NAFA Connection

NAFA News

Hours after filing for Chapter 11 bankruptcy, General Motors reaches out:
For more information on GM, read "GM Files for Chapter 11 Bankruptcy" under More Headline News.

Dear Phil Russo,
NAFA

In light of General Motors' announcements today, I want to reach out to you directly to reinforce our commitment to you as a valued GM Fleet and Commercial business partner.

GM plans to leverage an expedited, court-supervised process to accelerate the reinvention of our company. We anticipate that this process will enable us to rapidly implement key business requirements on a clearly laid out path to accomplish GM's renewal.

I want to assure you that while tough changes are needed, our strong commitment to our customers remains unchanged. As such:

• GM intends to honor 2009 fleet agreements for ordered and out-of-stock purchases, including applicable incentive payments.
• Our intent is to continue with vehicle production as outlined in previously communicated schedules.
• GM intends to honor its warranty commitments given at the time of purchase to owners of current and future GM products.
• Service for all brands will continue to be available through authorized GM service facilities, with genuine GM parts.

In addition to the points above, for up-to-date information, answers to frequently asked questions and other communication about GM's promising future, visit gmfleet.com/newgm.

General Motors remains fully committed to the fleet and commercial business, and will continue to provide you desirable, high-quality vehicles from Chevy, Cadillac, Buick and GMC to meet your fleet needs.

We appreciate your business and want to continue to be your preferred business partner for fleet vehicles in the years ahead.

Sincerely,

Jim Campbell
General Manager GM Fleet and Commercial Operations

To better answer your questions and concerns, Impact Public Affairs, NAFA's Canadian legislative counsel, has established a new toll-free phone number with dedicated live response and a new centralized e-mail address: nafa@impactcanada.com. 

Now, NAFA Members can call 866-935-9969 with any questions or concerns and receive a guaranteed 24-hour response (excluding weekends and public holidays).

In addition to the toll-free number and new centralized e-mail address, Impact Public Affairs also:

• Monitors legislative issues and provides ongoing strategic government relations advice, information, and counsel.
• Assists NAFA in enhancing our government relations profile and associated profile development campaigns.
• Monitors government policy, legislation, caucuses, and committees with respect to issues that impact fleet.
• Provides fully bilingual member services.

NAFA's Canadian legislative counsel serves membership by monitoring federal legislation and regulatory activities that might impact fleets, to be on call to fight key issues as they develop, and to conduct significant direct dialogue with members as requested. Impact Public Affairs monitors legislation in all 10 provinces and three territories and drafts regular legislative updates and bi-weekly member updates for electronic bulletins and articles for NAFA publications. 

This latest service will provide NAFA Members with immediate answers and even better service.

On May 19, two NAFA Chapters combined their efforts for a meeting dedicated to the discussion of clean energy and alternative fuels. Held on the United States Intrepid aircraft carrier and sponsored by Mercedes-Benz USA Fleet Operations, the joint meeting of the New Jersey and New York Chapters included a look at a few alternative-fueled vehicles and featured special guest speakers Christine Todd Whitman, former Governor of New Jersey and one-time Administrator of the Environmental Protection Agency, and Andrew J. Littlefair, President and CEO of Clean Energy; as well as a private tour of the Intrepid.

Christine Whitman noted the importance of fleet managers to the environmental movement and stressed that doing the little things (such as proper vehicle maintenance and purchasing vehicles with higher MPG) is paramount even during difficult economic times.  She asked the NAFA Members, Affiliates, and other attendees to make a commitment to having the cleanest, most fuel efficient, and best maintained fleets because fleet managers have a unique opportunity to make positive changes in the automotive industry.

"I understand that the Members of your organization are responsible for more than 3.5 million vehicles in the United States and Canada, including 1.5 million passenger cars," said Whitman. "That's an enormous amount of power that you have on many different levels.  Your ability to set a high standard for environmental performance both individually and at your workplaces - plus collectively as an organization- is just enormous.  You should never underestimate the power you have to drive markets."

Prior to Whitman, Littlefair discussed the value of utilizing domestic energy sources such as wind, solar, and natural gas.  Clean Energy, a company founded by T. Boone Pickens, is advancing the use of natural gas as a cleaner-burning and more cost-effective transportation fuel alternative to gasoline and diesel.  Littlefair examined the progress made over the past decade, including a growing number of natural gas vehicles to choose from and a rise in the number of natural gas vehicle fueling stations around the world.

Most importantly, he pointed out that while it was only a few years ago that people believed the United States had about a 20-year supply of natural gas, recent studies have stated the actual amount is closer to a 120-year supply.

"So, for those of us that want to use natural gas for transportation, the bad news is we're importing all of that foreign oil (which is getting expensive again), but the good news is we've got a domestic resource that's abundant," said Littlefair.

Very well attended, this joint meeting is a good example of how NAFA chapters can work together and share resources in order to bring high profile speakers to their meetings.

