Car Insurance

FULTON General Motors Corporation’s “Employee Discount for Everyone” promotion brought a surge of new buyers into area dealerships.

The campaign helped increase the automaker’s U.S. sales for the month of June by 41 percent nationally, GM’s best sales month in 19 years.

To keep the momentum going, GM announced on July 5 it would extend the employee-discount promotion to Aug.

1. The program, which began June 1, was due to expire the day of the extension announcement. The discount is available to any customer who takes delivery of a new 2005 GM car or truck.

The employee discount has attracted buyers who don’t traditionally purchase GM automobiles, says Wesley Morrison, general sales manager for Laqua’s 481 Pontiac, Buick, and GMC Truck Center, LLC, in Fulton.

“We saw a lot of new faces, and took in a lot of late model Fords, Dodges, and imports [as trade-ins],” Morrison says. “[The GM promotion] opened up the showroom to people who might have been brand loyal to someone else.”

The manufacturer’s promotion also brought in many buyers who didn’t necessarily need a new car, but decided to purchase a vehicle while the company was offering a great deal, Morrison says.

“When the program ends, we are going to have a lot of next-to-new trade-ins, which is always nice,” Morrison says.

In June, Laqua’s sold about 60 GM new cars and light trucks, up from about 35 in June 2004, Morrison says.

During the promotion, the cost to buyers was less than the dealer invoice, Morrison explains. GM subsidized the difference for dealerships, which varied on a percentage basis depending on the model and cost of the automobile, Morrison says. GM is spending about $1 billion on the promotion, according to an estimate by CreditSights, Inc., an independent research firm with offices in London and New York City.

GM’s goal was two-fold, Morrison says.

The manufacturer was willing to subsidize dealerships in order to attract new buyers and reduce excess inventory, he says.

Nye Pontiac-GMC in Oneida sold 40 GM vehicles in June, up about 40 percent from the dealership’s May sales total, says Randy Palmer, general sales manager. In June 2004, the dealership sold 18 GM cars and trucks.

Palmer says he saw many current GM-automobile owners decide to make a purchase while the company was offering a deal, Palmer says. “They decided to buy now while the getting was good.”

Nye supplemented GM’s nationwide campaign with some of its own advertising. However, only a small portion of Nye’s $20,000 monthly advertising budget was used to promote the GM sale, according to Palmer.

GM initiated the widespread employeediscount promotion after its U.S. sales in May dropped 6.7 percent from the same period in 2004. GM posted a loss of $1.1 billion in the first quarter of 2005.

Hours after GM announced it was extending the employee discount, Ford Motor Company said it would match its rival’s campaign by launching the “Ford Family Plan.” That promotion, which began July 6, will also end Aug. 1. The Chrysler arm of DaimlerChrysler also joined the employee-discount parade on July 6. Called “Employee Pricing Plus,” the Chrysler promotion lasts until Aug. 1, but excludes some hot-selling car models such as the Chrysler 300.

The competing manufacturers will cut thousands of dollars off sticker prices in an attempt to gain market share.

LAST YEARS CRAFTSMAN TRUCK Series champion, Mike Bliss, has moved up a notch on NASCAR’s ladder to the Busch Series. Taking his place on the Steve Coulter-owned Xpress Motorsports team is Travis Kvapil, who is entering his third year in the series.

Kvapil finished ninth in the 2002 point race after placing a surprising fourth as a rookie. He won a race and scored 10 top-five finishes last year. The Xpress team nearly disbanded in 2001, until Bliss scored a ninth-place finish in a one-off race at South Boston late in the campaign. The team opened 2002 running on a race-to-race basis, starting the year with a last-place finish in the Daytona opener. Bliss quickly turned the team’s fortunes around, however, and led the successful Championship drive.

Kvapil will be up against a few solid veterans contending for the rifle. Ted Musgrave finished second in 2001 and third in 2002 in his two years with Ultra Motorsports. The former Winston Cup driver is now in the best position of his career to win a NASCAR championship. Jason Leffler, who recorded 11 top-10 finishes but no victories in 2002, returns as his teammate.

Expected to join the series full time in 2003 is owner Bobby Hamilton, who takes over the wheel of his No. 4 Dodge after 11 years of Winston Cup competition.

