral part of our manufacturing operations. General Motors is proceeding to the next step with respect to the sale of Saturn. A number of potential buyers have surfaced and expressed interest in the Saturn brand and retailer network. GM will be reviewing expressions of interest from the potential buyers and will look to secure an agreement with a specific buyer later this year. S.J. Girsky & Co. has been retained by GM as advisor for this transaction. Saturn will continue to keep its retailers updated on its progress throughout this process. General Motors announced that it is commencing public exchange offers for $27 billion of its unsecured public notes. The exchange offers are a vital component of GM's overall restructuring plan to achieve and sustain long-term viability and the successful consummation of the exchange offers will allow GM to restructure out of bankruptcy court. GM is offering to exchange 225 shares of GM common stock for each 1,000 U.S. dollar equivalent of principal amount (or accreted value as of the settlement date, if applicable) of outstanding notes of each series set forth in the table below and is offering to pay, in cash, accrued interest on the GM notes from the most recent interest payment date to the settlement date. In respect of the exchange offers for the GM Nova Scotia notes, General Motors Nova Scotia Finance Company is jointly making the exchange offers with GM. In the event that GM does not receive prior to June 1, 2009 enough tenders of notes to consummate the exchange offers, GM currently expects to seek relief under the U.S. Bankruptcy Code. GM is considering its alternatives in seeking bankruptcy relief in consultation with the U.S. Treasury, GM's largest lender. If GM seeks bankruptcy relief, noteholders may receive consideration that is less than what is being offered in the exchange offers and it is possible that such holders may receive no consideration at all for their notes. Concurrently with the exchange offers, GM is soliciting consents from noteholders to amend the terms of the debt instruments that govern each series of notes and insert a call option to redeem the non-USD notes. Each of the exchange offers and consent solicitations will expire at 11:59 p.m. New York City time on Tuesday, May 26, 2009, unless extended. Tendered notes may be validly withdrawn at any time prior to 11:59 p.m. New York City time on Tuesday, May 26, 2009, subject to certain circumstances where we may extend or reinstate withdrawal rights. Consummation of the exchange offers is conditioned upon the satisfaction or waiver of several conditions including the following: U.S. Treasury Condition, completion of the U.S. Treasury Debt Conversion, evidence of the U.S. Treasury Financing Commitment, binding agreements in respect of the VEBA Modifications and U.S. Treasury approval thereof, the aggregate number of shares of GM common stock issued or agreed to be issued pursuant to the U.S. Treasury Debt Conversion and the VEBA Modifications shall not exceed 89% of the pro forma outstanding GM common stock, and binding agreements regarding labor modifications required under one of GM's U.S. Treasury loan agreements, on such terms as shall be satisfactory to the U.S. Treasury. Morgan Stanley & Co. Incorporated and Bank of America Securities LLC are serving as global coordinators in connection with the exchange offers. Toyota Motor Sales, USA, Inc. will launch an Equipment Safety Recall with the National Highway Traffic Safety Administration (NHTSA) involving approximately 39,100 Toyota stainless steel exhaust tip retention clamps. This optional accessory was designed specifically for 2008 model year Highlander and Highlander HV vehicles sold in the United States. Due to improper heat treatment, the original clamp used to secure the stainless steel exhaust tip to the exhaust pipe may develop microscopic cracks. If this occurs, the crack may expand causing the clamp to break and in the worst case the exhaust tip may fall off. There are approximately 39,100 accessory kits that may be affected by this condition. Because this accessory is installed at the Toyota vehicle processing centers and dealers, and is available over-the-counter, all of approximately 121,000 vehicle owners will be notified. There have been 10 reported incidents of this condition in the United States; no other Toyota or Lexus vehicles are involved in this recall. Toyota will inform owners of the involved vehicles with a safety recall notification via first-class mail beginning in early May. The notification will include inspection instructions for owners to determine if their vehicle is equipped