"It is always a pleasure working with our neighboring chapters on a joint meeting," said New York Chapter Chair Arthur Kappel, CAFM, Cablevision Systems Corporation.  "It adds additional value to the networking experience.  The meeting was a huge success, and everyone seemed to have a great time.  Whenever you can network, learn something and still have a nice time, it is a winning combination."

The Fleet Greenhouse Gas Calculator created by the Environmental Defense Fund (EDF) and the NAFA Fleet Management Association, makes it easier than ever for fleet managers to measure their greenhouse gas emissions as a first step in creating "greener" vehicle fleets.

The EDF-NAFA Fleet Greenhouse Gas Calculator was unveiled at the NAFA 2009 Institute & Expo in New Orleans. The Master's Seminar, entitled "Carbon Footprint Calculation and Management," covered data needs and options for quantifying fleet greenhouse gas emissions.

"Fleet managers today face immense pressures from all sides to cut costs – and reducing emissions is one way to do so," said Jason Mathers, Green Fleet project manager for EDF. "Our goal in launching this online calculator is to put fleet managers in the driver's seat when it comes to measurement, efficiency, and cost savings."

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.

The Fleet Greenhouse Gas Calculator estimates total fleet greenhouse gas emissions from fuel consumption data. This data is directly used to calculate emissions of carbon dioxide (CO2), which accounts for about 95 percent of greenhouse gas from vehicles. Emissions of nitrous oxide (N2O), methane (CH4), and hydrofluorocarbons (HFCs) are estimated based on their prominence among greenhouse gas from transportation source as reported in the Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2006.You can access the calculator from the NAFA homepage, www.nafa.org, or by visiting http://edf.org/greenfleet.

Did You Know?

Did you know that NAFA Members are responsible for the specification, acquisition, maintenance and repair, fueling, risk management, and remarketing of more than 3.5 million vehicles — including in excess of 1.1 million trucks? Additionally, NAFA Members across North America have more than 350,000 medium- and heavy- duty trucks in their fleets, totaling more than $21 billion in assets for medium- and heavy-duty trucks alone. And the influence and impact of NAFA doesn't end there!

The more "traditional" fleet vehicles of sedans, vans, and SUVs managed by NAFA Members total 1.4 million and account for $45 billion in assets. Plus, Members' fleets account for a quarter million police sedans; 58,000-plus emergency vehicles; and 386,000 pieces of specialty equipment used by both public service and commercial fleets.

Want to share your expertise? Do you have program ideas that would benefit your fleet industry peers? Take the first step in identifying the most relevant topics and issues facing fleet professionals today and submit your presentation proposal. Please include proposed title and time allotment needed.

Note: The full presentation is not needed at this time. To view the response form, click here.

Plans are already being developed for our next Institute and Expo, scheduled for April 24 - 27, 2010, in Detroit, Michigan.

The Curriculum Committee is now working to identify key topics for this future conference. All NAFA Members and Affiliates are invited to recommend ideas for topics and suggest speakers or panelists for consideration. Click here for more information.

Submissions must be received by June 5, 2009.

Send to:
Curriculum Committee
c/o Jayne Wickham
NAFA Inc.
125 Village Boulevard
Suite 200
Princeton, NJ 08540

Submissions may be faxed (609) 452-8004 or e-mailed to jwickham@nafa.org.

As a fleet professional, you have valuable knowledge and numerous experiences with a wide variety of fleet concerns that fleet managers would benefit from learning about. NAFA needs this information and perspective, as NAFA Affiliates are an important part of the NAFA family!

NAFA wants your input for educational articles in NAFA publications! What are you doing to save money? How do you see the economy affecting and impacting fleet management? These are just a handful of topics.

Share your ideas today. Don't just talk about your ideas to your peers; submit your idea for a FLEETSolutions or FleetFOCUS article. Contact Gary Wien, Communications Manager, at gwien@nafa.org, or Tina Perrotta, Communications Assistant, at tperrotta@nafa.org, with your suggestions.

NAFA Affiliate and CEO of Donlen Corporation, Gary Rappeport, was named a finalist in the Executive of the Year - Services category in the 2009 American Business Awards.

The American Business Awards are the nation's premier business awards. Rappeport was recognized as a finalist in the Executive of the Year – Services category for his numerous leadership achievements. Under Rappeport's direction, Donlen has had exponential growth over the past five years. His focus on employee satisfaction, corporate social responsibility, and environmental consciousness has put Donlen in the forefront of workplace excellence earning them numerous recognitions.

"While this award honors Gary, we recognize that much of what Donlen has accomplished is a result of the hard work and dedication of our employees," said Tom Callahan, Donlen President and COO. "It's the combination of their efforts and Gary's vision that makes Donlen successful."