World of Outlaws

Competitors in the Pennzoil World of Outlaws face another year trying to catch Steve Kinser and Danny Lasoski. The pair had an exciting battle for the rifle last year, exchanging the points lead 12 times until an injury forced Lasoski to sit out four races, and opened the door to Kinser’s 17th crown.

Jeff Shepard is planning his return to the Outlaw ranks after a year with the All Stars Circuit of Champions. Shepard will drive David Helm’s No. 11 Vivarin Maxim, replacing Stevie Smith. Shepard won the Outlaw’s Kevin Gobrecht Rookie of the Year Award in 2001, finishing 10th in the point standings while driving for Guy Forbrook. He has two WoO triumphs.

Infiniti Pro Series

The IRL Infiniti Pro Series looks for continued growth in its second season. The biggest news is that inaugural champion AJ. Foyt IV moved up to the IRL IndyCar Series, proving the value of the series as a steppingstone to America’s premier open-wheel division.

The Infiniti Pro Series’ schedule grows from seven to 11 races, with the possibility of a 12th race the night before the Indy 500 at Indianapolis Raceway Park.

Leading the returning drivers is Arie Luyendyk Jr., who moves to Sinden Racing and will be the man to beat for the title.

Other challengers include Ed Carpenter–who moved from Sinden to replace the champion on AJ. Foyt’s team–and Hemelgarn 91/Johnson Motorsports’ Cory Witherill and Aaron Fike, who each won races in 2002.

The top newcomer is Panther Racing’s Mark Taylor, an Englishman who has competed in Formula 3000. It’s also possible that of several IndyCar veterans will enter the series if they cannot find enough sponsorship to compete in the IRL.

NHRAA

While John Force continues to pile up honors in the NHRA Powerade Funny Car Series–he won his 10th consecutive title last year–Ron Capps is ready to make his move to the top. Capps was the last driver to lead Force late in the season–doing so in 1998–and has twice finished second in the championship.

In 2003, his Don Prudhomme-owned team looks to dethrone the champ. “We have a very good idea of what it takes to beat him because we’ve been close a couple of times,” says Capps. “Our motto is, ‘All that matters is the championship.’”

Kenny Bernstein may have hung up his helmet at the end of 2002, but another great from the past will return for limited action this season. The legendary Don Garlits–who began drag racing in 1950–plans to run four races this year in Swamp Rat 34, helping Summit Racing Equipment celebrate its 35th season. Over his career, Garlits has accumulated 17 championships and 144 event victories.

The Grand American Rolex Sports Car Series

The series introduces a lead division in its 2003 season-opening Daytona 24 Hours in February, the Daytona Prototypes. The new class features purpose-built sports coupes. Early manufacturers included Fabcar, Picchio, Multimatic, and Doran, with sports car powers Riley & Scott and Crawford also developing rides. The engine suppliers are Ford, Porsche, Toyota, BMW, Chevrolet, and Maserati.

Brumos Racing got off to a head start with the new cars by testing as early as October, with a driver lineup that includes Hurley Haywood, David Donohue, Mike Borkowski, and J.C. France. Multimatic–whose engines are built by NASCAR legend Robert Yates–counters with Canadian stars Scott Maxwell and David Empringham. Other top drivers include Picchio’s Darren Law and Doran’s Terry Borcheller and Forest Barber.

An interesting aspect of the new class is that the speeds of the cars will be similar to those turned in by the GTS and GT divisions, giving the. sports car series a wide-open battle for the overall victory. Among the veterans joining the series in 2003 is Davy Jones, set for his first regular ride since suffering injuries in a 1997 RL crash at Disney World Speedway. Jones finished second in the 1996
Indianapolis 500 and came back two weeks later to win the 24 Hours of Le Mans. After concentrating on building a go-kart business in Houston over the past few years, the Cortland, N.Y., native is ready to resume his pro racing career.

LAKE BUTLER, Fla. — Seven adopted children from a single household were killed Wednesday when their car was crushed between a truck and a stopped school bus in northern Florida.

The children, ranging from 15 years to 21 months, were alone in the car. The truck hit them from behind, pushing their car into the bus and causing the car to burst into flames, police said.