with this accessory. Affected owners are requested to contact their local Toyota dealer for inspection and repair. Customers with questions or concerns should contact the Toyota Customer Experience Center at 1-800-331-4331. Following the recent introduction of the Motor Vehicle Owners' Right to Repair Act (HR 2057) into the 111th Congress, the bill gained five more co-sponsors last week, according to Kathleen Schmatz, president and CEO of the Automotive Aftermarket Industry Association (AAIA). Reps. Rick Boucher (D-VA), Jim Gerlach (R-PA), Mike Rogers (R-AL), Heath Shuler (D-NC) and Peter Welch (D-VT) have joined bill's original co-sponsors, Reps. Towns (D-NY), Eshoo (D-CA) and Miller (D-CA). "Within a week of the bill's introduction, the inclusion of these five members of Congress from both sides of the aisle signals growing support in Congress for the Right to Repair Act," said Schmatz. "We applaud their commitment to ensuring that motorists in their districts retain the choice of where to have their vehicles serviced and repaired." Because vehicles are becoming increasingly sophisticated with virtually every system either monitored or controlled by computers, servicing these vehicle systems to keep them in safe working condition requires ready access to complete and accurate information from the car companies. The Right to Repair Act (HR 2057) was introduced in Congress to ensure that car owners and their trusted repair shops have the same access to safety alerts and repair information as the franchised new car dealer network. "Right to Repair has become more important than ever as motorists seek new neighborhood repair shops because a dealership has closed in their area," continued Schmatz. "This important piece of legislation ensures that local auto repair remains available to car owners throughout the country." SPOTLIGHT ON LEGISLATION Government of Canada Introduces Auto Theft Legislation On April 21st, the Honourable Rob Nicholson, Minister of Justice and Attorney General of Canada, introduced legislation to tackle auto theft and property crime. The Minister highlighted that auto theft, one form of property crime, affects more individual Canadians and businesses than any other form. The legislation being put forward will provide better instruments to law enforcement authorities to battle this kind of crime, along with the complete range of activities entailed with the trafficking of all types of stolen or falsely obtained property. Components of the proposed legislation as it relates to auto theft include:
Additionally, the legislation would help to address the problem of the exportation of stolen vehicles from Canada by organized crime.
The Calgary Parking Authority has highlighted that roughly 4 per cent of Calgary downtown commuters have been rewarded with a 25 per cent discount on short-term parking as an environmental reward. As an eco-parking incentive, Calgary drivers of some 435 small cars and motorcycles are rewarded due to the smaller environmental footprint that is left behind. Other Canadian municipalities have also introduced similar initiatives. In Vancouver, a selection of fuel-efficient vehicles can qualify for a 50 per cent discount at certain "EasyPark" lots. In Kelowna, individuals behind the wheel of a hybrid gas-electric vehicle and other fuel-efficient cars have been entitled to free downtown parking for over the past three years. The program in Calgary has been in effect since the summer of 2008. Since then, cars that are no more than 3.8 metres long (examples are the Geo Metro, the Suzuki Swift, the Toyota Echo, and the Honda Insight) have been eligible for the discount. House Committee May Consider Climate Change Legislation A House subcommittee may begin voting on climate change legislation the week of May 4. House Energy and Commerce Chairman Henry Waxman (D-CA) will schedule a subcommittee markup if he is able to reach a consensus with fellow Democrats over several provisions in the American Clean Energy and Security Act of 2009, including the contentious issue of allocating emission credits in a cap-and-trade program. Waxman wants to finish marking up legislation in the Committee by Memorial Day, but he is having a difficult time nailing down majority support in the Energy and Environment Subcommittee and the full panel. Climate Change to Include Cash for Clunkers The White House and House Democratic leaders are close to an agreement on legislation that would offer consumers vouchers to help them buy a new, more fuel-efficient vehicle if they trade in an older or less fuel-efficient vehicle. "Cash for Clunkers" will be included in the