In addition to workplace excellence, Rappeport has shown committment to driving change within the fleet industry by initiating environmentally conscious programs and partnering with organizations such as the EPA's Smart Way program and Sierra Club. Donlen GreenKey, a carbon reduction focused program, provides solutions to help companies understand and improve their fleet's impact on the environment, and coolfleets.com which helps commercial, government, and municipal fleets in modeling vehicle alternatives to gain a better understanding of both their carbon output and lifecycle costs, are two of his recent accomplishments.

Take part in NAFA's new Certified Automotive Fleet Supervisor (CAFS) certification program or Certified Automotive Fleet Manager (CAFM) program.  Both certificates will give you a leg up on your peers.

If you're interested in a career as a technician or assistant, or in other positions in the fleet-related field, the Certified Automotive Fleet Supervisor certification program is for you. The CAFS program is open to any individual with at least one year of experience as a fleet manager, assistant manager, fleet supervisor, or other fleet-related position, and it is open to those enrolled in a college or university program in a fleet-related discipline.

This CAFS certificate is awarded to those who show a proven proficiency in four specific aspects of fleet management and who may ultimately continue their educational path towards the completion of a CAFM designation – the highest and most comprehensive certification in the fleet industry.

"The CAFM program is the only certification program that proves an individual's expertise in fleet. Other certification programs may attest that a person has minimum basic knowledge of fleet, but the CAFM program proves the person is an expert," stated Phillip Russo, CAE, NAFA Executive Director.

To earn the CAFM designation, an applicant must pass a series of comprehensive examinations to demonstrate expertise in the eight disciplines of automotive fleet management:  Fleet Information Management, Maintenance Management, Professional Development, Vehicle Fuel Management, Asset Management, Business Management, Financial Management, and Risk Management.  Designed to identify and recognize exceptional fleet management professionals, many employers now require fleet managers to obtain the CAFM designation prior to, or shortly after, employment.

"After 13 years and a variety of positions in the fleet industry, I felt it was time to challenge myself. After looking at the opportunities available, it was evident that the NAFA CAFM program was the most respected program available in the fleet industry. My employer stood behind me throughout the CAFM experience and understood that attaining this certification adds value to my position," said Donald M. Lubinsky, CAFM, Director Automotive for AMTRAK.

A CAFM certification clearly makes a fleet professional stand apart from the competition.  Currently fewer than 400 fleet managers have joined the exclusive ranks of CAFM certification holders.  For more information about the CAFM or CAFS program, click here.

Designed with you in mind, the guide will 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, makes 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:

• The issues associated with the centralized fuel management of conventional fuels.
• A variety of tools to fuel decentralized fleets.
• Alternative fuels and advanced technology vehicles, including forms of hybrid drive trains currently available.

Available in three formats to meet your project and budget needs!

• The e-download gives you instant access and portability – store it virtually anywhere: in your own "NAFA document folder," on your computer, or on your flash drive to take with you!
• The CD version offers the same practical abilities as the e-downloadable format and is a product ready to share with other members of your fleet management team or add to the department's reference shelves!
• The more traditional, spiral-bound, soft-cover book provides for easy use, especially when sharing references with colleagues.

Order today! NAFA's Fuel Management Guide will help you gain a better understanding of your second largest fleet vehicle expense.

Headline News

General Motors Corp. announced they have filed for Chapter 11 bankruptcy protection and will close nine plants. GM stated the company has $82.3 billion in assets and $172.8 billion in debts.

The decision to file bankruptcy is part of a plan by President Obama's administration to downsize the automaker and give ownership stake to the federal government.   The plan relies on as much as $30 billion in additional taxpayer assistance and could give taxpayers a 60 percent ownership stake in the company.

"The General Motors Board of Directors authorized the filing of a chapter 11 case with regret that this path proved necessary despite the best efforts of so many," said Kent Kresa, Chairman, GM Board of Directors. "Today marks a new beginning for General Motors. A court-supervised process and transfer of assets will enable a New GM to emerge as a stronger, healthier, more focused and nimbler company with a determination not to just survive but to excel. The Board concluded that the proposed transformation will maximize the value of the enterprise, and the return to the many stakeholders who have been involved with GM over the years."

General Motors also announced it plans on building a small car at one of its U.S. assembly plants on standby capacity status.  In addition, operations will stop at three Parts Distribution Centers in Boston, Massachusetts; Columbus, Ohio; and Jacksonville, Florida.  by Dec. 31, 2009. 

 "Our manufacturing operations, which already are among the most productive in the industry, will emerge even leaner, stronger, and more flexible, as part of the New GM," said Gary Cowger Group Vice President of GM Global Manufacturing and Labor Relations. "Flexible manufacturing enables us to quickly respond to consumer preferences and changing market conditions."

