Supplier Side

EPA PROPOSES FINES FOR ’02 ENGINES

The U.S. Environmental Protection Agency says it doubts all five heavy-duty engine manufacturers will meet an October deadline to comply with tougher emissions standards.

Caterpillar, the only manufacturer not using exhaust-gas recirculation technology to meet the standard, has admitted its approach will not meet the EPA requirements until early 2003. It maintains that its new fuel-injection and combustion technology, called ACERT, will help its engines comply with the next round of emissions standards in 2007.

The EPA proposed fines of between $3000 and $9000 US for each engine it sells that does not meet the standards in October.

The proposed penalties relate to a 2004 deadline to reduce hydrocarbons plus nitrogen oxides (NMHC+NOx) emissions from diesel engines, part of a 1998 settlement with the EPA and U.S. Justice Department in which five manufacturers agreed to meet 2004 standards by October 2002. The companies were accused of violating the Clean Air Act by programming their engines to pass emissions tests in laboratories but then alter fuel-injection timing to deliver better fuel economy and performance on the highway.

TRAILMOBILE CANADA POISED TO GO PRIVATE

The majority shareholder of Trailmobile Canada, an Ontario-based numbered company controlled by Trailmobile Corp. of Chicago, says it plans to acquire all outstanding common shares for approximately $2.15 million and take the company private. The holding company has offered 10 cents each for shares it does not already own. Trailmobile Canada lost $2.4 million in its fiscal 2001 on revenues of $72.0 million, a decrease of $60.5 million or 45.7% from a year earlier.

MACK HIKES GRANITE PRODUCTION

Mack Trucks increased production of vehicles at its assembly plant in Macungie, Pa., this month in response to a strong increase in orders for the company’s Granite construction truck. Average daily production at the plant increased from 48 vehicles a day to 52.

GREAT DANE BUYS STRICK PLANTS

Trailer manufacturer Great Dane Ltd. has acquired van manufacturing facilities in Danville, Pa., and Abbeville, S.C., from Strick Trailer. The Danville plant will be re-tooled to build Great Dane trailers for the Northeast region of the United States and Canada.

In June 2000, Great Dane said it would build a plant in Quinte West, Ont., an amalgamation of communities that includes Trenton, Ont., capable of producing 6000 trailers a year for Canada and the U.S. Northeast. However, later that year Great Dane delayed construction of the plant, citing falling demand for new trailers.

TERION BANKRUPT

Wireless communications provider Terion has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. Terion produces a cellular-based trailer tracking product called FleetView. The company says it will provide uninterrupted service while it reorganizes.