climate change legislation pending in the House Energy and Commerce Committee. A proposal from Rep. Betty Sutton (D-OH) is backed by the domestic auto industry. Under Sutton's bill, the new car would have to get at least 27 miles per gallon on the highway, and vouchers would range from $3,000 to $5,000 depending on the purchased car's gas mileage. Environmental groups prefer a bill sponsored by Rep. Steve Israel (D-NY) which would require new cars to exceed federal fuel economy standards by at least 25 percent in order to qualify for the vouchers. Vehicle Technology Tax Bill Introduced Legislation has been introduced in the House of Representatives to provide a tax credit for the use of a qualified commercial vehicle advanced safety system. The Commercial Motor Vehicle Advanced Safety Technology Tax Act, HR 2024, was introduced by Rep. Mike Thompson (D-CA). The legislation amends the Internal Revenue Code to allow a general business tax credit for 50% of the cost of placing in service any qualified commercial vehicle advanced safety system on a vehicle with a gross vehicle weight rating of 26,001 pounds or more; a seating capacity of at least 15 individuals (not including the driver); a seating capacity of at least 11 individuals (not including the driver) and the vehicle is reasonably expected to be used as a school bus; or the vehicle is reasonably expected to be used as an intercity or local bus. A "qualified commercial vehicle advanced safety system" is defined as a manufacturer-certified brake stroke monitoring system, lane departure warning system, collision warning system, or vehicle stability system identified by the Federal Motor Carrier Safety Administration or the National Highway Traffic Safety Administration as significantly enhancing the safety or security of commercial drivers, vehicles, or passengers. Motor Vehicle Right to Repair The Motor Vehicle Owners' Right to Repair Act (HR 2057) has been introduced in the U.S. House of Representatives. The legislation, which was introduced by Rep. Edolphus Towns (D-NY), would require car companies to make the same service information and tools capabilities available to independent repair shops that they provide to their franchised dealer networks.
The California State Water Resources Control Board was scheduled to meet on May 5 to adopt emergency regulations to provide an interim variance from third-party material compatibility testing and approval requirements for underground storage tank systems storing biodiesel blends up to B20. California currently requires that UST systems receive independent testing organization approvals for biodiesel or other biodiesel blends. To date only biodiesel blends up to 5 percent biodiesel (B5) have received such approvals. The proposed regulations provide for a 36-month variance from the required independent organization certification of leak detection equipment with biodiesel and biodiesel compatibility with UST components. The interim provision specifically allows for UST systems to store biodiesel blends up to B20 in double-walled tanks and piping that currently meet the operational permitting requirements for motor vehicle fuels (petroleum).
ENVIRONMENTAL UPDATE The Air Resources Board last month fined Nissan Motor Company $4.4 million for failing to meet requirements concerning the diagnostic equipment that monitors tailpipe emissions on most of its 2005-2007 models — more than 450,000 vehicles. On-board diagnostic systems are incorporated into vehicle computers to ensure tailpipe emissions stay at permissible levels. If a problem is detected, the system turns on a "check engine" light to alert the driver. The ARB discovered Nissan's problems in 2007 during a routine compliance review. The problems concerned inadequate monitoring of engine sensors that govern proper fuel system operation and whether monitoring takes place as frequently as required. "Nissan has been cooperative during this investigation, and we are confident that the design process changes they implemented will prevent future problems," said ARB Chairman Mary D. Nichols. Nissan's settlement with the ARB requires it to pay $3 million to the California Air Pollution Control Fund, which provides funding for projects and research to improve California's air quality. It must also pay $1.2 million to the Environmental Education Initiative and $200,000 to the National OBD Clearinghouse. The Renault-Nissan Alliance announced that Nissan is forming a partnership with Progress Energy of Raleigh, N.C., and the Raleigh-based nonprofit agency Advanced Energy, to advance zero-emission mobility by promoting the development of