GM's Chapter 11 filing is the largest in automotive history and the fourth-largest in U.S. history.
Capital Structure of the New GM: On March 31, 2009, GM reported consolidated debt of $54.4 billion, along with additional liabilities, including an estimated $20 billion obligation to the UAW VEBA. Under GM's agreements with the U.S. Treasury, the Canadian and Ontario governments, and the UAW and CAW, and with the support of a substantial portion of GM's unsecured bondholders, upon closing of GM's sale of assets to the New GM, the New GM's capital structure will be comprised of:

Approximately $17 billion in total consolidated debt, including:

• $6.7 billion of debt owed to the U.S. Treasury
• $1.3 billion of debt owed to the Canadian and Ontario governments
• $2.5 billion of notes issued to the new Voluntary Employee Beneficiary Association (New VEBA)
• Approximately $6.8 billion of other, primarily international debt, but excluding Europe

GM has asked the Court to approve a number of steps to protect current and new GM customers, ensure that its operations will continue uninterrupted during the court-supervised process, and provide for a smooth transition to the New GM including: GM dealers will continue to service GM vehicles and honor GM warranties, and U.S. and Canadian government guarantees of manufacturers' warranties are designed to reassure consumers.

GM will also use its cash-on-hand and a new Debtor-in-Possession (DIP) financing of approximately $33 billion to ensure an uninterrupted supply of goods and services and provide for other cash requirements prior to closing of the asset sale; fund liabilities to secured lenders; and provide contingency funding to handle any potential unexpected needs. Furthermore, in conjunction with the sale, the U.S. Treasury and the Canadian and Ontario governments will provide funds to administer the wind down of the remaining assets and the closing of the chapter 11 cases.

Current Condition of Chrysler LLC Dealer Network

Court Approves Sale of Chrysler LLC Operations to New Company Formed with Fiat 
 
Chrysler LLC announced the U.S. Bankruptcy Court, Southern District of New York, has approved its request to sell substantially all of its operations to Chrysler Group LLC, the new company formed in alliance with Fiat SpA.

The alliance with Fiat provides Chrysler Group with access to exciting products that complement the Company's current portfolio, technology cooperation and stronger global distribution. Work with Fiat is already well underway to develop the next generation of environmentally friendly, fuel-efficient high-quality vehicles.

Chrysler's Mexican, Canadian, and other international operations will also be acquired by Chrysler Group.

Steven J. Landry, Executive Vice President, North American Marketing and Mopar Parts and Service for Chrysler LLC, stated if the sale to Fiat was not approved by the Bankruptcy Court. then 3,181 dealers could have faced elimination.

Recent Activity Involving Electric Vehicles

Chrysler LLC has submitted three proposals outlining a $448-million plan to the U.S. Department of Energy (DOE) in order to rapidly bring Electric Vehicles (EV) and Plug-in Hybrid-electric Vehicles (PHEV) to market.

Chrysler LLC applied for two initiatives established by the DOE — the Electric Drive Vehicle Battery and Component Manufacturing Initiative and the Transportation Electrification Initiative. Both are designed to speed up development, demonstration, evaluation, and manufacturing of EVs and PHEVs. 

"These initiatives represent how government and the automotive industry are answering the challenge of reaching common goals and demonstrate how rapidly this type of advanced technology can be brought to market in a collaborative environment," said John Bozzella, Senior Vice President, External Affairs and Public Policy, Chrysler LLC.

If approved, Chrysler LLC plans to use funds to build a demonstration fleet of PHEVs and EVs, as well as create a new-vehicle electrification technology and manufacturing center located in Michigan. The proposal will enable the production of commercially viable products in a shorter time frame. Combined, Chrysler LLC's proposal will stimulate the economy and help the company achieve its leadership goals in electrified-vehicle development and production.

The Transportation Electrification Initiative

Chrysler LLC's $365-million submission for the Transportation Electrification Initiative intends to establish a nationwide demonstration fleet of more than 365 test-fleet vehicles for use by select customers and partners. The company has established more than a dozen partnerships with city and local governments, research and development authorities, utility companies, and universities to test the PHEVs.

In addition, through a partnership between Chrysler LLC's ENVI group and the U.S. Postal Service (USPS), Chrysler LLC will deliver 165 Chrysler Town & Country EV cargo minivans for daily mail service in four regions throughout the country.

The Electric Drive Vehicle Battery and Component Manufacturing Initiative

Within the Electric Drive Vehicle Battery and Component Manufacturing Initiative, Chrysler LLC plans to use as much as $83 million to build a new vehicle electrification technology and manufacturing center in Michigan. This new facility would house development, testing and electric-drive component manufacturing in addition to final assembly of EVs and Range-extended Electric Vehicles (ReEVs). The complex would be functional by 2010 and produce more than 20,000 units per year.

C. Robert Kidder, former Chairman of Borden Chemical Inc. and Duracell International Inc., will become Chairman of Chrysler Group LLC, once it completes its acquisition of the operating assets of Chrysler LLC and completes a global alliance with Fiat SpA. He will succeed Robert L. Nardelli.