“It’s a very chaotic scene,” said Lt. Mike Burroughs of the Florida Highway Patrol. “It’s just a mangled, charred mess.”

Everyone in the car was killed, including the 15-year-old girl who was driving illegally. It was unclear why the children were unaccompanied.

Europe is a real battleground when it comes to light commercial vehicles (LCVs). Last year, Renault was the market leader with a 14.1%, followed by Citroen (10.2%), Fiat (9.8%), Ford (9.3%), Mercedes-Benz (8.4%) and Volkswagen (8.2%). Opel, GM’s European brand, has seen its market share slump to just over 4%, a situation it expects to quickly change based on a cooperative agreement with Renault. Under the terms of the December 1996 pact, the French automaker was to supply its existing Master (2.8 to 3.5 ton) and Trafic series (2 to 2.8 ton) to GM Europe for its Opel and Vauxhall brands. Together, GM and Renault would create the replacement for the Trafic.

The first real fruits of that collaboration are now in dealers’ showrooms throughout Western Europe. While Opel (and its UK sister Vauxhall) have had some success in selling the Movano and Arena–Renault’s re-badged Master and the previous Trafic respectively–it is with the new Vivaro, the new Renault Trafic, where the real hopes lie.

Work began on the new Trafic/Vivaro project, code-named X83, in early 1997. Renault was responsible for the design and engineering, and GM for the manufacturing. Within Renault, X83 became the responsibility of the DVU, the Direction Vehicules Utilitaires, a specialized business unit created to improve the French auto-maker’s position within the commercial vehicle market. An integral part of this unit is i-DVU, a department of more than 830 engineers in charge of studying, developing, and perfecting new models while also devising the manufacturing processes.

One of the first problems for the Renault/GM combine was the supply chain. It was not just a question of supplying parts at the cheapest possible price, but which company’s working practices would be followed. Renault has long looked for the active participation of its suppliers in the design process. Opel has tended to look for solutions in-house. Also, Renault asks that its suppliers validate the parts they supply and certify their facilities. Opel does not. The French company took the lead.

The companies agreed that many of the vehicle’s systems and modules, including the seats and trim, instrument panels, HVAC unit, engine cooling and exhaust systems, and the front and rear axles would be outsourced. To this were added stamped parts and subassemblies like the rear side members and the body side, although this was partly the result of a lack of space in the plants. Engines and gearboxes for the Trafic/Vivaro are sourced from Renault and include a pair of 1.0-liter common-rail diesels (82 or 100 hp) and a 2.0-liter gasoline engine producing 120 hp. The six-speed gearbox used on all but the 82 hp engine is derived from the Renault Laguna.

The Trafic/Vivavro will be built at two plants in Europe and it may even be assembled in Brazil at a later date. GM, which is responsible for manufacturing the vehicles, opted for its BC Vehicles plant at Luton, UK, and Nissan’s plant in Barcelona, Spain. Once fully ramped up, total annual capacity should be around 150,000 units, with 86,000 coming out of Luton and 64,000 out of Barcelona. It’s possible that Renault’s plant in Curitiba, Brazil also will produce the new model alongside Renault’s Master.

Producing the vehicle at Luton means dealing with the strength of the British pound versus the euro. Since the suppliers contracts were written in 1999, the pound has appreciated by around a fifth, leading to some serious financial implications. GM in particular has made light of it, saying decisions can’t be made on the daily currency rate and that a van’s lifecycle is far longer than a passenger car’s.

Nevertheless, the importance to both Renault and GM of the new Trafic can’t be overstated. Nissan and Renault together rank fifth in the international LCV market with 750,000 vehicles sold worldwide, and have a 7% market share. Nissan’s LCV production accounts for 230,000 units sold worldwide (mainly pick-ups), including 150,000 units in North America and 25,000 in Western Europe.

Renault has identified the LCV market, as defined by European standards, as an important area for growth. Between 1995 and 2000, it grew by 10% to nearly 10 million units worldwide. In developed countries, LCVs are a way of penetrating the company fleet market, which in Western Europe accounts for 25% of all passenger and car sales. Meanwhile, LCVs enable automakers to penetrate the automobile market in emerging countries. For example, in countries such as Thailand (68%), China (63%), and Korea (51%), the LCV share is the greater of the two.