an electric vehicle (EV) charging network. Nissan will introduce zero-emission vehicles in the United States in 2010, starting with a five-passenger compact vehicle that will have a range of 100 miles on a single charge. The announcement coincides with the Raleigh stop on a coast-to-coast tour of Nissan's EV Prototype, a vehicle that's powered by Nissan's lithium-ion battery pack and zero-emission electric motor. While this vehicle does not represent the design of Nissan's electric vehicle that will be sold in 2010, the EV Prototype is an indicator of what's to come in zero-emission mobility. The partnership supports the City of Raleigh's mission and environmental goals. As part of the agreement, Nissan and its partners will develop plans to promote a charging infrastructure for EVs, as well as the deployment, operation, and maintenance of a charging network. The partners also will work to coordinate the establishment of policies and help streamline the deployment of an EV infrastructure. Nissan also has agreed to make available a supply of EVs to Progress Energy. Chrysler showed off four all-electric Chrysler Town & Country minivan concepts to the U.S. Postal Service (USPS) as part of the USPS Earth Day celebration. Chrysler LLC, in conjunction with the USPS and select energy service providers, also announced that the company intends to apply for the U.S. Department of Energy's (DOE) Transportation Electrification stimulus program for a federal grant, which would enable Chrysler to establish a nationwide demonstration fleet of zero-emission electric minivans that could be used by the U.S. Postal Service for mail delivery. Chrysler's ENVI group leveraged the flexibility of its electric-vehicle strategy to demonstrate an all-electric version of its best-selling minivan. These electric minivan concepts are targeted specifically for use by the U.S. Postal Service for mail delivery. "We continue to look for energy-efficient replacement vehicles for our aging fleet as we explore ways to reduce our transportation-related carbon emissions," said Sam Pulcrano, Vice President — Sustainability, U.S. Postal Service. "Chrysler and the Postal Service have an established relationship as there are more than 10,000 of our minivans in the Postal Service fleet," said Lou Rhodes, Vice President — Advance Vehicle Engineering and President of ENVI, Chrysler LLC. "The Postal Service is a recognized environmental innovator and leader, and we are excited at the prospect of continuing our relationship by working to deliver alternative energy postal delivery vehicles in the future." Because robust grid integration is essential for widespread customer acceptance of electric vehicles, Chrysler has enlisted the involvement of key utility partners, including Duke, ConEd and DTE. Each has signed a letter of intent (LOI) with Chrysler to equip post offices in strategically selected regions of the United States with a charging infrastructure for the envisioned program. The Electric Power Research Institute (EPRI) also has signed an LOI to provide USPS integration tools. The State of California's Air Resources Board adopted a regulation to implement Governor Schwarzenegger's Low Carbon Fuel Standard calling for the reduction of greenhouse gas emissions from California's transportation fuels by 10 percent by 2020. The regulation encourages the use of four primary low carbon alternative fuels for transportation: hydrogen, electricity, natural gas and biomethane. Two of the four fuels, natural gas and biomethane, are in the form of fuel (CNG and LNG) provided by Clean Energy Fuels Corp., North America's leader in clean transportation. "This regulation confirms the value of using domestic natural gas as a low carbon alternative fuel for transportation as California and the nation seek to clean the air and reduce dependence on imported petroleum," said Andrew J. Littlefair, Clean Energy president and CEO. "Domestic CNG and LNG already exceed the state's 2020 goal of 10 percent carbon reduction." NAFA Online Store Order by May 31 and Save 25 Percent on NAFA's Personal Use for Fleets CD-ROM
Personal Use for Fleets CD-ROM
NAFA's Personal Use CD-ROM is a comprehensive tool to instruct and assist you in gaining a greater understanding of this core competency for successful fleet management. The CD offers examples of various plans, data structures, IRS guidelines and rules, liability exposure, how to identify and gather critical information, policy development, and personal use management. The CD-ROM format proves easy navigation and access to many samples, reference documents and complicated IRS rules and regulations.