"We are most fortunate that Bob Kidder will lead the new company through its transformation," said Nardelli. "My number one priority has been to preserve Chrysler and the livelihoods of thousands of people who depend on its success. With his broad expertise serving on numerous world-class boards and his accomplished business background, Bob will provide the leadership and strategic counsel that will help to create a strong global competitor moving forward."

With more than 40 years of experience, Kidder currently serves on the boards of Morgan Stanley, where he is the lead director, Schering-Plough Corporation, and Microvi Biotech Inc. Previously he has served as Chairman and Chief Executive Officer of both Duracell International Inc. and Borden Chemical Inc., and as director of such companies as Electronic Data Systems Corporation and General Signal Corporation.

Chrysler LLC announced on April 30 that, as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it had reached an agreement in principle to establish a global strategic alliance with Fiat to form a vibrant new company.

On the same day, Chrysler LLC and 24 of its wholly-owned U.S. subsidiaries also filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York. Chrysler also filed a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler's principal assets to the new company.

Nardelli, Chrysler's Chairman and CEO since August 2007, announced on April 30 his plan to leave the company following the completion of the transactions. He will return to Cerberus Capital Management LP as an advisor.

LeasePlan USA has signed an agreement with J.J. Keller & Associates, Inc., allowing J.J. Keller to provide regulatory compliance services to LeasePlan clients.

Utilizing J.J. Keller's experience, LeasePlan clients will be able to choose from a wide range of services including DOT consulting and training as well as driver and vehicle compliance services. Driver services are comprised of driver qualification file management, drug and alcohol program management, and driver log auditing. Temporary trip and fuel permits, temporary oversize and overweight permits, title, licensing and permitting, and fuel tax reporting make up the vehicle services offerings.

Tony Blezien, Vice President, Operations for LeasePlan USA said, "We are pleased to be able to provide our client base with the DOT compliance expertise of J.J. Keller & Associates. This not only enhances our already robust service offerings, but shows our commitment to assisting our clients with each and every aspect of managing their fleet."

Amidst a very challenging automotive environment rife with mergers, acquisitions and bankruptcies, and rumors of more to come, OEMs continue to enhance existing embedded and hybrid telematics services and/or launch new ones, driving global penetration rates in new cars to 12 percent in 2010 and 43 percent in 2014, according to ABI Research.
 
"OEM telematics is gaining momentum across the globe. With GM's OnStar and Ford's SYNC to be joined by telematics solutions from Toyota and Chrysler launching later this year, the U.S. remains the most competitive market," says ABI Research practice director Dominique Bonte. "At the same time Toyota and GM will expand into the Chinese market, while government regulation in Brazil and the EU will drive uptake in Latin America, Western and Eastern Europe."
 
Safety and security features such as emergency calling (eCall), breakdown assistance (bCall), and remote diagnostics remain the most popular, but connected "infotainment" such as off-board navigation, online local search, concierge services, and Internet access offered by OEMs such as BMW are enjoying increasing interest. 
 
ABI Research expects that by offering multiple safety, cost, and entertainment benefits to different stakeholders such as governments, car manufacturers and dealers, and end-users, consumer telematics will become a standard automotive feature in developed regions by 2015. However, this evolution will require the removal of barriers such as high cost and long development cycles. Standardization initiatives such as the Next Generation Telematics Protocol (NGTP) and the adoption of open source automotive software development platforms supported by the recently announced GENIVI consortium will help. 

Pennsylvania State police troopers and motor carrier enforcement officers inspected 2,281 commercial vehicles and placed 144 vehicles and 78 drivers out of service during Operation SAFE (Seatbelt and Fatigue Enforcement) Driver, Commissioner Frank E. Pawlowski recently announced. Inspections were held across Pennsylvania on May 13.

He said troopers issued 867 citations during Operation SAFE Driver, including 97 citations for drivers not wearing seat belts. Officers also issued 43 seat belt violation warnings.

"National Highway Traffic Safety Administration statistics show that only 65 percent of commercial vehicle drivers buckle up when they climb behind the wheel, compared to 82 percent of the general driving population," Pawlowski said. "During Operation SAFE Driver, our officers found that 93 percent of commercial drivers were wearing seat belts. We were pleased to find this level of compliance."

Just two weeks earlier State police troopers and motor carrier enforcement officers inspected the air brakes of 1,560 commercial motor vehicles and placed 326, or 21 percent, of the vehicles out of service during Operation Air Brake 2009.

During a similar operation in May 2008, state police inspected the air brakes of 1,375 commercial motor vehicles and placed 290, or 21 percent, out of service. Pawlowski said state police will conduct another Operation Air Brake detail later this year.