This is why both Renault and GM are keen to exploit their five-year old partnership. Renault says that excluding sales of Nissan vehicles, it has targeted 2004 worldwide sales of around 400,000 units in 2004 and 700,000 in 2010. Of these, less than half will be in Europe.

Renault, however, is not stopping there. It is developing a platform with Nissan designed to renew the LCV range that will contain Japanese powertrain components. These include placing Nissan’s 3.0-liter commonrail diesel engine in the Master and a Nissan rear axle in the Kangoo 4×4. Though the spearhead for its move into the Asia-Pacific region, Nissan also will sell re-badged versions of Renault’s Master, Trafic, and Kangoo in Europe, as well as a Brazilian-built version of its own Frontier pick-up in Mercosur.

One of the most exciting recent developments is the expanded capability to measure the performance of freight cars as they roll down the track. I call this “dynamic car measurement” because it measures the action of the car as it operates, as compared to inspection of the individual components in a static environment. Though hot bearing and dragging equipment detectors have been around for a generation, these devices detect car components that have already failed. Recently, devices that measure car performance in a predictive way have become available. Their further development and deployment has great promise for rail safety, car and track maintenance, lading loss and damage, and even regulatory reform.

Since the 1970s, track geometry cars (and, more recently split-axle gauge restraint measurement cars) have been able to measure track under load to see how it behaves during the passage of a train. Valuable information from those automated testing programs went a long way toward improving track safety. Car inspection, on the other hand, relies almost entirely on visual inspection of standing cars, and the standards applied are aimed at the structural integrity of the car and its key components (flange thickness, structural cracks, etc.). Those standards generally don’t address the systemic performance of a car in motion. Dynamic car

Among the dynamic measuring devices now available to railroads, the most common is the WILD (wheel impact load detector). There are many of these deployed, and they regularly find wheels too flat to prudently or even safely continue to operate. It’s not a large percentage of the wheels inspected, but it is enough to make a difference in bearing maintenance and rail integrity.

TPDs (truck performance detectors) now measure the steering ability of the car. This new technology will go a long way toward improving the safety of trains negotiating curves and turnouts, the two places where most derailments occur.

Ride quality monitors (an accelerometer placed on a car, with g-force thresholds set, and a real-time link through GPS to a processing center to analyze location, speed, and type of force on the car–lateral, vertical, longitudinal) now can measure more conditions, more accurately, and locate them more precisely than the earlier versions used in loss and damage prevention. Ride quality is a combination of whatever the track is doing and how the car is reacting to the track it’s riding on. A pilot program I ran showed that both track and car were factors: Track and car conditions that were well within the existing safety and maintenance standards could nevertheless create a rough ride at a given location. Analyzing this data showed that valuable insight could be gained into the performance of an individual car. In one example, in an 18-month-long study of eight high mileage cars, 89% of all the lateral exceptions recorded were recorded on one car. In another, a single car in a unit train was experiencing excessive loss and damage. When equipped with a monitor that gave insight into its behavior, a $400 repair to one of the trucks eliminated the problem.

Acoustic beating detectors show real promise in predictive assessment of bearings so that incipient failures can be dealt with before they actually occur.

The INTERRIS (Integrated Railway Remote Information Service) program being deployed by the AAR to share information among beating detectors on all railroads is another step forward in proactive, predictive car performance measurement.

For years, railroaders have dreamed of having performance standards rather than design criteria–visual specifications that currently form the basis of FRA standards. Performance standards can help cull out “bad actors” before they cause trouble, leaving “good actors” in service. Dynamic car measurement is a giant step toward that end. If beatings show no hint of failure, if wheels are round, if the car steers adequately, and if the ride quality for the class of service is satisfactory, then the car is a good car. If not, repairs should be made in a timely fashion, performance being the main criteria.

It will take a lot of effort and arm-wrestling to get to that ultimate vision. There are many stakeholders, including private car owners, and there is still much difference of opinion about proper thresholds to attach to the term “acceptable performance.” Point is, these measurement capabilities are here and now, they are affordable, and the information can be used today to make safer, better, more competitive railroads.