Did you know about NAFA's other products, such as the NAFA Vehicle Classification System or Personal Use for Fleets CD or Request for Proposals Guide CD? Review all NAFA products at the online store (www.nafa.org/store), or to download the current catalog, click here. Career Corner NAFA has provided space in each issue of the FleetFOCUS for companies and organizations to advertise career opportunities in the fleet industry. Members can also market themselves to potential employers. If you're interested in this opportunity, make your listings 200 words or fewer. Links to complete job descriptions on the company's Web site are suggested. Please note all of the materials a candidate must supply in order to be considered for the position (e.g., resume, salary history, municipal application, etc.). To take advantage of this service, e-mail your ad to Patrick McCarren at pmccarren@nafa.org. Job Wanted Listings Provide New Networking Opportunities! Are you looking for a new job or a motivated, hard-working employee? NAFA's Job Wanted Listings is an exclusive benefit for Members and Affiliates who are looking to make a career change. PLEASE NOTE: This new and exclusive benefit is FREE! To take advantage of this service, e-mail your Job Wanted posting to Maureen Smith at msmith@nafa.org. April Job Postings
Fleet Manager - Washington, DC Equipment Bureau Chief - Arlington County, VA Resume Bank NAFA is going one step further to help those in the industry gain employment. For a small fee, NAFA will send resumes to any prospective employer who places an ad on the Career Network Section of the NAFA Web site. Employers will be provided with new, up-to-date resumes that fit the job, for a small cost. There is still no charge to submit a resume to the Resume Bank. To be included in the Resume Bank, please send a current version of your resume to Maureen Smith, NAFA, Inc., 125 Village Blvd., Suite 200, Princeton, NJ 08540; or fax it to 609-452-8004. Resumes can also be e-mailed to Maureen Smith at msmith@nafa.org. A few tips and reminders: If you would like to include a generic cover letter to be sent to potential employers, please include that as part of your resume. Make sure your home address, home phone or cell phone and personal e-mail address are included on your resume. Potential employers will contact you directly. NAFA has a number of fleet-related job openings on the Jobs Wanted/Available page (click here). |
Chapter Highlights Industry Calendar NAFA's 34 local chapters across Canada and the United States offer you numerous opportunities to meet colleagues and receive valuable fleet management education to keep you informed! Each year, more than 100 NAFA Chapter meetings provide top level education and training on a wide variety of timely topics! May Chapter meetings will take place: May 7, 2009 Membership Benefits You As a service to NAFA Members, Patrick O'Connor and Huw Williams, NAFA's U.S. and Canadian legislative counsels, respectively, supply monthly updates on current legislative issues impacting the fleet industry. These updates, e-mailed to NAFA Members the first week of each month, are posted in PDF format at a MEMBERS ONLY SECTION on www.nafa.org. Legislative Updates are issued monthly to NAFA Members and then archived online. With this e-newsletter, NAFA Members can easily check on the progress and status of current legislation. Click here for more information. Three online, searchable networking databases will put you in easy touch with all your NAFA colleagues. Exclusively for the use of the NAFA membership! Our three databases help YOU find:
You must be a Member or Affiliate to utilize the online networking databases. To start your search, click here. NAFA's FleetED is designed to help you quickly find references and educational resources that you need now. From asset management to maintenance management, benchmarking and shop operations, NAFA's FleetED covers all fleet management disciplines and competencies, making this free Web site your fast online portal to all fleet management education. Whether you are looking for something specific, or just trying to figure out what you need to know, NAFA's FleetED will guide you to valuable, comprehensive education content and reference materials. Visit FleetED at www.nafa.org/fleeted. e-Communities offers members the chance to reach colleagues and share ideas when they need to -- anytime, anywhere! These virtual neighborhoods allow members to easily e-mail others within that community with specific fleet questions. As a subscriber to e-Communities, you can:
To visit e-Communities, please click here. Have you been promoted? Is your company moving? Did you get a new job? Are you retiring? Remember to notify NAFA about these and other changes. If you are retiring, please contact NAFA, as you may be eligible to become a NAFA alumnus and stay in touch with your NAFA colleagues and friends. There are two easy ways to both help your colleagues keep in touch and make changes to your membership record: 1) click on "My Profile" on the NAFA homepage and submit changes, or 2) e-mail info@nafa.org. NAFA cares about your privacy. As such, NAFA does not sell or rent e-mail addresses or phone numbers of its members or affiliates. NAFA also does not endorse any particular product or service provided by fleet suppliers. If you receive an e-mail (or any other form of communication) from a supplier that implies a NAFA endorsement or uses the NAFA name or likeness to imply endorsement, please notify NAFA immediately. We will issue a "cease and desist" notice and pursue action as necessary. (You should know that e-mail addresses are part of the online PDF files NAFA posts each month for communication among NAFA Members and Affiliates. Access to these files is restricted to NAFA Members and Affiliates.) For NAFA's complete privacy policy, please click here: http://www.nafa.org/Template.cfm?Section=Privacy_Policy. |