SPOTLIGHT ON LEGISLATION

Governments of Canada and Ontario to Provide Financial Support to General Motors

Both the governments of Canada and Ontario are working together to supply financing to General Motors of Canada Limited (GMCL) and General Motors (GM) Corporation.  The financial support is being offered in an effort to support both companies' endeavors to restructure. 

Announced on June 1, Prime Minister Stephen Harper, who was joined by Ontario Premier Dalton McGuinty and Federal Minister of Industry Tony Clement, said that both levels of government are collaborating to ensure that Canada maintains its share of production within the Canada-U.S. market.  Ensuring a viable industry continues to be the objective behind the offer of financial support.

The financial support being provided by both levels of Government follows similar financial support announced earlier by the U.S. Government.

Included in the support to GM are a working capital loan and a medium-term restructuring loan to the company's Canadian operations.  In addition, working with the U.S. Government, the Government of Canada and the Government of Ontario are also sustaining a court-supervised restructuring of GM Corporation in the U.S. through joint Canada-U.S. debtor-in-possession financing.

The Prime Minister also highlighted that the Government of Canada's long-term goal remains the same – to ensure that there is a sustainable Canada-U.S. auto industry in which Canada maintains its share of production, secures significant investment in research and development and innovation, and protects high-skill jobs.

 

President Obama Announces Fuel Standards

President Barack Obama has announced a new national policy that will increase the fuel economy and reduce the greenhouse gas (GHG) emissions of all new cars and trucks sold in the United States. The policy includes proposed new fuel economy standards which will cover model years 2012-2016, achieving an average fuel economy of 35.5 miles per gallon (mpg) for model year 2016. The standards will also reduce carbon dioxide emissions from new vehicles by 30% percent by 2016. Over the lifetime of these new vehicles, they will save an estimated 1.8 billion barrels of oil and will avoid the emission of 900 million metric tons of carbon dioxide.

Congress Looks at Repeal of REAL ID

Federal and state officials have drafted legislation to replace a controversial 2005 law that set national standards for driver's licenses and identification cards. The legislation is expected to be introduced by Sen. Daniel Akaka, D-Hawaii, and would repeal requirements set by the REAL ID law. Under the bill, the Homeland Security Department would conduct a nine-month rulemaking process, with states then having five years to comply.

The bill would eliminate a mandate for states to create a national information-technology system for sharing data. Instead, state departments of motor vehicles would have to "take appropriate steps" to determine a person does not have a license from another state. And a test program would be established to determine the feasibility of creating a national information-sharing system. The bill also eliminates a requirement that states scan and store identification documents, such as birth certificates, electronically.  The bill would not require states to verify identification documents that applicants use to get a license, such as birth certificates or records showing where they live. Instead, motor vehicle departments would have to validate that the documents are authentic -- meaning trained personnel would examine them. But the bill would still require states to verify that an applicant is in the country legally. State motor vehicle officials would be expected to check federal immigration and Social Security databases, but would not have to pay any fees to access those databases.

Climate Change Passed Key House Committee

The House Energy and Commerce Committee has passed "H.R. 2454, The American Clean Energy and Security Act." The legislation sets national targets for greenhouse-gas emissions under a cap-and-trade system and gradually lowers the overall level of greenhouse gas emissions.  This legislation would cut global warming pollution by 17 percent compared to 2005 levels in 2020; by 42 percent in 2030; and by 83 percent in 2050.  The legislation also promotes electric vehicles.  The bill gives EPA the authority to require large vehicle fleets to report their greenhouse gas emissions (fleets with emissions of more than 25,000 tons of carbon dioxide equivalent on an annual basis).  The bill also amends the Energy Policy Act of 1992 to require state fleets to meet the same requirements as federal fleets with respect to acquisition of alternative fueled vehicles.

ENVIRONMENTAL UPDATE

President Obama set in motion a new national policy aimed at both increasing fuel economy and reducing greenhouse gas pollution for all new cars and trucks sold in the United States.

The new standards, covering model years 2012-2016, and ultimately requiring an average fuel economy standard of 35.5 mpg in 2016, are projected to save 1.8 billion barrels of oil over the life of the program with a fuel economy gain averaging more than 5 percent per year and a reduction of approximately 900 million metric tons in greenhouse gas emissions. This would surpass the CAFE law passed by Congress in 2007 required an average fuel economy of 35 mpg in 2020.

This groundbreaking policy represents an unprecedented collaboration between the Department of Transportation (DOT), the Environmental Protection Agency (EPA), the world's largest auto manufacturers, the United Auto Workers, leaders in the environmental community, the state of California, and other state governments.

A national policy on fuel economy standards and greenhouse gas emissions is welcomed by the auto manufacturers because it provides regulatory certainty and predictability and includes flexibilities that will significantly reduce the cost of compliance. The collaboration of federal agencies also allows for clearer rules for all automakers, instead of three standards (DOT, EPA, and a state standard).

"President Obama is uniting federal and state governments, the auto industry, labor unions and the environmental community behind a program that will provide for the biggest leap in history to make automobiles more fuel efficient," said DOT Secretary Ray LaHood. "This program lessens our dependence on oil and is good for America and the planet."

A proposed rule by the Environmental Protection Agency (EPA) could undercut already struggling small business biofuel producers, lawmakers argued during a Congressional hearing.   Rep. Kathy Dahlkemper (D-PA), the Chairwoman of the House Committee on Small Business' Subcommittee on Regulations and Healthcare, said that the EPA's proposal to include international land use changes in the calculation of the greenhouse gas emissions from biofuels, could undermine the fledgling industry, just as it is beginning to take root.

"When it comes to calculating biodiesel's emissions profile, EPA's actions could be devastating," said Dahlkemper.  "The biofuels industry holds great promise not only to create new, good paying jobs, but to wean our nation off foreign energy sources.  However, we can only benefit if we adopt policies that promote the growth of this industry, rather than hampering it before it gets off the ground."

On May 5, the EPA released its Notice of Proposed Rulemaking to implement the Renewable Fuels Standard.  The EPA's rule could disqualify many biofuel producers from the RFS program, preventing them from selling their product and staying in business.  The EPA plan would attempt to take into account how biofuel production changes the use of land and how those changes affect greenhouse gases emissions. However, lawmakers said that the effect of land use changes are currently difficult to measure and that trying to consider them could be harmful to many smaller biofuel producers.

"The EPA has the ability to be flexible in drafting emissions profiles, and it is critical that the agency use that flexibility," said Dahlkemper.  "To begin, it could accomplish a great deal by drafting a clear, workable framework for small firms to follow. As part of that process, biodiesel entrepreneurs should be consulted."

The Energy and Commerce Committee approved H.R. 2454, "The American Clean Energy and Security Act," by a vote of 33 to 25.  This legislation is a comprehensive approach to America's energy policy that charts a new course towards a clean energy economy.

The American Clean Energy and Security Act will create millions of new clean energy jobs, save consumers hundreds of billions of dollars in energy costs, enhance America's energy independence, and cut global warming pollution.  To meet these goals, the legislation has four titles:

• A clean energy title that promotes renewable sources of energy, carbon capture and sequestration technologies, clean electric vehicles, and the smart grid and electricity transmission.
• An energy efficiency title that increases energy efficiency across all sectors of the economy, including buildings, appliances, transportation, and industry.
• A global warming title that places limits on emissions of heat-trapping pollutants.  This legislation would cut global warming pollution by 17 percent compared to 2005 levels in 2020; by 42 percent in 2030; and by 83 percent in 2050.  These are science-based targets and within the range agreed to by USCAP.
• A title that protects U.S. consumers and industry and promotes green jobs during the transition to a clean energy economy.

The legislation has received wide support from electric utilities; energy companies; manufacturing, industry, and corporate companies; labor unions; and community and environmental organizations.

The Valley Air District has money for heavy-duty diesel owners of small fleets to replace their older, polluting trucks with newer, cleaner models.

The Voucher Incentive Program (VIP) is a new, streamlined option funded through the Carl Moyer Memorial Air Quality Attainment Program. More than $15 million is available through the program, which is open to any owner to fund heavy-duty truck replacements throughout California. Between $30,000 and $35,000 is available per grant, depending on the age of the truck. Trucks with 1993 and older engines are eligible. Grants are made on a first-come, first-served basis and applications will be approved within five business days.

Eligible trucks must operate 75 percent of the time in California & additional criteria includes:

• Fleet size must be no more than three heavy-duty diesel trucks.
• Old trucks must have a 1993 or older engine.
• Trucks must be registered with the Department of Motor Vehicles with a declared combined weight greater than 60,000 pounds (Class 8).
• Trucks must have operated more than 30,000 miles per year or consumed 4,700 gallons of diesel fuel per year in each of the previous two years. In cases where one truck did not earn enough mileage, the operator may retire two trucks for one replacement to meet the usage requirement.
• Trucks must be operational and have been registered in California for each of the last two years (partial registration for at least three months per year is eligible).

The replacement truck/s must meet at least 2007 emission standards and be purchased through a participating dealership, and the old truck destroyed. Trucks purchased through the program are subject to three-year reporting. A list of participating dealerships is available at http://valleyair.org/Grant_Programs/vip/VIP%20Dealer%20List.pdf.

For additional program information or to apply for a voucher, call the grants and incentives department at (559) 230-5800 or ARB's diesel hotline at 1-866-6DIESEL. Check www.valleyair.org for website updates and to sign up for automated e-mail information or ARB's website at www.arb.ca.gov/msprog/moyer/voucher/voucher.htm.

The Los Angeles Harbor Commission has approved up to $44.2 million in Port funding toward the 2009 Clean Truck Incentive Program at the Port of Los Angeles.  

The 2009 incentives will be used to help bring trucks into service at the Port that run on Liquefied Natural Gas, Compressed Natural Gas, or lithium battery electric power.  This initiative follows a successful 2008 incentive program that put into service more than 2,200 trucks that currently meet or exceed 2007 U.S. EPA emission standards.  Since the launch of the Clean Truck Program October 1, 2008, pollution at the Los Angeles-Long Beach port complex has been reduced by more than 23 percent.

"Our goal is to put 1,000 alternative fuel trucks into service through our 2009 Clean Truck Incentive Program, and the funding our board just approved is a major step in that direction," said Port Executive Director Geraldine Knatz, Ph.D.

The funds will be used to offer concessionaires in the Port of Los Angeles Clean Truck Program (CTP) incentives of up to $80,000 for each LNG or CNG truck they purchase.  Port terminal operators or concessionaires can also receive up to 80 percent of negotiated cost for each electric truck they purchase for terminal or drayage truck use.  

NAFA Online Store

Order by June 30 and Save 25% on NAFA's Driver Transportation Options

 

 

 

 

Driver Transportation Options

e-Download & Softback Versions Available

 

This 154-page compilation of information examines the many facets that need to be considered when determining what is best for your organization and when providing business transportation to employees. Among other topics, the compilation reviews reasons to reject driver reimbursement, resale losses, and trends among commercial fleets. When ordering the e-Download format, please note: once your transaction is processed, your e-download will be available to you on the NAFA Web site, under the Store tab, on the My Documents page once you log in to the site.

 

 

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. Get the most from your NAFA membership by taking advantage of substantial discounts on all products in our online store.

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 website 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.

June Job Postings

National Director Fleet & Commercial Sales - Elkhart, IN

Manager - Fleet Services - Vancouver, BC

Program Manager, Fleet Management; Northwest Region - Seattle, WA

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 website. 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
Click Here

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.

June Chapter meetings will take place:

June 10, 2009
New England Chapter - Golf Outing
Location: RiverBend Country Club, West Bridgewater, MA
Contact: Karen Kerns, (401) 392.1000, karen.kearns@gtech.com
Mark Gentile, (617) 495.5589, mark_gentile@harvard.edu 
 
June 11, 2009
Michigan Annual Golf Outing
Location: Eagle Crest Conference Center and Resort, Ypsilanti, MI
Contact: Joel Neumeyer, 248.597.3514, joel.neumeyer@vpsiinc.com
RSVP by June 4, 2009
 
June 16, 2009
Wisconsin Chapter - Meeting
Location: Automobile Dealers Association of Mega Milwaukee, Milwaukee, WI
Contact: Mary Daniel, P: 414.385.5212, F: 414.384.1950, mdaniel@sssf.org

June 16, 2009
Old Dominion Chapter - Meeting
Location: Insurance Institute for Highway Safety/Vehicle Research Center, Ruckersville, VA
Contact: Ken Bernard, (540) 853.2108, (540) 400.9894, ken.bernard@roanokeva.gov

June 18, 2009
New York Chapter - SAE Activity Meeting
Location: Holiday Inn, Carteret, NJ
Contact: Lois Roth, (201) 216.2363 or lroth@panynj.gov
RSVP by June 12, 2009
 
June 18, 2009
San Francisco Chapter - Meeting and Plant Tour
Location: Scelzi Enterprises, Inc., Date Street, Fresno, CA
Contact: Terence Kyaw, tkyaw@redwoodcity.org, (650) 780.7485
 
June 24, 2009
New Jersey Chapter - Contingency Planning
Location: Pinecreek Miniature Golf, West Amwell, NJ
Contact: Julia Mclver, P:(973) 466.4556, F: (973) 466.4249, jmclver@horizonblue.com 
 
June 24, 2009
Greater Hartford Chapter Meeting
Location: Southern Auto Auction, East Windsor, CT
Contact: Bridget Clark, bridget.m.clark@power.alstom.com

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. These databases are exclusively for the use of the NAFA membership. Our three databases help YOU find:

• Fellow Members and Affiliates based on name, geographic area, or chapter.
• An expert who has volunteered to answer questions from colleagues on specific topics that are important to you.
• An Affiliate product or service; you can choose from more than 50 categories.

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 website your fast online portal to all fleet management education.
 
Easily look up available resources while scanning an overview of a particular fleet management discipline. Complete a brief self-assessment test, selected by discipline, to confirm your strengths, and discover what areas may need a little more concentration. These quizzes provide real-time feedback, with suggested education content according to your assessment results.

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 -- any time, 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:

• View real-time activity between other subscribed members within the group(s) you subscribe to.
• Share your knowledge and assist a fellow member in need, access lists of subscribers for each group, and access a history of inquiries posted to e-Communities.
• Some of the topics include alternative fuels, disaster relief, fleet maintenance, global fleet, law enforcement, and many more! Come be a part of NAFA's community!

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.